Jean-Francois Tardif Morneau Shepell Inc MSI-T PAST TOP PICK Jul 07, 2009

We are in a market where things that have been working have changed over the last couple of years. When that happens, institutions look at their investment managers to see if they’ve been keeping up or not. Because markets have been going through structural changes and institutions have been going through reallocations, there are lots of searches going on for managers. This company is right in the heart of that business and participates. It has been a pretty good performer and he would have no trouble owning the stock.

It has been a favourite for him for some time. He bought it for income but it is providing some growth as well. They are overdue to raise their dividend but they are using their cash to grow. He does not mind that. He is buying for new clients. It’s a little rich but he is still buying it because there are some onetime items and the PE ratio is not too bad.

Is the dividend safe? He has owned it for quite a while and it has never raised the dividend – although they could he feels. They have been selling it at these levels and feels the dividend is safe. He feels there is no headline risk associated to the Finance Minister.

A steady-Eddy stock. Well-diversified. Dividend is fine with a decent yield. Stick with it. They are growing their business through small acquisitions.

They've done acquisitions in the US and UK. They own the market in Canada and had to expand beyond. They paid a rich price for their purchaes. Well-managed and is growing its dividend.