The Canadian Investor - Unveiling of The Canadian Investor Index

Episode Date: June 13, 2020

In this episode, we unveil The Canadian Investor Podcast Index (TCI Index). The stocks in the TCI index were provided by our listeners with a few picks from Braden and Simon. During this episode, we go over each stock and give our quick take on the company.Thank you to all of those who sent in stock picks for the index!--- Send in a voice message: https://anchor.fm/the-canadian-investor/messageSee omnystudio.com/listener for privacy information.

Welcome back into the show. This is the Canadian Investor Podcast, made possible by our friends and show sponsor, EQ Bank, which helps Canadians make bank with high interest and no fees on everyday banking. We also love their savings and investment products like GICs, which offer some of the best rates on the market. I personally, and I know Simone as well, is using the GICs, which offer some of the best rates on the market. I personally, and I know Simone as well, is using the GICs on a regular basis to set money aside for personal income taxes in April of every year. Their GICs are perfect because the interest rate is guaranteed, and I know I won't be able to touch that money until I need it for tax time. Whether you're looking to set some money aside for a rainy day or a big purchase is

coming through the pipeline or simply want to lower the risk of your overall investment portfolio, EQ Bank's GICs are a great option. The best thing about EQ Bank is that it is so easy to use. You can open an account and buy a GIC online in minutes. Take advantage of some of the best rates on the market today at eqbank.ca forward slash GIC. Again, eqbank.ca forward slash GIC. Live from the great white north, this is the Canadian investor where you take control of your own portfolio and gain the confidence you need to succeed in the markets. Hosted by Brayden Dennis and Simon Belanger. Ding, ding, ding. The picks are in.

The Canadian Investor Pod Index. We are announcing the 27 companies. Thank you so much for your submissions. We've had a wide, wide range of companies from consumer staples to hot tech to real estate. We've got a bit of everything. So some new names, some names that you're familiar with, some that you might never have heard of. And this is very, very exciting for both Simon and I. So Simon, we're going to go back and forth roughly on some of these companies. We're going to talk about them no more than 30 seconds because we will be here for hours if we went longer than that. So without further delay, Simon,

what was your first take when you saw some of these companies? Were you surprised? Were there some names you hadn't heard of? Give me your thought process. Yeah, so when I first saw it, overall, I mean, some companies I expected to see on there, some companies I was a little surprised, some companies I expected to see on there. Some companies I was a little surprised. Some companies I never heard of them.

So, yeah, it'll be interesting just to chat about them. But more, you know, as time goes by and just comparing the returns to what the, let's say, S&P 500 or S&P TSX will be. That'll be interesting just to see those returns. Some picks, I mean, definitely I would not add them in my portfolio, but hey, this is what it's for, right? So it'll be just fun to see what the returns are. Yeah, it's going to be really fun. On the next episode, I'm going to give some backtesting results

to see how it's performed at least this year and as far back as I can go depending on when they all IPO'd it definitely changes how far I can go back so we'll see what that data brings I'm going to do that next week and bring that to you so we will provide an update on how the index is doing I think this is really cool thing to do and it'll be interesting to see how it performs against the TSX and the S&P. There's some Canadian names, some U.S. names, but let's go into it. Simon, 30 seconds. We can give a hot take or not.

Some of them we obviously know a lot better, naturally. So the first pick, to no one's surprise that it made it in the list, needs no introduction. That is Shopify, Canadian tech darling, battles it out with RBC, depending on the day, as Canada's biggest company and the TSX's largest listing at well over $100 billion in market cap. Provides a solution between business to give an e-commerce platform. You can develop an e-commerce platform idea and execute on it within 24 hours easily with Shopify, and they've done tremendously well. All right, next pick, a name that you probably also know, TELUS, ticker T, is the large telecom.

They share an oligopoly, of course, with telecommunications networks here in Canada. This pitch was primarily based on they think that TELUS has the best customer service. And I will also add that their telehealth, not telehealth, but software for clinics across Canada has done very, very well. While the other telecoms went into sporting arenas for the most part, they went into health.

So that's software we've seen in clinics and hospital across the country. Yeah, so it's TELUS Health. Yeah, you were looking. TELUS Health. I was gonna say Teladoc because of that names. Oh, we always talk about it. But yeah, Simon, you want to give us the next one? Yeah, so the next one is Fairfax Holdings. So Fairfax is an insurance company is an insurance company that a lot of people kind of compare it to Berkshire Hathaway of Canada. I'm not sure I really agree with that though. prem watsa and he uses a lot of the money to the flow that's used for the insurance so some of basically the spare money that they don't need to keep as reserves for the insurance and they'll do bets so they'll invest in companies most recently in the past few years they've invested in blackberry and they're the ones that are backing the toy sorry the toy store Toys R Us in Canada.

So the reopening of those stores were backed by Fairfax Financial. So whether those are going well or not, I know the returns have not been good for Fairfax. So that's kind of just in a gist what it is. Yeah, that Berkshire of anything, fill in the blank, has been thrown around more than ever from what I've seen. But yeah, they've been definitely compared to Berkshire of Canada. All right, another one. I promise I didn't put this one in the list, but I probably would have if it wasn't out here. This is EngHouse Systems, the Markham, Ontario, Canada-based conglomerate of software companies.

High recurring revenue, very fast dividend growth, and a squeaky clean balance sheet. Literally zero debt. They take tons of cash flow and buy new businesses they're in some great spaces they just released probably one of the best quarterly reports i've ever seen in my life for q2 uh which is you know the success of their telemedicine and communication software platforms that are obviously doing very well a management came out and just said it. COVID is great for business. All right.

Oh, Simon, you got the next one. Yeah, next one. So Ticker CHD, Church & Dwight. Some of you might not be familiar with it. So it's a consumer staple company listed in the U.S. You might be familiar with some of their brands, Harmon Hammer, and I think, Brayden, you mentioned Trojan Condoms, but they're a big conglomerate for that. Obviously,

those are just two examples of their brands. Pays a small dividend, very stable company, probably won't outperform the market per se, but if the market drops, that's the type of company that should be pretty resilient in that kind of environment. Yeah, the consumer staples is good. Big, big brand, big network of brands. And thank you for pointing out that I did mention they do have Trojan condoms. All right, next one is Stella Jones. This is a company that meets my screens all the time, but it is a primarily commodity-based business, forestry. However, they do really well with telephone pole lines,

with that pressure-treated wood. Not much more to say about the business other than for what it is. They've been a tremendous performer and a tremendous dividend grower. So whatever they're doing there over there, the management has been doing it well. And it's been a really, really good growth story. All right, moving on. Brookfield Asset Management, ticker BAM.A, which you can buy BAM both on the TSX and the New York Stock Exchange. And BAM kind of needs no introduction. We've talked about BAM so much. They have four main businesses that all they have a controlling stake in all of them. And then additionally,

they have $350 billion in bearing capital that brookfield asset management does on their own so this is a manager of real assets infrastructure renewable energy and uh real estate as a side note for uh yeah bam it probably has one of the best tickers out there so hey it definitely has the best BAM. I mean, what? It's incredible. Okay. The next one is ticker CSU.TO. Also listed on the NYSE though. CSU is Constellation Software. Oh my God.

What a compounder this has been for shareholders over the last decade. Oh, my God. Thousands of percents we're talking about in gains. And a 22% year over year for the last 10 years compounded annual growth rate on their free cash flow. Crazy margins. Super high return on invested capital. And they are essentially, dare I use it, Berkshire Hathaway of technology companies.

They buy... It was more of a joke, but people... I hear them say this about CSU all the time. What an incredible performer. Very, very highly valued. I see it trading at 80 times earnings more often than not. But, hey, they are going to be able to continue to use that free cash flow, continue to buy more software companies, boost free cash flow. I would be a little hesitant about the organic growth of that kind of valuation.

But, hey, it's been an incredible company and one that people want to own for a long time. would be a little hesitant about the organic growth of that kind of valuation but uh hey it's been an incredible company and one that people want to own for a long time okay so the next one is uh afria uh so it's listed on both the uh tsx and in the us as well uh so that's one of the uh bigger marijuana players in in Canada. I think you guys may have remembered we had an episode where we talked about EXO. So marijuana in general has been really battered. It's still pretty risky, mainly because Afria is still losing quite a bit of money. And we do have another weed pick or marijuana pick that was given to us for the index a bit later on. I'll talk about it.

But for me, I mean, there's definitely some growth that's going to be in the marijuana industry as a whole. Personally, I am thinking of building a little basket, marijuana basket companies. Pick four or five of the best ones and kind of see how it goes as a small portion of my my portfolio um so that just a side note on afria and the marijuana industry as a whole i don't know if you heard that brayden but the ontario cannabis store said that from february to march 2020 their sales increase 80 online so i I guess people were stocking up on weed or marijuana products when the pandemic started. Very interesting. One that at legalization, an industry I wouldn't touch at the 10-foot pole,

215 times sales for these kinds of companies. But don't ignore this industry. Obviously, marijuana, weed growing very, very fast. No pun intended on that. But Afria is probably one of the better names in the space. I will say that. Okay, so the next one is JD.com. So JD.com is a Chinese company that's listed on the US Stock Exchange through an ADR.

An ADR is an American Deposit Receipt. It basically gives you an ownership of the company, even though the company is based in another country, in China in that case. JD.com, the best comparable, and it's much smaller, but the best comparable is probably Amazon that people will be familiar with. So they do a logistic delivery of goods. Some people might be more familiar with Alibaba, but really JD.com has a really good logistics distribution and all of that in China. So it is a company I've owned in the past. I've had good returns on it. I do not own it anymore, but definitely an interesting play. I will just say about Chinese companies

right now, there's a lot of talk in the US about potentially forcing foreign companies more regulations on them. And a lot of people think that that could eventually lead to Chinese companies choosing to list elsewhere whether that comes to fruition or not and who knows but there's always more risk in Chinese companies because they're not audited like US and Canadian companies so that's always something to consider as do-it-yourself investors we want to keep our fees low that's always something to consider. As do-it-yourself investors, we want to keep our fees low. That's why Simone and I have been using Questrade as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them,

you can buy all North American ETFs, not just a few select ones, all commission-free, in ETFs, not just a few select ones, all commission free so that you can choose the ETFs that you want and they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Calling all DIY do-it-yourself investors, Blossom is an essential app for you. It has been blowing up with now more than 50,000 Canadians plus and growing who are using the app. Every time I go

on there, I am shocked. The engagement is amazing. This is a really vibrant community that they're building. And people share their portfolios, their trades, their investment ideas in real time. And it's all built on the concept of transparency because brokerage accounts are linked. And then once you link your brokerage account, you can get in-depth portfolio insights, track your dividends. And there's other stuff like learning Duolingo style education lessons that are completely free. You can search up Blossom Social in the App store and join the community today. I'm on there. I encourage you, go on there and follow me. Search me up. Some of the YouTubers and influencers and

podcasters that you might know, I bet you they're already on there. People are just on there talking, sharing their investment ideas, and using the analytics tools. So go ahead, Blossom Social in the app store, and I'll see you there. You got another one, brother. Okay, so yeah, yeah, yeah. I was waiting for you and I'm like, oh no, that's right. My next one. I got no comment on JD.

It's a well-run company. Very impressive logistics in China. Yeah, yeah, exactly. And it's just, you know, just buyer beware that, you know, you always have that risk with Chinese companies. So the next one is AQN.TO. It's a list in Toronto, Algonquin Power. So Algonquin, I am a power and utility. I'm somewhat familiar. So it's a utility business. They do have hydroelectric, wind, solar power.

They do have, I believe solar power they do have I believe assets across North America are they Braden do you know if they're listed on the US Stock Exchange or just Canadian I believe they are I believe they are I'd have to look they operate subsidiaries under the name primarily of Liberty Liberty utilities okay and those like it's a utility so those will generally be fairly safe obviously they do carry a fair amount of leverage pays a nice dividend upwards of four percent so those are the type of companies again I was talking about consumer staple but utilities as well they tend to be pretty well if the markets

are quite volatile they'll be fairly. Whether they exceed the market return remains to be seen, but definitely a really good play for those who are interested in receiving a nice dividend. Yeah, I just looked it up. They are also listed under ticker AQN on the NYSE as well. All right, next up, Canadian Apartment Reit, ticker CAR.UN. An incredibly well-run real estate investment trust in the apartment space, just as the name suggests. So they are in residential real estate and they have been an incredible dividend grower, which the correct term is actually distribution on a real estate investment trust. But for all intents and purposes on here, they have been a very good dividend grower and the growth has been really, really nice. Here's one little thing I'd like to add.

The amount of property that they own outside of the main hub cities, just like an inter-rent REIT, very, very similar. We're actually seeing a very interesting trend in just outside of hub cities where during COVID, the prices are actually increasing heavily on the outskirts and people moving out of the downtown core because they don't need to be there. Their office might not be returning and prices going down a lot in the central part of the main city. So very, very interesting.

That could be something to consider as we move forward. Yeah, that's a good one. Just my two cents on it. In my perspective, it's the best apartment real estate trust listed on the TSX. It has the lowest leverage of all the other ones that are listed on there. And that is one that I bought in March. I started a position in them. there and that is one that i bought in march i started a position in them yeah for sure if you're gonna own one reit i mean canadian apartment reits probably top the list of most people all right next one also needs no introduction cn rail they have owned the rail infrastructure across North America for 100 years. And they'll own the infrastructure in the ground, the backbone of the economy for, I believe, another 100 years. Very, very good compounder, well-run company. And yeah, not much more else to say about that.

and yeah, not much more else to say about that. I think you're looking at pretty good returns, as there have been very good returns for investors over the long haul. And dividend investors, the yield looks low right now, but that's because the share price keeps increasing, but they keep increasing that dividend year after year. So yeah, I look at this as like a toll booth type stock where they, uh, they're just an essential part of the economy and they, they collect their revenue. Um, you know, at all times you got to

think if, uh, if parts are slowing down in terms of transportation during a recession, who knows? Parts are slowing down in terms of transportation during a recession. Who knows? I just look at this company like, you know, the valuation has always looked rich. CP's valuation has always looked more rich. But that's because you're paying for the stability, recession-proof type, incredible business, and their infrastructure will be in the ground for the next 100 years. All right.

Next one, Air Canada, ticker AC. Wow. It's been an interesting week for airlines, no doubt. I see that Air Canada is very, very volatile these days to be expected. People are looking to pick up airlines as potentially air traffic increases. I will be very, this is just a comment from me, is we've already given our full analysis on Air Canada. And for me, that has not really changed because I still don't see a clear path to flying again. But what I will add is that you'll see some funny headlines that come out and go,

air travel up 78% in June already compared to May. And it's like, well, the baseline is already so low that, okay, now they're operating from 4% of flights to 6% of flights. You know what I mean? So there's a way to skew that math for the headline that doesn't tell a real story for returning to air travel. So, I mean, I love the speculation on this air canada has been an incredible performer before covid uh and we've already talked about it enough so i think i think that's good sam do you have any comments on that uh no i was just gonna make a joke uh i've got someone who's uh bargain basement uh shopping but uh yeah it's um same same for. I totally agree with that. You have to be careful of the headlines.

Yeah, it's a big percentage, but if it's from a small base, you know, it can be up 100%, but if the base is so small, it doesn't mean anything. So just make sure you don't read just the headlines and you dig a bit into it as well. Yeah, well said. All right. Next is ticker dcbo and i hope i'm pronouncing it right decibo this is a company that simon and i both looked at this list and went whoa very interesting um it's been a very good performer during COVID because they do learning management systems software, which they're calling LMS, learning management system. And talk about tailwinds for an online learning management system for governments and corporations and schools. So very interesting pick.

The growth has been amazing. So maybe you want to put on your watch list. I don't have a whole lot of insight on it yet, but as we learn more about some of these new names in the index, we will be talking about them more, I'm sure. So the person who wrote this one in his pitch was thank me later ballsy and i like it i like it all right next is another software company uh descartes systems group and dsg what a beast they have been as well holy smokes they do

logistics software and the amount of value that a company like this a similar company is canaxis so descartes and canaxis are both logistics companies that provide software for different companies to optimize their supply chain. So they provide deep, deep insights and very, very valuable information for their customers. So just look at a five-year financial statements on ticker DSG andg and oh my gosh uh yeah very very well run stock you're looking at a pretty high multiple but um that's to be expected you want to fire off the next one here son yeah yeah definitely so uh the next one uh the other weed companies so weed.to. So I'm sure you guys

are familiar, Canopy Growth. So Canopy is probably, I think it's the largest in Canada. The one thing I do like about Canopy is backed by Constellation Brands in the US. Constellation owns Corona Beer amongst other brands. So they do have some solid financial backing from Consolation Brand. They're not majority shareholders, but I think they own about 35% or so. So they do have a lot of say. They have board members as well. So Canopy Grow, definitely one that's interesting. On a side note, they're still burning a lot of cash like most marijuana companies.

So that is something to keep in mind um any comments on canopy brayden no another one that uh needs no introduction a very uh they were the talk of the town at one point uh right before legalization and um yeah yeah and they're based uh not far from ottawa in smith Smiths Falls, so that's their head office over there. So the next one is CHWY, so Chewy. Chewy, I mean, if you think about it for a second, you probably can guess what it is if you've never heard of it. So Chewy is a company that's majority owned by PetSmart. So they deliver, they're an online company that delivers pet food.

So obviously with what's going on with COVID-19, I think that was one of my picks. So I think there's a lot of tailwinds. I do not own it in my portfolio. They are still losing money, but their revenue, as you guys can imagine, is growing quite quickly. And it's a space that I know Amazon has been, they've been delivering dog food, but they have not been as efficient as Chewy has been. And I mean, rightfully so, obviously, when COVID-19 happened, they had to focus on the goods that were deemed essential. So the delivery times were not

as good, but it's definitely one that i'm intrigued and i'll be interested in seeing how it goes um brita any comments on that one i think i'm hungry because you said what comes to mind when it's chewy and you're like obviously pet food i was thinking of those chocolate granola bars the whole time so um yeah no it's it's been a very very fast growing company i think the pet industry is just super super lucrative people love their pets they're willing to spend crazy prices on their pets and hence the margins are always pretty nice yeah exactly and i mean for i have a dog, and obviously, I know a lot of people own pets, and it's, you know, it's part of their budget to obviously

keep their pets alive. So the next one I've talked about before, again, it's my pick, Pinterest. So ticker is pins. And just as a side note, I'll be putting all the tickers in the show notes. So if you guys just missed some, just look at the show notes, you'll have it. So Pinterest, I think everyone should be pretty familiar with them. Why I really like them is you go on Pinterest, your purpose is to find things. So you go and search so they can really target ads to what people are looking for. And I think there's a big runway in terms of revenue for Pinterest. They have only started to begin to monetize it.

It's still trading at a pretty frothy valuation. So just keep that in mind. But I can see Pinterest having a lot of tailwinds in the future. I like that frothy valuation. I like that term. Oh, we have a few more coming later. So the next one is BEP, so Brookfield Renewable Partners. It's one that I own. It's one that is a big part of my portfolio. I think it's close to 10% right now. We've talked about it before. So it's renewable energy.

It's part of the Brookfield family. Pays a nice little yield. They continue to be acquiring assets that they find at attractive valuations. Later this year, they will be closing the transaction with Terraform Power. So they already own a controlling stake, but they'll be essentially incorporating the rest of Terraform into the Brookfield Renewable Partners companies. Yeah, so I mean, I think that kind of gives it an overview. Any comments on Brookfield, Brandon? As do-it-yourself investors, we want to keep our fees low. That's why Simone and I have been using

Questrade as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them, you can buy all North American ETFs, not just a few select ones, all commission free so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money.

Visit questrade.com for details. That is questrade.com. Calling all DIY, do-it-yourself investors. Blossom is an essential app for you. It has been blowing up with now more than 50,000 Canadians plus and growing who are using the app. Every time I go on there, I am shocked. The engagement is amazing. This is a really vibrant community that they're building. And people share their portfolios, their trades, their investment ideas in real time. And it's all built on the concept of transparency because brokerage accounts are linked. And then once you link your brokerage account, you can get in-depth portfolio insights, track your dividends, and there's other stuff like learning Duolingo

style education lessons that are completely free. You can search up Blossom Social in the app store and join the community today. I'm on there. I encourage you go on there and follow me, search me up. Some of the YouTubers and influencers and podcasters that you might know, I bet you they're already on there. People are just on there talking, sharing their investment ideas and using the analytics tools. So go ahead, blossom social in the app store and I'll see you there. No, it does pay a nice little yield there for dividend investors. They've been acquiring parts of Northland and Terraform, which have both been also awesome renewable energy companies. Lots of room for growth in this as we, especially across globally,

and Brookfield has the footprint, right? So globally, the opportunity for renewable energy is absolutely massive. Exactly. So I think you're up next. Next is one we talked about on the podcast last week, Spotify, not to be confused with Shopify. Spotify is ticker spot. And you might be listening to this podcast on Spotify right now. If you want the full analysis, go to the last episode and go

to the end where I talk too much for 20 minutes and tell you why you should consider Spotify, even though they are pre-earnings, pre-cash flow. They're very, very close to an inflection point. And wow, talk about runway for them, dominating audio, taking so much market share, subscription, advertising, data. All three of those pillars, I think, are working for them really, really well. Have you started a position in them or not yet?

It's all on your radar. I may have a position in it. I do have a position in Spotify. It's not part of the Stratosphere Fund I have, I have another little, uh, little account that me and my buddies all, uh, we do like stock pitches and, uh, I clearly won that one because, uh, I think, I think my pitch of Spotify was enticing enough for the boys to be committed, but, uh, yeah. So the, the next one is one that I'm not as familiar with, ticker PIF, which is Polaris Infrastructure. Thank you, Travis, for this one. You sent it in buzzer beater right at the end

there. One of my longtime Stratosphere members. Great guy. So thank you for this pick. He thinks that it's super, super undervalued based on a cash flow perspective. I have pretty much nothing else to add other than an infrastructure company. They do power and utilities. Actually, I do have, now that you're talking about it, I didn't clue in it was Polaris Infrastructure. I thought it was something else. So I am a little familiar with it. the one big risk with this company is uh its main plant is located in nicaragua um and there's a lot of uh let's say uh political

uncertainty over there so i think i it i picked it up in one of my screens a few years ago and i had the same same feeling as him that was it looked undervalued um so that would be the biggest reason i think that why it's undervalued because there's a lot of uncertainty when it comes to the political regime over there well i'm glad you just came in and saved the day because i had uh no idea about that and so travis if you have it listen to simon we'll track it here in the index but uh godspeed brother all right next is mastercard ticker ma this was one of my picks into the index i don't think mastercard and Visa are getting enough love as like COVID thriving stocks. Data came out from them that spending was way down, but Visa and MasterCard were like

only like a few percentage points down. So what does that mean? Cash is dead. Absolutely donezo. COVID has sped up some trends that I think we're going to take five to 10 years into three months. And the cashless society being one of them, the amount of runway for MasterCard in North America, Europe, South America, Africa, Asia, is absolutely bonkers. And I think it's a must-own for the next decade.

So next one, well, I mean, I can't disagree. I can't disagree with that. I think, yeah, cash is, I think, going to be phased out even faster. It's just, yeah, especially with COVID-19, like you said, I think it's going to happen a lot quicker than we originally thought. So next one is ticker DLR. So Digital Realty Trust. So that's one of my picks. The reason, well, Digital Realty Trust is a real estate investment trust.

It's a REIT. It is a data REIT. So there's big tailwinds for DLR in terms of the amount of data we're consuming. Everything's on the cloud. And there's a few of them in the US that are listed. Unfortunately, in Canada, you can get like exposure to data REITs, but it's usually, I know, for example, Brookfield Infrastructure Partners has some data REITs but it's usually I know for example Brookfield infrastructure partners has some data REITs but it's only a small part of their

business but this one's a pure play data REIT they mean it's pretty obvious to see the trends there and DLR is really has a really good balance sheet for those type of REITs as well so that's why I chose that one over CoreSite or some of the other big ones. I think Equinix is a big one in the States as well. Brayden, any comments on that one? No. When I was looking at the ticker, I thought it was something else. And now you've reminded me about this company. Very interesting from a real estate investment trust perspective. They're in the right space. This is the kind of real estate that I'm interested in. So I like this pick. Yeah,

and pays a nice little dividend. I think today it dropped a bit. So it pays around that 3.5% dividend. So the next one is the, I guess, the industry of morbid industry. So PLC.TO, I've talked about it before, Park Lawn Corporation. Not to be confused with Park Lawn Fuels, which I know Brayden has confused before. Selling me out. Yeah. But I mean, obviously, so they own funeral homes, they own cremation services. So an essential business.

If some of you are kind of afraid of potentially COVID coming back or some businesses having to close up shop again, this is obviously one that will be able to thrive in that kind of environment. Pays a nice little dividend of about 2 percent it's a monthly dividend they've been increasing revenue still pretty expensive in traditional metrics but they're growing their cash flow pretty quickly so that is something that i own in my portfolio interesting pick one that i have looked at extensively never purchased but uh you know as uh strange of an industry it is uh it's a pretty good one too and they have been uh making tons of acquisitions it's a growth by acquisition story and management is definitely know what they definitely know what they're doing so um i like to pick all next one roper technologies roper is a diversified technology holding company that buys

niche software or hardware companies like niche one two in the industry and they they buy they buy they have a certain criteria of buying companies. They buy cash flow producing software, recurring revenue, or very, very niche hardware systems. And it's been an incredible performer, very well-run company, very disciplined acquirers. And they own over 40 companies. And I think these kinds of companies are very interesting, these growth by acquisition companies that are able to buy

these recurring revenue companies, cashflow positive, at reasonable valuations, let the founders either do an exit or partial exit, find new talent. And usually these founders are trying to exit, want to do something else, they're bored or whatever,

but they've built incredible businesses. And they keep the culture and let the organic growth continue. And wow, it's just been a very, very well-run company. All right. Next one, Bombardier Recreational Products, ticker DOO, D-O-O, I think for the Sea-Doo brand. And Sea-Doo brand is absolutely crushing it.

They cannot keep up with demand right now from covid they are building huge backlogs their other big ones skidoo for the the winter so we're talking about recreational fun toys and in this environment you might thinking oh recessionary environment who has money for toys well clearly lots of people have money for toys when they're having to do more staycationing than they expected this company has done really really well in the last two three years by building inexpensive fun toys that are reliable and uh with their tricks and spark models in SEDU. And wow, it's been a huge, all of a sudden, massive increase in growth for 2018, 2019,

exceeding 15% revenue growth from a business that was just kind of growing mediumly slow. So I think it's a very good environment for Dew, and I do like this pick. Simon, that is the end of the TCI index for now. 27 companies. We're going to backtest it. We're going to see how it does in the future.

And all kinds of interesting names here. I am very interested to see how it does against the index. So Simon, we have no, you know, it doesn't matter for us. We didn't pick most of these stocks. So do you think this will under overperform the s&p over the next few years what is your gut tell me your gut i mean it's it's pretty well diversified so i'm gonna say it's probably gonna be i'll go on par with the s&p 500 and it will slightly outperform the s&p tsx that's what i'm predicting my hot take yeah my hot take is that it will outperform because there's lots of really really

good names in here and then some you know kind of staples in there as well like cn rail and chd being very like uh very good like recession proof type businesses and then some of them are just like extremely extremely high growth a lot of potential stocks so my bold prediction is that it'll outperform, but there's going to be one or two companies that are the ones that take almost all of that performance. There's going to be one or two companies here that carry this whole index on its back, which is fine. I believe that investors need to understand that a lot of their huge returns over their lifetime will come from just a few companies. And that's okay. There's going to be ones that massively outperform. And that's kind of the whole idea of all of this. So that's my prediction is going to be one or two that really, really it all right guys that wraps up this

episode we have announced the tci index i'm very excited for what the kinds of returns are going to be looking like in the in the future and uh we've given our take on lots of them, some of them household names, some of them not. It should be very, very interesting. What we've seen in the stock market lately is what I've been telling people, a somewhat divorce of reality, but that happens for long periods of time. So the takeaway is buy high quality companies for the long term and stick to the plan. Listen to the Canadian Investor Podcast. We will see you next week. Happy investing. The Canadian investor is not to be taken as investment advice.

Braden or Simone may own securities mentioned on this podcast. Always make sure to do your own research and due diligence before making investment decisions. Thanks for listening to this episode of the Canadian Investor. To get a list of the top Canadian dividend stocks right now and other valuable investing resources, go to GetStockMarket.com.