Q: ARIS has taken a beating lately and hasn't paid a dividend in about 8 months. I'm hesitant to take the loss as I'm bullish on gold and have it in a registered account.
You commented today that "Very good growth is expected over the next 24 months" Can you expand on this? Will they bring back their dividend? Are there better beaten up stocks in the sector that pay a dividend?
You commented today that "Very good growth is expected over the next 24 months" Can you expand on this? Will they bring back their dividend? Are there better beaten up stocks in the sector that pay a dividend?
5i Research Answer:
ARIS specifically noted it would adopt an initial no-dividend policy following its merger with GCM. Our growth comments reference consensus estimates on earnings, showing EPS of -15c in 2022 rising to 74c and 91c over the next two years. These are aggressive targets, but even at half those levels the stock is cheap. Bay Street analysts have an average target price of $5.00. AGI is not so beaten up but we like it and it yields 0.8%. SSL is another option at a 1.1% yield.