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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: 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: 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
Q: In a recent question I asked how to proceed in investing the 30% cash I had during this period of volatility. 5 I recommended a slow procedure... I also mentioned that I had already taken a 4.6 % position in JPM and 5 I commented that a slower approach was recommended. It promptly dropped 10% after the question.... But with the current rally is now up 5% . So the question is do I sell half to get back in line with 5 I's slow approach through the volatility or let it ride ? { there are no tax consequences to selling as it is in a RRIF }
Read Answer Asked by Garth on March 27, 2020