DM Monthly Report – Summer 2023
ABSTINENCE OR ENGAGEMENT? Nearly three years ago, DM launched its Environmental, Social, & Governance (ESG) Evaluation Framework, which has become an integral part of our analytical process. For a few reasons, we decided not to outsource this work to a third-party rating agency — as is common practice in the investment industry – and instead, developed our own proprietary in-house solution.
FEATURE STOCK: Dollarama (DOL) DOL shares have been a significant contributor to DM equity returns since we took our first position in 2014.
Click here to read more: DM Monthly Report – Summer 2023
Cardinal Update – May 2023
Dividends Shine A Light In Canada – Canadian investors who aren’t putting their money in dividend-paying companies on the S&P/TSX are missing out on 30 per cent to 40 per cent of their total return, according to new research from CBIC World Markets.
The report, entitled “It’s Raining Dividends in Canada”, found that dividends from Canadian public companies have increased by one-third since 2019 with most of that coming from sectors with “excellent track records of stable dividend contributions”.
Click here to read more: Cardinal Update – May 2023
DM Monthly Report – May 2023
PRICE TAKERS & PRICE SETTERS – If energy investors blanched when the price of crude dropped by nearly 15% or $70 a barrel in recent weeks, they shouldn’t have been surprised by the move: oil has been at that same level on no fewer than nine separate occasions over the past decade and a half. The capriciousness and unpredictability of commodity prices is one of the reasons we generally shy away from resource companies, as a successful investment in this area requires a correct call on both the company and the output that it sells.
Feature Stock: Alphabet (GOOGL) – The past two calendar years were almost mirrored for shares of GOOGL, with the stock gaining more than 67% in 2021 and then falling by nearly 40% in 2022.
Click here to read more: DM Monthly Report – May 2023
DM Monthly Report – April 2023
AND THE CASH ROLLS ON… As we’ve highlighted in the past, the most important fundamental input to our equity evaluation model is cash flow, and in particular, its steady production, its growth, and how it’s redeployed by management. When presented with investment options, companies may use their generated capital to boost organic growth or to fund acquisition activity. However, recognizing when investment opportunities may not produce returns above the cost of capital is equally important.
FEATURE STOCK: JP MORGAN (JPM) – The biggest US bank by assets reported significant earnings beat for Q1, exceeding analyst expectations by more than 25% on an adjusted per share basis.
Click here to read more: DM Monthly Report – April 2023
