Q: I hold a small position in BCE. My thinking is that other than the dividend (yield), it is pretty much "dead" money for the foreseeable future. I could replace it with Telus, but I'm not impressed with its performance over the last few years. Taking sector & industry out of the equation, are there some other stocks that you like better [preferably with the potential for growth / share price appreciation & a (growing) dividend] that trade around the same price as BCE or less? Thanks once again for your great service.
5i Research Answer:
There are lots of different and better growth stocks, though some are smaller, more volatile, higher risk and/or higher valuations. We would not get too caught up in 'the same price as BCE' as this is going to limit options severely. The math is the same: A 10% move in a $200 stock will give you the same return as a 10% move in a $30 stock, if the same amount of capital is invested. Here some dividend stocks with growth potential that we like: GSY, IFC, TRI, NTR, BAM, EIF, PRL