Q: I have these stocks in my TFSA and most are doing okay. I have some extra cash to use to either beef up or buy another stock or ETF. I’m an income investor with also an interest in growth. Any suggestions would be appreciated. Thanks in advance. I appreciate your work immensely.

Q: Looking at 3 very different asset classes that offer high yields and would appreciate your help in sorting which ones offer best risk/ reward.
1. Covered calls: NXF, ZWC, ZWU, LIFE, JEPI;
2. Credit - OCSL, ORCC, MAINMAIN
3. Yield - GCOW, EIT-UN.
Questions: 1. What is your comfort level on risk/reward for any or all;
2. Please choose which are investable with short commentary as to rationale and and target buy prices

Q: Hello,

I am a recently retired individual. Over the past few years my wife and I have moved the majority of our investments into various income generating shares and units. (CDN Banks, Utilities, Pipelines and other higher yielding investments). One of our higher yielding investments is a holding in EIT.UN. We currently have about 3.2% of our combined retirement savings invested in EIT.UN. I'm hoping that you might be able to help me better understand how that vehicle is able to pay out an approximately 8.75% yield, on an ongoing basis? The dividend of $1.20 per unit appears to have been paid out continuously, since August of 2009.

I believe that a portion of the $1.20 that is being paid out per unit each year, is a Return of Capital but I have no clear understanding of what that might actually mean? Is an investment that is returning an investor's capital to them able to do so indefinitely? Wouldn't they eventually run out of capital to return to the investors and would that then necessitate a precipitous drop in the annual payout?

While we are enjoying the current dividends we don't wish to be blind to a potential decrease in those distributions and/or an accompanying drop in the principal value of our investment. Lastly, as it may apply to any tax considerations, please be aware that all of our retirement savings are held in various registered plans (RRSPs, LIRAs & TFSAs).

Thank you!