Q: I hold both of these. Is it necessary? Do they overlap? Which would you recommend if only owning one? Which do you think will do better over 5-10 yrs including dividends?
thanks
michele
5i Research Answer:
Both T and TIXT represent different companies. T's interest in TIXT represents less than 14% of T's market cap. Significant, but not overwhelming for the parent company. We like T for stable dividend income and some growth, and we like TIXT for growth. TIXT is experiencing some macro headwinds, but with a market pivot, we expect it to do well. We be fine with either; TIXT likely has more upside potential but also more risk.