Dividends don’t dictate success: Manager

Healthy returns rely on cash reinvestment, says Franklin Bissett’s Garey Aitken

Jade Hemeon 14 November, 2019 | 1:40AM

Tree supported by statue

One of the crucial factors in choosing investments is a company’s ability to profitably allocate capital, says Garey Aitken, chief investment officer at Calgary-based Franklin Bissett Investment Management and lead manager of four-star Franklin Bissett Canadian Equity Fund.

The Franklin Bissett approach is long-term, with holding periods for companies typically running from five to 10 years. That’s why it’s important that companies generate a healthy level of free cash flow, and then intelligently invest that capital into expanding their businesses and increasing share value. Allocation choices could include enhancing existing products and equipment, mergers and acquisitions, share buybacks and dividend payments.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alimentation Couche-Tard Inc Class B45.45 CAD0.00
Allied Properties Real Estate Investment Trust41.11 CAD0.00
Brookfield Asset Management Inc Class A32.45 USD0.00
Canadian Natural Resources Ltd16.21 USD0.00
Enbridge Inc40.20 CAD0.00
Franklin Bissett Cdn Equity F113.32 CAD-0.31
KeyCorp11.03 USD0.00
Manulife Financial Corp13.20 USD0.00
Metro Inc56.45 CAD0.00
Onex Corp58.75 CAD0.00
Restaurant Brands International Inc74.02 CAD0.00
Royal Bank of Canada67.16 USD0.00
SAP SE ADR152.67 USD0.00
Stantec Inc42.08 CAD0.00
Sun Life Financial Inc36.00 USD0.00
TC Energy Corp55.94 CAD0.00
The Toronto-Dominion Bank43.23 USD0.00

About Author

Jade Hemeon  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies