The Canadian Core Buy list posted a strong performance in June, growing 3.6% after an off month in May. However, the S&P/TSX 60 index performed even better in June, growing 3.9%. The portfolio's rise during the month was driven by Canadian Natural Resources CNQ, up 11.6%, and Cenovus Energy CVE, up 8%. The Core Buy list has generated a cumulative return since inception of 167.3%, while the S&P/ TSX benchmark has returned 99.1% -- a difference of 68.2%.
Our model recommended two changes to July's Core Buy list. Enbridge ENB and IGM Financial IGM moved up from the Consider Hold list to the Consider Buy list, bumping Canadian Natural Resources CNQ and Thompson Reuters TRI to the Consider Hold list.
A recap of stocks on this month's Consider Buy List
Cameco Corp. remains on the list from last month. The stock trades at a 12.8% discount to our fair value estimate of $24.
Cenovus Energy remains on the list from last month. The stock trades at an 13.5% discount to our fair value estimate of $40.
Enbridge was added to the list this month. The stock trades at a 9.6% discount to our fair value estimate of $56.
IGM Financial was added to the list this month. The stock trades at a 7.1% discount to our fair value estimate of $55.
Power Corp. of Canada remains on the list from last month. The stock trades at a 15.3% discount to our fair value estimate of $35.
Power Financial Corp. remains on the list from last month. The stock trades at a 10.2% discount to our fair value estimate of $37.
Rogers Communications remains on the list from last month. The stock trades at a 10.5% discount to our fair value estimate of $48.
Tourmaline Oil Corp. remains on the list from last month. The stock trades at a 14.8% discount to our fair value estimate of $66.
The Canadian Income Buy list underperformed the S&P/TSX 60 index in June, growing 1.7% compared with the benchmark's 3.9%. None of the companies on the portfolio's list posted particularly extreme performances. Six of the eight names posted positive growth, led by Thomson Reuters TRI at 3.4%, while the largest drop during the month was Rogers Communications RCI.B, which fell 1%. The Income Buy list has generated a cumulative return since inception of 186.5%, while the S&P/TSX benchmark has returned 99.1% -- a difference of 87.4%.
Our model recommended one change to July's Income Buy list. Telus T was upgraded to the Consider Buy list, while Thomson Reuters fell to the Consider Hold list in a reversal of the companies' swap in the previous month.
A recap of stocks on this month's Consider Buy List
Fortis remains on the list from last month. The stock offers a dividend yield of 3.9% and trades at a 1.6% discount to our fair value estimate of $33.
IGM Financial remains on the list from last month. The stock offers a dividend yield of 4.2% and trades at a 7.1% discount to our fair value estimate of $55.
Potash Corp. of Saskatchewan remains on the list from last month. The stock offers a dividend yield of 3.7% and trades at a 5.6% discount to our fair value estimate of $43.
Power Corp. of Canada remains on the list from last month. The stock offers a dividend yield of 3.9% and trades at a 15.3% discount to our fair value estimate of $35.
Power Financial Corp. remains on the list from last month. The stock offers a dividend yield of 4.2% and trades at a 10.2% discount to our fair value estimate of $37.
Rogers Communications remains on the list from last month. The stock offers a dividend yield of 4.3% and trades at a 10.5% discount to our fair value estimate of $48.
Telus Corp. was added to the list this month. The stock offers a dividend yield of 3.8% and trades at a 5.3% discount to our fair value estimate of $42.
TransCanada Corp. remains on the list this month. The stock offers a dividend yield of 3.8% and trades at a 5.7% discount to our fair value estimate of $54.
