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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: Being retired I like the idea of funds that use covered calls to boost dividends. I have a limited amount of these funds because I do not want to miss the upside. However, if you assume that, in general, valuations are stretched right now, would the attractiveness of these funds not increase? In addition they are a natural source of diversification.
This question was prompted by a recent response to a question on DFN. My RBC website shows a monthly dividend yield of 10 cents or 11 % annually. Am I correct to assume that this is a calculation based on history and that if I bought this fund now, the actual distribution I will get will depend on a number of market factors and there is no way to actually predict it.
Thanks in advance and congratulations to Ryan.
Read Answer Asked by Don on March 17, 2017
Q: I like the cash flow from utilities and Transalta seems to be getting a handle on the new operating environment in Alberta. RNW is approx 60% owned by TA and that would mean the market is pricing TA only for it's share of RNW and assigning no value to the rest of TA business. Are my assumptions correct and if so do you have any idea why this would be so. Thanks
Kenn
Read Answer Asked by Kenneth on March 17, 2017
Q: Hi: You previously made a comment on LFE in Nov 2016 about this Insurance company group. It has now paid a Dividend for 4 consecutive months. The effective yield is over 18%. Do you think this will last? What may cause this to stop paying a dividend, like it did a few years ago? Has your overall opinion changed. Thanks. Ken ....
Read Answer Asked by Ken on March 17, 2017
Q: I am a 69 year old investor. I am wondering about the suitability of XTR-T as a moderate term investment(3-5 years)? I am dripping the generous dividend and am looking for some capital growth as well. If this is considered risky(Especially the dividend) for that time frame could you suggest a better alternative? Many thanks/
Read Answer Asked by Dennis on March 16, 2017
Q: Hello 5i team:
I understand that there are some issues regarding the lending practices of Home Trust and Equitable Trust. I understand that there some advisories to avoid adding new funds to these HISAs. Are their High Interest Savings Accounts-HISA-safe? I presume 100k CDIC safety net applies. Should one move the money anyway out of these HISA?
What are the other safer alternatives?
Many thanks.
Mano.
Read Answer Asked by Savalai on March 16, 2017
Q: I have an equal position in aqn and rmw. Would you advise selling some rnw and investing it into aqn? What is your outlook for each of these companies for a 2 to 3 year hold? Is the debt a concern for either of these companies? Thanx for your excellent service.
Read Answer Asked by Steve on March 15, 2017
Q: Hi I just watched this hedge fund manager short EIF I wonder what his credentials are I doubt reading a Finance Report are his forte .I believe any can and has the right to short a stock but when as a guest on BNN you do this it has a impact on the stock .
I believe that BNN should not allow exposure to these hedge Managers to help them advertise their short position .
As a shareholder of BCE I am going to be a pain in !@@&^
for the next while BNN should be held accountable
Kind Regards
Stan
Read Answer Asked by Stan on March 15, 2017
Q: Good Morning
Today, on BNN, an analyst indicated that he is shorting both stocks. I will appreciate your views with respect to the above noted securities. I am ahead about 40% on both stocks.
Would you recommend selling TRI and EIF
Thank you
Read Answer Asked by Terry on March 15, 2017
Q: Hello,
Question about bonds, trying to figure out if buying bonds with ratings like BB or BBB would be a godod addition to my portfolio ( risk / return). Are there a lot of options for canadian companies ? What kind of yield should we expect for 3 / 5 year term ? Is it available through discount broker ? Is there a minimum amount per company and what kind of trading fee should we expect ? Any recommendations or sector suggestions are welcome. Thank you.
Read Answer Asked by Pierre on March 15, 2017