The Motley Fool

Top Stocks for June

We asked our contributors to pick their favourite Canadian stocks to buy this month. Here are their top ideas.

Karen Thomas: NorthWest Healthcare Properties REIT (TSX:NWH.UN)

NorthWest Healthcare Properties REIT is Canada’s largest non-government owner and manager of medical office buildings and healthcare real estate. History has shown us that if we invest in baby boomers, it will be handsomely rewarded as there is strength (and money) in numbers.

NorthWest Healthcare Properties REIT is currently trading at a dividend yield of 7.84%, which is covered by funds from operations (the payout ratio is just over 92%). Growth at this REIT is more moderate than at the comparable Chartwell REIT, but nevertheless it is a stable performer that is striving to grow its portfolio of medical real estate buildings, and with a dividend yield that is super attractive, it makes for a good addition to a portfolio.

Fool contributor Karen Thomas does not own shares in this company.

 

Cameron Conway: CCL Industries (TSX:CCL.B)

Because I’m a fan of lesser known companies, my top stock for June is CCL Industries — does that make me a stock hipster? Anyway, the company isn’t glamorous, but is a humble producer of labels and product containers for big name brands like Coca-Cola, Panasonic, and Nivea.

The stock has exploded since the past year, with the stock price going from a 52-week low of $60.20 back in June to a May 28 closing price of $104.84. It seems the stock is far from plateauing with analysts’ price targets reaching as high as $133.00. These high price targets are backed up by a record-breaking quarter that saw sales jump 67% and net earnings rise 54% to $1.51 per diluted share. This makes CCL an unlikely winner for your portfolio.

Fool contributor Cameron Conway does not own any shares in the companies mentioned.

 

Michael Ugulini: TransForce (TSX:TFI)

TransForce offers freight transportation and logistics services. TransForce and announced this past March that the previously announced acquisition of Vitran (TSX:VTN)(NASDAQ: VTNC) through plan of arrangement was completed. Vitran is a top Canadian LTL (less-than-truckload) transportation company.

TransForce’s objective is to grow through leveraging the boom in online shopping. It has signed an agreement to offer same-day deliveries in New York for Google Shopping Express.

TransForce has boosted its dividend three times since it transitioned from an income trust in 2008. In March, its board declared a quarterly dividend of $0.145 per outstanding common share.

Fool contributor Michael Ugulini has no positions in any of the stocks mentioned in this article.

 

Matt DiLallo: Enerplus (TSX:ERF)(NYSE:ERF)

I think Enerplus has a lot to offer investors. Topping the list is a solid monthly income stream that’s likely to grow over time thanks to the company’s strong position in two top U.S. shale plays.

Among Enerplus’ most compelling opportunities is its position in the oil-rich Bakken Shale. Right now it has about seven years of growth left, however, it’s currently working on two key tests to extend that growth. The company is testing tighter spacing on its wells, which if successful could double its drilling inventory. In addition, it’s tapping shale plays beneath the Bakken that hold oil rich potential. These top opportunities could more than triple the company’s growth potential in just that one region.

Add it all up and Enerplus offers investors a nice blend of current income and long-term growth. That makes it a solid stock to buy now.

Fool contributor Matt DiLallo does not own shares in any of the companies mentioned.

 

Robert Baillieul: Canadian National Railway (TSX: CNR)(NYSE: CNI)

This is an opportunity to buy a business that is going to be around for the next century.

CN’s business is virtually impossible to replicate. The company’s network of track spans densely populated cities and its collection of rights-of-way and installed tracks form a nearly impenetrable barrier to entry. Anyone trying to reproduce CN would probably have to spend somewhere in the ballpark of $50 billion to $75 billion.

But the biggest thing is, Canada is going to do well. We’re going to have more people in this country, and they’re going to be using more goods over time. That means shareholders can count on a steady stream of growing earnings and dividends year after year.

Fool contributor Robert Baillieul has no positions in any of the stocks mentioned in this article. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Canadian National is a recommendation of Stock Advisor Canada.

 

Nelson Smith: Penn West Energy (TSX: PWT)(NYSE: PWE)

Thanks to a management team that could only be described as inept, investors have punished shares of Penn West Energy pretty much continually over the last five years. The company constantly missed expectations, had lackluster results, and even managed to cut its dividend almost 50%.

These days, the future looks bright. A new management team is in place, which has sold non-core assets to strengthen the balance sheet. It plans to significantly increase drilling on properties that are left, which should increase production and, eventually, earnings. And Penn West pays investors a 5.7% dividend to wait, which is easily covered by operating earnings.

Penn West is a perfect stock to buy while it’s depressed and wait until management fully executes the turnaround.

Fool contributor Nelson Smith does not own shares in Penn West.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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