Dollarama

Question

You have added Dollarama to the watch list? I had a couple recently but sold and earned a few dollars. Now I think I should have just added a few more. It's up to $96. Do you think it is undervalued?

Dan Kent · Answer

The company is on our dividend watch list primarily because of its strong dividend growth rate and consistent growth rates in terms of earnings and revenue. Although I wouldn't necessarily call the company "cheap" right now (in fact, it's pretty expensive), we're watching for any short term dips in price to see if there would be an opportunity there.