Q: Goeasy has paid and increased dividends consistently for some 10 years. The payout ratios appear to be very reasonable and the growth has been strong. This seems like an enticing stock to carry in a dividend orientated portfolio. 5i has it in the growth portfolio. Why not in your income portfolio as well?
Just curious, Stephen S
Just curious, Stephen S
5i Research Answer:
GSY is still fairly small, and its business can be cyclical. It could be in the income portfolio, but we do like to limit the number of securities in each portfolio and we also try to keep sector weightings in line. The portfolio has about 20% financial exposure already, with larger (and likely safer) companies for a more conservative approach.