Q: Could I get your current view of BPF.UN. Your report in late 2023 indicated some caution.
5i Research Answer:
BPF.UN is up 34% in the past year, as the consumer has started to recover from the high inflation days of 2022 and early 2023. Lower interest rates have boosted investor sentiment towards most income stocks as well. At 12X cash flow, its valuation is decent. Growth has picked up a bit, and it is expected to grow 10% next year. Payout ratio is now 96.5%, up from 89.7%, as it raised its distribution early this year and at the same time distributable cash fell a bit. We would see it today as 'OK' but not great, for an income focused investor. It remains quite a small company, with some economic/recession risk. It is priced well, however, offsettting some of these concerns.