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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What is the formula that allows you to compare the after tax return on Canadian dividend income compared to interest income. For example how do you calculate if it is better to receive a 5 per cent dividend from a stock that qualifies for the dividend tax credit or a 8 per cent interest income assuming you have a 60,000 taxable income per year. Thanks for you help.
Read Answer Asked by Ian on March 26, 2019
Q: Hello. Great service guys. Can I get your top 5 dividend plays with 3% plus yields, decent dividend growth and relative levels of safety associated with the dividends. Thank you.
Read Answer Asked by Robert on March 26, 2019
Q: Hi,
I own one pipeline stock which is ENB and would like to add one and maybe a second to reduce single company risk.
I am looking for your top 3 ideas offering the best potential total return over the next 10 years that would be a good compliment to ENB. I would like your rational for each.
FYI, I like growing dividends over time, lower debt (I know this sector is capital intensive so these companies are usually indebted) and good opportunities for growth.
Thanks,
Dan
Read Answer Asked by Daniel on March 25, 2019
Q: Thank you for your great service. I'm a young retiree. I need 5% after tax revenue for living expenses. My portfolio consist of 10% cash/equivalent, 2% Prefered (CPD) 15% high dividend stocks, and 65% other well diversified long stock positions of which half also pay dividend in the 2-3% range. Considering that my REITs represent 8% would you consider a good opportunity to add to my REITs since interest rates are going to stay low for the foreseeable future and hence high dividend and distribution stocks should do well in this environment. If so which of the above mentioned would you add to or if you have a better suggestion please do so. As for tax implication I own all my REATs in either TSFA or my RRSP. On a side note I also own Real Estate for approximately 30% of my net in addition to the stock portfolio.

Thanks for your great advise.
Read Answer Asked by Yves on March 25, 2019
Q: Can you please list the Canadian companies who pay dividends in US dollars.
Thanks.
Dick
Read Answer Asked by Richard on March 25, 2019
Q: Hello! What do you think of TA now, given this announcement, and in light of your comments regarding their latest results? Also, the stock price is up by about 4% today. Is it best to sell and move on?
https://www.bnnbloomberg.ca/transalta-strikes-investment-deal-with-brookfield-renewable-partners-1.1234074?fbclid=IwAR1JLfnBK_qAif-rT7p-PKE5cavP6PJJEN8w_u4n1Tcj5nVUe7SzSCC0lzw
Read Answer Asked by Helen on March 25, 2019
Q: Good morning 5i,
I have the above in my TFSA for a few years The stocks have been declining. Please provide your insight for going forward. Am thinking of replacing it with DRG.un or FSZ. Please suggest a couple of names for some growth n some dividend income. Thanks for your great insight as always! Rossana.
Read Answer Asked by Rossana on March 25, 2019
Q: 7:42 AM 3/25/2019
I am looking to invest in 10 or 12 of these companies for a very long time: RY, CM, BNS, CNR, SU, CNQ, NTR, ET, NWC, FTS, EMA, NPI, AQN, BIP.UN, BEP.U, ENB, TRP, PPL.

I am concerned to select companies with the highest probability of surviving a severe recession intact while continuing to sustain or increase dividends over the next 10+ years.

I fear some may have too much debt or other "hidden" problems to survive a major downturn so could you please comment on debt levels and vulnerability.

Could you please arrange them in order of "security of income", safest first, and maybe single out any weak ones. I am not overly concerned about future price fluctuations as long as dividends can be sustained.

I quite realize these are not the same as government bonds and do not have the same levels of safety. I intend to hold them purely for rising income with no intention of selling.
Thank you............. Paul K
Read Answer Asked by Paul on March 25, 2019
Q: Looking at investing in these Canadian companies paying US $ dividends for a non registered account to help with my snowbird expenses.
Would be 15% of total stock/bond portfolio of mainly banks, utilities, reits, pipelines. Age 69.
Appreciate your opinion on these. Any others?
Would you equal weight or what individual % would you allocate? Any other thoughts?
Thanks. Derek
Read Answer Asked by Derek on March 25, 2019
Q: Good Morning
Both GS and KWH have buyout offers. What is the best way to collect the remaining dividends until these purchases close? Will tendering to these offers ensure you collect these dividends or should I wait until the ex dividend date expires, then tender?
Secondly what would you suggest as a replacement for both.
Thank you
Read Answer Asked by Marty on March 25, 2019
Q: Hello all.
Looks like GS has worked out ok for recent purchasers.
Given this:
"The Gluskin Sheff board of directors, after consultation with its financial and legal advisers, has unanimously approved the transaction and determined that it is in the best interests of Gluskin Sheff, and unanimously recommends that Gluskin Sheff shareholders vote in favour of the transaction." I would expect low likelihood of a competing offer- your thoughts?

Also wondering if you can recommend another pick, (in any industry), with similar qualities, especially a significant and solid dividend.
Thanks
Read Answer Asked by Robert on March 25, 2019
Q: We have a diversified RIF and are now in our 70s . We have 6 ETFs and have $20,000.00 invested in VE. We have equities invested across all sectors some sectors a higher percentage than others. Do you feel it is necessary to have monies invested in Europe when we could obtain better income investing in possibly Bonds or preferred shares. Safety and Income are important now to us . Any recommendations.
Read Answer Asked by Sharon on March 22, 2019
Q: Hello there,
I am helping a friend set up the Smith Manoeuvre to accelerate his mortgage re-payment and invest in a solid blue chip portfolio of dividend stocks , interest tax deductibility etc..I am trying to create a solid stock portfolio that can weather any storm in the long term and stocks that should always recover through the ups and downs of the markets. I'm looking for 10-12 names, well diversified, targeting around 5% yield give or take a bit but 5% average would be good to cover the interest cost, trying to make this cash flow neutral.
I came up with a few names and the yields they currently offer.
BCE 5.36%
ENB 6.00%
FTS 3.65%
SLF 3.90%
TD 3.90%
BMO 3.90%
AQN 4.55%
FSZ 6.70%
H 4.51%
VNR 5.10%
CGX 7%
PWF 5.79%
SIA 4.95
TRP 4.95%
I would like to add some of the Brookfield companies, BIP.un and/or BEP.un but because of their non-corporate structure they wouldn't qualify for the dividend tax credit, same with CSH.un.
Any other ideas or suggestions that I have overlooked ?
Thanks
Read Answer Asked by Chris on March 22, 2019
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