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  5. AW: As recommended at the time, I just left my AW. [A & W Food Services of Canada Inc.]
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Q: As recommended at the time, I just left my AW.ca stock when they did a corporate action. Now I am down significantly. Not sure if I should sell -I have some in a TFSA and some in a non-registered acct. Would it be wise to sell them both and then re-buy if market corrects or move on if it doesn't? I'm at more of a real loss in my TFSA, where it would seem now it doesn't need to be. I tend to just hold through volatility but would like to clean this up. Thanks.
Asked by Pat on April 24, 2025
5i Research Answer:

AW is down about 11% this year (not including distributions), which we would consider 'not so bad' considering the markets and the economic outlook. The dividend of 6.01% remains attractive and likely secure. It is not a high-growth business, and sales did decline 1.9% on a same-store basis in the last quarter. Valuation is attractive. We are comfortable with it for income investors. However, we do prefer 'growth' in a TFSA and would be OK to exit a position in a tax-free account in favour of a growthier company. In a cash account, we would be OK with a tax-loss/re-buy strategy. In a cash account it becomes a question of investor goals. While we consider it the best within its fast-food sector and a decent company overall, if one is focused on growth we would not consider it a need to own stock.