The Globe and Mail attempts to identify highly profitable and less volatile Canadian companies in its Tuesday, June 28, edition. The Globe's Craig McGee writes in the Number Cruncher column that the results from the Brexit vote
shocked worldwide markets and
investors found themselves looking
to replace their riskier holdings
with safer alternatives.
Although the market reaction
was likely overdone, according to Mr. McGee, profitable
companies that have demonstrated
stable earnings and lower
price volatility may continue to
be in high demand.
Mr. McGee only considered companies with a market capitalization greater than $500-million. He looked for stocks with a low five-year beta, which indicates the stock is less volatile than the market in general. He also looked for high earnings stability and high return on equity. Finally, The Globe writer only considered dividend-paying companies. Mr. McGee's recommended stable stocks are Quebecor, Dollarama, MTY Food Group, BCE, Alimentation Couche-Tard and Metro.
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