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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: Enbridge issued a press release regarding an unsolicited mini-tender offer made by TRC Capital to purchase up to 2,500,000 common shares or Enbridge at a price of $53.38 per share which is 4.47% discount as of April 6, 2017 closing price. This type of mini-offers has happened to other publicly traded companies. What are the possible reason(s) for a company such as TRC Capital make an offer at a discount below market and believe this offer would be accepted? Perplexed… Thank you.
Read Answer Asked by Karen on April 07, 2017
Q: Can you please help me prioritize these stocks I'm considering for my income account. I understand that some are higher risk. Thanks.
Read Answer Asked by EVAN on April 07, 2017
Q: What are the chances of Wsp increasing the dividend -it has been the same for at least the last 5 years. Given that the stock price is up nicely this month I wonder if it isn't time to move on to a higher dividend stock or a stock with dividend growth for my income account. What do you think and what would you suggest as a replacement -I own most of the stocks in your income portfolio.
Thank you.
Read Answer Asked by Maggie on April 06, 2017
Q: Hello Peter:
I see a constant flow of questions about "best growth stock", or "best for Balanced Portfolio", but can't remember one on Income Portfolio stocks. So here it is: could you give me your 3 (stretch it out to 5 if you wish), best stocks for income? The criteria might be:
- amount of dividend/distribution
- safety of the dividend/distribution
- growth potential of the dividend/distribution

I do apologize if this question has been asked and I somehow missed it.
thanks
Paul L
Read Answer Asked by Paul on April 06, 2017
Q: Sold ALA at a lost and DHX with a gain to minimize my capital gain, with the intention to repurchase ALA 30 days later in my none registered account. Now, I am debating if I should purchase SPB or VSN instead. They all give a good dividend yield. Already have IPL in my TSFA and KEY in my wife TSFA. Your comments plse.
Read Answer Asked by ray on April 06, 2017
Q: A comment rather than a question. What explains the 15% yield? Roughly a quarter of the payout for 2016 consists of a "capital gains dividend," rather than an eligible dividend. The portfolio itself produces dividends of which only a portion is used to cover the dividends of the preferred shares. The class A shares do not pay a dividend if the NAV of the total portfolio falls below $15, which happened in the recent past. However, over 2016 the Canadian and US financial holdings did very wel. The covered call options must have done very well also, but because of that the NAV seriously underperformed straightforward asset growth - compare FTN with ZEB and ZUB over the last year. So FTN's asset growth underperforms under bullish conditions. BTW, at the moment there seems to be a 30% premium on the NAV of FTN.
Read Answer Asked by Kurt W on April 06, 2017
Q: How is it that Quadravest is able to keep generating a 15% annual return on this product. I know they use options to juice the dividend yield they get from the underlying companies. For 18 months from mid 2011 to end 2012 they did not pay a distribution on FTN so there is that risk. It just seems to me that this is one of those situations where it is to good to be true? Am I right to be wary of the product as I don't understand how they can maintain the high yield.

Thanks Kenn
Read Answer Asked by Kenneth on April 05, 2017
Q: Hello Peter and team, I know you like Endbridge (ENB)very much, you actually have it in two of your model portfolios. According to TMX Money, ENB has a yield of 4.2% and a P/E ratio of 28.0. On the other hand ENF has a yield of 6.2% and a P/E ratio of 15.2. If you had to invest in just one of them today, would you still select ENB rather than ENF? If yes, could you comment on the rationale for doing so. Regards, Gervais
Read Answer Asked by Gervais on April 05, 2017
Q: Hi
I just experienced the following with RBC DI which I would like your comments on.
I put in a sell order on Mar 31st for all of my shares of DH after verifying on the DH website that their DRIP program was suspended as of October 25th 2016 and that all future dividends would be paid in cash. So I assumed that I would receive cash for my March dividend. Then today, one share appears in my DH account as a DRIP.
I contacted RBC Direct Investing, ended up talking to a supervisor who agreed to sell my share with no fee. Then I asked how they could process a DRIP on a company who 6 months earlier suspended their DRIP program. It was explained to me that RBC DI has their own DRIP eligible list and it had not been updated as yet for DH change as there is only one person doing this.
I find this unacceptable as I depend on this brokerage to reflect what is happening in the market place. Is this ethical to issue drips, I assume from their inventory of DH shares?In your experience is this normal ?
Thanks
Kathy
Read Answer Asked by Kathy on April 05, 2017
Q: Further to a response to a question by Robert on Apr 3 concerning dividend stocks provided to a grandchild. Could you provide the payout ratio for PTG, CWX, AIM, DIV

Thanks
Stu
Read Answer Asked by Stu on April 04, 2017
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