Q3 is off to a shaky start. Q1 was good and Q2 great. Everybody is excited by earnings growth with the S&P up 30%+ based on Google's report last week of $98 billion of profit, but that came from Spacex shares. Investors ask what is the AI picture for the next 12-18 months? Uncertainty over the Fed's interest rate policy (will they hike and when?) is concerning investors. What's driving that is the uncertain US-Iran war. So, investors are stepping back from the momentum trade of the last 3 years to wait. AI is half the US GDP growth, but meanwhile, China is building new AI models that will drop the pricing of AI.
A tough one. The dividend has been expected to be for a long, long time. When BCE cut its dividend, its shares did not take, because the cut was priced in. The big question is about the operating businesses. Watch their call about their cash flow which cannot sustain the dividend. Before selling it, watch the Q2 report and CEO remarks closely.
Many who have held this for a while face the problem of taking the capital gain and turning it income for the rest of their lives. Selling RY pays a 2.39% dividend could work if it's in a registered tax so you don't have to pay that tax immediately. The stock market looks toppy, so you can take some profits and transfer that in a high-yield security to generate income.
The more people hold onto their existing cars, the less money Boyd makes. They do a great job fixing your car, but an insurance company will write off an old car, leading you to buy a new car, because it costs more to repair an old car. Is interesting to watch. The company plans to double cash flow in 5 years.