Q: Recently retired and looking for growth and income and looking for suggestions with FTS. Have owned for 5 years and currently up 10.48 % over that time. One of my weakest performers in my rrsp. What would you do with this? Sell outright and replace with? I’m considering H as I own both and H has outperformed with 69.86% over the same time period. Which would you prefer for the next 5 years? H? FTS? ( is there hope for FTS) or something else and which would be buyable today?
Thanks for all your guidance
Thanks for all your guidance
5i Research Answer:
First, we would not expect the utility sector to be high growth. FTS has a 50+ year dividend growth record, and we would still consider it quite solid. H has a far shorter history, being public for less than 10 years. H has outperformed, but FTS has a higher dividend (4.5% vs 2.9%) so we think total return is a better metric. We would be fine owning either. We would be 'OK' with a tax free switch but wouldn't see it as 'necessary' considering the FTS's higher yield.