Thomson Reuters Corp.

(TSX: TRI, NYSE: TRI)

Dividend Yield: 3.6%

Recent Price: C$49, US$37

Fair Value: C$51, US$38

Thomson Reuters is one of the top global providers of information, data and analytics systems to financial, legal, accounting, tax and science professionals. The company went through a tough period during the financial crisis in 2008 and 2009. In addition, key products in the financial and risk division lost considerable ground to competitors. A new CEO, appointed in 2012, managed to get the business back on track.

Thomson Reuters is a prolific generator of cash, and shareholders continue to benefit from share repurchases and growing dividends. The company is reasonably valued and the dividend yield is attractive. We have taken a small position in the Dividend Champions Portfolio and will use any price weakness to increase the holding.

Innvest REIT

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

Dividend Yield: 7.9%

Recent Price: C$5.00, US$3.70

Fair Value: C$6.30, US$4.70

This Canadian hotel landlord has well-known brands such as Fairmont, Comfort Inn and Delta in the portfolio. After management and board changes in 2014 and 2015, InnVest improved corporate governance, sold underperforming properties and refurbished a considerable portion of the hotel portfolio.

Meanwhile, the weak loonie is drawing large numbers of tourists to Canada, and Canadians are vacationing more at home. Third-quarter results indicated a substantial improvement in the REIT’s key operating metrics, although more work needs to be done. This opportunity comes with considerable upside potential and some risk.

WestJet Airlines

(TSX: WJA, OTC: WJAVF)

Dividend Yield: 3.2%

Recent Price: C$18, US$13

Fair Value: C$20, US$15

WestJet Airlines is one of the top low-cost airlines in North America, with operating and financial metrics that rival the best in the industry. Despite the company delivering record profits for the 2015 fiscal year, a poor result for the final quarter as well as a negative outlook for the first quarter of 2016 resulted in a sharp sell-off of the stock.

There are concerns about airline capacity growth as the Canadian economy shows signs of weakness, especially in the energy-producing provinces. Management, though, is moving capacity away from the depressed Alberta market to regions with stronger growth and reports strong demand for the carrier’s newly launched routes to the U.K. as tourists take advantage of the weaker Canadian dollar.

The short-term outlook for the business is unfavorable, but the sound long-term track record of profitable growth, good cash flow and a strong balance sheet indicate that better days will come. Meanwhile, the stock is dirt cheap and offers a safe 3.2% dividend yield.

Inter Pipeline Ltd.

(TSX: IPL, OTC: IPPLF)

Dividend Yield: 6.0%

Recent Price: C$25, US$19

Fair Value: C$32, US$24

Inter Pipeline, one of the smaller western Canadian operators, provides crucial infrastructure to oil and gas producers to move their products from the landlocked Alberta and Saskatchewan provinces. The company also owns bulk liquid storage facilities in northern Europe with a capacity of 27 million barrels.

The company is starting to reap the benefits of a major expansion program that is almost complete. Most of Inter Pipeline’s profits derive from oil transportation under cost-of-service or fee-based contracts, providing a stable, low-risk income stream.

The 2015 results showed the company heading in the right direction, with a jump in revenue, profits and cash flow. The dividend yield is an attractive 6.0% and is supported by considerable free cash flow over the next few years.