BNN - Friday, May 24, 2024 - 12:00 p.m. (ET) - Segment #3

>>> We will take a quick break and when we come back we will take a look at ryan's past picks. That's next. [ ] (Upbeat instumental music)Canadians are facing a newnormal with interest rat and investment options. The Capital Direct OneIncome Trust is in a growing asset class thatprovides stability and is income-generating forportfolios. Here from Capital Direct areEire Gorman and Aaron Narayan, great to see you again. Thank you for havingus back, Mark. Eire,how are interest rates impacting the Capital DirectOne Income Trust? It's really important tounderstand the timeline of the loans that make upthe income trust. These are fixed-term vehiclesthat don't have the volatilityof a variable product. That means we're less-vulnerable to interest rate changes for18-24 months. Aaron, what arethe pros and cons for the trust if interestrates go down? First off, we love stability. Looking forward, we believe interest rates willact in our favour. If rates go down then (Unclear)or now Cora drops which means the cost of capitalis actually cheaper. And what if interest ratesstay around these levels? Aaron: If interest ratescontinue to stay the same we continue to kick out similarreturns as we have been for our investors which makethem extremely happy. So the trust holdsresidential mortgages. Based on what you're seeinghow would you say Canadian homeowners are coping in thisnew interest rate environment? This is a good news story. Canadians arefinding ways to cope. Our mortgage investments andflexible lines of credit have allowed homeowners toconsolidate at a lower rate and continue todo the things they love while owning their own homes. As we said here, homeownershipis so important to Canadians and we've seen the choices thatthey have made to remain in this privileged category. And it's also important to notethat throughout this new normal we've kept our loaned valueat a very comfortable 52%. If advisors or investorsare interested how do they reach you? Yes, Portfolio Managers andFinancial Advisors can find us atincometrustone.com. And for direct investorsyou can call us anytime at 1-800-625-7747. >> Andrew: ryan was on our show april 11th of last year. His first idea was pembina pipeline and this one up almost 20%. There's been talk that they might invest in the transmountain pipeline expansion but I think they are not saying anything about that right now. >> Yeah, they are pretty busy doing other things. They have got lng which will come to final investment decision here probably within a month. And then they just bought the remainder of the ox stable asset from enbridge. They have plenty to work on. And their business continues to look pretty good. So we talked about keyera earlier. Pembina is a company that we own that's similar, a little bit bigger. We like the more diversification and more fee for service business as a percentage of their revenue. Both well run companies and pembina is the one that we have as a major core position. >> Andrew: your next idea was aecon. They have had an overhang with older contracts that are not profitable or not very profitable it seems but the stock bouncing. >> Yeah, so we talked about this with tc energy, right. The cost overruns on the four main projects two lrt projects, the gordie howe bridge going into the U.S. and southern ontario and then obviously coastal gaslink in bc they will get some cost recoveries on those but that is to go through a long drawn-out process as well. We are past the worst point of that. Backlog is full. Mow new projects are being contracted differently in a more advantageous way they have sold some of their lower margin like the road building business and a portion of the airport concession in bermuda. So stock's done quite well. We think it will has bright future ahead. They signed some nuclear contracts. We think the higher value business is coming in and that legacy business will eventually fade away and actually become a tailwind once they get modest recoveries. >> Andrew: finally altagas. This one was out of favour for quite a while. People didn't like that big proposed acquisition in the states. But it looks like you timed this one nicely. >> Well, I have been timing it -- >> Andrew: you have been in in -- >> Broken clock, I guess. Last year was the year that this stock really performed. And it goes to show you that the problems they were having were kind of 2017 and 2018. You know that seems like forever ago but it was six years ago. And if were you purchasing they cut the dividend. Now they are increasing the dividend every single year if you purchased it all the way down. It's about owning a company with good that he is has a future. And this company performed extremely well last year and rival utilities did not perform well because rates went up at

THE LONG END. THAT PERFORMANCE IS MORE OUTSTANDING GIVEN THE ENVIRONMENT THEY WERE IN. FUTURE AHEAD AT THE HELM, FORMER ENBRIDGE EMPLOYEE, FORMER ENBRIDGE EXECUTIVE. AND WE LIKE THE PATH FOR THE COMPANY GOING FORWARD. YOU'VE GOT MOUNTAIN VALLEY PIPELINE IN THE STATES WHICH THEY OWN A SMALL STAKE IN THAT IS NOW ALMOST FINISHED AND WILL LIKELY BE SOLD. SHORE UP THE BALANCE SHEET AND THEN A LOT OF OPPORTUNITIES IN BC RIGHT NOW SO. >> Andrew: OKAY, WE'LL BE BACK WITH RYAN BUSHELL. HE IS TAKING YOUR QUESTIONS ON CANADIAN DIVIDEND STOCKS. 1-855-326-6266. Energy Fuels, a leading American uranium producer, is ramping up production to supply expanding nuclear markets and diversifying into rare earth elements, key ingredients in many clean energy and defense technologies. Energy Fuels. We were born from a deep desire to create positive change, together. One-hundred-fifteen years later, that impact is felt everywhere. It's where we've made innovations accessible to those who need it most. Where we've championed truth and justice... for all. Where we've mapped out futures... we're already living. From here to here and even here. We're not just transforming lives. We're shaping the world. Discover AMUR CAPITAL. AMUR CAPITAL'S track record of consistent performance has delivered industry leading returns since inception. Why play games with your financial future? Choose AMUR CAPITAL - A Simpler Approach to Investing. Get more from trusted US Treasuries with HBND. Canada's first covered call bond ETF providing attractive monthly income with the strength and security of U.S. government bonds. HBND, more income, every month, from Hamilton ETFs. Time is money. Let Super SaveHydrovacs save you both.When you book a Super you get a state of the artpowerful hydrovac unit that will save you time on thejob. Super Save Hyrdrovac is the newest fleet of powerfulhydrovac trucks on the Lower Mainland. These unitswill make short work of your tricky excavation, catchbasin cleanout and so much more. Make the right call. CallSuper Save Hydrovac today and get the Blue Guysworking for you. Super Save Group is a CORCertified Safety Conscious company. Check them out atSuperSave.ca At Odyssey Trust, we're more than just a transfer agent. We're on a mission to deliver peace of mind by making things simple, fast and easy. We're proud to be the trusted partner of over 1000 clients in Canada and the United States. (Dramatic music) I am Paul Atreides! Duke of Arrakis! Let me fight beside you. I'll show you the way. >> Andrew: WE ARE TALKING DIVIDEND STOCKS WITH RYAN BUSHELL.

>>> Let's get to bob in toronto. Go ahead, works please. >> Caller: yeah, hi, andy. Thank you for taking my call. Ryan, I am just wondering your thoughts on qsr, restaurant brands. It's sort of taken a hit the last couple of weeks and I am not quite sure why. It has an investment tim hortons [indiscernible] and those two are pretty good places for fast food. So I am wondering what your thoughts are. Thank you very much. >> Andrew: thanks. >> Thanks for the question. A company I have been watching pretty closely. It came of off, say, beginning of last year, pretty dramatically. October of last year. Looked at it then. And now it's getting -- so in the same vein as pizza pizza. We think that weakness in the consumer is there and is manifesting slowly with interest rate increases especially in canada. So we are cautious on all these companies but if they get down to super attractive levels we do like the core business going forward. Qsr specifically has a big bet on revitalizing the burger king brand. I am not so sure that's working. We will see if they have a very catchy advertising campaign. Aside from that I am not sure if it's driving traffic necessarily. Tim hortons is pretty stable. And then they had a good pop with popeyes a couple of years ago and that's since levelled off. We will see. But I think it's -- again looking at that long-term chart I would like to see it down well below 80 before I would really take a look at it. I would just advise patience. >> Andrew: not calling to you right now. >>> We have an email from victor. When do you see a buying opportunity to get into arc resources? And at what price range. >> Well, so I don't have a crystal ball but energy is cyclical even small cycles, right. Company's done extremely well. We own this company you know bought the biggest chunk much our position bought them at 13. Doubled down at 6. In the pandemic there in 2020. And have owned it ever since. Average cost base below 10 bucks. Really like the company going forward it's well run. Great assets. A lot of organic growth. They don't need to acquire. They own their own infrastructure so it's really defensive well positioned producer. So you might get a shot at it below 20. And if you do I would be happy to buy it there. If not you know, it's hard to buy it at these levels. But I do think it's going higher over time. They have development especially with lng canada coming on, there is more volume that can come out of the basin. We like it long-term for clients today. New clients today. We are not purchasing at these levels. We are hoping to get it back into the lower 20s. You have might get a shot you never know. Stuff comes off hard in the energy space. We have seen it many times. >> Andrew: allen in guelph, ontario. Go ahead, please. >> Caller: hi, ryan. And andrew. I am calling on superior plus. It is hanging around 7 1/2% dividend for a company that's not too overly complicated I don't think. I'll hang up and hear your thoughts. Thank you. >> Andrew: superior plus. >> I don't own this one. My partner steve does own it for some of his clients. So we like the company especially with brookfield's involvement. They own a preferred stake. And could increase that position over time or just take the company out as the caller said fairly simplistic business. Got hit by you know a warmer winter this year which again is transient and temporary but the business continues to perform pretty darned well. The acquisition they just did is performing. So the cash flow seems to be there. But nobody likes the company. I just -- I have other things in the portfolio that are in the same -- not the same business necessarily but the same area and so don't want to overindex clients to any one thing. So I don't -- that's the reason I don't own it. I don't have a problem with it especially at these levels. I think it's pretty attractive. >> Andrew: we have joseph in montreal. Go ahead, joseph, please. [indiscernible] he halls the auto tune turned up too much. Whitecap resources is the question. >> Yeah, so you know we are not in any -- other than freehold but we are not in the mid-cap canadian oil producers. Again oil specifically not as positive on it as natural gas. Medium long-term basis just given the production that's offline in saudi arabia, et cetera. And the weakening demand picture which we are seeing. Yeah, not a fan of it here. Don't really need to own it long-term. We own canadian natural. We think it's the best operator in the basin. Obviously it's very expensive and people are looking down cap to try to find opportunities. But we would just advise waiting for an opportunity to buy one of the better producers like arc

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