Q: I am considering a purchase for 10 yr hold in my registered acct. Thoughts? and is Dividend safe? I have low exposure to oil & gas sector. Is there a better choice?
5i Research Answer:
We like the prospects for WCP from current levels. In the energy sector, because of its cyclicality, no dividend is truly 100% 'safe', and WCP has cut its dividend before (in 2021). But the current payout ratio is low and the recent merger bodes well for continued cash flow growth. We would be very comfortable buying WCP for sector exposure. Due to its integrated operations SU might be a 'safer' bet in the sector, at a lower dividend yield. But we would be fine with WCP, certainly.