Q: What is your opinion of the African company run by Fairfax.Has it a chance to run like the India company FIH.un. Bob Thank you
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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 want to give my take on DFN, a split share investment vehicle. I realize 5i and probably every other good financial advisor does not favor this vehicle and would not buy this for their clients. Yet people are buying this product every day.
Please let me know how sound these thoughts are or if you have anything to add.
As an investment DFN is a road full of potholes. For one thing, the dividend could be cut off completely for as long as two years, although DFN has never discontinued its dividend. Along with that, the share price could plunge 30% or more. As well, the share price will probably degrade over the years.
Who would benefit from DFN? Someone who absolutely needs the 11% dividend every month in order to pay the bills.
However, they need to be cushioned against the potholes. They need a mental cushion that will allow them to withstand sharp drops in the share price, as well as survive a disappearance of the dividend for possibly as long as two years.
Therefore, besides the right mental attitude, they need a cash back-up that would replace an absence of the dividend for two years. On a 100k investment they would need about 20k in cash to replace two years of cancelled dividends.
They also need to realize that at the end of the day, perhaps only half of their original investment may be passed on to heirs.
I can see people in their 70s and 80s who are prepared for the aforementioned potholes buying DFN, so there may be a demographic tailwind holding up DFN for the next several years. Thank you for allowing my view to be heard, and I appreciate your response.
Please let me know how sound these thoughts are or if you have anything to add.
As an investment DFN is a road full of potholes. For one thing, the dividend could be cut off completely for as long as two years, although DFN has never discontinued its dividend. Along with that, the share price could plunge 30% or more. As well, the share price will probably degrade over the years.
Who would benefit from DFN? Someone who absolutely needs the 11% dividend every month in order to pay the bills.
However, they need to be cushioned against the potholes. They need a mental cushion that will allow them to withstand sharp drops in the share price, as well as survive a disappearance of the dividend for possibly as long as two years.
Therefore, besides the right mental attitude, they need a cash back-up that would replace an absence of the dividend for two years. On a 100k investment they would need about 20k in cash to replace two years of cancelled dividends.
They also need to realize that at the end of the day, perhaps only half of their original investment may be passed on to heirs.
I can see people in their 70s and 80s who are prepared for the aforementioned potholes buying DFN, so there may be a demographic tailwind holding up DFN for the next several years. Thank you for allowing my view to be heard, and I appreciate your response.
Q: I am just curious to what your thoughts are on PKO Pimco Income Opportunity Fund. It pays a .19 cent dividend a month with a bonus dividend every December. Is the dividend safe and what are some of the funds holdings? Lastly what sector would you put PKO in?
Jimmy
Jimmy
Q: I have been looking for high yield stocks with low volatility, where I am less interested in capital gains. OCS.UN has a 10 per cent yield and a beta of 0.20. It has lost a fair amount since 2015 but seems to have stabilized. I realize that its financials are opaque, but Onex claims that the shares are undervalued. What is your opinon on OCS.UN? Thank you.
Q: I have held shares of TCT.UN for the dividend in an RESP for quite a few years--currently not up to my ACB but I am wondering if you think it is worth adding in this environment. Other than a small position in SLF, which is an overlap, TCT.UN is my only holding in this sector.
Q: Could I have your views on this security. The yield sounds to good to be true. Seems heavy energy, your thoughts on a fixed income portfolio would be appreciated.
Q: DO you know any reason for the daily downturn of the last few weeks and the big drop today.
how would you rate this stock for investing purposes?
how would you rate this stock for investing purposes?
Q: Could I get you opinion of VIP.UN, can't seem to find much about them?
Q: HiPeter, what is your opinion of Brookfield Global Listed Infrastructure Income Fund Inc., (INF)for retirees? There is not much information on this fund on the financial websites. Is this a new fund or has it existed for some time?
Q: Would you revise your opinion of this etf? On October 3, 2016, 5i wrote, "We note that 15 years ago the share price was more than $26, and capital distributions will continually lower NAV over time."
While share price is still only $17, it is paying nearly 10% dividend consistently since 1999 and the share price has increased 40% since the advice was given. I like that it holds mainly U.S. banks. Thank you for your opinion.
While share price is still only $17, it is paying nearly 10% dividend consistently since 1999 and the share price has increased 40% since the advice was given. I like that it holds mainly U.S. banks. Thank you for your opinion.
Q: can i please get your opinion on pic.a for an rrsp account.
Thank You
Craig
Thank You
Craig
Q: Can you give me your opinion on TLF.un?
Thanks!
Linda
Thanks!
Linda
Q: ,,It is almost similar to a private equity firm where the investments will need time to grow in value and then the holding company may need to do something (sell, IPO, etc,) to actually realize the value and get some liquidity.,,
I do not understand your comment. I have a 60% gain. I can sell now and realize the profit. What do I don't know?
I do not understand your comment. I have a 60% gain. I can sell now and realize the profit. What do I don't know?
Q: Hi
What impact, if any, would rising interest rates have on DFN share price. I like it for income. Would this be a good time to add to a position?
Thanks for all you do
GUY R
What impact, if any, would rising interest rates have on DFN share price. I like it for income. Would this be a good time to add to a position?
Thanks for all you do
GUY R
Q: What do you think of this fund for a long term hold? It seems to hold small private tech companies and hold them through going public or being bought by a larger entity. I read somewhere that there is huge demand for small and medium sized Canadian tech companies.
Q: I have looked at gold and precious metals ltd. ASA. US (closed end mutual fund). What are your thoughts on asa for a small holding 3 percent to diversify?
Q: You have mentioned that this fund had 20% allocation to energy before it merged with 2 other Middlefield funds. Do you know what percentage is in energy today and do see any positive attributes in a fund which has been in steady decline in 2017.
Best Regards
Harold
Best Regards
Harold
Q: I'm looking to add income in a RIF account,the yield on BGI.UN currently 8%+ do you think that this is sustainable over a 4/5 year time frame I'm looking at a 3% position in the portfolio.
Q: Hi Peter and Team
I'm looking for some reliable income that isn't from common share dividends. I currently have no exposure to bonds. What's your opinion of this mutual fund for that asset class? The MER seems a bit rich and I'm struggling to see how they can deliver a yield of 7.89% on floating rate bonds.
Thanks
Peter
I'm looking for some reliable income that isn't from common share dividends. I currently have no exposure to bonds. What's your opinion of this mutual fund for that asset class? The MER seems a bit rich and I'm struggling to see how they can deliver a yield of 7.89% on floating rate bonds.
Thanks
Peter
Q: KED P/E 2.2X, P/B 0.8X EPS $7.70 Div. 9.26% Debt/Capital 30.6% ROE 43% yet the share price keeps falling ? Why doesn't the market like this company, I think, fundamentally it s/b be closer to $30/share rather than the current $17.28. Please help me understand, would you think its a screaming buy ?