Q: Stumbling a bit-is that general market ? or other reasons-had for awhile but might add on for income
5i Research Answer:
DIV has been quite choppy year-to-date and total return is just 1.8%. First quarter earnings were decent, however the stock was downgraded in the day following the release by CIBC. The main reason the analyst cited was "limited upside in the near term." There was also concern over some of the royalty businesses due to lower consumer spending. For income, we think DIV is still a solid play and we are comfortable adding some here noting the size risks.