Investment Q&A

Q: Appreciate your thoughts on Corby, which I've owned for several years with a small price appreciation. Dividend is nice but stock won't go up. I already own Andrew Peller, would you recommend selling Corby and do you have any advice on replacement consumer discretionary.
Thank you.

Q: Hi 5i Team,

Which stocks pay their dividends monthly instead of quarterly?

Thanks,

Henry

Q: Outside of MG, TD and SLF (all of which I own) and their respective sectors, which companies in your coverage universe do you think fit traditional value metrics? Are there any companies in Canada that are outside of your coverage that you would both endorse and seem like value propositions? Thank-you.

Q: Hi 5i team,

Are the dividends paid by this group qualify for the Dividend Tax Credit?

Thanks for your great service.

Henry

Q: In pursuing my goal to maintain a well-diversified portfolio, I am trying to decide how and even why to differentiate between pipelines and utilities. Both sectors operate in regulated sectors (at least in Canada), both sectors will be adversely affected by higher interest rates due to debt levels and both sectors generally pay reasonably attractive dividends. As for their differences, I see utilities potentially performing better as the economy improves and the pipelines more affected by politics.

Should these sectors be treated as different when composing a portfolio or can companies be "mixed and matched" under a more generic "regulated" or quasi "fixed income" part of the portfolio and thereby treated as almost the same?

If your answer is "yes" would you endorse a switch from IPL to AQN for better long term growth with less volatility? (taxes not an issue)

Appreciate your insight.

Paul F.

Q: Looking at the financials of ET I can see why it is included in the income portfolio. However, since there are no reports, either with 5i or Morningstar can you please advise as to why YOU have considered it as a holding in the income portfolio?
Thank you

Q: Market reaction on the previous earnings report for Aecon, AutoCanada and Brookfield Asset Management brought me unpleasant surprises and the price of stocks substantially dropped. This makes me nervous as we approach the new earnings season. My questions are:
1. Would you recommend holding the above listed stocks or perhaps selling some of them?
2. In general, shouldn't it be safer to sell all stocks a week or two before earnings, an buy them again later?

Q: In the REIT sector I currently own ZRE & XRE. I am moving my REITS to my RRSP due to the tax implications ( ie no Dividend Tax Credit ). 1)
1) What are you favourite investments in this sector ?
2) Do you see a need to own individual REITS as opposed to an ETF?

Thank you.

Paul

Q: i have full positions in both these companies and would like your analysis in regards to safety of dividend and earning estimates for corus upcoming earning reports. Will NIF survive?

Q: In November of '15 I took a half position in Chorus and was rewarded with a 25% return on the stock price in '16 plus a nice phat dividend.

My question: I am curious why this stock does not get more market love, especially in a time when value is supposed to dominate? I know the price has been particularly trending up in the last few months since their expansion announcement, and debt is still on the high side but in a quite expensive market the forward PE is STILL under 10 at 9.17 (Globe Investor), and it's in the now sexy aviation area.

I'm thinking of doubling down and moving to a full share. Any reason why I shouldn't?

Thanks!

Q: OF THE 2 WHICH ONE YOU PREFER AND WHY?THANK YOU. BRAHIM

Q: Good morning:
I am a retired investor who owns small weightings in the above-mentioned shares. I am thinking of selling Ford and re-investing the money elsewhere while still having a position in the auto sector with the other two companies. I would like your thoughts on this and how you think this sector will perform in 2017. Have auto sales peaked?
Thank you.

Q: 5i Team:
thanks for all the help in 2016 !!.
The idea is to capture the electrification process of our society. It is a slow, but secure process/trend, in particular if use of electric cars increases, and robots and so on. This means more elect power will be required. Are Fortis (despite increase in interes rates) and Stella Jones good candidates ??. If not, are there other safe companies to capture the trend.
Also, if interest rates go up, would not ECI benefit more ?, as more people would preffer to rent than buy due to increase cost of capital.
thanks again ! Should I start buying now ?

Q: Div has shown a bit of an uptick recently,could you comment ?

Q: Hi 5,
If in a hypothetical situation an election were held today in the USA and a lunatic came into power, what would be your 5 top Canadian stock picks.

Thank you.

Q: Could you please suggest where the funds from the sale of the propane division will be applied and the impact on the business..

Thanks Bob Rose

Q: I know 5i's focus is not value investing but could I get the top 3 picks from your coverage universe that would fit or somewhat fit the criteria of a "value" stock at current prices.

Thanks

Q: I'm interested in buying into the utility sector through an ETF. ZUT holds Canadian stocks and has a yield of 4.98%. 99% of the distribution are eligible dividends.

ZWU holds a mix of Canadian and US stocks with about 45% each of eligible dividends and ROC along with 10% foreign income. The yield is 6.64%.

If we factor in the DTC, there's not a lot of yield difference. What are the reasons for your choice of ETFs? Thanks

Q: Please enlighten me on how bought deals work, using the most recent EIF bought deal as an example.

EIF floated new common shares at $42.45 per share recently and it was a bought deal so the underwriters bought the entire issue (plus the over subscription shares) for $42.45 per share. Thereby EIF received $42.45 per share (less the underwriter fees), while the underwriters assumed the risk in case if they cannot sell those shares at $42.45 or more. Am I correct so far?

In that case, with the EIF SP lingering under $42 a share, can I assume the underwriters will suffer a loss? After all why would you buy the new shares from the underwriter at $42.45 if I can get them cheaper in the open market?

Also if I were the underwriter, would I not be trying to drive up the EIF SP to over $42.25 to protect my deal?

Kindly shed some light on this type of transactions. Much appreciated.

Q: Is this a good entry point for Veresen? Tx