Q: Hi Team,
What do you think of yesterday's results versus estimates.
I have a small SPB position in my RRSP (about 1%) and I am think about increasing my position. I own it mainly for income with, what I consider, a relatively safe dividend of 7.6%
I am thinking about gradually increasing my position to about 2-3% but I find the debt level a bit concerning, would you agree with the move?
I have some cash to deploy and I took many positions in the utilities sector in the last months and these positions are beginning to do well.
I would like to add some income diversification. What companies in other sectors (REIT, Financials, consumer staples, etc. ) could you suggest to add in a RRSP portfolio that pays a reasonable dividend, have a limited possible drop in price even in an economic downturn and a fair chance of capital appreciation over the next 2-3 years.
Thank you!
Michel
What do you think of yesterday's results versus estimates.
I have a small SPB position in my RRSP (about 1%) and I am think about increasing my position. I own it mainly for income with, what I consider, a relatively safe dividend of 7.6%
I am thinking about gradually increasing my position to about 2-3% but I find the debt level a bit concerning, would you agree with the move?
I have some cash to deploy and I took many positions in the utilities sector in the last months and these positions are beginning to do well.
I would like to add some income diversification. What companies in other sectors (REIT, Financials, consumer staples, etc. ) could you suggest to add in a RRSP portfolio that pays a reasonable dividend, have a limited possible drop in price even in an economic downturn and a fair chance of capital appreciation over the next 2-3 years.
Thank you!
Michel
5i Research Answer:
EPS of 30c missed estimates of 33c; revenue of $897.7M fell from $928.8M in the prior period and also missed estimates of $966M. EBITDA of $235.6M rose from $204.3M and did beat estimates of $230M. Certainly not impressive results here. Weather did have a negative impact and 2024 guidance was maintained. Debt has been high for some time, but its cash flow is quite stable. Brookfield also owns part of the company and could support it if needed. We would consider it 'OK' for income, but we would not see any need to add until growth improves. Other suggestions: IFC, SLF, RY, QSR, MRU, DIR.UN, BAM