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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 averaged into BGI as I purchased a 2.5% position in a RIF portfolio I'm now down 13% from the average purchase price, the dividend yield is now 9.5% do you think this is sustainable? Also do you have an opinion on why this is not doing so well compared to the other parts of Brookfield which seem to be firing on all cylinders.
Read Answer Asked by Thomas on February 28, 2018
Q: Recently I read an article in my local paper written by Peter and he warned about Split corps and inferred that people are "sucked by the high dividend and went on to say how much better slow steady growing dividend payers are. What I have found about these investments are that they get no love in the investment community but are growing in number and every over night offering is fully filled, and have (if purchased in the right context to your individual needs) preform well. For me a 3% weighting in ftn, 2500 shares, purchased in Feb of 2015 at $8.90 has a cost base of $22250, current price is $10.50 ish =2500 x 10.50= $26250 ( a $4000 gain) BUT the sole purpose for holding this was to add to my living income in retirement. At 2500 x .1258 I am receiving $ 315 a month that I either reinvest in growth stocks or use to spoil my grand kids. I went into this eyes wide open knowing they can suspend payouts as CAN any dividend paying company (ie energy) You say they do not grow dividend well a 4% paying company is probably never going to give me the same payout in my lifetime left. In short I certainly see the pro and cons of these but do not consider myself a sucker for being in one.
Read Answer Asked by James on January 11, 2018
Q: I normally can find answers to my questions by reviewing past questions but when I ask for questions on DS I get nothing. Not even the notice that there are no questions.
Anyway, I am retired and interested mainly in yearly income. I own DS and happily collect the dividend. But, can you explain how they can pay a 10% return when they hold stocks yielding less than 5%. Is the remainder return on capital or are they selling covered calls?
Thanks
Don
Read Answer Asked by Don on December 18, 2017
Q: Gents (time to add a Lady?) Would this be a reasonable addition to a balanced rrsp portfolio for a bit of aggressive yield at these depressed levels - could you quantify the return of capital that would reduce cost base ie if held for say 2 years and the share price stays flat what erosion in share value would an investor who sells at that point incur - thank you - Ken
Read Answer Asked by Ken on December 12, 2017
Q: I have inherited share of this fund and am now being asked by BMO Investorline if I want to redeem these at their net asset value on January 30, 2018. The shares currently trade at $ 13.98. From what I can gather from First Asset the NAV is $ 14.28 on December 6. This has not been a very remunerative fund, and I am slowly switching assets to match your portfolios. Is this an opportunity for me to get out of some or all of this investment at better than market price? I am not sure how many shares the fund will redeem, but should I put all of them up for redemption?
Thank you very much for your valuable ideas and service
Read Answer Asked by doug on December 08, 2017