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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: From your answer to Milan :
A diversifed portfolio of bond issuers (corps, gov, prefs, high yield) will earn a better yield and is more appropriate from a higher income need aspect. Bonds can actually see capital appreciation if rates were to decline, or even hold steady. Cash/GICs would not benefit in this case. Overall, we remain on the side of diversification. Hold a bond portfolio with various issuer types and add in some GICs and/or cash. How you weight these reflects your views and tolerance.
Could you suggest a diversified bond portfolio with various issuer types that should produce more than the 2.75% offered by Tangerine?
Read Answer Asked by Serge on October 30, 2017
Q: Rogers is up some 37% in a year, 54% since I bought it in 2015, not including the dividend, blowing await Telus and BCE. Clearly the addiction to cell phones and data is growing and NHL Gamecentre has to be a real positive for them in getting subscribers. Just expanded LTE wireless in Manitoba. Do you think there's still legs or has it ahead of itself. Sell and pay the cap gain taxes or hang on for more good things?
Read Answer Asked by Lloyd on October 30, 2017
Q: I have read that the Fed dot plots are showing a 3% Fed Funds Rate within three years. That should imply a 10 year bond rate of 4% to 5% at that time. If so, would that be negative for bond proxies such as utilities, pipelines. telcos and reits? What about high yield corporate bonds? Should we stay away from rate sensitive investments and concentrate of growth stocks? I am a retiree with a need for income.

Thanks
Read Answer Asked by Hans on October 30, 2017
Q: I want to add to the Income Portfolio and I am wondering what the best addition would be. Over the past 3months SPB WSP and AGU have been the stronger performers while KWH has under performed. Am I better to add to the weaker one and maintain the percentage share of the portfolio or go with strength. If you were adding to the portfolio today which would you choose?
Thanks
Mike
Read Answer Asked by michael on October 30, 2017
Q: Should I trade AQN for RNW?
I am a senior dividend investor, and would ask for your opinion about this trade, along with whatever positive or negative comments come to mind.
As background, I have a ¾ position in RNW and ¼ in AQN. RNW pays 6.81% and AQN pays 4.22%. AQN is forecasting 10% growth per annum till 2021. RNW has nothing on the horizon, now that South Hedland is up and running, with nothing seen to be coming from ‘daddy’ (Transalta), so perhaps no growth in the short term.
However – even at 10% growth the dividend at AQN will only be 6.76% in 5 years, still less than RNW today even if their dividend remains the same. I surmise that both dividends are safe (would you agree?), and am really thinking “bird-in-hand” makes more sense than future promises. I do realize that if prospects remain the same, AQN may experience more growth, and I may be forfeiting some capital gain (this is in an unregistered account), but a 2.6% differential is a lot to give up for future ‘possibilities’. Since the companies are in the same business – more or less – I also have difficulty seeing any differential in risk one versus the other.
Of note, RNW has earnings on Tuesday. Would you wait until after the earnings release to make this trade, or would you make it now?
I look forward to your comments.
Also, thanks for the 2 year renewal option. I will be taking advantage of that to keep enjoying your very superb service!Thanks! ... enjoy your day!
Paul
Read Answer Asked by Paul on October 30, 2017
Q: I'm pushing 85 yrs and invest for dividend income. Since the first of the month we have seen steady drops in the pipelines, with ENB being far the worst, and both TRP and PPL also big losers. Time to change, or hold on and wait it out? - Thanks, Ted
Read Answer Asked by Edward on October 26, 2017
Q: One of the Risks this company mentions in it's recent filings is "Contingency Risk" which they state is an estimate of the liability expense for claims NOT covered by their Liability Insurance. However I do not see any amounts set aside for Contingency Risk on any of their statements. 1st) which statement would I look on for this item - Income Statement, Balance Statement etc and 2nd) If there is no amount recorded on the statement which should carry it, does that mean they have no uninsured liability claims or perhaps that any such claims are in fact handled by the primary medical centers majority owners?
Read Answer Asked by Phil on October 26, 2017
Q: Hello 5i
Thanks for the ongoing commentary on company.

Would you please comment on what you believe to be the drag on the stock price?

It has been written about downgrade, share overhang thru year end and investors moving out of income names.

I am in this for income but not interested in going to zero while I collect monthly payments. Also supporting my buy decision was the expectation for company to follow through with one more dividend increase in 2017, and the fact they have cash building up due to 60% payout ratio. On the latter, management commented they would decide on cash use in Q1 2018. Do these aspects ring true in your review of the situations?


THANKS
Dave
Read Answer Asked by David on October 25, 2017
Q: I am down 15% on this stock. I keep telling myself that there is less risk now with the price correction, but it keeps trending lower. I like the dividend, but what's the point when the loss of capital eliminates the dividend. I hold this stock in my RRIF. What do you see for this one 2 years out. If you suggest a sell here, what would you replace it with in the same sector. Thanks
Read Answer Asked by Richard on October 25, 2017
Q: Hi, would like your opinion on Enf. I have had it over a year with a 4% loss,but doing ok with dividend.
I was thinking of switching to either CWX or INE for a little more growth with a dividend. Would you consider this a ok switch or would I just be spinning my wheels.
Sector is no problem, but do like good management,good cash flow, lower debt, some growth etc.
Or could you recommend one or two dividend stocks with some growth?
Thanks,long term member

Read Answer Asked by Brad on October 24, 2017
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