We asked our top investors for their favourite stocks for November. Here are their selections.
Kay Ng: Northview Apartment REIT (TSX:NVU.UN)
Northview Apartment REIT (TSX:NVU.UN), is one of the largest publicly traded multi-family REITs in Canada. The REIT collects rent from a diversified portfolio of over 24,300 multi-family suites across Canada.
Over 12 years, Northview has maintained its distribution, and raised it eight times. Around $19, it yields 8.5%. With a payout ratio of 70%, its monthly distributions remain safe. The shares are priced 27% below book value.
REITs pay out distributions that are unlike dividends. To avoid any tax-reporting hassle, you can purchase REITs in TFSAs or RRSPs.
Fool contributor Kay Ng owns shares of Northview Apartment REIT. Please note that Northview Apartment REIT recently changed its name and ticker symbol. It was previously known as Northern Property REIT.
Matt Smith: Suncor Energy Inc. (TSX:SU)(NYSE:SU)
Despite the sharp collapse in oil, Suncor Energy Inc. (TSX:SU)(NYSE:SU) is powering ahead, recently announcing better than expected third-quarter 2015 earnings. It is also poised to take over the energy patch with a $5 billion war chest for acquisitions.
Canadian Oil Sands Ltd. (TSX:COS) may have rebuffed Suncor’s takeover offer but in a market awash with distressed assets, there are plenty of other opportunities. Suncor acquired a further 10% of the Fort Hills project from partner Total SA for $310 million, well below the independent valuation of $450 million.
Then you have Suncor’s low breakeven costs of US$30 per barrel, which along with its refining operations generating higher margins, will allow it to remain profitable even if oil dips lower. For these reasons it is easy to see Suncor emerging from the oil crash as king of the oil sands.
Fool contributor Matt Smith has no position in any stocks mentioned.
Doug Watt: Constellation Software Inc. (TSX:CSU)
Constellation Software Inc. (TSX:CSU) is one of the top tech stocks in Canada, mostly due to its shrewd focus on acquisitions.
In late October, the company reported that Q3 revenue grew 10% to $460 million. Although changes in foreign exchange rates resulted in a 6% reduction in organic growth, revenue still grew, as Constellation picked up Market Leader, a software system for the real estate industry, for the bargain basement price of $23 million.
Constellation’s adjusted net income rose 43% in Q3 to $99 million.
The software stock is up 68% year-to-date, with a striking five-year return of 1,200%. Yes, the stock is expensive. But sometimes you have to pay for quality.
Fool contributor Doug Watt does not own shares of Constellation Software Inc.
Ryan Vanzo: Finning International Inc. (TSX:FTT)
Finning International Inc. (TSX:FTT) is the largest Caterpillar dealer in the world, renting and selling Caterpillar products and spare parts primarily in Canada. As a retailer, it has no factories to run, lowering its fixed costs dramatically. This means that Finning might actually be better positioned than Caterpillar Inc. or Deere & Company.
After spending over $20 million in share buybacks during the first half of this year, management has instituted an even bigger repurchase program, claiming that its shares are vastly undervalued. In total, the company has approval to repurchase 10% of all outstanding shares. Over the long term, this could create massive upside for shareholders.
Fool contributor Ryan Vanzo does not own shares of Finning International Inc.
Andrew Walker: RioCan Real Estate Investment Trust (TSX:REI.UN)
RioCan Real Estate Investment Trust (TSX:REI.UN) owns 340 retail properties in the U.S. and Canada.
The stock has fallen this year on worries about a weakening Canadian economy and the impending rise in interest rates south of the border. These concerns are certainly valid, but the sell-off looks to be overdone.
RioCan’s anchor tenants are strong brands that hold up well in a tough economic environment. As for rising rates, the last two moves in Canada have been downward and rate increases in the U.S. are likely to be small and drawn out.
RioCan’s distribution looks safe and offers a yield of 5.5%.
Fool contributor Andrew Walker has no position in RioCan Real Estate Investment Trust.
Demetris Afxentiou: Cameco Corporation (TSX:CCO)(NYSE:CCJ)
Cameco Corporation (TSX:CCO)(NYSE:CCJ) is engaged in the exploration, mining, refining, and trading of uranium for sale as fuel for nuclear reactors, used across Canada and in a host of countries.
Following the Japanese earthquake and tsunami in 2011, demand for uranium fell sharply as many nations sought out alternatives to nuclear power, citing numerous risks. This in turn put a halt to uranium demand and sent Cameco plunging to new lows.
Demand for uranium is now returning, China and India are simultaneously building out multiple reactors and targeting a significant amount of power generation to come from nuclear power in the coming decades.
For Cameco, this translates into a significant ramp up in demand, and opportunity. Deals already in place with both countries will see over 35 million pounds of uranium concentrate used as fuel. The stock is up 17% in just one month, and in the upcoming quarterly report the company is expected to greatly outperform previous guidance, sending the stock even higher.
Fool contributor Demetris Afxentiou has no position in any of the companies mentioned.
Jacob Donnelly: Cameco Corporation (TSX:CCO)(NYSE:CCJ)
My pick for November is also Cameco Corporation (TSX:CCO)(NYSE:CCJ). The price of uranium has been depressed ever since the devastation that took place in Fukushima, Japan in 2011. However, as countries realize that nuclear power remains one of the most efficient forms of power generation, there is an increase in the number of plants being launched.
Cameco has deals in China and India that will result in millions of pounds of uranium being purchased. Over the next few years, this is going to increase the price of uranium, thus sending Cameco higher. Buying now will give you a solid position for the future.
Fool contributor Jacob Donnelly does not own any shares in Cameco Corporation.
