Q: Hello, I am wondering about Toromont Industries. Do you see it being negatively effected if there are tariffs implemented by the US? I will be retiring in next 2 years looking for something safe with decent growing yield that can be a hold over the next several years in a non-registered account.
Thanks
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5i Research Answer:
The high majority of revenues are generated within Canada so they are isolated a bit on that side of things but given they sell Caterpillar equipment, a US company, there might be some impact from tariffs if the equipment or parts are moving across the border. While any impact will likely be hard to avoid, we would not expect it to be overly material to TIH. We like it generally. However it is not a huge company and does have cyclicality. We would not view it as an ultra-conservative stock.