Rebecca Teltscher

Yes. We're all about being as conservative as we can, especially in a market like this. Focus on returning as much of the return as possible up front in the form of dividends, so not relying as much on market-price return. We don't know if the market's going to be up, down, or sideways. But collecting that dividend, and reinvesting and compounding it, provides a good stable base. Any market return they get on top of that is a bonus.

Absolutely not :)  Part of it is that there's not much dividend yield. Also, those valuations are unsustainable. She looks for recurring and stable revenues. NVDA, for example, doesn't make its own chips; it's just the brain power behind its product. So what happens to that market price if another company comes along?

She's already in the interest-rate sensitive sectors. Wasn't so good last year, but now seeing some positive moves. Market's been teetering. Poor jobs numbers mean market panics that we're going into a recession. Next day, same data generates thoughts of rate cuts and that's great.

Market's been more volatile since early August. Her portfolios have been doing really well. She's invested in critical infrastructure like pipelines, and lower interest rates are helping. Defensive nature of her portfolio will continue to do well in further market weakness.

Not just about the dividend yield. Also about consistency of cashflow. She likes contracted revenue, such as a utility that has regulated earnings. Pipelines have long-term, take-or-pay contracts. Those companies are able to generate a stable cashflow that's consistent, and pay a portion in the form of a dividend. She also expects that dividend to grow over time.

Most of the companies she owns increase their dividend every year, based on the increase of their free cashflow.

Older assets. Base mine nearing end of its useful life. What's next? 100% oil. Refining margins have come down from a previous premium. New CEO doing all the right things. Safety record improving. Paying down debt. Almost at 100% free cashflow being returned to shareholders.

She owns CNQ instead.

Likes its assets. Management team is the best in the world, not just in energy. Skews 60/40 for oil/natural gas, and she likes this mix. 

The OPEC+ decision is not a surprise. Most of the companies she owns focus less on the commodity price, and more on volume. Think pipeline volume for the likes of ENB and TRP.

Hesitant on Canadian banking space in general. Mortgage reset date of 2025 hasn't happened yet, with its impact on consumer. Bulk of the bad news hasn't been taken into consideration yet. Trades at a premium, stay away. 

Market bias toward domestic-centric banks right now, so they're doing well. If she had to pick a Canadian-centred bank, she'd pick CM.

Yes, if you have a very long time horizon of 5 years. Usually trades at a premium, now at less than 9x earnings because of AML issues. Those issues will get resolved. Premium ~over 11x will return, but not for a while. (Median for big banks is ~10x.) She read that at these valuations, it's like getting the US operations for free. Both Canadian and US operations posting solid numbers.

Took on extra provisions to pay fine. We don't know if growth will be capped by regulators.

Hesitant on Canadian banking space in general. Mortgage reset date of 2025 hasn't happened yet, with its impact on consumer. Bulk of the bad news hasn't been taken into consideration yet. 

Market bias toward domestic-centric banks right now, so they're doing well. If she had to pick a Canadian-centred bank, she'd pick this one.

She's anticipating economic weakness, hesitant even on the consumer staples space. Consumers in Canada have seen a lot of price increases in the last 24 months; spending same $$, but taking home less. Questions ability to continue to pass on those price increases. 

Stays away when a fluctuating commodity price will impact earnings too much. Yet she owns this one. Half of its business is agricultural retail, which supports the dividend. This segment will increase with global population growth. 

Potash prices are stabilizing, without either positive or negative catalysts on the horizon. Not a bad entry point. Yield is 4.5%.

Commodity-based stock. She's positive on demand for nuclear, but invests indirectly; think BEP.UN and TRP. Globally, 60 nuclear plants are in construction, 100 in planning stages. Long-term tailwinds. But short term, she can't predict the commodity price.

Hard to buy at these prices. Has done all the right things. Overhang of LTC business is gone. Traditionally, benefits more in a rising, not falling, rate environment. Bigger story is focus on Asian growth of middle class and asset management.

(Note short timeframe.)  Attributes underpinning her recommendation are still there. Pilot shortage. Revenue is still consistent, stable, growing. Struggled on defense side, margins have come off, but geopolitical tensions are still high. Signed 25-year, $11B contract in May; services still in demand.