Exploring the Fund's Latest Investment Decisions and Portfolio Adjustments

RBC Canadian Equity Income Fund (Trades, Portfolio) recently submitted its N-PORT filing for the fourth quarter of 2024, shedding light on its strategic investment maneuvers during this period. The fund is known for its focus on a diversified portfolio of Canadian securities, including common and preferred shares of dividend-paying Canadian companies, real estate investment trusts, and income trusts. With a cap of 35% on foreign securities, the fund aims to deliver a high level of monthly cash flow and tax-efficient distributions, primarily through returns of capital, capital gains, and interest income, while also seeking modest capital growth.

• Warning! GuruFocus has detected 4 Warning Signs with TSX:RY.

Summary of New Buy

RBC Canadian Equity Income Fund (Trades, Portfolio) added a total of 7 stocks, among them:

• The most significant addition was Alimentation Couche-Tard Inc (TSX:ATD), with 324,169 shares, accounting for 0.82% of the portfolio and a total value of C$25.843 million.
• The second largest addition to the portfolio was InterRent Real Estate Investment Trust (TSX:IIP.UN), consisting of 1,828,000 shares, representing approximately 0.59% of the portfolio, with a total value of C$18.554 million.
• The third largest addition was Bristol-Myers Squibb Co (NYSE:BMY), with 120,000 shares, accounting for 0.31% of the portfolio and a total value of $9.756 million.

Key Position Increases

RBC Canadian Equity Income Fund (Trades, Portfolio) also increased stakes in a total of 20 stocks, among them:

• The most notable increase was in Loblaw Companies Ltd (TSX:L), with an additional 62,000 shares, bringing the total to 117,000 shares. This adjustment represents a significant 112.73% increase in share count, a 0.37% impact on the current portfolio, with a total value of C$22.133 million.
• The second largest increase was in Sun Life Financial Inc (TSX:SLF), with an additional 135,000 shares, bringing the total to 872,602. This adjustment represents an 18.3% increase in share count, with a total value of C$74.477 million.

Summary of Sold Out

RBC Canadian Equity Income Fund (Trades, Portfolio) completely exited 3 holdings in the fourth quarter of 2024, as detailed below:

• Aptiv PLC (NYSE:APTV): RBC Canadian Equity Income Fund (Trades, Portfolio) sold all 115,000 shares, resulting in a -0.38% impact on the portfolio.
• Capital Power Corp (TSX:CPX): RBC Canadian Equity Income Fund (Trades, Portfolio) liquidated all 252,000 shares, causing a -0.34% impact on the portfolio.

Key Position Reduces

RBC Canadian Equity Income Fund (Trades, Portfolio) also reduced positions in 35 stocks. The most significant changes include:

• Reduced Royal Bank of Canada (TSX:RY) by 146,889 shares, resulting in a -9.18% decrease in shares and a -0.73% impact on the portfolio. The stock traded at an average price of C$164.85 during the quarter and has returned -5.68% over the past 3 months and -5.68% year-to-date.
• Reduced Enbridge Inc (TSX:ENB) by 265,000 shares, resulting in a -9.98% reduction in shares and a -0.44% impact on the portfolio. The stock traded at an average price of C$55.62 during the quarter and has returned 5.94% over the past 3 months and 5.94% year-to-date.

Portfolio Overview

At the fourth quarter of 2024, RBC Canadian Equity Income Fund (Trades, Portfolio)'s portfolio included 94 stocks. The top holdings included 7.97% in Royal Bank of Canada (TSX:RY), 5.32% in The Toronto-Dominion Bank (TSX:TD), 4.61% in Enbridge Inc (TSX:ENB), 4.11% in Brookfield Corp (TSX:BN), and 3.61% in Bank of Montreal (TSX:BMO).

The holdings are mainly concentrated in 10 of the 11 industries: Financial Services, Energy, Industrials, Real Estate, Basic Materials, Utilities, Communication Services, Consumer Defensive, Consumer Cyclical, and Healthcare.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.