Investment Q&A

Q: I am a new member to 5I Research.
Can you please review the beneficial tax implications of receiving dividends from Canadian companies vs companies outside of Canada?

With this in mind, what would be 10 top dividend paying Canadian companies you would recommend for a tax efficient retirement income?

Thanks and I look forward to your reply.

Q: BMO has new issues ie. Bank of Montreal U.S. Equity (CAD Hedged) Callable Income Principal At Risk Notes, Series 789 (CAD). Is there a simple description of these auto callable shares. Are they risk protected? How? It seems that these may be “ timely” given the market meltdown and not necessarily very investable. I found these while researching fixed income.

Q: I am in the process of trying to compare my historical investment performance to that of the indexes (total return statistics, including dividends). I am finding it difficult to obtain statistical data (not charts) of the total return performance for various indexes. Can you suggest a reliable source please.

Thank you again for all of your excellent advice over 2018! Best wishes for a very Happy New Year!

Q: Regarding Bob's question on moving stocks in kind from an RRSP to a TFSA , there would be a tax implication when the stocks come out of the RRSP would there not?

Q: Peter,

I am confused. The major banks have a year end of October 31st. I can go to Morningstar and the financial statements are already posted. Are these tentative numbers? It would take a lot longer than two months to have final numbers Taxes are not even due until 180 days after year end. As a general rule, how many months after corporate year end do companies release their final financial statements?

Happy New Year and many thanks for all the work this year !

Paul

Q: In addition to your response to James about parking money for a short term with absolutely no risk, I would suggest EQBank and Achieva Financial. The latter is particularly good as the daily savings rate is 2.4% and all money (no limit) is insured by the province of Manitoba. EQ's rate is currently 2.3% but insurance is CDIC and capped at $100,000.

Q: I am curious about stocks such as Shop which are listed on Canadian and US exchanges.
I have noticed that the actual dollar value per share is almost identical( when I do a currency rate check) even though the trading exchanges are different. Is this happenstance or is there a mechanism that does this.
This is probably a freshman question but I thank you for your work.
Peter

Q: Hi 5i team,
With the maximum pessimism prevailing in the market, it is the ideal time to invest now at the beaten down price. My question is how an average Joe with limited resources can take advantage of this stock sale. Unless one had sold all holdings to raise cash prior to the big drop, now is too late to cash in and bet the stock market to drop further. So what will you do without going into debt to raise cash to buy? What steps would be advisable?
Let’s take the Growth and Balance portfolios, and let’s ignore the tax consequences and tax loss selling. If I hold most of these two portfolios, should I sell those names that drop the least and buy those that drop the most? Should I sell those that drop the most? Should I sell those that are unlikely to advance in the next half year, and buy the stocks that will most likely have a big rebound? Which are the candidates from the two portfolios that will fit the last approach for sell and for buy? Thanks and merry Xmas to your team.

Q: I have $300,000.00 saved to go toward a house purchase. Where is a safe place to park it?

Q: You may be aware of this already, but recently the Globeinvestorgold website was folded into the main Globe Investor website, and a lot of functionality has been lost (as far as I can tell). For instance, I used to be able to search headlines based on text such as "normal course issuer bid" to see what companies are doing buybacks, or I was able to do very specific searches of companies based on industry, size, and financial metrics (ie: all oil & gas services companies trading on TSXv with market caps under $100 Million). Both of these functions, and I suspect more, are now gone. Do you know of any websites or platforms that provide similar functionality ? Since I was (and unfortunately, still am) paying for the Globe & Mail services, I am open to a monthly subscription type services. Thanks.

Q: I’m looking for a system or service that shows a stock’s approximate fair value price. Are you familiar with MorningStar’s Quantitative “fair value” stock price? What is your opinion of their stock value rating system? What other sources or methodologies would you recommend using to ascertain a stock’s approximate fair value?

Q: Options - Do you recommend use of puts and calls? If so, do you have a book or article(s) that could recommend?

Q: Hi 5i Team and Season's Greetings.
Do you have any words of advice for someone who feels like they are the only person holding stocks in this market? Why is everyone selling (although there must be buyers)? This does not seem like volatility anymore and many are saying we are in a bear market, but I cannot see a good reason for that at this point in time. If the stock market is a 6 month to 1 year leading indicator, are we really going to be in this much trouble next year?

Q: With major markets around the world tanking, would 5I Research consider a portfolio of Fixed Income with Exchange traded ETF's and Bond Funds traded on the TSX and US exchanges? Like a lot of investors, 2016 has been a difficult year with many portolio's taking large losses. 5I has been an exceptional source of advice and I wish to THANK YOU for all you do and wish you and the members for Happy Times in 2019. Thanks, Bill

Q: Hi Team! I have 3 children in there 20's looking to gather information on picking stocks, analyzing them and building a portfolio. Other than the 5i service which is very good do you have some suggestions on websites or other information that they should begin sourcing?

Q: Is it due to close to tax loss deadline and very low volume stocks are turning down fast.My assumption is as I put a sell order for some stocks I am getting note that there are no enough purchase order
and will cause volatility,Is my assumption correct?

Q: there was an interesting fast money halftime on cnbc today which i watch daily, mike wilson chief equity strategist was on and he was the only analyst period of all of them out there he predicted this correction back in january and he said now is not the time to be selling, we are bottoming but this process could take 3-4 months not weeks because of the damage done,furthermore he likes energy and banks and then they had a segment with lee cooperman and a guy from the sec talking about quants algorithms and computors causing this extreme volatility, and some feel until the vix hits at least 30 maybe even 40 this is not over, and there is tons of value in the market now but you still have to pick your spots slowly.i think you agree with some of this, just wondering your opinion which i value because lets be honest we all missed the severity of this. i think this is as bad as 2008. and everyone was in complete agreement that jerome powell was and is an idiot who cannot communicate properly. and how much is etf selling which causes the underlying stocks to be sold sonething we never had to contend with in 2008 or not as much. dave

Q: for the person that asked about drips at Computershare. If you have an on-line account, computershare produces a very nice average cost base for tax purposes. It shows every share purchased, when it was purchase, and trades/sells etc, and the purchase price along with a calculated average cost basis. Publish if you feel appropriate.

Q: Hello 5i,
The link below is for discussion amongst investors. If we look for a correlation between unemployment rate and stock market performance the current situation makes sense (low unemployment and stock market declines).
http://chartsetcetera.blogspot.com/2013/11/unemployment-rate-vs-s-500.html
There are other data sets that can provide similar links. There are no crystal balls or data sets that can truly assess how steep a market correction will be before bottoming out or how long a bull market will run, but we can utilize historical data to provide insight into windows of time to be wary and when it may be safer to invest.
If you are in for the long-term (10+ years) then we are in a normal cycle. The cycle from fall to recovery was 24 months in 2000-2003 and 14 months starting late 2007. This cycle started in October 2018. Anything can happen.
Happy Investing
Debbie and Jerry

Q: Today, Bill made a comment about Alan Greenspan. As a former US Federal Reserve Chairman, he has admitted that his policy was wrong when he said the banks do not need regulations and then reduced regulations which led to the great financial crisis. I liked your answer to the question.
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