Q: I am considering buying LIF, mainly for the income. What price would be a good entry point, given the fluctuation of iron prices? I plan to hold the shares for at least 5 years. And would it be a good holding for an RRSP account and also a non-registered account? Thank you for your input.
5i Research Answer:
We have posted some brief comments on LIF this morning. For income, we would see it as a decent holding right now for a 5-yr term. We think $27 would be a good entry. Considering the dividend tax credit, for many investors it is likely better in a non-reg account.