RBC: Top 30 Global Stock Picks for 2013

This time of the year asset management firms and others usually publish their top stock ideas for the following year. I found the following list from Canada’s RBC Dominion Securities interesting:

S.No.CompanyTickerIndustryDividend Yield (as of Dec 21, 2012)Country
1Brookfield Asset ManagementBAMInvestment Services1.53%Canada
2Cameron InternationalCAMOil Well Services & EquipmentNo regular dividendsUSA
3CBS Corp.CBSBroadcasting & Cable TV1.29%USA
4Clean HarborsCLHWaste Management ServicesN/AUSA
5Concho ResourcesCXO Oil & Gas OperationsN/AUSA
6Discover Financial ServicesDFSConsumer Financial Services1.45%USA
7Dollarama Inc.N/ARetailN/ACanada
8GAM Holdings AGGMHLYAsset ManagementNo regular dividendsSwitzerland
9Hologic IncHOLXMedical Equipment & SuppliesNo regular dividendsUSA
10Host Hotels & ResortsHSTReal Estate Operations2.28%USA
11Koninklijke Philips ElectronicPHGMedical Equipment & Supplies3.56%The Netherlands
12Magna InternationalMGAAuto & Truck Parts2.22%Canada
13PNC Financial ServicesPNCRegional Banks2.74%USA
14Precision CastpartsPCPMisc. Fabricated Products0.06%USA
15Prudential Financial Inc.PRU Insurance (Life)2.99%USA
16Ryder SystemsRRental & Leasing2.46%USA
17SBA Communications Corp.SBACTelecomNo regular dividendsUSA
18Schneider ElectricSBGSYEnergy Management2.97%France
19Sherwin-Williams Co.SHWChemical Manufacturing1.03%USA
20Silver WheatonSLWGold & Silver0.81%Canada
21Statoil ASASTOOil & Gas - Integrated4.28%Norway
22Swedbank ASWDBYBanking4.00%Sweden
23TD BankTDBanking3.68%Canada
24Telus Corp.TUTelecom3.95%Canada
25TransForce Inc.N/ATransport and LogisticsN/ACanada
26Travelers CompaniesTRVInsurance (Prop. & Casualty)2.53%USA
27Tullow OilTUWOYOil Exploration and Production0.94%UK
28USG Corp.USGConstruction - Raw MaterialsNo regular dividendsUSA
29Valeant Pharmaceuticals InternationalVRXBiotechnology & DrugsNo regular dividendsCanada
30Wolseley PLCN/AConstruction Materials DistributionN/AUK


Source: RBC’s 30 top stock picks for 2013, The Globe and Mail

The above list does not include stocks from Asia, Latin America, Africa and the Middle East. These stocks have the potential to outperform the market according to RBC’s analysts. On the selection criteria  used, the article noted:

The bank culled the names for its best performers from among the 1,500 companies its analysts cover in Canada, the U.S., the UK and Europe. The analysts were told to offer their “best money-making ideas in absolute terms using a risk-adjusted approach.” The only restriction was that they had to pick larger-sized companies with market capitalization of at least $2-billion and a minimum of $20-million in daily trading value, stocks that would be suitable for a global institutional investor.

I am not yet convinced of investments in U.S. stocks based on the housing market recovery theme. Though most of the homebuilders and related companies have had a nice run this year, the real estate market does not seem to have bottomed out  according to my non-scientific observation.

Disclosure: Long PNC, SWDBY, TD

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