THE CB HOTLIST

These stocks might offer shelter in a sub-zero storm

CI Financial Corp.

(TSX: CIX) P/E: 14.4 | Yield: 4.6%

16% 1-year total return (C$): If negative rates do spark an equity rebound, then Toronto’s CI will benefit, says Craig Fehr of Edward Jones. It’s a best-of-breed asset manager with an attractive valuation.

Dollarama Inc.

(TSX: DOL) P/E: 27.9 | Yield: 0.5%

24% 1-year total return (C$): This Montreal-based discount chain seems to prosper in any economic phase. Even if markets get nervous, it’ll continue to do well. Why? Because in tough times, people want to spend less and buy cheaper products.

Merck & Co.

(NYSE: MRK) P/E: 25.3 | Yield: 3.5%

0.1% 1-year total return (C$): Based in New Jersey, this pharmaceutical firm has good growth in its pipeline. It’s a stable business, says Fehr, and can perform well in any economic environment.

Fortis Inc.

(TSX: FTS) P/E: 17.4 | Yield: 3.9%

2.3% 1-year total return (C$): Lower rates would allow this utility, based in St. John’s, Nfld., to borrow more money for acquisitions. It made two purchases last year, and Franklin Bissett’s Ryan Crowther thinks it will buy more.

TransCanada Corp.

(TSX: TRP) P/E: 19.8 | Yield: 4.6%

7.3% 1-year total return (C$): The oil crash and a “no” on Keystone XL brought down its share price, but this Calgary pipeline company still has a good growth profile and will benefit from lower borrowing costs, says Crowther.