Investment Q&A

Q: Hello. I just want clarification on what KML announced. So after the 3 for 1 stock reverse on Jan 4th, they will pay a special $11.40/sh dividend? So will the new stock price go from $15/sh to about $40-45, and they will be paying out 28% Dividend? What am I missing here or misunderstanding? Thank you!

Q: In my daughter's RESP i have TD, PBH, TSGI, GUD, AX-UN, ECN and 8 years to go.
I have 7000 I can deploy. I would like to add a stable dividend payer with upside potential. Could you suggest one or two companies? I was thinking of BEP.UN
(I decided against diversification into VIG as per my last RESP question).

Q: My mother, presently retired (almost 80) has a little bit of extra savings that I would like to invest in very safe businesses (she has no equity investments at the moment). I am not anticipating much upside, as safety is more important; however, with recent market turmoil there has been no place to hide. As a result a lot of companies, both big and small, both profitable or not, both stable or not have all seen their evaluations erode.
Can you please provide the names of 5-6 Canadian companies preferably in more than on sector (along with a few words explaining why you like these companies) that pay dividends (the higher the better but should not be the only determining factor), that you feel are good companies (and have demonstrated this quality for many years, possibly decades), that have eroded in price for little/no reason and have a good chance of recovering their lost market value.
As an aside, I sometimes feel (without having done any historical analysis) that these are the winners in the long run. They tend to be stable, are of low risk, consistently have some growth, regularly return money (dividends) to their owners, may buy back shares,... And if bought at the right price become pretty good investments with limited risk.
Thank You and Happy Holidays :) !

Q: Earlier this Fall, ahead of the recent correction, I moved 12% of my portfolio to cash (I was fully invested in equities). My thought is to hold the cash until we hit the top of the ongoing interest rate increases the deploy the cash into corporate bonds, BBB or higher, spread over 2-6 years maturity. Recent reports have maybe another 2 rate increases in 2019. Given this has been signalled to the market do you think bond yields are already accounting for this?

Q: Hello Peter, Ryan, and Team,

I sold some holdings in my margin account to take advantage of tax loss selling. My Industrial allocation needs to be increased, and I'm considering purchasing CNR, as a large-cap holding that's recently been beaten down. Our other Industrial holdings across all accounts are BAD, CAE, NFI, SIS, STN, and TFII. Would CNR complement our other industrials? Or do you have other suggestions?

Thanks as always, and Season's Greetings to everyone at 5i.

Q: I have MFT as my fixed income holding. I have noticed that it is dropping and at the same time VAB is rising. What would cause this to happen and is it time to swap to VAB or have both in my portfolio?
Thanks and have a great holiday!

Q: My wife and I are retired with no company pensions. We focus in our Non-Reg'd. Investment a/c on solid dividends with dividend growth (banks, SLF, BCE, major pipelines, BEP.UN, SU, etc). I would like to add another quality name in our Inv. a/c that would be resilient in an economic slowdown (and ideally has been beaten down). Considering TRI but it "feels" expensive. Is there something better? We would appreciate your recommending a few names. Thank you for your comments. Edward

Q: I was reading an article in today's Globe and Mail where they were commenting on Investors fleeing the US trillion dollar debt market (leveraged loans)- and they felt they were becoming riskier in the current environment where interest rates were not expected to go up as much as predicted - MFT holds leveraged loans I believe - how safe do you view this ETF in this environment? - I looked at the price and it has a good current yield of 5.057% and although down a bit from its year high of $21.64 (currently trading at $20.72)- it has hung in there pretty well. I know it is hard in this environment to try and figure out which space to be in with the current unpredictable and uninformed US President - but I am just interested in your feeling about the floating rate space right now - hold, or sell. Right now I am interested in preserving principal and willing to take some risk. Was thinking of selling and maybe looking at it again once everything settles down to a more normal investing environment where rates might start going up again. Appreciate your insight - Karen

Q: Hi Peter/Ryan
I am thinking of moving from non-registered stocks to MFT for safety and collecting dividends. what you think of this strategy for long term? Do you see any risk or would suggest further diversification in current scenario.

Thanks

Q: On BNN today David Rosenberg recommended investing the the Corporate Bond Market. Would you have any recommendations in this area? Thanks, Bill

Q: Bond yields are steadily declining yet these dividend growers were hit hard yesterday & today
Please explain

Q: I'm seeing A LOT of red (-30%). I am 25% cash. My portfolio is heavily weighted in 5i growth favourites that come up in questions. Should I go shopping and for what?

Also, what should I have done in anticipation of a rising rate environment? I almost shifted entirely to money market in June but didn't want to pay the transaction fees on a whim of trying to time the market.

Q: With Bank of Canada suggesting this week that interest rates will likely not rise, but with the US Fed just suggesting likely two more rate increases, what do you think of buying Canadian Dividend Paying stocks right now? I think they are generally seen as positive when interest rates stabilize, but will Canadian dividend company stocks tend to decline in sympathy with US dividend stocks? For Canadian dividend stocks (3%+) what do you see as attractive next year - i.e. ones less affected by trade wars, lack of oil supply options, possible real estate bubbles, inter-provincial disputes, possible NAFTA turbulence!!!!!

Q: Would you rather add to brookfield renewable or start a position in superior plus ?

Also, would you prefer Corby or Andrew Peller ? or neither at the moment and quickly explain why ?

Looking at 10 yr. holding period. Thank you !

Thank you !

Q: season’s greetings and thanks for your good work which I’ve been following for the last year. My wife and I are retired, income investors and recently sold out of ALA ( tax loss selling). We want to return the proceeds to the energy sector and am wondering which company or companies you would recommend for best dividend, company security perspectives. We have a little SU at the moment and it looks steady but the dividends are a bit low for our liking. thanks very much.

Q: POW has a 6+% dividend, is at a 6 year low and trending down. Is this a place to hang out for a year or avoid until we have a market leveling. It has been a bit of a market icon for decades but can it continue to survive in this market? Is the dividend in jeopardy?
G...

Q: Based on the recent market turmoil, can you recommend 5 dividend paying stocks to buy now where it may be possible to get some capital gains over time.

Q: Options - Do you recommend use of puts and calls? If so, do you have a book or article(s) that could recommend?

Q: What companies do you think have the best prospects heading into 2019? Are there any recently discounted names you would suggest adding to?

Q: I have a question about 1249
The CEO is buying his own stock and debentures big time. Could he take this private down the road. With him putting so much money in his stock, many we should too. The dividend is safe I believe
, you agree ?
Thanks.