Aecon Group Inc. added to our list April 23, 2019

The large construction company, Aecon is added to our list but only rated Speculative (lower) Buy at $16.86. (It closed today at $17.00) I was asked by an associate of mine to add this to the list and also I thought it would be interesting to learn about this company and to add diversification to the list.

Unfortunately, Aeco has a fairly poor and volatile profit history over the past ten years. But it is expected to grow strongly in 2019 and it has been increasing its dividend which now provides a 3.4% yield. So, it is worth considering given the stronger near-term outlook. But at the same time it has a poor history in terms of profit and it may be wiser to invest in more stable companies. It will report earnings on Thursday which are expected to show a big increase versus a weak Q1 in 2018.

I think Aecon contributes very positively to the Canadian economy through the work that it does. But it has not proven to be a good investment most of the time.

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