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Manulife Financial Corporation (MFC)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: Hi Folks,
I just trimmed some ABBV and BIP.UN in my RRSP account - I was looking at adding BAM or MFC - both are on a pretty good run. May I have your opinion as to which one would be best at this time?
Thanks
I just trimmed some ABBV and BIP.UN in my RRSP account - I was looking at adding BAM or MFC - both are on a pretty good run. May I have your opinion as to which one would be best at this time?
Thanks
5i Research Answer:
MFC is a fine option, but we prefer BAM due to its capital-light business model that pays out most of its earnings as dividends while also growing at around mid-teen rates without any meaningful capital requirements. Dividend growth and potential for capital appreciation seem attractive to us. Note both raised their dividends this week and we have earnings comments on MFC in the Q&A.