Investment Q&A

Q: IPL recently raised it`s dividend and is now yielding 7.21%. As a person who relies on divs, I ask myself "Is this to good to be true? The chart is terrible but the div. is fantastic. So my question: If oil stays at $40 for a longer term at what point in time does this 7.21% become in danger? Three years,5 years? I understand that you do not have a crystal ball but is IPL turning into a yield trap? Thank You Ron

Q: I am a conservative retired, dividend-income investor with a pension and CPP. My portfolio includes mostly dividend-producing holdings (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WEF, WSP, WCP, ZLB, XIT, Sentry Cdn Inc, Sentry REIT, TD Health, RBC Cdn Equity, Fisgard, and Annuities).

I am looking to add ZWH-T for income and some growth, acknowledging the T1135 inclusion and the dividends being treated as interest income. This would be held in my non-registered cash account.

Question 1 = would any dividend withholding taxes be reconciled at tax time, due to the USA-Canadian tax treaty?

Question 2 = would ZWH be an appropriate investment for my profile above? At first glance, it doesn't look like we have much foreign investments, but when you prorate the foreign holdings and/or income we have 30% non-Canadian investments (AQN, WSP are good examples). Is 30% too high for our profile?

Question 3 = I don't read anywhere about any hedging of the Canadian dollar. Am I at any currency risk?

Thanks for your help...much appreciated,
Steve

Q: Hi team. I'm trying to find an ETF that pays a dividend of 4% or more that has NO canadian exposure. The best one I have found is a new ETF called ZDH (International dividend ETF). The good: The PE is 13.3, which is surprisingly low (if you could verify), the yield is 5%, it's hedged, no holding has a weight above 2.3%, the largest sector is 27%. The bad: I don't recognize ANY company in the top 10 holdings, the MER is 0.45%, the liquidity is weak (can be a good thing when buying). Also, the dividend is above 4%, which as we've seen on the TSX this year, that often means trouble (CJR, WCP, LIQ, WIN, TMC, D.un). Would you recommend this to someone 1 year from retirement? He would give it a weight of 15%. Please take your time to respond. I'm in no hurry. Just want to be extra careful on this move since it applies to my dad. Thank you and great work!

Q: What do you think of this company and the reports? A sell, hold, or buy?
Is the dividend safe? Thank you!

Q: Hello again gurus!

I am interested in increasing my US holdings.

I presently hold the Vanguard Total Market and like its very low MER. I intend to add to my US holdings. What is your opinion of the BMO's ZWH?

Would you suggest that I simply add to my Vanguard Total Market Fund or put my new money into something like ZWH which, while it has a higher MER, also has a higher dividend?

Either way, I intend to buy and hold the ETF's.

Thanks.

Q: What are your thoughts on richards packaging as a long term growth stock with a 5% dividend in a TFSA Could it be a potential takeover stock by a larger company?

Q: Enbridge announced 14% increase of dividends and dropped like a rock 3%. Last year ENB about the same time announced about 30% dividend increase and shot up 20%.

So increase is an increase, why the reaction is totally different from last year ?
Do you see any other bad news today and going forward >

Q: FC-T has a high yield over 7%, which is a better return than any of it's convertible debentures. a free cash flow of 5.47M, However a book value of 10.28. They have never reduced their dividend. Do you see this company as a reasonable investment for income.

Q: Good day, is TA worth (risk/return) buying at $5? I am thinking that there will likely be (another) dividend cut which will push the shares lower short-term, but after that, they could bounce back to $7-9 - at which point I would exit. What's your thoughts - thanks.

Q: Prefs make up about 5% of my holdings. Most are solid, however
I am underwater on CSE.PR.A and AZP.PR.A and am looking at selling to offset gains elsewhere.
Could you make a suggestion(s) as to a good and somewhat similar home for the proceeds?
I was thinking about CSE and/or AQN. ( My feeling is CSE is a a bit of a dice roll on a deal getting done)
I hold BEP.UN in a registered account, but am light on utilities otherwise.
Thank You.

Q: I am sitting on a small amount of cash ($50000)I would like to invest into dividend canadian compagny. I really don't know where to put it. It is for dividend revenue until I died! It is extra money that is not part of my retirement assets. So looking longterm (20yrs), good structured company. What would be appropriate. I understand that you do not take any responsibility toward my decision to buy or not. Thank for your help!

Q: You have XHY in the Income Portfolio. It has not performed well overall. I did a graphical comparison with ZWH and ZWH looks far superior. ZWH has increased in the last year whereas XHY has gone south.

I'm thinking of selling XHY and buying ZWH. May I have your thoughts on this move?

Thanks ... Ron

Q: I hold some Interpipe, Transalta Renewables (RNW ) and Pembina (PPL). All still at gains, but gains are eroding on a consistent basis. All are held for income as opposed to capital gains. Do you see any distribution cuts for these pipeline/utilities in the next couple years? Are recent distribution increases justified or misleading attempts to support stock prices? What is your opinion of the high-yielding pipes/renewables?

Thank-you

Q: I would like your thoughts on Kinder Morgan's business risk?

Q: Et's results today beat EPS & Rev.with $66m backlog, shipment of $30m in Nov.& $97.5m cash.Please advise gist of conference call,if appropriate,& your comments on results.Your advice of buy,hold or sell.Thanks a lot for your normal great sevices & views.

Q: Would you please give me your thoughts on this company

Q: Peter and Team, I am looking at this bond from one of the Brookfield group with a coupon of 3.538% and a maturity of 10/30/2020. I have the Ask Price yield at 3.2559% and am curious on your thoughts of owning buying this bond and owning it to maturity.

Thanks, Marc.

Q: Would you please comment on this company

Q: What is the payout ratio for TA? It's yield is 13.408% and pays out a quarterly amount of 0.18 for a total of 0.72 per year. It earns 0.66 a share per year. Therefore I figure the payout is 109%. Is this how the pay out rate is calculated. If I am correct. how can a company sustain paying out more than it earns, thanks

Q: I'm considering buying POT and LIF for the yield expecting some share price appreciation over the next 4 years. Does that seem reasonable?