Ryan Bushell, CEO & Portfolio Manager, Newhaven Asset Management
Focus: Canadian dividend stocks
Top Picks: Brookfield Renewable, Enbridge, Telus
MARKET OUTLOOK:
September has arrived and with it some added volatility. We are closely watching the bond market for signs of stress as oil prices continue to feed inflation into the system alongside renewed tariffs and surprising strength in the labour market in the United States.
When combined with significant amounts of debt issuance from tech companies to fund next year’s even more ambitious capex plans, we wonder where the breaking point lies.
Our infrastructure holdings moderated in late August as rates rose and money rotated back to semiconductors, however we remain above benchmark for the year so far.
We continue to safeguard portfolios, allowing cash from dividends to accumulate alongside proceeds from the Arc Resources disposition.
We remain concerned that equity investors are far too sanguine about “dogs that didn’t bark” in the past (oil prices and interest rates), but that doesn’t mean they will remain silent forever.
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TOP PICKS:
Brookfield Renewable (BEP-U TSX)
The setup for Brookfield Renewable looks positive to us over the next 12 months and beyond. Momentum continues at Westinghouse and work continues on their bespoke agreements with power hungry tech companies like Google and Microsoft.
The stock has checked back with rates rising and data center moratoriums, however the simplification vote next month should pass easily and result in additional index based demand.
With a 4.85 per cent dividend yield we can afford to be patient and we believe this is a decent place to put capital during an uncertain time.
Enbridge (ENB TSX)
This is largely a defensive call supported by a nearly 5.6 per cent dividend yield. We are not optimistic on market prospects from here but do feel that Enbridge will weather the storm.
After major gas utility acquisitions last year Enbridge is arguably more defensive than previously and well positioned to both protect capital and steadily grow with the host of opportunities in front of them.
A recent pullback in the shares from the $80 level in mid July has provided a decent entry point for at least a partial position for those that missed the near double from $40 in 2023. We are long term holders and happy to accumulate on dips.
Telus (T TSX)
Telus has become the new Altagas for us, in that it’s a name we are sticking with when it has become very unpopular to do so. Telus certainly has problem, but these are fixable problems and we believe strongly that they won the lottery having Victor Dodig take the job after he completed a turnaround at CIBC during his tenure that would have seemed improbable at the outset.
Telus has cost cutting opportunities galore and stands to benefit from the AI transformation in many different ways. Their fibre to the home capex is moderating rapidly and balance sheet repair is achievable.
This is not a one year selection but we have very strong confidence with a 5-10 year view that Telus will have been a worthwhile investment from these levels.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BEP-U TSX | Y | Y | Y |
| ENB TSX | Y | Y | Y |
| T TSX | Y | Y | Y |
PAST PICKS: OCT. 17, 2025
Algonquin Power (AQN TSX)
Then: $8.37
Now: $7.36
Return: -12%
Total Return: -9%
Pembina Pipeline (PPL TSX)
Then: $53.10
Now: $66.77
Return: 26%
Total Return: 30%
K-Bro Linen (KBL TSX)
Then: $37.18
Now: $42.02
Return: 13%
Total Return: 16%
Total Return Average: 12%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AQN TSX | Y | Y | Y |
| PPL TSX | Y | Y | Y |
| KBL TSX | Y | Y | Y |
