In this report, we have made the case that falling rates will help a variety of factors –specifically many Low Vol factors and Dividend yield. However, we believe that quantitatively-oriented investors should stick to Quality in Canada. It does well in virtually all rate cycles andhas excellent long-term returns. At this stage, the 20 highest-rated Quality stocks in Canada are shown in Exhibit 9.
Exhibit 9: S&P/TSX Top 20 Quality Companies, April 1, 2024
Rank Ticker Company Name Sector
1 TSU Trisura Group Ltd. Financials
2 GEI Gibson Energy Inc. Energy
3 RUS Russel Metals Inc. Industrials
4 LIF Labrador Iron Ore Royalty Corporation Materials
5 DOO BRP, Inc. Consumer Discretionary
6 GIB.A CGI Inc. Class A Information Technology
7 L Loblaw Companies Limited Consumer Staples
8 LUG Lundin Gold Inc. Materials
9 PKI Parkland Corporation Energy
10 ZZZ Sleep Country Canada Holdings Inc Consumer Discretionary
11 PET Pet Valu Holdings Ltd. Consumer Discretionary
12 RCH Richelieu Hardware Ltd Industrials
13 ENGH Enghouse Systems Limited Information Technology
14 WN George Weston Limited Consumer Staples
15 TFII TFI International Inc. Industrials
16 ATD Alimentation Couche-Tard Inc. Consumer Staples
17 CSU Constellation Software Inc. Information Technology
18 EMP.A Empire Co. Ltd. Class A Consumer Staples
19 BYD Boyd Group Services Inc Industrials
20 QBR.B Quebecor Inc. Class B Communication Services