Q: Bought EIF a couple of months ago and it has been declining ever since. I'm now down 13%. Other than the general state of the economy, is there anything in particular driving this downward trend? When would you anticipate the stock might start to regain value? Thank you.
5i Research Answer:
Most dividend stocks have been impacted by higher rates and a weak market and recession concerns. The TSX is now up only 2% on the year. EIF is down 9%. The last quarter was mixed, but hardly worrying. It is expected to show good earnings growth over the next year. We think an acquisition, a dividend hike, or lower (at least peak) interest rates would help the stock. It is not one we would be particularly worried about at this time.