Q: P/P $43.63 many years ago.Now that it is close to its 1 year low,is it timely to add.What is a good entry point? Or there are better stocks to buy? Txs for U usual great services & views.
5i Research Answer:
AW.UN is a fundamentally strong fund, and is primarily an income stock. It has a yield of 5.8%, has grown its distributions by 3% annually over the past 10 years, and is reasonably valued at these levels. We feel that investors have opted to purchase 'risk-free' cash investments that have a similar yield to AW.UN, but much less risk given the changing interest rate environment. Although, we don't believe that this trend will last forever, and AW.UN has more upside potential than money market funds. For an investor looking for yield and a stable cashflow-generating business, we like AW.UN here and feel that it's at a good valuation today.