Q: Hi team,
I am looking to invest for my kids resp. Currently only hold a balanced fund and Ppl which I bought in the 2020 collapse. Now I am wondering about buying a quality stock which has been unjustifiably (as far as we can tell) sold off in the recent sell off of growth names. I am thinking of Prl. Would you consider it safe enough to invest in a resp account? I also note that its div is decent while I wait for recovery . I have about 4-5 years before I would have to sell it . If you don’t think Prl is a good fit do you have better suggestions ?
Thanks ,
Shane
I am looking to invest for my kids resp. Currently only hold a balanced fund and Ppl which I bought in the 2020 collapse. Now I am wondering about buying a quality stock which has been unjustifiably (as far as we can tell) sold off in the recent sell off of growth names. I am thinking of Prl. Would you consider it safe enough to invest in a resp account? I also note that its div is decent while I wait for recovery . I have about 4-5 years before I would have to sell it . If you don’t think Prl is a good fit do you have better suggestions ?
Thanks ,
Shane
5i Research Answer:
We think PRL is quite attractive here, considering its growth, valuation and recent dividend hike. However, we think it would be a bad fit for a conservative account with a relatively short timeframe. It is still a fairly small company, and could be vulnerable to rate moves and/or an economic slowdown. We do like it. But for a conservative shorter term growth company we would suggest TRI, BN or WSP. We would also prefer an ETF for diversification if the timeframe is less than five years rather than adding one single other stock.