Q: What do you guys think of Power Corporation? Have you heard anything about a potential breakup of the company/do you think that would be a positive thing? Is it a buy sell or hold at these levels?
Thank you.
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: Hi 5i: Just a comment related to recent questions about the relative merits of various Canadian banks. I have often heard the view expressed that 'the banks all run together,' implying that it doesn’t matter too much which one an investor selects to own. I have also heard suggested the strategy of ‘buying the laggard,’ on the theory that in time it will catch up to the group and thus provide a better return over that timeframe. Recently I took the time to put the big five Cdn banks on the same chart to compare their stock performance over a variety of time periods. I was a bit surprised by the results. Instead of converging over the longer time periods, their performance actually diverges significantly, though all provided fairly decent positive returns. The specific results (as of a couple of weeks ago) included the following:
1. Best over the past 3 months: BMO
2. Best over the past 6 months: BMO
3. Best over the past 1 year: CM
4. Best over the past 3 years: RY
5. Best over the past 5 years: TD
6. Best over the past 10 years: RY
The difference over the 10 year period was quite significant. RY’s price appreciation was the leader at over 160%, followed pretty closely by TD at about 150%. BNS was in the middle of the pack at almost 100% and BMO and CM were both under 60% appreciation. Adding the dividends into the mix might close the gap slightly from a total return perspective but the laggards would still be well behind the leaders over the 10 year time frame. (All presuming the charting function I was using was getting correct data and working properly.) Cheers!
1. Best over the past 3 months: BMO
2. Best over the past 6 months: BMO
3. Best over the past 1 year: CM
4. Best over the past 3 years: RY
5. Best over the past 5 years: TD
6. Best over the past 10 years: RY
The difference over the 10 year period was quite significant. RY’s price appreciation was the leader at over 160%, followed pretty closely by TD at about 150%. BNS was in the middle of the pack at almost 100% and BMO and CM were both under 60% appreciation. Adding the dividends into the mix might close the gap slightly from a total return perspective but the laggards would still be well behind the leaders over the 10 year time frame. (All presuming the charting function I was using was getting correct data and working properly.) Cheers!
Q: I have positions in all the major Cdn banks and I wonder why you, and many other advisers, tout TD and BNS over the other banks. When I started with BMO Invest in June '13, BNS was $59.04 a share and BMO was $61.37 Yesterday BNS was $72.94, a nice $13.90 increase, but BMO was $85.42, up $24.05! Why does BMO never get the recognition it deserves?
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Q: Peter et al,
I watched BNN last night and the visiting guru was John O'Connell.
He did not seem to like Gluskin-Sheff very much, but I did not follow his reasoning. I wonder if you could comment on that? My wife also commented that he seems anti-Canadian. Thx in advance.
Gary
I watched BNN last night and the visiting guru was John O'Connell.
He did not seem to like Gluskin-Sheff very much, but I did not follow his reasoning. I wonder if you could comment on that? My wife also commented that he seems anti-Canadian. Thx in advance.
Gary
Q: I am looking for a financial stock to augment BNS, AD, TCN and a mix contained within 3 dividend-distribution mutual funds(RBC Cdn Equity Income, Sentry Cdn Income, Sentry REIT).
I am a retired, income-oriented investor who likes to hold for the long term and get regular dividend increases and some capital gains. I also hold ZLB, AQN, ALA, BCE, WEQ, BTE, CPG, SGY, along with an insured annuity and I receive a pension.
Within the banks, I have narrowed it down to RY or TD. Excluding the banks, I am considering SLF, MFC and PWF. I know you recommend SLF, yet the bulk of the analysts lean towards MFC, even though they cut their dividend in the latest crisis. The insurers seem to have more total return upside than the banks.
Question #1: Given my current portfolio mix, which financial stock would you recommend? Is there another stock for me to consider that I have not mentioned?
Question # 2: While I am not a market timer, would I be better to keep my cash on the sidelines for a few more weeks for a better entry point. I know I can always start with partial positions.
Thanks for your help,
Steve
I am a retired, income-oriented investor who likes to hold for the long term and get regular dividend increases and some capital gains. I also hold ZLB, AQN, ALA, BCE, WEQ, BTE, CPG, SGY, along with an insured annuity and I receive a pension.
Within the banks, I have narrowed it down to RY or TD. Excluding the banks, I am considering SLF, MFC and PWF. I know you recommend SLF, yet the bulk of the analysts lean towards MFC, even though they cut their dividend in the latest crisis. The insurers seem to have more total return upside than the banks.
Question #1: Given my current portfolio mix, which financial stock would you recommend? Is there another stock for me to consider that I have not mentioned?
Question # 2: While I am not a market timer, would I be better to keep my cash on the sidelines for a few more weeks for a better entry point. I know I can always start with partial positions.
Thanks for your help,
Steve
Q: reguarding mic-t why such a drop in share price in the last few weeks trouble with parent co or what
Q: Greetings Team 5i,
With it looking like an increase in interest rates coming soon, and understanding that insurance companies appreciate higher interest rates, I would like to add to my holdings in that sector. I realize you like Sun Life SLF and I'm thinking of taking a position but I'm also interested in Fairfax Financial FFH. I would appreciate your opinion of FFH and the wisdom of taking a position in it at this time.
As always, thanks for your guidance.
With it looking like an increase in interest rates coming soon, and understanding that insurance companies appreciate higher interest rates, I would like to add to my holdings in that sector. I realize you like Sun Life SLF and I'm thinking of taking a position but I'm also interested in Fairfax Financial FFH. I would appreciate your opinion of FFH and the wisdom of taking a position in it at this time.
As always, thanks for your guidance.
Q: I'm looking to initiate a position with market leverage. Would you choose between GMP and AHF? Thanks!
Q: Kudos Peter and Team !
Besides SLF, could you give some ideas for companies that will benefit in a rising rate environment. Does this include the Banks ?
Thank you.
Besides SLF, could you give some ideas for companies that will benefit in a rising rate environment. Does this include the Banks ?
Thank you.
Q: Looking at dc.a , is it a good buy at this price
Q: Hello 5i team,
Financials represent only 8.2% of my RRIF portfolio; they comprise BNS, EFN, HCG and TD. To gain some exposure to lifecos, I think of adding SLF.
Your thoughts?
Thanks,
Tony
Financials represent only 8.2% of my RRIF portfolio; they comprise BNS, EFN, HCG and TD. To gain some exposure to lifecos, I think of adding SLF.
Your thoughts?
Thanks,
Tony
Q: are you still recommending element financial, EFN? does it have a dividend?
Q: Hello and thanks for all of the great responses and reports.
I bought MG in the $35 range and have enjoyed the run up but think it is pretty much fully valued. I have trimmed some earlier this year and would like to move out of it into a lifeco which most folks seem to think have more room to run. Which big boy do you think has better upside SLF or MFC?
Thanks
Jerry
I bought MG in the $35 range and have enjoyed the run up but think it is pretty much fully valued. I have trimmed some earlier this year and would like to move out of it into a lifeco which most folks seem to think have more room to run. Which big boy do you think has better upside SLF or MFC?
Thanks
Jerry
Q: Do you think owning insurance equities is a good "portfolio hedge" against rising interest rates?
I know you like Sun Life (SLF) but I am wondering if it is also the best choice relative to other Canadian insurers in terms of it's potential upside due strictly to an orderly rise in rates?
I know you like Sun Life (SLF) but I am wondering if it is also the best choice relative to other Canadian insurers in terms of it's potential upside due strictly to an orderly rise in rates?
Q: Hi 5i,
I hold both SLF and IFC in my retirement account. Are they different enough that I can hold both or should I get rid of one? Do you still like IFC for growth and dividend growth? I also hold several other financials: banks and REITs so I would remain diversified. Thanks!
I hold both SLF and IFC in my retirement account. Are they different enough that I can hold both or should I get rid of one? Do you still like IFC for growth and dividend growth? I also hold several other financials: banks and REITs so I would remain diversified. Thanks!
Q: I have a position in MFC and thinking of making a switch to SLF for more growth and stability, what is your opinion? Thank you for your response.
Q: I hold GWO & POW and need to sell one of them.I want to keep the one with the most potential going forward.What is your opinion?
Thanks, Don
Thanks, Don
Q: MFC - Will the financing of Manulife's recent acquisition dilute the stock and hence reduce the price? Thanks. Michael
Q: 9:16 AM 9/4/2014
Hello Peter....
Best withes on the ride!
I have owned a 1.4% position in Great-west Life [GWO] and a 1.7% position in Sun life [SLF] since December 2013. SLF is up 11% and GWO down 1% since I bought them. These are held primarily for income. I would appreciate your opinion on whether I should just do nothing and collect the dividends which are about the same for both companies [SLF 3.5% and GWO 3.8%] or whether I should sell the GWO with essentially no loss or gain and put the money into SLF, in the expectation of a little more growth. Is it worth the diversification to own both?
Many thanks...... Paul K
Hello Peter....
Best withes on the ride!
I have owned a 1.4% position in Great-west Life [GWO] and a 1.7% position in Sun life [SLF] since December 2013. SLF is up 11% and GWO down 1% since I bought them. These are held primarily for income. I would appreciate your opinion on whether I should just do nothing and collect the dividends which are about the same for both companies [SLF 3.5% and GWO 3.8%] or whether I should sell the GWO with essentially no loss or gain and put the money into SLF, in the expectation of a little more growth. Is it worth the diversification to own both?
Many thanks...... Paul K
Q: Your out look for MFC compared to SLF taking into consideration MFC latest acquisition. Thanks.