The Motley Fool

Top Stocks for November – Part 1

Karen Thomas: Cineplex Inc.

I like Cineplex (TSX:CGX) for its 4.89% dividend yield, its strong cash flows, its steady anchor in the movie exhibition business, and its fast-growing presence in the e-gaming world.

Cineplex has embarked on a strategy to diversify away from its stalling movie exhibition business and has successfully accomplished this – its entrance into e-gaming gives the company exposure to a multi-billion industry.

Its diversification strategy continues to pay off, and we will continue to see an increase in revenue from the fast-growing “other” category, which includes Cineplex media, recreation rooms, as well as its e-gaming platform, amusement and entertainment solutions. In the latest quarter, the second quarter of 2018, the “other” category represented 24% of total revenue!

Fool contributor Karen Thomas does not own shares of Cineplex Inc.

Joey Frenette: Restaurant Brands International Inc.

My top pick for November is Restaurant Brands International (TSX:QSR)(NYSE:QSR), an outstanding growth play that appears to be priced more like a value stock at today’s levels.

With a fat 3.2% dividend yield, there’s no question that Restaurant Brands may be mistaken as a stalwart, but as we head into the latter part of the year I think we’ll see the stock regain its premium price tag as investors slowly but surely move on from the noisy Tim Hortons headlines that occurred earlier this year.

With very promising near to medium-term growth catalysts on the horizon, including the expansion of the Tim Hortons brand into China and the Philippines, as well as the introduction of new innovative menu items, I think Tim Hortons’ growth woes will soon be in the rear-view mirror.

Fool contributor Joey Frenette owns shares of Restaurant Brands International.

Demetris Afxentiou: TransAlta Renewables Inc.

Renewable energy investments are finally going mainstream, and TransAlta Renewables (TSX:RNW) is an excellent way for investors to get into what will be a very lucrative market over the next decade as renewable facilities replace their fossil-fuel burning predecessors.

TransAlta has a growing portfolio of renewable energy facilities located in Australia, Canada and the US, with gas, hydro, solar and wind elements. This not only provides a degree of diversification, but also an avenue for further expansion into multiple markets.

Income-seeking investors will absolutely love TransAlta’s monthly divided with its appetizing 8.81% yield, and value-minded investors can seize the moment and buy the stock on the cheap as TransAlta is down over 20% for the year.

Fool contributor Demetris Afxentiou has no position in any stocks mentioned.

Stephanie Bedard-Chateauneuf: Aritzia Inc.

Aritzia (TSX:ATZ), a women’s fashion brand based in Vancouver, is my top stock for November.

Aritzia’s profit tripled to $15 million in its latest quarter, boosted by strong U.S. sales. Adjusted earnings increased by 76% in the second quarter to $18.3 million, or $0.16 per share, beating expectations by $0.04. Revenue rose 18% from a year ago to $205.4 million. Comparable sales rose 11.5% as compared to a year earlier.

For fiscal 2019, Aritzia is expected to deliver revenue growth near 17% and profit growth of 23%. The fashion retailer has implemented strategies to drive long-term growth, such as product innovation, expansion through store openings and e-commerce, as well as focus on customer experience.

The stock is up about 50% year-to-date.

Fool contributor Stephanie Bedard-Chateauneuf owns shares of Aritzia Inc. 

Kay Ng: Vermilion Energy Inc.

In a down market, dividend stocks tend to outperform. Vermilion Energy (TSX:VET)(NYSE:VET) trades at $37.56 per share as of writing and offers a 7.32% yield, which I find to be quite attractive as the yield is close to its five-year high.

The fundamentals of the company are strong. As oil prices have markedly increased from the 2015-2017 period, Vermilion is set up for higher cash flow generation, which will improve the safety of its dividend.

Indeed, management must have noticed the improved environment of operations. Otherwise, it wouldn’t have increased the monthly dividend per share to $0.23 in April.

Vermilion has maintained or increased its dividend since 2003, throughout the last market crash. So, it’s a relatively safe high-yield idea.

Fool contributor Kay Ng owns shares of Vermilion Energy.

Nelson Smith: Great Canadian Gaming Corp

Great Canadian Gaming (TSX:GC) is my top stock for November for one simple reason. The market is discounting a major development.

The company recently won the right to run several casinos in the Greater Toronto Area, including Woodbine. It has a big expansion planned there, which should significantly boost earnings, including adding more slots and table games. Long-term plans include more restaurants, a couple of hotels, and a conference center.

The company is also experiencing growth at its other Canadian casinos, and investors can pick up shares for just 15.7 times forward earnings. Shares are also well off 52-week highs, which makes today a good entry point.

Fool contributor Nelson Smith has no position in Great Canadian Gaming Corp.

Neha Chamaria: Brookfield Infrastructure Partners

Shrewd investors wouldn’t pass up the opportunity Brookfield Infrastructure Partners (TSX:BIP)(NYSE:BIP) is offering right now.

Shares of the infrastructure asset management behemoth have been feeling the heat for several months now, partly because of rising interest rates that could rack up its interest outgo on debt. Yet, the growth potential for the company far outweighs the risks, given that infrastructure assets like utilities, energy, transportation, and telecommunications that BIP operates mostly offer essential services.

BIP’s recent multi-billion acquisitions and deals and a strong project pipeline should generate strong cash flows, so much so that the company is confident it can grow dividends annually by 5-9% in the long run. When combined with the stock’s hefty yield of 4.8%, it seems the market is underrating BIP. You shouldn’t any more.

Fool contributor Neha Chamaria has no position in this company.

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