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KeyCorp (KEY)
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Canadian Utilities Limited Class A Non-Voting Shares (CU)
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Algonquin Power & Utilities Corp. (AQN)
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Nutrien Ltd. (NTR)
Q: I've held these partial positions for some time now and am below water on all but NTR.
The objective here is income with some growth.
If all positions were sold and you had to consolidate all proceeds into just one of the four options provided, which would you choose and why?
What would you choose if you were forced to sell all four and reposition into one new company?
The objective here is income with some growth.
If all positions were sold and you had to consolidate all proceeds into just one of the four options provided, which would you choose and why?
What would you choose if you were forced to sell all four and reposition into one new company?
5i Research Answer:
This is a tough call as three are utility-like and one is highly cyclical. But if growth was the objective we would concentrate into NTR. It is a low-priced global leader with a good dividend and the ability to show very high earnings growth when conditions are right (note, probably not in the next 12 months, though). Fertilizer contract prices swing wildly providing excellent earnings leverage when times are good. For something new, for growth focused, we would side with LMN.