Q: Hi 5i,
I want to add an insurer to my RRIF for long term capital appreciation and income and have done something of a side-by-side comparing of MFC and SLF.
My findings (any one of which could be incorrect or overstated) are:
- Estimates of future growth and earnings favour MFC;
- Current dividend yield favours SLF by 0.30%;
- Past 1 yr, 3 yr and 5 yr shareholder return (whether dividends included or not)
significantly higher at MFC;
- MFC slightly less expensive based on P/E and more so based on P/B;
- SLF management is more experienced and pays itself less than does MFC
management.
Based on the foregoing MFC looks like the best choice over the long haul for the goals I've stated but I think historically you've favoured SLF, which leads me to ask: If you were to invest in one or the other for a RRIF at this time, which would you choose and why? Or would you go in 50/50 on each or in some other proportion?
Thanks 5i,
Peter
I want to add an insurer to my RRIF for long term capital appreciation and income and have done something of a side-by-side comparing of MFC and SLF.
My findings (any one of which could be incorrect or overstated) are:
- Estimates of future growth and earnings favour MFC;
- Current dividend yield favours SLF by 0.30%;
- Past 1 yr, 3 yr and 5 yr shareholder return (whether dividends included or not)
significantly higher at MFC;
- MFC slightly less expensive based on P/E and more so based on P/B;
- SLF management is more experienced and pays itself less than does MFC
management.
Based on the foregoing MFC looks like the best choice over the long haul for the goals I've stated but I think historically you've favoured SLF, which leads me to ask: If you were to invest in one or the other for a RRIF at this time, which would you choose and why? Or would you go in 50/50 on each or in some other proportion?
Thanks 5i,
Peter
