I have held the above in my RRIF for quite some time, and under water. The interest is adequate, but eaten up badly by the loss of capital. I thought that as interest came down it would benefit the MIC'S, but not so!! What is the outlook for this one? Under what conditions would it improve? Is it just poor management?
Thanks, BEN.
TF is up 24% in the past year, but it has been higher ($11+) more than a decade ago. Yield is 9.27% currently. The dividend has not been raised since 2017, but TF did pay a small special dividend in March of this year. We do not think management is fully to blame here. It is a small company in a highly competitive field. It suffered during the 2022 rate hikes, and now with lower rates the real estate market remains weak, generally. As it pays such high dividends, it does not leave a lot of room to grow the business, and very little earnings growth can be expected here. A strong real estate market and strong economy would be the best conditions here, but even then we would still consider it just an income stock, and a higher-risk one at that. We do not think it is 'bad' just not exciting and its small size and sector add risks.