TELUS Corp. (TSX: T, NYSE: TU)

Dividend Yield: 4.5%

Recent Price: C$38, US$27

Fair Value: C$4, US$33

Telus is one of the top telecommunications operators in Canada with a core focus on the fast growing areas of mobile telecommunications and high speed internet.

The company has an exceptional dividend payment track record with prospects of good growth ahead. Although the balance sheet is somewhat stretched, the business continues to produce ample cash flow which is used to finance capital expenditures, dividend payments and the share repurchase program.elus is one of the top telecommunications operators in Canada with a core focus on the fast growing areas of mobile telecommunications and high speed internet.

The recently announced entry of a fourth national mobile competitor in the form of Shaw Communications created concerns among investors about increased competition for the incumbents. We believe these concerns are overblown and have resulted in a good buying opportunity.

Innvest REIT  (TSX: INN-U, OTC: IVR.F)

Dividend Yield: 7.8%

Recent Price: C$5.01, US$3.60

Fair Value: C$6.31, US$4.50

The company is one of the top Canadian hotel landlords with well-known brands such as Fairmont, Comfort Inn and Delta in the portfolio.

Meanwhile the weak Loonie is drawing considerable numbers of tourists to Canada and Canadians are vacationing more at home.Management and board changes resulted in improved corporate governance, the sale of underperforming properties, and the refurbishment of a considerable portion of the portfolio.

Third quarter results indicated a substantial improvement in key operating metrics although more work needs to be done.

This is an opportunity with considerable upside potential but not without risk.

Canadian National Railway Co. (TSX: CNR, NYSE: CNI)

Dividend Yield: 1.7%

Recent Price: C$73, US$52

Fair Value: C$77, US$54

Canadian National Railway is one of the top Class One railways in North America with an irreplaceable asset base. It also ranks as our top quality rated Dividend Champion.

Current industry conditions are challenging with declines in overall transported volumes and especially for coal and other mined commodities. However, lower fuel costs and the ability of the company to raise prices will contribute to increased profits in 2015 and 2016.

The business is highly profitable, has a strong balance sheet and abundant cash flow. For the first time in a while the price has fallen below our fair value estimate which we believe offers an attractive entry point.

TMX Group (TSX: X, OTC: TMXXF)

Dividend Yield: 4.3%

Recent Price: C$38, US$27

Fair Value: C$44, US$31

The TMX Group is the primary provider of equity, fixed income and derivative trading platforms in Canada. In an environment where reputation is all-important, TMX dominates the market.

Nasdaq announced their entry into the local cash equity trading market in December last year with the acquisition of Chi-X, the second largest equity trading platform. Market concerns are that this will lead to increased competition and lower profitability for TMX.Although the business generates reasonable profits and cash flows the arrival of a new CEO in late 2014 promises to lift the financial performance of the business to the level of global peers. His intention is to get this done inter alia with an increased focus on the profitable areas of derivatives trading and information services.

While we recognize these concerns, we are comfortable that the current deeply discounted TMX valuation leaves enough upside for investors even with the uncertainties created by increased competition and the revised strategy of a new CEO.