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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: Given the dividend cut today - does your view regarding the odds of cuts for Canadian Bank stocks as well as other blue chip Canadian dividend payers change. I realize that RDS is in a very tough industry right now but I would say the severity of the cut was pretty surprising and I wonder if there will be similar surprises in Canada for "undoubted" dividend payers in the past.
Read Answer Asked by Gary on May 01, 2020
Q: I have a 5.5% weighting in my portfolio. About 130% gain in a non-registered account. The economy is ground to a halt abruptly probably for quite a few months if not years. I wonder if it is a good time to trim down, bite the bullet and pay the capital gains tax at the high marginal tax rate and buy back to full position when it reaches the bottom? or grin and bear some near term volatility, stick with it for the long term as the economy will be back in a year or two?
Read Answer Asked by Ford on April 30, 2020
Q: With the economic fallout coming of writedowns, defaults, market adjustments, would you say the life co's can be a safer bet here than banks?
Thanks
Read Answer Asked by Randy on April 30, 2020
Q: Hello
Very few bank rate reset preferred shares indicate that there is a "NO NVCC" clause. An example are the above noted two preferred shares.
Can you please tell us what the NO NVCC clause means and how these bank rate reset preferred shares differ from ordinary bank rate reset preferred shares?
Thank you
Read Answer Asked by Terry on April 30, 2020
Q: Revamping my 70 year old partner’s portfolio, looking for income and modest growth.

Being quite overweight in financials, wanting to exchange some or all of these positions: MKP, AI, TF, ZWB. Add to my BNS (currently 2%), and diversify into other sectors.
Is it worth keeping any of the Mortgage related MKP, AI, TF? Is FSZ lower risk? US banks/ETF?

I expected the upside of ZWB to be significantly less than ZEB, but when I compared the charts they seem like two dogs chasing the same ball, never far apart. Very similar up and downside, is that your view also?

Carl van Rossum
Read Answer Asked by Carl on April 29, 2020
Q: I noticed that Trisura has a potential run up in the bid / ask (~$6) compared to last night's closing price ($38.02 - 38.50 range). Over the past 4 - 5 months there has been insider buying yet, I cannot find news short of calling them directly. They seem to be immune from work stoppages unless a contractor goes bankrupt. In the Corporate Insurance, segment, there could be a slowdown in top-line growth though they have a good renewal business. Their policies do not cover business interruptions from the pandemic. Also, given that they are a wholly owned sub of Brookfield Asset Mgmnt., I have a good comfort level and am considering moving to a full position. May I have your thoughts?
Thank you
Read Answer Asked by Martin on April 29, 2020
Q: What is your opinion on replacing AGF.B with FSZ? I’m underwater big time with AGF.B, would incur a loss in my trading account and hopefully gain some of the loss with the FSZ dividend and possibly growth.
Thank you.
Read Answer Asked by Gilles on April 28, 2020
Q: Hello 5i Team

I have an equal number of shares in both Great-West Lifeco (GWO) and Power Corporation (POW).
My average cost for GWO is $22.00 per share and for POW is $21.90.
Since POW owns 70 % of GWO, should I purchase more shares in POW and sell my GWO position? This would result in a slightly higher yield going forward on the POW shares. Or should I consolidate my position in GWO and sell POW?
I have matching dollar positions in MFC and SLF, so I want to stick with GWO/POW.

Do POW and GWO share price move in tandem (i.e. same percentages) because POW holds 70 % of GWO or is POW restrained by its holding of IGM Financial?

My last purchases of POW/GWO was on April 13 and 15 respectively. Do I have to wait until May 13/15, before I sell either one, if I want to claim the small capital loss?

Thank you for the great service.
Read Answer Asked by Stephen on April 27, 2020
Q: I have all 5 big banks and the 2 telecoms in my Margin Account for income purposes. I sold FRU and IPL because the dividend was reduced significantly. So I have some cash available to top up.
Given the Banks have Yields and Pay Out Ratios as follows (BMO 6.34% - 46.83%; BNS 5.90% - 44.47%; CM 7.49% - 36.67%; RY 5.25% - 44.84%; TD 5.82% - 44.76%) I am considering CM as the best yield and lowest Pay Out. Would you concur?
Thanks
Read Answer Asked by Brian on April 27, 2020
Q: Risk of small business bankruptcys, loan losses - would this be a Material Risk for BNS given the countries they do business in, or would the risk be smaller because of the countries they do business in - or perhaps the loans to small business is a minor part of their over all portfolio (meaning their loans are to larger business with stronger balance sheets).
Read Answer Asked by Phil on April 27, 2020
Q: Thank you again for this great service.
I am down about 25% on BNS (and I have no losses for tax purposes and will have more offsetting gains from other holdings). Thinking of selling BNS and buying POW which in my view has more upside. I would appreciate your advice on what to do with proceeds from BNS sale i.e., other suggestions please (I am very well diversified).
Read Answer Asked by Danny-boy on April 27, 2020
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