Q: Park Lawn, BCE and BEP taking a tidy beating in the wife’s income portfolio. While we enjoy the divs, the red ink is off-putting to be fair.
We are a few years away from drawing on her account, so at what point would you consider averaging down on these. There is a fairly large cash balance waiting to be deployed.
We are a few years away from drawing on her account, so at what point would you consider averaging down on these. There is a fairly large cash balance waiting to be deployed.
5i Research Answer:
We don't like averaging down, especially with smaller companies such as PLC. BCE needs to prove it can cut costs, and sentiment is weak. We would be OK adding some BEP. All could do better if interest rates fall, but that is no guarantee. In a diversified portfolio, there are going to be some losers. We would consider the total picture first. None of these are of particular concern to us, but a 'few years' doesn't sound like 10 years. We would, at least, be OK holding these until we see how fundamentals and stocks react to lower rates. While not guaranteed, we do think rates in Canads (maybe not the US) will start to move lower soon.