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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: Power Financial has merged with Power Corporation. The dividend is over 8% and just recently raised before this covid virus. But when they were two companies, combined the dividend would be much higher for two companies so do you think they would still cut the dividend?
I know they haven't created much value over the years but now being a merged company, do you see more upside? I know you prefer Sunlife. I just think Power Corporation has more divisions they could spin off once this downturn is over. Do you agree?
Read Answer Asked by Helen on April 07, 2020
Q: Any strong objections to doubling down on CHW. I have owned it for many years. It is a riskier play then buying TD but the upside on the rebound is likely bigger at current valuations. They will get hit hard by covid but my feeling is that is built into the current price. I doubt the current 20% div yield is sustainable but they should be in a position to payout something monthly for some income while folks wait for the rebound. With the +50% drop I would double down to get me to my old weighting.
Read Answer Asked by Tom on April 06, 2020
Q: Hi Peter,

Atrium announced yesterday that it will redeem its convertible bonds a month early (from end of June to beginning of May 2020). What is the purpose of this? Also, is it common for companies to have double digit dividend yields and not have any cuts? I understand that mortgage investment corps are more unique as they have to pay out all of their income which explains the high payout ratio (it's expected).
Read Answer Asked by Tait on April 03, 2020
Q: I understand that a covered call ETF will produce lower highs and higher lows compared to a non-covered call ETF. However, what would cause the ETF's to have an inverse relation on a trading day? For example, if we take ZEB and ZWB, I noticed on some trading days in the past (even before the current volatility), one ETF would be up a few % points, while the other ETF would be down a few % points.
Read Answer Asked by Craig on April 01, 2020
Q: Haven't seen an analysis of this newish millennial based finance concern lately. They say they have a million plus clients and their advertising seems to be on target in this new financial world. How does their latest $ #'s release stand up to your fiscally grounded scrutiny??
Read Answer Asked by Ryczard on April 01, 2020
Q: UK Banks have suspended their dividends for remainder of 2020...do you see that as something that has a decent chance of happening here in North America? Thank you.
Read Answer Asked by Doug on April 01, 2020
Q: Good morning,
Given that CEW includes Banks and Lifecos' and assuming that low interest rates will be with us for some time, I would appreciate your thoughts about selling CEW for tax loss harvesting purposes and purchasing either an exclusively bank ETF such as ZEB or purchasing two banks with the proceeds of the CEW sale. Also, could you also recommend two banks that you would recommend purchasing at some point with the proceeds of the CEW sale. Thank you.
Francesco
Read Answer Asked by Francesco on March 31, 2020
Q: I am aiming to have a portfolio with 2 solid companies in each of the 11 sectors. Do you feel SLF and X would be sufficient for allocation to the financial sector? Or would you suggest adding a bank (RY) to provide better diversification? Thanks in advance.
Read Answer Asked by Jonathan on March 31, 2020
Q: I have just read that the European Banks are going to stop paying dividends and that the US banks are under a lot of pressure to follow suit. Do you think that The Canadian Banks will also suspend dividends?
Read Answer Asked by shirley on March 31, 2020
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