New Best Buys
Given the recent market turmoil, we’ve made a number of changes to our Global Income Edge holdings with a Best Buy designation.
In the Conservative Portfolio:
Merck & Co (NYSE: MRK) has been named the new #1 Best Buy.
Unilever (NYSE: UL) has been named our new #3 Best Buy
HCP (NYSE: HCP) has been moved out of the portfolio and just will be in our REIT portfolio after being in two portfolios. HCP continues as our #1 Best Buy in the REIT Portfolio.
In the Aggressive Portfolio:
Phillips (NYSE: PHG) has been named the #2 Best Buy.
In our February issue, now online, we spotlight Phillips as one of the strongest plays on a European recovery, a stock that has held up well during the recent market turmoil.
Also, our long-time holding, City National Bank Preferred Shares (NYSE: CYNPRC) has been converted on the same terms by Royal Bank of Canada, which acquired City National last year.
As such, we are re-instituting Royal Bank of Canada preferred shares (NYSE: RY.PRS) which has a dividend yield of 5.5%. Buy RY.PRS up to $30.
Stock Talk
Ann Mullins
I didn’t know you provided recommendations on preferreds. I am very interested in them. Where can I find this info?
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Richard Stavros
Dear Ann –
Thanks so much for your question. We added City National, our first preferred stock, to the portfolio in early January 2015. Please see the following link to the article link; http://www.investingdaily.com/global-income-edge/articles/21915/eight-new-income-stocks-for-2015/
As per our alert today, Royal Bank of Canada (RBC) merged with City National last year and we had these shares on hold for the better part of 6 months until we could confirm that RBC would convert on the same terms, which it did, and thus changed our rating to buy.
To date that’s our only Preferred holding, but there’s a lot in the works with respect to bonds and Preferred shares. We have been developing a credit screen over the last few months and have been actively screening potential new holdings, as well as back testing the new model for effectiveness with respect to bonds. And part of that model has an equity analysis component which we hope to use for Preferred shares.
So, stay tuned. We hope to offer this new coverage in the next few months,
All the best –
Richard
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