Top 5 Stock Picks for Q1 2020!

Q1 2020 is the time to take a deeper look at 5 of my top picks: Cargojet Inc. (TSX:CJT), Bank of Montreal (TSX:BMO)(NYSE:BMO), Killam Apartment Real Estate Investment Trust (TSX:KMP.UN), Newmont Corporation (TSX:NGT), and Pembina Pipeline Corporation (TSX:PPL)(NYSE:PBA).

As we dive deeper into Q1 2020 and the beginning of tax season, investors will be looking for great places to put their tax refunds, so here are five great options for any long-term investor to consider:

Cargojet

With a near-monopoly on the Canadian market for overnight deliveries, Cargojet Inc. (TSX:CJT) has been a favourite of mine for some time. It appears many investors have caught onto Cargojet in recent years; taking a look at the company’s stock price, one will notice a near four-fold increase in the company’s share price in just five years.

This has pushed down Cargojet’s dividend yield to less than 1% and stretched its valuation, but given the increase in revenue and earnings we can expect from future growth in the e-commerce sector, this company should be a great long-term growth play for any portfolio.

BMO

Investors seeking a safe place to park their money and watch it grow will like a lot about Bank of Montreal (TSX:BMO)(NYSE:BMO). The Canadian lender has well-diversified operations, focusing on growing businesses that are largely outside of the Canadian housing market — a sore point for many investors looking at Canadian banks right now.

BMO has continued to grow its portfolio of exchange traded funds, attempting to gain market share in a segment more and more Canadians are looking at for long-term investing given the high prices Canadians pay on average for mutual fund services.

Killam REIT

Killam Apartment Real Estate Investment Trust (TSX:KMP.UN) is once again one of my top picks for Canadian REITs for 2020 despite the recent run up in Killam’s share price.

Based on the REIT’s fundamentals, I believe there is still room for share price appreciation, and given the high-quality portfolio Killam holds coupled with its growth plans, investors have much to forward to in 2020 and beyond. For those looking to diversify their holdings with real estate, this would be an excellent place to start.

Newmont gold

Formerly Goldcorp, Newmont Corporation (TSX:NGT) is among the largest gold producers in the world. Size matters when it comes to commodities, and Newmont’s operations and ability to take advantage of rising gold prices via margin expansion make this a favourite of mine.

Having a chunk of gold in one’s portfolio, whether in the form of bouillon or a major gold producer, is a time tested way of incorporating an active hedge into said portfolio.

Pembina

In the energy infrastructure space, Pembina Pipeline Corporation (TSX:PPL)(NYSE:PBA) remains one of the best operators of the bunch. Fairly valued at this point in time, I’d encourage investors to take a look on any dips in the near to medium-term.

The company’s stock price is trading near an all-time high, for good reason, but I believe there remains upside given the company’s excellent operating margins and its opportunity to grow with its recently acquired Kinder Morgan acquisition.

Stay Foolish, my friends.

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.

The Motley Fool owns shares of and recommends CARGOJET INC. The Motley Fool recommends PEMBINA PIPELINE CORPORATION. Fool contributor Chris MacDonald has no position in any stocks mentioned in this article.

More on Dividend Stocks

investment research
Dividend Stocks

Best Stock to Buy Right Now: TD Bank vs Manulife Financial?

TD and Manulife can both be interesting stock picks for today, depending on your investment style.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These stocks are out of favour but could deliver nice returns over the coming years.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 5.5 Percent Dividend Stock Pays Cash Every Month

This defensive retail REIT could be your ticket to high monthly income.

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $600 Per Month?

Do you want passive income coming in every single month? Here's how to make it and a top dividend ETF…

Read more »

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »