The Globe and Mail reports in its Wednesday, July 16, edition that Stephenson & Co. Capital Management chief executive officer John Stephenson recommends buying Magna International ($118.95). The Globe's John Heinzl writes in the Yield Hog column that Magna has a one-year yield of 1.4 per cent. Mr. Stephenson notes that with the jobs picture improving in the United States, the world's biggest economy, "you want to be more in the cyclicals than the traditional defensives." Car sales have rebounded strongly from their lows following the financial crisis, and while Magna's stock has already had a good run, Mr. Stephenson sees more upside for the parts maker given that global auto sales are expected to rise by about 4 per cent annually over the next few years. Mr. Stepheonson notes the company has a solid balance sheet and is trading at a reasonable valuation of about 6.7 times estimated 2015 EBITDA (earnings before interest, taxes, depreciation, and amortization). He notes the yield is modest, but the dividend has been growing steadily. Stephenson & Co. is poised to launch its first fund, the North American Opportunity Fund, in the next few weeks. The fund may include Magna.