skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. ZRE: I would like to follow up on a question asked last week l, to choose between a reit etf and a utilities etf. [BMO Equal Weight REITs Index ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I would like to follow up on a question asked last week l, to choose between a reit etf and a utilities etf. And you advised the utility sector mapped here is better. Could you please advise on the dividend stock space in general to add in say telcos, banks, insurance and pipelines?
The broader discussion of the moment is about rates and their future path and relative value of earnings and dividends compared to t bills and low risk savings of the like.
Do you feel that any of these sectors are good buys at the moment? Could you maybe rank or group which you feel are best or just in vs out?
Thank you,

Peter
Asked by Peter on August 16, 2023
5i Research Answer:

As a general comment, we would consider telcos, banks, insurance and pipes to have 'more' upside potential than REITs and utilities. Growth opportunities exist, and in a lower rate environment their dividends will be more appreciated. It really becomes a question of safety vs growth potential. We would rank, today, based on a two-year outlook: Insurance, banks, pipelines, telcos, utilities, real estate. BUT...if safety is the main concern we would rank utilities first. We would be fine chipping away on the buy side of any of these sectors, but insurance looks the best to us right now overall. Telcos have struggled but still have growth opportunities, and the Canadian market remains an oligopoly. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZRE.