Opinions Larry Berman CFA, CMT, CTA
Canoe EIT Income FundEIT.UN.TOUnspecifiedJan 10, 2022
Are dividends safe? He can't see the underlying companies from his terminal and apologizes for that. If good underlying companies, dividends are relatively safe. If engineering of distribution yields, he would be concerned.
Larry Berman CFA, CMT, CTAUnknown
$13.22
Stock price when the opinion was issued
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Basket of dividend payers in Canada and the US. Just under 30% energy names. Pretty high yield, but believes some of that is ROC (so the yield is a bit misleading). As long as the underlying stocks do well, shouldn't see an erosion of capital. But the wild card to watch for is if there's a decline in the market.
Well managed, great track record.
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COMMENT
Not a fan of closed fund since the underlying securities will deviate from the net asset value of the fund. There are big dislocations. Underlying holdings are good quality companies. On a weighted basis, the yield is 3%, but the fund is paying 8%. This comes from the capital gains. It is not pure yield.
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COMMENT
Pays an 11% dividend yield. How are they paying that? They probably hold a lot of Canadian infrastructure but those stocks pay only 3-4%. The US component is also dragging down that yield. There's a mismatch here in holdings vs. the 11% yield. The total return will probably be 5-7%, but the high yield will limit share performance. This is a warning. Look at their top holdings and see how you feel about that.
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