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Royal Bank of Canada (RY $205.50)
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Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM $75.45)
Q: BAM vs. RY—both are solid picks for income and long-term capital gains, and I currently hold both. I already have substantial exposure to bank stocks and the HCAL ETF. Since BAM falls under your strong-rated names, I’m considering increasing my position in BAM and trimming RY. Do you think that’s a smart move?
5i Research Answer:
We have nothing against RY, but do think BAM will likely have more long term potential and we would be fine with the proposal in the question.