March 27, 2018

On Tuesday, the S&P 500 was down 1.7% giving back a good portion of Monday’s gain of 2.8%. Toronto was down 0.5%.

Most of the U.S. stocks on our list that rose yesterday gave back a good portion of those gains today.

Boston Pizza Royalty Income Fund units slipped under $20 and are yielding 7.0%. I grabbed 300 additional units today.

My expectation is that distributable cash per unit will have risen when Q1 is released in about six weeks. This will be driven in part by menu price increases in Ontario in response to the minimum wage increases. In January, sales at food services and drinking places in Ontario were up 5.3%.

If BP can maintain and slowly increase its distribution then I believe these units should rise in price unless interest rates increase quite markedly.