Q: Dividend investor interested in long-term dividend growth. I know you like both TIH and BAM. I can only initiate a position in one of these today, which gets the slight nod today? For long-term hold.
Thank you.
Thank you.
5i Research Answer:
We like both names for sure, and it is hard to have to choose between the two (akin to choosing between kids!). Given that both have vastly different prospects, it is not an apples-to-apples comparison. TIH may provide better total returns from its current levels, but it may take longer (3-5 years) to realize due to the cyclicality of the business. On the other hand, we think the likelihood of BAM continuing to do well in terms of dividend growth and capital appreciation is quite likely. For higher confidence levels, we would side with BAM for now.