Investment Q&A

Q: I hold ENF. I recall that, in the past, you have expressed a preference for ENB - perhaps the former being more for income and the latter being more for growth. Is this correct? Is there any other reason to prefer one over the other? (Perhaps I should consider switching.)

Q: I invest for dividends, dividend growth and some growth in stock price. I am currently holding ala but am thinking of switching enb or enf. Would you make this switch and if so which Enbridge holding ? I have a diversified portfolio.

Thank you and thanks for providing this great service

Q: Can you give your thoughts on CDZ in light of the following Globe commentary (similar to other blurbs I've seen in the Globe):

"And another thing: The way some dividend ETFs weight their individual constituents is a bit nuts. Take the iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ). Choosing stocks that have raised their dividends regularly, as this ETF does, is a great strategy, but assigning the largest weightings to stocks with the highest yields is a problem. Why? Because a high yield is often a sign of a struggling company whose dividend is unsustainable.

Case in point: At the end of April, CDZ’s largest holding was Aimia (AIM), which at the time yielded 8.8 per cent. But the loyalty plan operator’s shares collapsed in May after Air Canada said it would be parting ways with Aeroplan, and Aimia recently suspended all dividends. CDZ’s top holding now? Corus Entertainment (CJR.B), another struggling company that yields about 8.7 per cent and hasn’t raised its dividend since January, 2015."

https://www.theglobeandmail.com/globe-investor/investor-education/im-still-waiting-for-the-perfect-dividend-etf/article35453106/

Would you recommend a switch to a different ETF for broad-based Cdn exposure in an RRSP? What alternatives do you like that are not over-exposed to financials/materials?

Q: Hi 5i Team
We have approximately $80,000.00 US cash to invest. Thinking of buying XHY for income to cover some of our expenses for property we have in US. Would like your opinion. It would be approximately a 5% position of our portfolio. In the event you think it would be a good idea, do we deploy the funds gradually or take the full position at once, obviously it would be based on what is available for purchase. We would probably us our TFSA account. What would you suggest. Thank you. Heather

Q: I have several questions re:EIF. What is the latest available short position on EIF? What percentage of the public float does short position represent? Have you been following the latest short report and the updates to it by a well known short seller? What sort of investors is he trying to enlighten as to the perils of investing in EIF? With over seven million shares traded in the last twenty days, has this stock now become one to trade if one is a trader?
Regards AEO.

Q: Any news/reason for BCE to decline from $63.40 high @ end of April.Is this a entry point, or you have other preference Thanks for u usual great views & services,

Q: KWH down 1.39% @ $9.91 today.I think recent financing was$9.80.Reporting on 8/14.Is this a good entry point.Appreciate u usual great views & services

Q: I am retired and consider safety and a high dividend yield with growth potential important.

I am a fan of the Brookfield companies and hold both BEP.UN and BIP.UN

My concern with BEP.UN is that RBC estimates its 2017 ACFFO payout ratio at 109% and may stay elevated for several years. It believes it to be fully valued and its share price is above target price.

I know you like this stock but should I be concerned? Thanks

DEREK

Q: First of all thank you for putting the "sectors" beside the names in your portfolios - that is much appreciated.

Could you please list the "utility" companies you like best in order or preference and could you state if it is "large" company or a "small" company.
Thank you
Margaret

Q: Over the past 12 months the charts of both companies show a distinct downward trend -- seems to be correlated with price of oil.

Shouldn't the stocks trade more the volume of oil & gas that moves through their pipes?

Q: Greetings Peter and 5i Team,
I have $100,000 to invest in the fixed income part of my portfolio. All investments will be inside a RRSP. As a retiree, I'm hoping for capital preservation, (safety) with a reasonable return on my investment. Currently, the only exposure I have to fixed income is ZPR. I'm considering adding the investments in your Income Fund (CVD, XHY), as well as HFR to my portfolio.
-Do you believe these investments will provide solid fixed income exposure?
-Do you see any way I can improve my exposure to the sector? i.e. is there any need for exposure to foreign bonds?
- What percentage of the $100,000 would you allocate to each ETF?
As always, thanks in advance for your appreciated support.

Q: Hi 5i,

I'm looking for a couple of income ETf suggestions to complete my TFSA. I have 50% in laddered GIC's now the remaining 50% would be for the ETF's. I'm considering CDZ.
I look forward to your suggestions.

Q: Hi Team,

with the recent fed hike of 25 basis points can you please explain how this will affect short bonds and bonds in general.

Thank you

Q: (FTS) P/E is 22x, OP Margin 23%, Yield 3.6%. CFRA stock report says: SELL! Thompson Reuters says: BUY! I have a good chunk of the stuff! What to do?

Q: I have the above mentioned stocks and receive dividends.How would they perform if interest rates were to rise.Is there a comparable ETF that would be better. I am up approx. 12% on both.Should I just keep them.

Q: Hello: what do you think of Canadian pipelines future with the news of Desjardins most likely not to fund them? I am most interested in Kinder Morgan.

Thank you

Q: Regarding equity income generated in a RRIF, would the following diversification be adequate in a rising rate enviroment and also a recessionary backdrop?

banks & lifeco 60%, CPD 10%, utilities 10%, telco 10% and staples 10%. I am assuming all dividends would be considered safe. Can you buy into this approach?

Q: What is your opinion about the new acquisition by Rogers Sugar? They issuing stocks and convertible bond to finance the acquisition for an income oriented investor what would be better to participated on the stock deal or the debt deal?

Q: Rsi is currently taking over LBMaple Treat and as a result is offering common shares at 5.90 and a debenture at 5 percent. For a riff account that is interested capital preservation over growth and a good income what do you think of these 2 offerings? Do you prefer one over the other, and do you think this is a good acquisition of the company. Lastly, how vulnerable is RSI stock price in a recession or higher interest rates-I guess I am asking what are the risks.
Thank you.
Maggie

Q: What is your opinion on the business model and growth prospects of EIF? It seems to be too week and an easy prey to shorting. I have recently taken a very small position (~1%) in it.