In any event, when you are mostly invested in stocks of companies that tend to grow their dividends

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1 Please feel free to forward this e- As you may have noticed, there has been some market volatility that is testing the patience and resolve of investors since the new year began. I must sound like a broken record but I really do not get written by our Portfolio Advisory Group that summarizes quite nicely what is causing the anxiety investors seem to be feeling. Keep in mind that these are mostly temporary issues and our strategists are not calling for global recession and in fact the global economy is forecast to grow for the next year or so. In any event, when you are mostly invested in stocks of companies that tend to grow their dividends ignore them but the same fluctuations that tend to cause you anxiety in the short term are the same ones we tend to view as opportunities in hindsight. Happy New Year! Luigi Rocca,LL.B, FCSI, CIM I Vice-President, Portfolio Manager l RBC Wealth Management RBC Dominion Securities Inc. l T l I F l Main Street Suite 650, Moncton, NB E1C 9X9 We would be pleased to speak with anyone you know who would like a second opinion on their investments. This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained fromsources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. Insurance products are offered through RBC Wealth Management Financial Services Inc., a subsidiary of RBC Dominion Securities Inc. When providing life insurance products in all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of RBC Wealth Management Financial Services Inc. In Quebec, Investment Advisors are acting as Financial Security Advisors of RBC Wealth Management Financial Services Inc. RBC Wealth Management Financial Services Inc. is licensed as a financial services firm in the province of Quebec.

2 ÖßÒËßÎÇ îðïê ÍÌ ÔÔ ÒÑÌ ÑËÌ ÑÚ ÌØÛ ÉÑÑÜÍ ß»½» ± ¾» б º± ± ß¼ª ± Ù ±«Click here for authors contact information and Important Disclosures. Priced as of January 7, 2016, unless otherwise stated. All values in USD otherwise stated.

3 ÍÌ ÔÔ ÒÑÌ ÑËÌ ÑÚ ÌØÛ ÉÑÑÜÍ Ì» ½±»½ ±² ¾»¹ ² «³³» ³ ª» ¾»»² ² ¾» ² ±² º±»ô ¾«±²½» ¹ ²» ± ¾»» ²¹ «¹» ¼ò É» ½±² ² ± ¾»»ª»» ¾«³ ± ¼ ³ ª» ±³» ³±²»º ± «²ô»»½«¾«³ µ» ¾»¹ ² ² îðð绳 ² ² ½»ò Þ ½µ ² ß«¹«ô» «³ µ» ± ¼ ¼» ½ ³» «²¼» ²»²»» ¼ ª»² ¾ ½±»½ ª» º» ±ª»» µ²» ² Ý ² ô ½±² ²¼ ¼»½ ²» ² ± ²¼ ±» ½±³³±¼» ô ²¼ ² ³»²¼ ²¹ Ú»¼» µ ²¹ ½ ½»ò ͱ±² º» ô ³ µ» ½±»½ ±²ò ² ß«¹«ô» º»» ½±»½ ª»» µ» ± ¼ ¹ ±² º± ±³»»»µ ±»ª»² ³±² ô ¾» «É»»»» ª» ²± ò ÉØßÌÍ ÝßËÍ ÒÙ ÌØÛ ÍÛÔÔÑÚÚá Ó ² ±º» ³» ¹¼» ³ µ» ² ß«¹ ½±² ²«²¹ ± ½ ² ±ª» ²¹ææ Ý ² É» µ²» æ Ý ² «²¼» µ»² º ²»½±²±³ º ±³ ±²» ±ª» ¼»»²¼»² ±² ²ª» ³»² ± ±²» ³±» ¾ ²½»¼ ¾»»»² ²ª» ³»² ²¼ ½±² «³ ±²ò É» «¾» ² ± ²¹ ±º» Ý ²»»»½±²±³»»½»¼ô ³ µ» ª» ¾»½±³» ½±²½» ²»¼ Ý ²»» ¹ ± ±»¼ ±± ³«½ ²¼ ± ½ ¾»½±³» «²»¼ ½ ¾»ò ±² ½ ô» ª»»»² ±³»»½±²±³ ½ ¾ ±² ±«±º Ý ² ²½» ß«¹«³ ²«º ½ «²¹ ²¼ ¹ ± ³» ½ ²± ±²¹» º ²¹ò ر»ª» ô» ±³» ¼ ± ²»¼ ± ½ Ý ² µ»² ±» µ»² ²¹»»²³ ²¾ ²¼ ½±² ²¼ ¹±ª» ²³»² ²» ª»² ±² ² ¼±³» ½» «³ µ» ª» ¾»½±³» ²»» ±º ½±²½» ²ò É» Ý ² ³»ª» ¼ ± ± ³»½±²±³ ô» ½µ²±»¼¹» Ý ² ± ½ «º ± ½ ± ± ½ ±± ò Ú»¼ Ì ¹»² ²¹æ Ø ± ½ ô Ú»¼» µ ²¹ ½ ½» ª» ²± ¾»»² ¾ ¼ º± ±½µ ò ² º ½ ô ¾»½ »²¼ ±» µ ±»»²¹»² ²¹ ±º» ËòÍò»½±²±³ ô Ú»¼ ¹»² ²¹ ±º»² ½½±³ ²»¼ ¾ ½±² ²¼» «³ µ»»²¹ ò ر»ª» ô ¾±«±º ª±» ²± «²½±³³±²» ³ µ»» ± ±² º± ¹»» ò Þ ½µ ² ß«¹«ô» ª± ±»»»² ³»ò ݱ³³±¼ Í» 󱺺æ Ì» ±²¹± ²¹ ¼»½ ²» ² ½ «¼» ± ½» ±±µ»¼ ²ª» ± ª»»¼ ² ²¼ ½ ± ¹ ±¾ ¹ ± ± ²¹ò É» ½±² ² ± ¾»»ª»» ¹» ±¾»³ º± ± ±± ³«½ «ø³± ³» ±º ¼»³ ²¼ô»»½ ±» ² ¼»ª» ±»¼»½±²±³» ô ª» ¾»»² ²¹ ³ ²¼ ²± ²¼ ½ ª» ±º» ¹ ±¾ ± ¼± ²ò ²» ²»» ³ô»» «² ±º ² ² ¾» ±» ³ µ» µ» ± ½ ² ±ª» ²¹ò ر»ª» ô» ¾»»ª»»» «²º± ¼ ô ô ½ ª»» ¼ ¾»¹«² ± ¼»½ ²» ²» ËòÍòô» µ» ±» µ ²¼» ± ¾» ± ½» ò î ÐÑÎÌÚÑÔ Ñ ßÜÊ ÍÑÎÇ ÙÎÑËÐ ÍÐÛÝ ßÔ ÎÛÐÑÎÌ Ö ²«îðïê

4 ÌØÛ ËòÍò ÛÝÑÒÑÓÇ ÎÛÓß ÒÍ ÑÒ Ú ÎÓ ÙÎÑËÒÜ É»» ¾±ª» ---» ²» ó» ³» ¼ ²¼-ô» ±«¼ ½±² ² ± ± ² ± - ±²¹ «²¼» ²¹ º«²¼ ³»² - ²» ± ¼ ¹»»½±²±³ ò Ì» ËòÍò ½±² ²- ± ¹»²»» ³±» ² îððôððð ±¾-» ³±² ±² ª» ¹» ²¼ - ½»»¼ ²» ïî ³ ±² ±¾±ª»» - º± -ò É ¹» ¹ ± ô ½ -» «- ª» º± ³«½ ±º»»½±ª» ô - -± ¾»¹«² ± «²¼» ²» ±¾³ µ» ô»» ³ ²«º ½ «²¹ -»½ ± ½±² ²- ± ¼¼ ±¾- ²¼ ¹ ± -» ¼ ½»ò ݱ²-«³» ¾ ²½» -»» -» ² ¹±±¼ -» - ²¹ - ª ²¹-»ò Ú ô» ²»»-»- ³ ¾» ± -»¼ ± -»ô»»³ ² ²» - ± ½ ±»ª» - ²¼» ½±- ±º -» ª ½ ²¹ ¼»¾ -»³ ²- ª» ± ò ß¼¼ ± -» - ¼»½ ²» ² Ì» ±«- ²¹ ³ µ» ½±² ²- ± ³ ±ª» - -»½»² ²¹ - ó» ¹ -ò Í ±²¹» ½±²-«³» ¾ ²½» -»» ½±¼ ¾ ²µ» ² ¹±±¼» ²¼ ²¹ ±»²¼ ½±«¼ ±ª ¼» º ²¼ º±»»½±²±³ ±²» - ¾»»² ¹» ¾-»² º± ³«½ ±º» - ¼»½ ¼»ò ÛÓÛÎÙ ÒÙ ÓßÎÕÛÌÍ ÞÛßÎ ÉßÌÝØ ÒÙ» ±º» ß ² Ú ² ²½ Ý ±º ïççé çèò ²¼ ³ µ» -ò Ì» ËòÍò»½±²±³ - ª» ²-¼ ²¼ ÛÓ» µ²»-- - «² µ» ± ¼» ô ² ±«ª» ò ر»ª» ô ²»¹ ª»» ¼ ²»- ±«±º ÛÓ- ³ ½±² ² ±» ¹ ±² ³ µ» - ¹ ±¾ ò ÝßÒßÜßæ ÝÑÒÌ ÒËÛÍ ÑÒ ßÒ ËÒÛÊÛÒ ÐßÌØ Ì» Ý ² ¼ ²»½±²±³ ¾»½ ³» ±ª»» ² ±² ± ²¼ ± ²ª»- ³»² ±ª»» - ïë» - ²¼» ¼ «- ³»² ±½»-- ± ³ µ»¼ ¼± ²- º ² ± ó»»¼ ²ª»- ³»² ²± ¾» ±«¾«³ -ò É»» ª» -»»² -±³» - ¹²- ±º - ¾ ±² ²» Ý ² ¼ ²»½±²±³ ô»»½±ª» º ±³» ± ±³ ²- «²»ª»² ²¼»»»½ ½±² ²¼ ¾±«- Ö ²«îðïê ÐÑÎÌÚÑÔ Ñ ßÜÊ ÍÑÎÇ ÙÎÑËÐ ÍÐÛÝ ßÔ ÎÛÐÑÎÌ í

5 ÑËÌÔÑÑÕ Ó µ» ª± - ²± «²½±³³±² ¹ ²- ¾ ½µ¼ ± ±º «²»ª»² ¹ ±¾»½±²±³ ½ º«²¼ ³»² -ô øëòíò ² ±² ± ½ ±» ³ ô ½ ±º»²» ¼- ± ³ µ» ½½ ¼»² -ô ²¼» ¾»»ª» - ½²» -±¼» ±º -» ½»» µ²»-- ³ ª» -±³» ±±³»º ± «²ò Ѻ»² ² -«½» ±¼-ô» ³ µ»»ª»² ½ ± ²»» ²ª»- ± - ± ± ¹±±¼» ¾ ¼ò ² ±«ª» ô -«½ «²½ - ¼ ± ½ ²¹ò É» ±«¼ «-» - ± ± «² ô ²± ±² ±»²- ± º± ±- ± ²» ¹ ¾«²»» ±» ª»» ¾» ²¼» ó» ¾»¼ ³ ² ¹»³»²» ³ ô ¹» «² ±² ²ª»»¼ ½ ô ²¼ ±²¹ ²¼ ¼»º»²¼ ¾» ¾«²» ¾«± ± ¹ ¼«±½» ½ ±»» ¾«²»»» ¼± ²±»²¼ ± ¹± ±²» ±º»²ò λ»»¼ ±ª»» - º± -» ª»» ¼ º ±³ ²ª»- ± - º ±²» ³ µ» ¼ ¾ ½µô ±«¼ ¼¼ ±³»» ± ò Þ²»» ± ± «²» ¼± ½±³»ô ²ª» ±» ±º»² ½»¼ ±ºº ¾» ²»²» ª± ½½±³ ²»-»-» «¾ ½µ-ò Þ ½µ ¼«²¹» ß«¹«- ñí»»³¾» -» ±ººô - -» - ¼æ îðïïò Ú ±³» ± - ±º ½±»½ ±² ±»» µ - Ó» ÍúÐ ëðð ¼¼»¼ ± ³» ïðêð ± ² - ± ³±- ïððû ±ª» º± -ò ² ½±»½ ±² ±«¼ ²± ¾» «²«-«± ¹ ª» ¾ ½µ ¾±« ±º ¼ª ²½»»»»» ²µ»»ò É» - ¼±ò ì ÐÑÎÌÚÑÔ Ñ ßÜÊ ÍÑÎÇ ÙÎÑËÐ ÍÐÛÝ ßÔ ÎÛÐÑÎÌ Ö ²«îðïê

6 Distribution of Ratings - RBC Capital Markets, LLC Equity Research As of December 31, 2015 Investment Banking Services AUTHORS Matt Barasch Toronto, Canada matt.barasch@rbc.com; RBC Dominion Securities Inc. Rating Jim Allworth Vancouver, Canada Buy [Top Pick & Outperform] Hold [Sector Perform] Sell [Underperform] jim.allworth@rbc.com; RBC Dominion Securities Inc. D I S C LO S U R E S A N D D I S C L A I M E R responsible analyst(s) about any and all of the subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, the responsible analyst(s) in this report. ³ ± ² Ü -½ ±-- In the U.S., RBC Wealth Management operates as a division of RBC Capital Markets, LLC. In Canada, RBC Wealth Management includes, without limitation, RBC This report has been prepared by RBC Capital Markets, LLC. which is an indirect wholly-owned subsidiary of the Royal Bank of Canada and, as such, is a related issuer of Royal Bank of Canada. Ò±²óËòÍò ß² - Ü -½ ±-æ Matt Barasch and Jim Allworth, employees of contributed to the preparation of this publication. These individuals are not Wealth Management, they may not be subject to NASD Rule 2711 and Incorporated NYSE Rule 472 governing communications with subject companies, the making of public appearances, and the trading of securities in accounts held by research analysts. In the event that this is a compendium report (covers six or more companies), RBC Wealth Management may choose to provide important disclosure information by reference. To access current disclosures, clients should refer to rbccm.com/gldisclosure/publicweb/disclosurelookup.aspx?entityid=2 to view Count Percent Provided During Past 12 Months Count Percent Û ² ±² ±º ÎÞÝ Ý Ó µ» -ô ÔÔÝ Û «Î ²¹ Í -»³ research coverage. Accordingly, the rating assigned to a particular stock represents solely the analyst s view of how that stock will perform over the next 12 months relative to the analyst s sector average. Although RBC Capital Markets, LLC ratings of Top Pick (TP)/Outperform (O), Sector Perform (SP), and Underperform (U) most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same because our ratings are determined on a relative basis (as described below). Î ²¹-æ Top Pick (TP): Represents analyst s best idea in the sector; expected to provide Outperform (O): Expected to materially outperform sector average over 12 months. Sector Perform (SP): Returns expected to be in line with sector average over 12 months. Underperform (U): Returns expected to be materially below sector average over 12 months. Î -µ Î ²¹æ As of March 31, 2013, RBC Capital Markets, LLC suspends its Average and Above sheet leverage, or limited operating history that result in a higher expectation of Ê «±² ²¼ Ð ½» Ì ¹» ³»¼ ³»² - When RBC Wealth Management assigns a value to a company in a research report, that the basis for the valuation and the impediments to obtaining that valuation be described. Where applicable, this information is included in the text of our respectively. information is also available upon request to RBC Wealth Management Publishing, 60 South Sixth St, Minneapolis, MN The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total revenues of References to a Recommended List in the recommendation history chart may include one or more recommended lists or model portfolios maintained by RBC generated by investment banking activities of the member companies of RBC lists include the Guided Portfolio: Prime Income (RL 6), the Guided Portfolio: Large Cap (RL 7), the Guided Portfolio: Dividend Growth (RL 8), the Guided Portfolio: Midcap 111 (RL9), the Guided Portfolio: ADR (RL 10), and the Guided Portfolio: Global Equity (U.S.) (RL 11). RBC Capital Markets recommended lists include the abbreviation RL On means the date a security was placed on a Recommended List. The abbreviation RL Off means the date a security was removed from a Recommended List. Ü - ¾«±² ±º Î ²¹- F to assign ratings to one of three rating categories - Buy, Hold/Neutral, or Sell ratings of Top Pick (TP)/Outperform (O), Sector Perform (SP) and Underperform (U) most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same because our ratings are determined on a relative basis (as described below). Ñ» Ü -½ ±-- Prepared with the assistance of our national research sources. RBC Wealth Management prepared this report and takes sole responsibility for its content and distribution. The content may have been based, at least in part, on material provided by our third-party correspondent research services. Our third-party correspondent has given RBC Wealth Management general permission to use its research reports as source materials, but has not reviewed or approved this report, nor has it been informed of its publication. Our third-party correspondent may from time to time have long or short positions in, effect transactions in, and make markets in securities referred to herein. Our third-party correspondent may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any company mentioned in this report. RBC Wealth Management endeavors to make all reasonable efforts to provide research simultaneously to all eligible clients, having regard to local time zones in overseas jurisdictions. In certain investment advisory accounts, RBC Wealth Management will act as overlay manager for our clients and will initiate transactions in the securities referenced herein for those accounts upon receipt of Ö ²«îðïê ÐÑÎÌÚÑÔ Ñ ßÜÊ ÍÑÎÇ ÙÎÑËÐ ÍÐÛÝ ßÔ ÎÛÐÑÎÌ ë

7 this report. These transactions may occur before or after your receipt of this report and may have a short-term impact on the market price of the securities in which transactions occur. RBC Wealth Management research is posted to our proprietary Web sites to ensure eligible clients receive coverage initiations and changes in rating, targets, and opinions in a timely manner. Additional distribution may be done by sales personnel via , fax, or regular mail. Clients may also receive our research via third-party vendors. Please contact your RBC Wealth Management RBC Wealth Management is registered with the Securities and Exchange Commission as a broker/dealer and an investment adviser, offering both brokerage and investment advisory services. RBC Wealth Management s Policy for on our Web site at that jurisdiction. Nothing in this report constitutes legal, accounting or tax advice or individually tailored investment advice. This material is prepared for general person who may read it. 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This report is not, and under no circumstances should be construed as, a solicitation to act as securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in (telephone number is ). ̱ Í ²¹ ±» λ- ¼»² -æ This publication is distributed in Singapore by RBC (Singapore Branch) and RBC (Asia) Limited, registered entities granted offshore bank status by the Monetary Authority of Singapore. This material has been prepared for general circulation and does not take into account the objectives, independent advice, you should consider whether the product is suitable for you. Past performance is not indicative of future performance. Copyright RBC Europe Limited 2016 Copyright Royal Bank of Canada 2016 All rights reserved Ö ²«îðïê ÐÑÎÌÚÑÔ Ñ ßÜÊ ÍÑÎÇ ÙÎÑËÐ ÍÐÛÝ ßÔ ÎÛÐÑÎÌ ê