Q: Hi Peter, I have a TFSA portfolio with 15 stocks in it and was thinking of adding TRI to the list. In order to do this I would have to sell 10 shares of my RY and 7 shares of my CM which together generate a 78.60 dividend a year. The new position in TRI would probably be around 10 shares and a 1% weighting in the portfolio giving me a divided of 23.60 a year. Is losing the difference in dividends of 55.00 worth adding TRI, does doing this make sense in the long run. Thanks
5i Research Answer:
We can't get personal and we would not consider RY and CM as 'sells' today. But we like TRI. It likely has more growth potential than the banks from current levels, and depending on the other names in a portfolio it could improve diversification. We would be comfortable buying it, but we cannot comment on personal position sizes so we would consider the overall picture here as well.