Investment Q&A

Q: Hi 5i,
Just a follow up on the first part of my previous ALA question. Thank you for your response to it. I understand that according to the release you quoted, any receipt reimbursement necessary would be "plus any unpaid Dividend Equivalent Payments owing to such holders of Subscription Receipts (the "Termination Payment")." What I had in mind was the part about the reimbursement being 'in full' unless there were insufficient funds available in the cash pool for paying the reimbursement. What I was thinking was that the dividend equivalent payments issued to receipt-holders are likely being drawn from that same cash pool, so a shortfall relative to 'in full' reimbursement might be reasonably foreseeable. The unused pool may well be invested in short term instruments in the meantime but I wouldn't think that could fully offset the 6.77% yield of the receipts (on the $31 issue price). Thanks again!

Q: Can you comment on your position with respect to holding CSU.db in a conservative retirement income fund and what percentage you would deem appropriate.

Q: Your reaction to the recent update on S.M. Group?

Q: Good afternoon. what ten , large cap, good dividend stocks would you recommend to draw income from. lets say a $1 mill investment.

Q: Hi 5i! This is regarding Altagas (ALA); please correct me if I am mistaken in setting this out:
1. The prospect of the return of cost of the receipts in the event the WGL takeover collapses: Doesn't this really mean that receipt-holders would receive $31 minus the total of all dividend equivalent payments issued in respect of each receipt held (even if they were issued to someone else before you bought your receipts)? In that case, if the deal were to collapse after 15 monthly distributions, receipt holders would be due to receive $31 - $2.625 (i.e. minus 15 x $0.175) or net $28.375 per subscription receipt? In this situation, people holding the receipts from issue in taxable accounts would still be down the tax on the distributions, even after receiving 'reimbursement' for the cost of the receipts.

2. Do you know if ALA's management or board have given any indication of their intentions about the possibility of a dividend increase in 2017 or even any time before the closing date of the WGL transaction? Previously ALA had been raising annually. I have seen people writing as though dividend increases are off the table until Sept 2018 but I don't remember seeing an announcement from the company to that effect.

3. If Altagas' share price is down because "the market does not like the WGL transaction" or because "the market does not like uncertainty," wouldn't that suggest that if the deal falls through the share price would be likely to rise, particularly given any continuation of the recent strong quarterly report? I believe it was trading in the range of $33-35 shortly before the WGL deal was announced.
Thanks!

Q: Are covered call ETF's okay to put in a non registered account vs TFSA & RRSP from a tax perspective vs regular dividend etfs? Does this make things more complicated when filing?
Also what is the opinion of 5i regarding PDF?

Thank you!

Q: Hi Team,
Would you see the STB is worth holding and dividend cut coming ?
Thanks as always.
Tak

Q: I am retired, age 65 and I am constructing a portfolio for dividend income which my aim is to have monthly dividend income for cycles 1,2 and 3 for dividend payments. This will be my main portfolio for income.Here is the portfolio I have put together for a unregistered account :
cycle 1: BNS,BCE,SU,TD,GSY,TRP,T
cycle 2: BMO,EMA,RY
cycle 3: FTS,ENB,MFC,SLF,TRI,SLF,NFI,CU-T,AQN,ATD.B,CCL.B
I would appreciate your opinion on this portfolio.Also, I'm sitting in cash in my TFSA and I am looking to possibly put some of these stocks in that account and would appreciate your recommendation on that as well.

Q: I am a fan of covered calls. I am retired and like the income, tax treatment and downside protection. In addition I like the diversity an ETF brings.
I hold all the above but am looking for more diversity. Are there equivalent US offerings? Does BMO have competing products that are more diverse?
Thanks

Q: Is this a good entry point?

Q: Hi Peter: When is ALA's acquisition of WGL is likey to go through or is likely to denied by the US regulators. Thanks.

Q: Can you explain the hydro one installment receipt?

A good investment?

Thanks ian

Q: Could you elaborate on your answer today to Alan regarding CSU debentures. I am not familiar with debentures...Am I correct in understanding they are like bonds but have no rights to any of the Company's assets if things go wrong ? Other downsides?
Would you recommend the CSU debenture as part of one's fixed income ? You mention liquidity, but not sure how poor that is ? How would I find out more information about the CSU debenture - length of term, etc. I use a discount broker - is it possible to buy through them ?
Any other information that you think would be pertinent would be most appreciated. Many thanks as always.

Q: I am considering converting the holdings in our investment account from the couch potato to a dividend portfolio consisting of the 4 etfs listed. In both cases cash replaces the bond component. I want to draw a larger dividend from the portfolio. Do the 4 etfs provide satisfactory diversification and how do you see the pros and cons of implementing this change. Thanks

Q: Hi 5i,

I sold EMA in my RRSP last week just before it dropped.
I want to replace it with 2 Utilities in my RRSP and 1 in my TFSA. What Utility stocks would you pick today?
These are income portfolios with approx 5% per position.

I look forward to your answer..

Q: Just a comment to Nino's earlier question about CDZ: at the end of February 2017 Aimia was the largest weighting at 3.15% of that fund (according to iShares website). With the loss of the Air Canada contract and subsequent cancellation of the dividend it would have been delisted from the index (can't find a link to that on S&P though). Seems to me there would be recent losses and distribution cuts to the fund especially from Aimia's fall plus any other changes in holdings. Fair to say situations like that make yield-driven weighting riskier?

Q: This is comment on your answer to Brian's question. For the record the merger has been approved during the July 11th meeting. It is important to know that instruction on options have to be submitted by tomorrow. Otherwise the default is receiving PPL shares subject to proration.

Q: Which would you prefer, BEP.UN or AQN, for a conservative income portfolio with no other utility exposure?

Q: Both companies are in my cash account for income and some growth. both had more than usual volume today and would you see this as a buying opportunity and is there news I've missed on them.
Thanks Gary

Q: I am holding Mosaic at a loss, and it represents well less than 1% of my portfolio. That being said, the business of agriculture is here to stay, and farmers need companies like Mosaic to provide them what they need to grow food. Is this company worth hanging on to, or is it time to move on? Should I sell, my first plan to reallocate this capital would be to increase my position in VLKAY: it is a small position that I would not mind increasing, as it would help my portfolio allocation. Thanks for reading, and I look forward to your response.