Q: If/when rates are lowered should the steady/higher paying dividend stocks do well ? Any favorites ? Thank you.
5i Research Answer:
It is true that if rates come down, high-dividend-paying stocks would be more competitive again. We like ENB and RY, both have been demonstrating solid execution over the years. We would not add BCE at the current levels given the uncertainty regarding the competitive landscape and heavy capital investment. Some of our other favourite dividend stocks such as BAM, NWC, X, H, CNQ, and QSR. Keep in mind that ,because 'peak' rates are widely expected already, there might not be an immediate market response.