Q: I realize this is quite Apple and oranges. In a taxable account I have held J&J for a long time so have a nice gain. Not much growth happening right now. Your thoughts on a change to CNQ for a better dividend and more growth potential? Thank you
5i Research Answer:
JNJ is a very mature company with limited growth prospects. JNJ is a defensive name with solid downside protection and moderate dividend growth over time. A switch to CNQ could make sense over time in terms of total returns, given that CNQ is a healthy cash cow that is growing. However, CNQ is a cyclical business; its operating results are anything but predictable, and the share price could be much more volatile compared to JNJ in the near term.