On Tuesday, the S&P 500 was down 0.6% while Toronto was up 0.8%.
Notable gainers included Couche-Tard up 4.0%, Melcor up 2.2% (on typical low volume), Stantec up 1.9%, CN rail up 1.7%.
Boston pizza Royalties Income fund was down 3.6% to $22.12 after it added about 37% to its share count in an offering at $22.10 as described in yesterday’s post. It will soon raise its dividend distribution by 6%. But the flood of new shares has pushed the price down to the new issue price. As long as interest rates stay low, and all else being equal, I would expect this entity to increase in price modestly over the next two months or so. In any case it pays a yield of about 5.5% and is somewhat like a perpetual preferred or perpetual bond except that the distribution should rise (although very slowly) over the years. Overall, I think it has a place in a portfolio.