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
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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alimentation Couche-Tard Inc Class B48.40 CAD0.00
Allied Properties Real Estate Investment Trust42.82 CAD0.00
Brookfield Asset Management Inc Class A61.01 USD0.00
Canadian Natural Resources Ltd42.73 USD0.00
Enbridge Inc52.96 CAD0.00Rating
Franklin Bissett Cdn Equity F153.47 CAD0.44Rating
KeyCorp24.04 USD0.00Rating
Manulife Financial Corp20.29 USD0.00Rating
Metro Inc62.70 CAD0.00Rating
Onex Corp98.12 CAD0.00
Restaurant Brands International Inc76.59 CAD0.00Rating
Royal Bank of Canada107.75 USD0.00Rating
SAP SE ADR141.78 USD0.00Rating
Stantec Inc68.28 CAD0.00
Sun Life Financial Inc57.04 USD0.00Rating
TC Energy Corp68.02 CAD0.00Rating
The Toronto-Dominion Bank72.09 USD0.00Rating

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Jade Hemeon  

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