Q: Hi folks,
I have held CNR in my TFSA for a few years - up 10%. I am thinking of replacing it with WCN for some more growth. Would it be better buying WCN on the NYSE or TSE? May I have your opinion?
Thanks
I have held CNR in my TFSA for a few years - up 10%. I am thinking of replacing it with WCN for some more growth. Would it be better buying WCN on the NYSE or TSE? May I have your opinion?
Thanks
5i Research Answer:
We could live with this switch but at the same time would not see it as fully necessary. CNR is much cheaper, has a higher yield, and still has growth potential (moreso if we do not see recession). WCN may be 'safer' in a downturn but is 35X earnings. It has outperformed of late. The exchange does not matter so much on inter-listed stocks. Arbitrage makes prices similar. WCN pays its small dividend in US$, so owning on the NYSE in a US dollar account will save f/x conversion fees on dividends received.