Q: I understand that Labrador Iron Ore Roayalty corporation is cyclical in nature. That said, is it a good time to consider investing in this stock at this time? It's a high yileder which may provide some protection on the downside now.
5i Research Answer:
LIF is very cheap and just reduced its dividend. We would be comfortable owning it for an investor that understands the business, and is willing to give it the time to have a cyclical rebound. Note the dividend will be adjusted to earnings so investors should be prepared for more cuts if the cycle does not reverse.