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BCE Inc. (BCE $32.50)
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TELUS Corporation (T $17.99)
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Chemtrade Logistics Income Fund (CHE.UN $14.85)
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Labrador Iron Ore Royalty Corporation (LIF $29.28)
I have substantial room in our TFSAs this year due to large withdrawals made. I plan on moving some combination of these four equities into it from RIFs and my unregistered acount:
BCE, T, LIF, CHE.UN
Taxation is not a concern, as the only one in an unregistered account is BCE, and it is just slightly down from my purchase price (no doubt due to tax loss selling).
My reasoning on choosing these four is that each of these has some potential growth of a substantial nature, and therefore would be better in a TFSA as opposed to a RIF or unregistered account.
Could you please comment on this logic, and also rank them on the basis of growth from most likely to least likely over the next few years?
Please take as many credits as necessary.
Thanks!
Paul K
Overall, we would view these four names as slower growth. So, while the logic makes sense and there may be some opportunity for these names to turnaround, we wouldn't classify them as particularly growthy names. It is true that BCE and T have room to recover if the company can prove that the heavy capital investments today are justified by future subscriber growth, customer retention, and an improvement in pricing flexibility for these services. Growth in the share prices here might take time, but we think the logic here makes sense with the caveat that there is no 'guarantee' that the valuations go back to where they traded in the past.
LIF makes sense but again are a bit slower growth. We like the momentum in CHE.UN.
Here is our ranking based on near-term growth potential, from most attractive to least: LIF, CHE.UN, T, BCE.