BMO chief equity strategist Brian Belski believes dividend growth strategies are set to outperform again,
“We believe this “return to normalcy” places Canadian companies in a strong position to begin redeploying cash balances and cash flow in the form of both investments and cash distribution. Overall, we believe this more cautious fiscal positioning is set to or has already troughed. As such, as companies regain confidence in the earnings recovery and economic momentum, we believe their cash preservation strategies will subside, thereby providing a strong tailwind for dividend based strategies.”
Mr. Belski presented a long list of Canadian companies with dividend growth potential. These include: Barrick Gold Corp., Allied Properties REIT, Boyd Group Services Inc., Canadian Apartment Properties REIT, CCL Industries Inc., CI Financial Corp., goeasy Ltd., Linamar Corp., Metro Inc., Yamana Gold Inc. and Sleep Country Canada Holdings Inc.