Wednesday, December 4, 2013

6-Pak Approach

I get the daily emails from MPL Communications called Daily Buy and Sell Advisor. A recent email talked about a 6 Pak Approach to investing in Canadian stocks for 2012. The have two 6-Paks, one the Equity 6-Pak focused more on growth and the Dividend 6-Pak on growing income return.

You can sign up for this email at their site. I find that they generally give good solid advice. They sell information only to investors so they do not have to worry about doing business with the companies that they cover. So they are a good independent source of information on Canadian Stocks.

The Canadian Equity 6-Pak comprises of Bank of Nova Scotia (TSX-BNS), Brookfield Asset Management (TSX-BAM.A), Canadian Pacific Railway (TSX-CP), Enbridge Inc. (TSX-ENB)., EnCana Corp/Cenovus Energy (half allotments) (TSX-ECA and TSX-CVE) and Thomson Reuters (TSX-TRI). To the end of October, the Canadian Equity 6-Pak returned 20.2 per cent.

The Canadian Dividend 6-Pak comprises of Artis REIT (TSX-AX.UN), Bank of Montreal (TSX-BMO), BCE Inc., (TSX-BCE) Inter Pipeline L P. (TSX-IPL.UN), Power Corporation of Canada (TSX-POW) and TransAlta Corp (TSX-TA). To the end of October, the Dividend 6-Pak was a lower but nonetheless at a credible 12.7 per cent that includes a growing dividend yield of 5.2 per cent. By comparison, the year-to-date return on the benchmark S&P/TSX Composite Index was in the order of 10 per cent.

I follow all these stocks, see my site.

For CP Rail, oil-by-rail is a lucrative new bonus as President Obama keeps dithering over the Keystone XL pipeline and railroads fill the void by transporting Canadian oil sands bitumen across the border to waiting Gulf. Daily Buy and Sell Advisor likes the description of Cenovus as a "best-in-class" Canadian oil sands operator.

Brookfield Asset Management is a world leader in power, property, infrastructure and private equity. TransAlta Corp is making a massive transition from a coal to natural gas-fired electricity generation. If Mr. Buffett and Berkshire Hathaway favour TransAlta, we should like it too.

On my other blog I am today writing about Canada Bread Co. (TSX-CBY, OTC-CBDLF)...continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.


  1. I'm confused regarding "Canadian Pacific Railway (TSX-CNR)"! the ticker is for Canadian National Railway but you wrote Canadian Pacific. Which is it?

    1. Sorry, I put in the wrong symbol. The symbols were not included in the story I read, but I find symbols helpful. I will fix my blog entry.