Investment Q&A

Q: AD seems to be recovering nicely from previous quarter disappointment. Is it time to get back in with 1/2 position?

Carl

Q: Hi 5I Research team.
I presently own OCS.UN which I believe is a closed end fund. Could you please explain what a closed end fund is? I have held this for about a year and a half and am under water with this fund. Recently the fund has been going up. It pays a 10% dividend which is great. Would you expect this fund to continue to go up. Is the fund tied to the interest rate and would it continue to go up if the interest rate goes up. Thanks for your help
Bob

Q: Can 5i tell me if bond coupons have "ex-payout dates". My transaction records show that the date coupon is posted is always on the nearest weekday to the maturity date of the Bond. I presume there is a posting lag, but I would like to know what date I can sell the bond and still get the coupon

I enjoy the service you provide And wish the team a happy Yearend and many more of them in the future.

Ernie

Q: For someone looking at a retirement in 2 - 3 years that will be funded by personal investments, I am having trouble formulating an investment strategy that would currently include fixed income investments. Fixed income securities seemed destined to only go down in value in the foreseeable future as interest rates rise so why would I want to invest in them? Pipelines, utilities and telecoms may also drop but their yield is currently quite good and secure and capital appreciation is always a possibility, if not a probability, in the longer run.

It seems to me that much of the argument for holding fixed income assets is to ensure the preservation of one's capital. But if I am ultimately going to invest largely in quality dividend paying stocks eventually anyway to fund my retirement is capital preservation the main concern? Isn't dividend "preservation" more the issue?

I feel like I am missing something because it seems that all advisors, planners and analysts strongly suggest there be some fixed income in a portfolio, especially as retirement nears. What are your thoughts?

Appreciate the insight.

Paul F.

Q: With the PAL Aerospace division of EIF being part of the consortium to win the large Canadian government contract announced yesterday, how long into the future do you think it might be before we understand how truly beneficial this will be to EIF? Would you consider the announcement "material"?

Regards,

Robert

Q: I have a fairly large sum of money to invest from an estate and I am primarily interested in just taking the dividends and keeping the principal reasonably safe. I was thinking of the Brookfield companies and Canadian Banks however just wondering if you would have some suggestions for a couple of other companies in different sectors. I would like to try and get close to 5% on the dividend.

Q: What approximate "grade" would you assign BCE and AQN? Thanks

Q: Hello and Merry Christmas to all at 5I.
Moving forward I have new funds to add to my portfolio in the fixed income sector. My RRSP portion is fully utilized for fixed income using CBO and XBB so this is new fixed income funds outside of a sheltered account should I still use XBB/CBO or is there some other fixed income source that would be more beneficial that I should consider.

Q: My wife recently purchased a pair of glasses on-line. I was skeptical but the process was very easy, the fit turned out to be much better than her last pair that was purchased at a store and the price was a small fraction of the cost of a store bought pair. My concern about BCI is how are they going to counter this trend with some very aggressive players moving into the on-line glasses business? Would this be a concern going forward?

Q: In a rising inflation and interest rate environment, what stocks would you sell and what would you buy. Please provide companies names / symbols to be specific. Thanks again for the great service.

Q: Are dividends on Bond ETFs taxable as interest? If so, they would not qualify for the dividend tax credit. Would it be wiser to look for dividend bearing shares such as BCE with a low beta and a good dividend that would qualify for the dividend tax credit?

Q: Him Peter what's pushing eif to these levels .
30% in the last month .
What do you think of exiting I bought for stable income but having second thoughts
Kind regards
Stan

Q: Which of these 2 stocks would you recommend for an initial position? Could you comment on each of their growth prospects,debt levels dividend growth/stability and their prospects with regards to their forays into markets outside of Canada? Also, what might be an attractive entry level for each. Thanx.

Q: THE REAL ESTATE AND UTILITY SECTION OF MY PORTFOLIO INCLUDES THE ABOVE. I AM A LONG TERM HOLDER AND AM CONSIDERING REDUCING THIS EXPOSURE BECAUSE OF THE IMPENDING POSSIBLE RATE INCREASE, AND REPURCHASING SOME AFTER A SUBSEQUENT DECLINE. ALSO INCREASING MY INFRASTRUCTURE EXPOSURE WITH BIP.UN. WHICH OF THE FOREGOING WOULD YOU RECOMMEND SELLING AT THIS TIME REGARDLESS OF WHETHER OR NOT THEY ARE REPURCHASED LATER? WHAT IS YOUR OPINION OF A SWITCH TO BIP.UN FROM H? THANK YOU FOR YOUR CONTINUED ADVICE.

Q: I have ACQ with a big loss and am thinking that I should sell and buy either KBL or NWC (keeping in the consumer space). Thinking 2 yrs out, would this be a good idea? If yes, would there be a better replacement than KBL or NWC

Q: Good day,

I would like your opinion on PDF as my focus is on growth and income in my RRSP. I already hold CDZ and VGG as well as BCE,FTS,ENB and BIP.UN


Happy holidays

Carl

Q: I am trying to quantify my risk if 10 year treasury rates go back to the "normal" levels of 10 years ago (i.e. 4.5% to 5%). Would you be able to provide a reference to a source of dividend yields for the above stocks at that time? Would this be a good indicator of price risk for these stocks?

Thanks

Q: Hello, Please suggest a least risky ETf for some income in lieu of keeping cash. This would be a most conservative position to earn some income instead of keeping cash and earning nothing. This is a RESP with Questrade for my 16 year old child. I had liquidated some positions so total 40% is in cash. Thanks.

Q: Hi 5i. Like other fellow members, we too have difficulty deciding when to sell equities which have done well.
We hold Alimentation and CGI Group in our TFSA's, and my wife holds BMO in her RSP, all of these have ~100% gain over our ACB. Their 52wk Hi prices occurred recently (Sep and Nov).
We also hold Stella Jones with a 68% gain, and Parkland Fuel with a 60% gain in our TFSA's. PKI's 52wk Hi was recent (Oct), while SJ's was almost a year ago.
We do not wish to sell any of these equities outright, but are thinking about re-couping some (or all) of our original investment.
Another issue clouding our decision : does a solid dividend (ie BMO and PKI) change the decision ?
Do you have a general rule of thumb to follow ? Could you give us your advice regarding what to do here. Regards. Your advice as always is much appreciated. T.

Q: Hi 5i! Saw this article on the potential resolution of Northland Power’s strategic review:
https://www.bloomberg.com/news/articles/2016-12-05/china-three-gorges-sdic-said-among-bidders-for-northland-power
The article mentions a couple of potential bidders and a recently passed deadline for initial bids but does so on an “individual who wishes not to be named” basis. What would be the best you could do as an estimate of potential upside on a bid, downside on nothing emerging, and probabilities of the various alternatives? I have a decent gain already, which I could book if estimations favor doing so, but I have hung in to this point to see how the review might go. Thanks!