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TSE:CHR
(A Top Pick Feb 14/19, Up 25%) A bond on Air Canada in essence as this is Jazz airlines. They have a contract with their pilots until 2035. They do not have fuel sensitivity or for currency. ROE is 20%. There is room for the dividend to grow. Yield 6%
It has a very solid contract with Air Canada but they are facing a price decrease this year. They hope to replace it with air craft leasing. He is waiting to see how it works out and in the mean time you are getting a pretty solid dividend.
Is the dividend 4 or 6%? This is important to know for seniors. It's 6.43%. He's owned this for a long time. They're shifting their business from getting a fixed fee from Air Canada (that'll drop in 2021) to leasing aircraft to AC. Sell some shares around $8.50-9.00.
In a recession? It pays a good dividend, but we're entering a part of the cycle that will pressure airlines. Air Canada has turned around very well which benefits CHR. (He owns Onex.) He is looking at Cargo Jet, which has a tailwind in shipping overnight parcels and teaming up with Amazon.