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 B41.66 CAD0.00
Allied Properties Real Estate Investment Trust41.83 CAD0.00
Brookfield Asset Management Inc Class A45.39 USD0.00
Canadian Natural Resources Ltd31.41 USD0.00
Enbridge Inc46.40 CAD0.00
Franklin Bissett Cdn Equity F135.53 CAD0.14
KeyCorp20.80 USD0.00
Manulife Financial Corp21.59 USD0.00
Metro Inc58.48 CAD0.00
Onex Corp79.64 CAD0.00
Restaurant Brands International Inc82.20 CAD0.00
Royal Bank of Canada93.77 USD0.00
SAP SE ADR135.97 USD0.00
Stantec Inc56.12 CAD-1.00
Sun Life Financial Inc51.48 USD-0.53
TC Energy Corp59.81 CAD0.80
The Toronto-Dominion Bank66.14 USD-0.20

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Jade Hemeon  

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