Q: I own TD and RY and looking to add another financial for total return focus. Would you suggest another bank such as National Bank or an insurance company such as Sunlife or a financial such as Brookfied Corp or another to add some diversification within financials?
5i Research Answer:
We like BN and would consider it 'better' than adding another bank for diversification. If not BN, we would suggest an insurance company, SLF. Insurance stocks, while somewhat correlated to banks, do have a different overall focus and risk profile.