Investment Q&A

Q: Do you know whether OMERS is still long the Altagas shares that it purchased when Altagas issued the subscription receipts?

Q: HELLO I bought the subscription rights (ALA.r) when you advised so I’ve taken a bath, just wondering if i use it for a tax loss and buy SPB and/or CSU or anything else that you might advise to retrieve/decrease my loss. What would you do? Thanks for the service ... I know we cant bat 100% all the time.
Rick

Q: Would a dividend cut help ALA,even a 50 percent cut is 7 percent ?

Q: We have been long term holders of keyera and still in a positive position but sliding fast would you continue to hold or just sell?

Q: I am looking for a gov't bond etf /fund to hedge away some equity risk. Can you recommend a liquid gov't bond etf for US treasuries?

I would also be interested in a similar version for Can gov't bonds, if you thought it would produce similar results.

Currency is not an issue.

Thanks, Greg

Q: I have a 1/2 position in CPD. Do you think this is a good time to increase to a full position? I hold this in a LIRA and consider it a long term hold. Thanks - Richard.

Q: Good morning,
Both of our family TFSA accounts are currently invested in their entirety with a variety of Mawer Mutual funds (100% Equity). At 70 years old, I would like to reduce the risk profile of our TFSA accounts from 100% Equity to a more classic 60% (equity)/40% (fixed income) balanced portfolio.
Of the five investment options for our two family TFSA accounts which are used as an estate planning tool with the intention of never withdrawing any funds and leaving the proceeds to our grandchildren, which of the following options would you recommend, in what order and why?
Option 1: Staus Quo.
Option 2: Invest all TFSA funds in the Mawer Balanced or Mawer Global Balanced Fund.
Option 3: Invest all of the TFSA funds through a Discretionary Money Manager that currently manages our family RRSP and Non Registered accounts with total management costs of 1.30% (Money management fee, Sub Advisor fees, Custody fee, Transaction fee plus HST). The average long term target rate of return being 4.5% after fees for this balanced portfolio of which 25% of the portfolio is invested in alternative investments to supposedly further reduce volatility.
Option 4: In an effort to further simplify, reduce fees and perhaps improve long term performance of our TFSAs, invest all the TFSA funds directly in the Vanguard Balanced ETF portfolio (VBAL) through our discount brokerage account.
Option 5: Invest all the funds directly through our discount brokerage account in a combination of ETFs that covers 20% Bonds/32% Canada/32% USA/16%Global and if so what would be your preferred ETF recommendation.
I thank you in advance and look forward to hearing your response and recommendations.
Francesco

Q: I own a Brookfield Renewable preferred (Series 11) that pays $1.25 (5%) thru to April 30, 2022. If not called, it will convert to the greater of GOCs+382bps, or 5%. Given my view of interest rates, I am comfortable with the position, because even if it is not called, I will be left with what I expect to be a good quality credit with a relatively attractive yield.

My concern is that it seems to have got caught up with the recent volatility, and is trading well below $25. Currently it is $23. I want to add more, but I wonder if I am missing anything here. I would still expect it to be called in 2022, as I just would not expect management to allow it to float at what I expect would be an above market interest rate. But I am already underwater significantly more that I would have ever expected on this, and I am leery of adding to the position.

Thoughts?

Q: Can you comment on the investment potential of Morguard reit and its dividend sustainability

Q: Both Altria (MO) and BTI generate great cash flows, have high dividends and have had a significant share price reduction lately. How sustainable are the dividends and what’s your opinion on me taking a half position (2% of my portfolio) in each for both income and as a potential play on the cannabis sector? I have a very well diversified portfolio and very long-term philosophy. Thx.

Q: Dear 5i
I'm very much interested in the conservative portfolio for when i retire with in the next 6 months . I especially like bank , utilities and reit ETF`s as the yields seem reasonable and the fact that the ETF`s pay the dividends monthly which provides consistent income during retirement .
My dilemma is that i think i prefer to hand pick similar stocks myself within each of those categories most of which have been recommended by 5i .This way would all likely offer a higher average yield as there is no MER to consider . The problem is that most of the stocks in those 3 areas (utilities , banks and rents ) only pay the dividends quarterly so as a retired person there is not the consistency on monthly income as there would be with buying the corresponding ETF`s . Is this generally a personal preference thing or is there one way you would advise for a soon to be retired person .
Thanks
Bill C.

Q: Hi, are the interest distributions in bond ETF’s like XBB included in the price of the ETF. So when looking at the chart of XBB over time are distributions included in the price? Thanks.

Q: I own ALA (Alta gas )CU (can utility ) VET (Vermillion ) all with a loss.I am planning to sell for tax loss.When is the best time to sell so I do not loose the divider for month of DEC, before end of the year.Thank you

Q: What is your outlook for CU in terms of dividend increase and modest capital gains for the next five years. As a senior, my expectation is a7% total return on average. What other stocks would you prefer to meet or exceed my desired return?

Q: FLOT price unusually / quickly drafted down this past week ?
Any insight would be appreciated.

Q: A few days ago I asked a question on MFT and you mentioned that your source says MFT yields approx 5.5%.

Both iTrade and WebBroker show that MFT yield .10 cents per month, which according to them is 7.5%.

Could you please clarify, don't understand the discrepency.

Thanks

Sheldon

Q: Can you tell me why preferred shares are getting slammed? I notice that companies like Brookfield with attractive yields, protected by a floor in the 5% range, are down double digits. Also, ZPR is down 7% in the past month. Typically prefs don't get caught up in a correction. They didn't between February-March anyway. Your thoughts would be appreciated. I think there are a number of excellent buying opportunities. In particular BPO.I has a nearly 6% yield at these levels.

Q: I have a full position in WJA, held for several years in my RRSP, and my Avg Cost is much higher than where we are today. What's your longer term view of WJA? I am thinking I should cut my losses and move on.

Q: Will the postal strike have a significant effect on CJT's revenues?

Q: I own IPL and am down around 7.5%. I am considering selling IPL for the tax loss and buying ENB. I am thinking that ENB has at least as much capital appreciation possibility as IPL. The ENB dividend is a little smaller than IPL but it is still healthy. What are your thoughts?