The Globe and Mail reports in its Thursday edition that BMO chief strategist Brian Belski has reiterated his belief that the Toronto Stock Exchange will continue to hit new highs and Canadian companies will increase dividend payouts and buybacks.
The Globe's Scott Barlow quotes Mr. Belski saying in a note: "We recently raised our 2021 price target to 20,500 for the S&P/TSX, which represents a moderate 1.7% gain from June 30th close. Yes, the risks to this target are still balanced to the upside in our opinion. Overall, our continued bullish outlook for the TSX is driven by several key pillars of strength. Firstly, the US will likely remain the key engine of global growth on epic stimulus measures. Given the strong cross-border relationship, this will continue to be a tailwind for Canadian equities and earnings growth in the quarters. Furthermore, cautious corporations have continued to sit on cash and cash flow, and only recently have started to increase corporate actions like dividend growth, share buybacks, and M&A. As such, we believe the TSX is likely to continue to set new all-time highs in the second half of 2021." The S&P/TSX Composite Index closed Wednesday at 20,290.60, down 9.43 points.
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