Q: Between BAM and BEPC ...which do you prefer for income and growth in this current environment? I currently have a full position of BN for growth as well as a full position in BAM which provides some income but little growth as of late. I am considering selling BAM and moving to BEPC. I would appreciate your thoughts on this please.
GM
GM
5i Research Answer:
For investors seeking stability, income, capital preservation, and low volatility, BEPC is a better option. However, from a total return perspective (capital appreciation + dividends), we would go with BAM. Although BAM has not had a significant move recently, we think the share price will eventually reflect growth in the fundamentals.
A rotation from BAM to BEPC could make sense if investors want to de-risk the portfolio and prioritize income and stability. Other than that, for investors looking to optimize long-term total returns, we think BAM is still the better choice.