Investment Q&A

Q: Hello Peter/Ryan,

My RIF has one annual payment due mid Dec. I have narrowed the source of funds to either XHY, of which there is a large holding, or MRG.UN which also is a fairly large holding. The overall REIT holdings across five accts is 4.7%. The overall holdings of XHY and other high yield bonds is about 6%. Either choice will still leave a fairly large holding (dollar value) of the selected stock/ETF in the RIF

I am inclined to make the withdrawal from XHY as perhaps MRG.UN will provide a bit better return in the year(s) ahead. Do you agree with selling some XHY or would you recommend I sell some of each?

Separate point: Would it be possible to put the Model and Income portfolio stock listings in alphabetical order for next publication (either by symbol or by name).

Many thanks. Bob

Q: Hi guys, I have done very well with the consumer discretionary sector both in Canada & the U.S.A. My problem is that it has grown to 25% of my portfolio (each name is between 3 to 4%). What is your forcast for the sector in 2016 and should I trim now or wait until they reach 6 to 7%. Should you recommend trimming, what sector looks interesting to you to this time.

Thanks,

Jim

Q: Thinking about switching from Saputo (SAP, about a 2.5% position) to A&W. I'm a little under water on Saputo, I can use for a capital loss.

SAP is trading at around a 20-21x multiple, so in my opinion, chances of it running $3 or $4+ more in the short term is fairly limited. Plus, the Saputo family has a 34% voting interest so, I'm guessing, chances of a takeover are fairly limited in the immediate future.

These are the reason's I wouldn't mind selling SAP for a more efficient use of my funds. However, I am having difficulty valuing AW.UN in comparison with SAP. I like AW.UN's monthly dividend. I like the fact that it seems to be a well run business. And I like the fact its just about the perfect size for a large number of players in the food services industry to take them out. However, like I said, I am having difficulty valuing AW.UN. I'm wondering if you can help me out? Is it cheap, fairly valued, or expensive against the backdrop of its growth profile?

Thanks.

John

Q: Your thoughts on cwx?
thanks

Q: A few days ago various analysts posted pretty optimistic reports on CES. Today it dropped six per cent. What is your view on earnings and the company? Is the dividend safe?

Thanks!

Q: With the announcement today of 8-10 % per year dividend increases until 2020 should I buy TRP in lieu of ENB. I was going to add to ENB on the recent weakness

Thx

Q: Hi Peter,
The results out today from GRC look quite spectacular, at least on the surface. I have a small position, and added some more today. I wanted to get your thoughts on 2 things: the sustainability of the 10% dividend, and method(s) to estimate fair value for the shares, given that revenue and earnings will likely be quite volatile and unpredictable over the next months/years.
Thanks for your excellent service!

Q: Can you give your thoughts on their most recent 1/4 and the company in general, buy,hold, or sell.

Thanks

Q: Could I please have your opinion of Diversified Royalty

Thanks

Q: I am underwater 4.1% on VET and 6.7% on DRG.UN. Is this because of the recent crisis in France? We do need the income, but is this the time to sell, or should I hold? If I sell, I'll have over $70,000 to invest. Can you give me some dividend paying Canadian names to look at. We already have all the major banks,MST,SRU,AX,HR,DRG,HOT,CSH reits, BIP.UN,BEP.UN,PKI,NFI,NWC,EMA,NPI,FTS,BCE,T > Many thanks.

Q: Hi Peter In your response to ? if the market is working .Not so in the case of IPL had a bang up Q and raised the Div .Yet got hammered by the market .Investors don't seem to see that a pipeline makes the same money transporting $40 oil as 100 $ oil.
Not a ? just my morning rant
Kind Regards Stan

Q: capital power makes a ton of cash i am concerned with their coal fired plants getting phased out. would they be okay with this happening, is it priced in.Would veresen be a solid long term hold?

Q: Could I have your thoughts on the latest quarter. Thanks.

Q: My current utilities allocation is 7.4% spread over BEP.UN, ALA, and PPL. Can you please suggest a forth holding for stability and dividend growth that would be suitable to pick up at current prices?

Thanks,

Stephen

Q: 12 per cent dividend yield with an fcf payout ratio under 50 per cent so very safe, growing revenue, ebitda and free cash flow, buying back stock. I thought direct cash really delivered. your thoughts. dave

Q: What is your opinion on TRP in the short term? Should I expect some Tax Loss selling before the end of the year? Jeff

Q: I have a position in GS. Could you please comment on recent results and your thoughts going forward. Many thanks as always.

Q: I am a retired, conservative dividend income investor, with a well diversified portfolio of stocks, ETFs and mutual funds (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WCP, WEF, WSP, XIT, ZLB, RBC Cdn Eqty Inc, Sentry Cdn Inc, Sentry REIT, Insured Annuities, Fisgard Capital), as well as a company pension and CPP.

Question # 1: BCE is 4.0% of my TOTAL portfolio, but 6.1% of just my EQUITY portfolio. When you discuss stock weightings, is it of the total portfolio or only the equity portfolio? What general guidelines do you recommend? I use roughly 2-4% per stock, and 4-10% for either ETFs or Mutual Funds.

Question # 2: My asset mix is 65% equities and 35% fixed income. Within equities only, my mix is 25% finance, 18% utilities, 17% consumer, 4% health, 14% industrial, 9% info tech, 10% energy and 4% materials.

I am looking for a very conservative, blue-chip, dividend-paying stock (> 3% dividend) to add and I'm not sure which sector to top up. Please point me to the right sector (or two) with 3-5 stocks to consider.

Thanks, Steve

Q: ho folks:

in feb 2011 i purchased this at $30.30 (in rrsp)

-- the income rec'd is very close to the drop in capital value

-- ie, i have rec'd about 2k in income and the shares are down about 2k - so i am about breakeven (ish)

question: understanding the oil/alta problems; am i better to sell and buy say a SIA/EXE or ZRE/XRE or ??, OR is D.UN a blue chip that is suffering unduly?

sell, or hold and wait for eventual recovery?

this is my only real estate holding

thanks

Q: Hey Peter & Team,

I took a look at the recent reporting as of Nov 5. From what I can tell, poor crop expectations, resource prices and related uncertainty,regional economic uncertainty surrounding oil prices, which primarily impacted new equipment demand in the Alberta construction market, the increased Canadian dollar cost of new equipment due to appreciation in the US dollar are all creating a significant head winds for CVL.

I am in at $24.20 (4% position)

From what i can see my options are to cut the loses and put this capital to work elsewhere or, hang tough and wait it out.

my questions...

Would you advise I move or hang tough?

ps... dividend is very good... do you think it is safe?

Thanks for all you do

Gord