HI there,
Equitable Group (EQB) - otherwise known as EQ Bank - was on our Bull List a couple of years ago. It is a stock we like quite a bit and is one of the best alternative lenders in the market. Furthermore, it was arguably one of the best dividend growth stocks to own - that is until the OFSII put a cap on raising dividends as a result of the pandemic. It had raised dividends for six consecutive quarters until that streak came to an end in the spring. Nevertheless, once the OFSII opens it back up, it is well positioned to resume dividend growth. It will exit the year with a 10-year dividend growth streak and has averaged 15% annual dividend growth over that time.
At today's valuation, it remains quite attractive. It is trading at a discount to its historical P/E, forward P/E, P/B, and P/S ratios. Overall, we like the company and thing it is a strong long-term holding.
As for APH and TLRY - we are still not big fans of the cannabis industry, especially producers. That being said, we do think consolidation is needed and this type of deal is a step in the right direction. There are likely to be many synergies to be had, but in M&As, synergies are only achieved if you have a strong management team. The entire industry has not yet proven to be up to the task in this area. We aren't particularly in a rush to jump back into the sector but will be interested to see how the combined company fares.
Mat