Veritas Next Edge Premium Yield Fund – December

Loblaw Companies Ltd. (TSX: L), returned 4.4% in December, capping a 49% return for the year. With earnings estimates rising just under 14% on updated 2025 forecasts, Loblaw’s forward P/E re-rated over the year from 15.3x to just under 20x. We continue to like Loblaw’s defensive characteristics as we navigate 2025.

Bombardier Inc. (TSX: BBD.B) shares advanced 1.0% in December, shrugging off U.S. tariff concerns and ending the year up more than 83%. For buyers of the company’s planes, we expect that some of the tariff risk can be managed through non-U.S. ownership and leasing arrangements, should it come to that. Bombardier has made significant strides in 2024 as it looks set to post a third consecutive year of both double-digit revenue growth and positive free cash flows.

Enbridge Inc. (NYSE, TSX: ENB) was up 0.7% in December, bringing its year-to-date return to 37%, achieved through forward P/E expansion, from 17.5x to 19.8x, and a favourable outlook for 2025 earnings growth, up 9% over initial 2024 estimates. With consistent operations and a well-supported yield close to 6%, we continue to like ENB’s prospects.

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Sources: Veritas Asset Management, Eikon, Bloomberg as of January 16, 2025

Veritas Next Edge Premium Yield Fund – November

Air Canada (TSX: AC) was the top performer of the Veritas Next Edge Premium Yield fund in November. AC’s shares continued to rise in the month following its new labour agreement with its pilots. AC’s third-quarter results demonstrated its broad earnings power and allowed the company to raise its 2024 EBITDA target to $3.5 billion, from $3.1 to $3.4 billion previously.

Lumine Group Inc. (TSX Venture: LMN) was the second top performer, as it rallied on third-quarter revenues that topped estimates, and it posted a small net profit compared to a loss in the same quarter the year prior. Lumine showed progress on two prior acquisitions, Nokia and CASA, which were acquired at discounts that reflected short-term revenue pressures. By stabilizing these businesses, Lumine demonstrated it can integrate larger deals, which will be key as it seeks to replicate the success of its parent corporation, Constellation Software (TSX: CSU).

Other top performers were AtkinsRealis Group Inc. (TSX: ATRL), Sun Life Financial (NYSE, TSX: SLF) and Manulife Financial Corp. (NYSE, TSX: MFC).

As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.

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Veritas Next Edge Premium Yield Fund – October

AtkinsRéalis Group Inc. (TSX: ATRL) was the top performer in the Veritas Next Edge Premium Yield Fund in October, as the shares rose on growing investment interest in the nuclear industry. Revenues in ATRL’s Nuclear segment are set to grow 30% to 35% in 2024, contributing just over one-fifth of the company’s earnings before interest and taxes.

Having finalized a new deal with its pilots, Air Canada’s (TSX: AC) third-quarter results demonstrated its broad earnings power. The company reported $2.00 billion in earnings and raised its 2024 EBITDA target to $3.50 billion, from $3.10 billion to $3.40 billion previously.

The Fund’s investments in gold producers also performed well in October as gold prices rose more than US$100 per ounce to finish at US$2,738, up 3.90% on the month. We have selected our holdings of Agnico Eagle Mines Ltd. (TSX, NYSE: AEM), Wheaton Precious Metals Corp. (TSX, NYSE: WPM), Barrick Gold Corp. (TSX: ABX, NYSE: GOLD) and Lundin Gold Inc. (TSX: LUG) based on their potential for volume growth and cash flow improvement, as well as their operational capabilities and reduced geographic risk.

As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.

Visit Next Edge to learn more about the fund and read the full monthly commentary.

Veritas Next Edge Premium Yield Fund – September

In September, the market reacted positively to news that Bombardier Inc. (TSX: BBD.b) CEO Eric Martel had met with the Chairman of the Adani Group to explore possibilities for collaboration in India’s growing aviation sector, specifically in the aftermarket services and repair segment. While talks are in their early stages, they demonstrate Bombardier’s global opportunities and reach.

Cogeco Communications Inc. (TSX: CCA) shares continued to gain traction on management’s updated plans to balance network investments and free cash flow. With improving capital efficiency and growing prospects for dividend growth, investors are once again taking notice.

Other top performers include Shopify Inc. (NYSE, TSX: SHOP), Manulife Financial Corp. (NYSE, TSX: MFC) and Sun Life Financial Inc. (NYSE, TSX: SLF).

As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.

Visit Next Edge to learn more about the fund and read the full monthly commentary.

Veritas Next Edge Premium Yield Fund – August

In August, Shopify Inc. (NYSE, TSX: SHOP) reported second-quarter revenue growth that exceeded street estimates and increased its third-quarter guidance. Shopify’s shares should continue to perform well as the company outpaces U.S. e-commerce growth and expands its market share of larger enterprise customers.

Quebecor Inc (TSX: QBR.b) rose in August on better-than-expected wireless additions and evidence that its pricing strategies are stabilizing profitability. With an estimated free cash yield of 14% over the next twelve months, QBR remains undervalued.

Other top performers include Lundin Gold Inc (TSX: LUG), Sun Life Financial Inc. (NYSE, TSX: SLF) and Barrick Gold Corp. (NYSE: GOLD, TSX: ABX).

As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.

Visit Next Edge to learn more about the fund and read the full monthly commentary.

Veritas Next Edge Premium Yield Fund – July

The Veritas Next Edge Premium Yield Fund’s positions in Agnico Eagle Mines Ltd. (NYSE, TSX: AEM), Wheaton Precious Metals Corp. (NYSE, TSX: WPM) and Barrick Gold Corp. (NYSE: GOLD, TSX: ABX) were among the largest contributors to July’s performance as gold prices rallied more than 4%. All three companies posted
second quarter volume increases that benefitted from higher metal prices, while also advancing their long-term plans for growth.

Cogeco Communications Inc. (TSX: CCA) and TC Energy Corp. (NYSE, TSX: TRP) were also amongst the top performers.

As a sub-advisor, Veritas Asset Management Inc. utilizes the award-winning, independent, and in-depth research of Veritas Investment Research Corporation to formulate a diversified portfolio of equities with a bias toward yield, and capital preservation. The fund uses a covered option overlay to generate additional yield and further mitigate downside risk and volatility.

Visit Next Edge to learn more about the fund and read the full monthly commentary.