Cardinal Update – Dec 2019

Yield vs Growth and the New Global Income Portfolio – We have launched a new portfolio for clients who are more focused on income generation: the Global Income Portfolio.

Rest assured, our approach to this new portfolio does not drift away from our tried-and-true investment philosophy. All companies that Cardinal invests in, regardless of the portfolio, must pay a dividend. From here, the stock selection process is not as simple as it may seem. For a higher dividend yielding portfolio such as this one, you might expect our process to start by sorting a list of dividend paying companies and simply buy the highest yielding ones. We take a much more meticulous approach.

First, we are keenly focused on the quality of the dividends above all else. This means conducting in-depth research to understand how the dividend is funded. Does the company predictably generate cash flows in excess of what it needs to maintain its competitive position? Has this competitive position resulted in growing free cash flow or profitability and will it reliably extend into the future?

Click here to read more:  Cardinal Update – December 2019

 

DM Monthly Report – Dec 2019

WHAT IF THERE’S A THIRD WAY?  The recent federal election might have been the most divisive in our history, with the political map almost perfectly cleaved at the Manitoba/Ontario border. No topic separated attitudes more than the fate of our energy as-sets, with one side dug in for jobs and revenue, and the other counting these benefits as insignificant relative to our collective responsibility for the environment. What if these positions aren’t mutually exclusive, though? What if the case for Canadian energy development and the best intermediate course for the global environment were one and the same? The chart below shows world oil consumption over the past decade, which will soon pass 100m barrels/day for the first time:

Click here to read more:  DM-Monthly-Report-Dec-19