Q: You have spoken highly of OLY in the past. Is it a domestic story and would tarrifs have any impact on their business ? Would you have any concerns about increasing exposure before they report on 24 Feb ? Lastly, is the high dividend well covered ? Thank you.
5i Research Answer:
All of OLY's business is in Canada, and it should not have any direct tariff exposure. Though if our economy weakens then there could be some impact. We would have no reason for any additional concerns prior to the quarter and would be OK buying. Payout ratio is about 73% but the company is also debt free. No dividend is guaranteed but we would not have huge concern here other than the fact that the company is fairly small.