COMMENT
TFSA -- better to DRIP, or to take the cash and buy other dividend stocks?

What she does for clients is to take the dividend in cash. The DRIP is not a bad thing for accumulating stocks, but her firm likes to have a bit more control. Dividends come in, and they get to choose where to deploy them. This way gives you more flexibility.

For example, she owns AEM which has done very, very well. Instead of "dripping" in more shares at the elevated level, she'd rather put the dividends to work in something that's underperformed, is at a lower valuation, or has a higher yield.

Since she's a little nervous about the markets, she's taking dividends and putting them into money market funds as she waits for a market pullback.

HOLD

Sold off renewables (still owns some hydro), transitioning to pure-play utility. Stock was up 10% after last month's investor day, so it appears that investors believe in its back-to-basics strategy. Up 20% YTD, outperforming others. Demand for energy continues to increase. This company isn't going anywhere, and it has the best valuation amongst peers.

Turnaround story. She's holding, though may not own it forever.

DON'T BUY

All telcos have been facing highly competitive pricing environment, slowing immigration targets, and lots of infrastructure capex. Better payout ratio, as it didn't raise dividends as much as others. So the dividend is safe. Debt issue from MLSE deal; sports assets are valuable, but not necessarily cashflow positive.

DON'T BUY

Its 65% rise in 2024 was based on speculative rumours of data centres in Alberta. Need to see something concrete on that. She's concerned about the recent move since April. You'd do better owning ENB or PPL, which have more secure (as opposed to speculative) growth. Yield is 4.75%.

TOP PICK

One of only 2 names she owns with no dividend. For her to do that, she really has to have conviction on the company and its stock price trajectory. Biggest segment is manufacturing transit buses, also does coach buses. Supply chain issue with seats is slowly getting alleviated. Backlog at record levels. Pricing environment is good. 

Very limited competition, as pandemic wiped out most of their peers. Public funding is still strong. One of the only companies that complies with buy-American-zero-emissions policy. No dividend.

(Analysts’ price target is $20.75)
TOP PICK

Need for energy and power continues to increase. About half its assets are hydro, which she likes for long-term growth. Geographic and asset diversification. Huge deal with MSFT, which should increase production by ~33%. Joint venture with CCO to do Westinghouse nuclear servicing, and she's bullish on clean energy. Poised to do well. Yield is 5.77%, and dividends grow 5% a year.

(Analysts’ price target is $39.39)
TOP PICK

Turnaround story. Growth trajectory will be completely agnostic to what's going on in the economy right now. Costco Canada is one of its biggest clients, and now Costco USA is asking for its products. Has spent millions on US expansion; they had the orders, but didn't have the capacity. That capex is almost done, and they've had 2 really strong quarters of earnings. 

Growth in US is starting to take off. Pretty tariff agnostic, as production in both US and Canada means they don't have much cross-border traffic. Dividend usually grows ~10% a year, but probably not this year due to the buildout and M&A activity. She's happy to wait for the dividend growth if it means better growth overall down the road. Yield is 4.14%.

(Analysts’ price target is $103.92)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly

As North American air travel is expected to hit an all time record high, we reiterate CPA as a TOP PICK.  Analysts like that the company operates with only 737s to service its Latin-American destinations -- keeping operations lean and mean.  It trades at 8x earnings, under 2x book and supports a 26% ROE.  It's good dividend yield is backed by a payout ratio under 50% of cash flow.  We recommend trailing up the stop (from $83) to $95, enroute to a target of $144 -- upside potential of 28%.  Yield 5.6%

(Analysts’ price target is $151.67)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly

We reiterate this predominately oil producing company in the Bakken as a TOP PICK.   Recently reported earnings showed a 13% increase in production (a new corporate record) and a 41% increase in free cash flow.  It trades at 8x earnings, 1.2x book and supports a 29% ROE.  Its good dividend is backed by a payout ratio under 33% of cash flow.  We recommend trailing up the stop (from $21) to $23, looking to achieve $37 -- upside potential of 23%.  Yield 5.8% 

(Analysts’ price target is $36.79)
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TOP PICK
Stockchase Research Editor: Michael O'Reilly

Following recently reported record Q2 revenues -- beating analyst estimates by almost 10% -- we reiterate TOL as a TOP PICK.  It trades at 9x earnings, 1.5x book and supports a 19% ROE.  It has been prudently using some cash reserves to aggressively buy back shares and retire debt.  We recommend trailing up the stop (from $87) to $96, looking to achieve $137 -- upside potential of 16%.  Yield 0.8%

(Analysts’ price target is $137.07)
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1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Aug 27/24, Up 28.2%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with URB has achieved its target at $6.50.  To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $5.25.  

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1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Mar 25/25, Up 8.6%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with BLX is progressing well.  To remain well, we recommend trailing up the stop (from $32) to $36 at this time.