By Gordon Pape, Editor and Publisher
Most Income Investor picks are interest-sensitive and have therefore benefited from the turn-around in interest rates. When we make a recommendation in TII, we place our emphasis on cash flow and safety. Capital gains are not a major concern, so we treat them as a bonus.
The Income Investor (TII) Top Picks
This year, a number of our picks rewarded us with very impressive gains. Here are a few selections from our Top Ten list.
Cogeco Inc. (CGO)
Recommended April 30, 2015 @ $54.14 by Gavin Graham
Last Update: October 24, 2019 in tii1920
76.8%
to 11/29/19
Cable companies don’t tend to see big price swings but this recommendation from contributing editor Gavin Graham has been an exception this year. The company expanded into the U.S. in January 2018, spending $1.4 billion to buy Harron Communications’ Metrocast cable and broadband assets in five Eastern U.S. states. That move increased Cogeco’s subscriber base by 40%. The company has been reporting good financial results while also reducing its ratio of net debt to EBITDA. Investors have been impressed. The shares have risen from $58.24 at the end of last year to $102.97, a gain of 76.8% for the first eleven months of 2019.
AltaGas Canada (ACI)
Recommended April 25, 2019 by Gavin Graham
Original Price: $18.95 CAD in tii1910
76.5%
to 11/29/19
This is another Gavin Graham pick. The company was spun out of parent AltaGas in Oct. 2018. It owns and operates natural gas distribution networks in Alberta, Nova Scotia, and British Columbia. The company recently reported good third-quarter results with normalized net income of $2.4 million ($0.08 per share) compared to a loss of $1.3 million (-$0.04 per share) in the year ago period. The stock was first recommended on April 25 of this year at $18.95 and is now at $33.45 for a seven-month gain of 76.5%.
Brookfield Renewable Partners (BEP.UN)
Recommended July 21, 2009 @ $16.62 by Gordon Pape
Last Update: November 28, 2019 in tii1922
75.3%
to 11/29/19
In November, this renewable energy partnership announced it will follow the same pattern as its sibling, creating a tax-efficient Canadian company. The shares finished last year at $35.35 and are now at $61.96 for a gain year to date of 75.3%.
Dream Industrial REIT (DIR.UN)
Recommended December 13, 2018 @ $10.11 by Gordon Pape
Last Update: April 25, 2019 in tii1908
47.2%
to 11/29/19
Overall, it was an outstanding year for REITs, with many seeing price increases of more than 20%. This was one of the leaders. It specializes in light industrial properties and is in the process of expanding its portfolio in the U.S. It finished 2018 at $9.52 and then made a strong move this year. It currently trades at $14.01, giving it a year-to-date gain of 47.2%.
Brookfield Infrastructure Limited Partnership (BIP.UN)
Recommended September 15, 2010 @ $12.60 CAD by Gordon Pape
Last Update: October 10, 2019 in tii1919
46.8%
to 11/29/19
The price of this security has been on the rise for several years, but it really took off after management announced plans to create a taxable Canadian corporation that would mirror the partnership’s performance and distributions, but with tax advantages. Also, as a corporation, the shares are expected to attract more investor interest, especially from institutions. The units ended 2018 at $47.15 and finished November at $69.20 for an 11-month gain of 46.8%.