Q: I have held MRE in my TFSA for the past couple of years and have done "okay".
However, I'm looking at moving into something with more total return potential and am considering either BTO or DPM, as I feel both could do well in a strengthening gold market (which I can foresee over the next year or so).
Which would you lean towards and why?
Thanks, Rick
However, I'm looking at moving into something with more total return potential and am considering either BTO or DPM, as I feel both could do well in a strengthening gold market (which I can foresee over the next year or so).
Which would you lean towards and why?
Thanks, Rick
5i Research Answer:
We would lean DPM although it is the smaller option at $1.51B market cap versus BTO's market cap at $5.11B. Although DPM pays a lower dividend yield, it does have a 4.5% buyback yield which BTO does not have. DPM also recently completed an acquisition and has grown sales and earnings nicely over the last few years. DPM is also cheaper with a forward-earnings valuation of 6.7x versus BTO's valuation at 10.7x. We think DPM is fundmentally strong and are comfortable with it even for a longer term hold.