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BNN Market Call Tonight – July 27, 2017 – Top Picks

David Driscoll Market Call July 27, 2017

TD BANK (TD.TO) – Last Trade was July 20, 2017 at $65.43.
TD is Canada’s second-largest bank. Retail banking should provide some protection in a market selloff relative to its peers as fee incomes are more consistent than capital markets revenues. Also, TD’s exposure in the United States provides it with better potential growth because its U.S. competitors are more splintered and less efficient. Finally, rising interest rates should be helpful to TD’s future net interest margins. Dividend yield is currently 3.71% and dividends have risen 10% compounded annually for the past 5 years.

JARDINE MATHESON HOLDINGS (JMHLY.PK) – Last Trade was May 12, 2017 at $65.47.
This is a holding company based in Southeast Asia. The group’s activities include financial services, supermarkets, consumer marketing, engineering and construction, automobile vending, property investments and hotels. If China is to continue global growth, Jardine will be a main benefactor. As the U.S. dollar falls against emerging market currencies, especially the Indonesian rupiah, Jardine should be a benefactor. And if the stock market tumbles, Jardine has plenty of power dry to take advantage of cheap valuations, as it did in 2008 when Hong Kong property values dropped and it doubled its position in Hong Kong Land, a subsidiary. The value of that investment doubled within 5 years.

NEXTERA ENERGY (NEE.N) – Last trade was July 20, 2017 at $143.23.
NextEra provides sustainable energy generation and distribution services through wind, solar, nuclear and natural gas. Overall, NextEra has more than 44,900 megawatts of generating capacity, mostly in Florida. Most of their refits from coal to natural gas are complete and their solar capacity continues to grow. The stock yields 2.72% and the dividend has grown by 10% per annum for the past 5 years.


Disclosure      Personal         Family         Portfolio

TD                        Y                  Y                  Y

JMHLY                  Y                  Y                  Y

NEE                      Y                  Y                  Y