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Park Lawn Corporation (PLC)
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AT&T Inc. (T)
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Brookfield Renewable Partners L.P. (BEP.UN)
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BCE Inc. (BCE)
Q: Hello team,
I have all four of these in my income portfolio. The telco's for the divs and Park Lawn and BEP for income and growth. All four are down substantially (20-30%) from purchase in fall of 2022. The news out on BCE is less than flattering, while there has not beeen much on PLC. The other two I assume are biding their time, and should/might rerate with a drop in interest rates. I am a long term buy and hold and am quite satisfied with the income aspect of my portfolio, but my finger keeps getting itchy each time I see a drop in SP, for no reason at all.
My question is, will these Companies need rate cuts in order to rerate, or is their business that bad that their SP continues to stagnate. I know the other shoe about the economy improving, but that applies to all stocks, and have taken that into consideration.
Thanks for the service, I'd be lost without it. My former finacial advisor, not such a big fan!
I have all four of these in my income portfolio. The telco's for the divs and Park Lawn and BEP for income and growth. All four are down substantially (20-30%) from purchase in fall of 2022. The news out on BCE is less than flattering, while there has not beeen much on PLC. The other two I assume are biding their time, and should/might rerate with a drop in interest rates. I am a long term buy and hold and am quite satisfied with the income aspect of my portfolio, but my finger keeps getting itchy each time I see a drop in SP, for no reason at all.
My question is, will these Companies need rate cuts in order to rerate, or is their business that bad that their SP continues to stagnate. I know the other shoe about the economy improving, but that applies to all stocks, and have taken that into consideration.
Thanks for the service, I'd be lost without it. My former finacial advisor, not such a big fan!
5i Research Answer:
BCE and T have challenges, relating to systems build out and competition. PLC needs to integrate acquisitions and improve operating metrics. We think BEP is generally fine. None of these businesses are truly worrying, but the first two may take longer to recover. The issues may be more structural than easily fixed. But we would not have concerns on dividends, and rate cuts should help substantially. BCE is cutting costs and could recover if this proves successful. We would be fine holding these four. The respective sectors have been weak as investors seek excitement elsewhere. But we think their time will come. We do not think both T and BCE need to be owned together, they will likely move similarly.