Boston Pizza Royalties (BPF.UN-T)

Pizza is a challenging space and BPF doesn't execute as well as, say, McDonald's. BPF's 3-year chart shows it's still in a downtrend. The current stock bounce is an opportunity to sell, not buy.

He has a small short on this. He is not worried about the sustainability of the dividend as this used to trade as a royalty income fund as all the cash flow is paid as dividends. Overall he sees mid-sized Canadian consumer companies at risk in general, especially if the real estate market rolls over. Yield 7%.

Good distribution. His main concern is that this would be a little more sensitive to an economic downturn because receipts for company like this are going to be higher than something like an A&W. He would be fine with this holding. 6.2% dividend yield.

Pizza companies do have different structures. Sometimes they are owners, and sometimes they are franchises. He thinks this is a good, long term hold. Good dividend.

(Market Call Minute.) He likes the restaurant business. (See Top Picks.)

(Market Call Minute.) If it pulled back, it would be something he would add to.

This is a pretty good entry point. If you can be patient, pick away at it through the summer, which might be a good way to accumulate a position.

Boston Pizza Royalties (BPF.UN-T) or Brookfield Property Partners (BPY.UN-T)? 2 very disparate companies. This one has a very strong yield. As a royalty, it pays out a lot of its earnings back to investors, while the other has not as big a dividend, but has more room to grow it. He would tend to own the one that has the opportunity to grow its earnings, which is probably going to win most of the time. If he had to pick one of the 2, he would go with Brookfield.

It is difficult to predict where the consumer is going to channel their preferences. With a slowdown, consumer sensitive stocks have more risk than they ever have. He would consider trimming your position.