Earlier last month, SIA highlighted a compelling option for financial advisors seeking dividend paying equity positions within todayās volatile market environment when we highlighted Northland Power Inc in our Oct 29th edition of the Daily Stock Report. In addition to yesterdayās Federal Government Budget Announcement, the government plans to increase Infrastructure spending as a priority moving forward to transform Canada into an Energy Superpower. As such, letās examine an Infrastructure, dividend paying name which may be regarded as an option for income while participating in a sector which may see material growth going forward. Today, we will take a look at Badger Infrastructure Solutions Ltd. (BDGI.TO).
Badger Infrastructure Solutions resides in the SIA Combined Canadian Dividend Report which is SIAās most comprehensive dividend report combining the S&P/TSX Canadian Dividend Aristocrats Index, the S&P/TSX High Dividend Index and the Dow Jones Canada Select Dividend Index report together to give SIAās subscribers the most in depth choices of dividend names in the Canadian Market. BDGI.TO was added to the S&P/TSX Canadian Dividend Aristocrats Index back on February 1, 2021, as a name that has followed a policy of stable or increasing dividends every year for at least the past five years. Currently, BDGI.TO resides in the Green Favored Zone at the 3rd spot in the SIA Combined Cdn Dividend Report while initially entering the favored zone on May 13, 2025, at a price of $44.47. As of yesterdayās close, the shares were at $72.36 representing a 62.7% increase since that time.
In analyzing the candlestick chart of Badger Infrastructure Solutions, we see a generally long sideways trading pattern from 2018 to early this summer. At the beginning of July of this year, the sideways range broke out to the upside with a massive move into the $70 area. What is most compelling is the SIA Algorithm issued a favored signal in Mid May which was well over a monthās time before this major breakout enabling SIA subscribers to fully participate in this massive move upwards had they followed the favored signal. This exemplifies the fact of also looking for names in the favored zone and sticking with them throughout.
With such a large move lets look at the Point and Figure chart on a 2% scale, so we can identify more precise support and resistance levels going forward.
In the attached chart, we do see the shares massive move upwards as it is currently in a rising column of Xās lasting an astonishing 37 boxes. With SIAās Report Overlay tool applied you can see where the favored signal was issued in this current column of Xās. Overall, we can visually see how effective SIAās signals are as the shares trended either sideways or downward while in the Yellow Neutral or Red Unfavored Zone and upwards in the Green Favored Zone. With this large move, the first line of support is at its 3 box reversal at $67.04 and, below that, the 33% and 50% retracement levels which are at $63.17 and $59.53 respectively from the initial breakout. If the shares continue its move upwards, next resistance is very quickly approaching at $75.50 and then, the $80.00 round number. Currently BDGI exhibits a bullish Spread Double Top Pattern and has a positive SMAX score of a perfect 10 out of 10 which indicates very strong near term strength against the asset classes.
Badger Infrastructure Solutions Ltd is North America's provider of non-destructive excavating services. Its key technology is the Badger Hydrovac, which is used primarily for safe excavation around critical infrastructure and in congested underground conditions.
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