Investment Q&A

Q: In many of your recent answers as well as your report, you mention "interest rate decreases" and that they could help stocks like Telus and BCE, TD and BNS. I am wondering how much of a decrease this would have to be, as I am reading many articles that suggest we are in an aura of higher for longer, and interest rates will not be going back to the ultra low rates we have seen in prior years. So my question is, in your opinion, what percentage decrease would we have to see before there would be some sustainable upside movement to these stocks? Thanks.

Q: I have owned EIF in registered and non registered accounts over the years and generally have been satisfied with its combination of relatively high yield and modest growth. Management seems quite competent in operating their two, quite different divisions of aerospace and manufacturing. However, I am beginning to question their purchase of Northern Mat and now their purchase of a small ( 40 acres ) sawmill in Quebec. They justify their sawmill purchase as a way to integrate with NM and penetrate the Quebec market. Seems and odd approach to me.

The stock has stalled recently and that’s OK but I wonder if they have taken “ their eye off the ball” and may suffer the consequences. This is more of a gut feeling than sound analysis but your thoughts on EIF would be appreciated.
Thanks. Derek.

Q: Good morning,

I am thinking of adding Gibson Energy at an initial 1-2% weight. Looking for income, moderate dividend growth, and some price appreciation potential. I am a little light in the energy space with current holdings in CNQ/SU/WCP, and am hoping you will think this might be a decent addition.

Thoughts?

Thanks as always.

Q: how low do you think the two telcos can keep going. at over a 10 year low now and even the unbelievable dividend [if it is not cut] does not stop bloodbath from going on and on day after day.

Q: Hello 5i Team,
I was thinking about adding to my EMA position until I read last week's dividend growth forecast reduction to only 1% - 2% per year instead of its historical 4% increase. While the "going in" yield is attractive at over 6% now, would the reduction in dividend growth stop you from putting more money into this company's stock?
As an alternative, I was also considering adding to Keyera - lower initial yield, but dividend growth in the 4-5% range annually.
How would you compare these two in terms of payout ratio, debt management, and total return prospects over the long term?
Many thanks,
Brian

Q: Looking to add some large cap oil exposure, I’m having trouble deciding between the 3 large caps or just buying the XEG etf. Any insights on where you see value/potential at this point in time? Thanks!

Q: I read an article in the paper today about something called the "Stable Dividend Portfolio". Basically it proposed that an investor select and hold the best dividend paying companies in Canada throughout the entire year. (Not buy in May and Go Away". Nor move back and forth from an emphasis on bonds to one on stocks. My questions are:
1. Have you heard of such a strategy and if so, do you agree with it?
2. What 12 Canadian companies would you select for such a portfolio?

Q: No-one who ever bought BCE (including me) expected a >9% yield. If the fear is due to potential dividend cut and/or lack of growth, wouldn’t it be better for the company to just cut the dividend by 50% now and move on?

A 4.6% yield is still decent and maybe investors will actually make more in growth than they would have in income.

Q: We own Emera, BCE and Telus in a dividend portfolio and notes these three stocks were down today by around 3 percent. Should we be concerned holding any of these three over the next three years primarily for dividend income? Are their dividends safe and valuations reasonable to hold and/or accumulate?

Q: I just initiated a position in NEE about a week ago. With the dividend cut forecast and now down about 4% in the past 5 days, do you still see NEE as a hold?

Q: I have heard many times not to buy a falling knife. I currently own BCE and after many years I am now at an overall loss position. I am a senior and dividends are very important. What should I do, Buy more, or put a bag over my head and hold my breath, or sell?
thanks

Q: Which of these two telco’s would you buy at the moment and why?

Q: Given that these two companies control apx. 65% of phone and internet use, what change would reverse the course of their stock price? Does the concentration of ownership and reliance on their services not bode well into the future? Thanks

Q: Thinking on getting a position in BCE A bit for growth but mostly long term dividends
Is it a buy,hold or sell ?
Do you like it for the long time

Thank you 😊

Q: Your thoughts please on the offer from TRC capital for BCE shares. Offer is above current trading price. Thx

Q: Both BCE and Telus are down significantly today on high volume and both have broken support levels. Is there any recent news to explain today's drops. Are their dividends safe

Q: Would you sell Brookfield Infrastructure? If yes, is there a name you would replace it with?

Q: Thoughts on XDG?

Q: So, Canadian Telcos are hurting……

The three control the Canadian market. Canadians pay some of the highest prices for their services. Their networks are vital infrastructure for businesses, government, and everything else.

I understand that capital investment is large and that interest rates have risen, however….. rates aren’t that high and look to be on the way down. Also, would it not take some time for increased borrowing costs to catch up with these companies?

Income….could it be any higher?

Is the problem excessive expenses? Forays into non-core businesses? Aren’t their problems easily solvable?

I’m having trouble seeing how the current low prices are not an incredible long term buying opportunity.

Comments?

Q: What would a good entry price for AQN be?
Do you believe the dividend is safe?

Thanks