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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: I know that 5i has not generally recommended these split corp funds but I would like your take in this scenario. We know they bottom when asset value drops below an acceptable number and this has occurred. I recall years ago the same thing happened and yields disappeared and values plummeted. When the market bounced back however each roughly doubled and paid lucrative dividends until of course the next major downturn. My question given that we all expect new highs some day, is whether these would not be nice tuck ins today that will eventually appreciate if not double and begin paying great dividends?
Read Answer Asked by Tim on June 02, 2020
Q: I've held since its inception due to a) the track record of the former Sprott fund manager, and b) beause it was a fund that would have tools to perform well during a stock market setback. I am looking to sell as the fund did not fulfill purpose b. Am I missing something? And can I sell JFS.UN as I would my other stocks (without a penalty) in my Direct Investing account?
Read Answer Asked by Keith on April 28, 2020
Q: May I have your opinion on GAMCO Natural Resources, Gold & Income, for income? It's a covered call fund yielding 12% dividend. The holdings include 45% metals and mining, 20% energy, and the rest in health, industrials, agriculture. It seems to be 55% held by insiders. How secure is it for income, in your opinion? Thank you.
Read Answer Asked by Jerry on April 28, 2020
Q: DFN, the high-dividend split share fund that people sometimes ask about, has missed its first dividend since its inception in 2004. It even paid the monthly dividend throughout 2008-09. I see the share price is up this morning. I don't think people realize they will not receive the dividend and that it could be many months or even years before the dividend returns.
Read Answer Asked by Jerry on March 26, 2020
Q: What are your thoughts on EIT? It seems, at the moment, to be trading well below NAV. When I read the list of top 25 holdings, it mostly looks reasonable to me. But I'm not sure I understand their press release:
"[EIT] announces today that it has determined to suspend the Premium Distribution(TM) component and Distribution Reinvestment component of its Premium Distribution(TM), Distribution Reinvestment and Optional Cash Purchase Plan (the "DRIP") ".
I get that they've cancelled the DRIP but what is the Premium Distribution? What is the forward dividend at this time?
Read Answer Asked by Peter on March 25, 2020