Q: I have held CN for years. I am considering selling some if not all and perhaps buying CNQ with the proceeds. What is your opinion and would you suggest another stock rather than CNQ?
thank you
thank you
5i Research Answer:
If one is going to swap into the energy sector, we think CNQ would be the one to move to. CNQ continues to well, is cheap, and the company is very shareholder-friendly. The dividend was raised two weeks ago. We do like CNR, but it can be cyclical, and its dividend is much lower. We would not view CNR as a 'sell' but if one is adjusting sector exposure we would still be comfortable with a switch.