Cardinal Update – February 2023

When Inflation is in Fashion – What’s Driving Rising Prices and What Will It Take to Rein It In? The countdown to spring has begun and we’re optimistic that forecasts for lower inflation will continue to ring true. There’s still some work to do to get to the Bank of Canada’s target inflation rate of 2.0 per cent but at least things are moving in the right direction. While there are some positive signs that commodities are coming down, the fact remains that our dividend-focussed investment approach seems to be in fashion these days with the world looking for ways to keep pace with longer term inflation.

Our company focus this month: Sony Group – the Japan-based electronics giant that many of us have known since our Walkman days. Sony has three undervalued world-class businesses which have been enjoying high growth: Music, Gaming, and Imaging. And speaking of dividend growth, four of our companies increased their dividends in January, led by NXP Semiconductors at 20 per cent.

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