Q: Thinking about selling some suncor and replacing with brookfield infrastructure while it is out of favor, your thoughts please.
5i Research Answer:
SU has been performing well recently alongside the broader uptick in oil prices. Both BIPC and SU have strong yields, but SU has a better buyback program. We feel the utility sector will improve once bond yields begin to decline and their debt loads become more manageable. We like both names and would be comfortable with either name, but we prefer the recent positive momentum from SU.
For an investor with a long-term outlook and some patience involved, we think this switch can work out in the long run.