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  5. AW.UN: In a Rif account, looking for steady and increasing dividends over time. [A&W Revenue Royalties Income Fund]
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Q: In a Rif account, looking for steady and increasing dividends over time. Of the two, which has better metrics for long term sustainability. Brief recap of metrics also on the chosen one also

Thank you
Asked by Harry on September 20, 2023
5i Research Answer:

We think both names are fine dividend growers, and we like both. AW.UN is a capital-light, franchisor with decent pricing power, trading at around 16x P/E compared to peers (MCD, DPZ) that are currently more than 20x. While NWC is a solid consumer staple name with predictable growth (consistent revenue growth in the range of 3%-5%) and lower valuation (currently trading at around 12.8x Forward P/E) compared to peers such as L, and MRU.

We like both, but if we HAVE TO choose, we will side with NWC due to its low valuation and predictability and recent much-better-than-expected results. 

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