Investment Q&A

Q: Re: dividend paying stocks and interest rates: thanks to 5i and Lance for the insight. This was a point I totally overlooked and is obviously an important one.
The Q&A is an excellent way to learn and I very much appreciate it!
Cheers,
Mike

Q: Peter, I have owned the ETF XRE (RRSP) for over 4 years and incl. reinvested dividends I have a gain of approx. 130%. REITS have been hit recently due to concerns about our real estate market (negative press as always) and > interest rates, I guess? Would you sell or keep-Reits should do well in a little higher int. rates as this would indicate a bit of inflation which should be good for fixed asset valuations-I would think?

Q: hi team :
Superior Plus Corp SPB:TSX
do you see any company related reason for it being 8-10 % down. would you advise to add to a position or hold ??
Thanks
yossi

Q: Hi, why is it that all the stats for companies differ on each website? I'm looking for chemtrade and Rogers sugar's payout ratio, but the numbers are different from td to globeinvestor to yahoo. I just want to learn how to look through them and what/what not to include / most important in calculating it. Your views / quick examples? Thanks.

Q: I have a question regarding the 5i portfolio model. Is it too late to purchase these stock.? I see some have made substantial gains since March 1st,? Or should I just pick some of them that haven't made as much gains as others. ? Thanks for your reply. Really like your service.

Q: Hi 5i: Just an additional comment on the discussion speculating on the rational connection between dividend yields and interest rates. It is important to remember that stocks don't trade off of their yields alone, even though income investors may be particularly interested in comparing the net benefit of different kinds of income streams. Low interest rates don't only make dividend yields relatively more attractive. They also mean that those dividend paying businesses are themselves operating in a low-cost debt and capital environment. That is the ideal business environment for many dividend paying companies. So when interest rates rise, it doesn't only mean that debt compares more favorably as an investment. It can also mean that those dividend paying companies are going to have to generate their cashflow and maintain growth expectations in a relatively more difficult economic environment. This impacts people's perceptions of the potential future value of the companies.

Q: Hello,

What are your thoughts on using the PEG ratio as an added metric to analyze growth companies? I'm looking at Kulicke & Soffa Industries (KLIC), the fundamentals that are available to me look decent, low P/E, no debt, high growth. This stock has a PEG of .44, would you take that ratio into consideration when deciding whether to invest or would your decision be based only on the fundamentals.

Thank you.

Q: Of the good dividend growers, which companies would you recommend of the companies that you follow.thanks

Q: Hi Peter,
In a recent answer you mentioned in your opinion 'Some cyclicals are recommended --materials and manufacturing.' Metals and mining have really been hammered- would you recommend starting to pick them up now?
Thanks

Q: I'm planning to sell a few Canadian stocks and am interested in more investments in the US, specifically CVX, COP, MRK, JNJ, and WFC. Can you tell me which, if any, of these stocks have dividend reinvestment plans? Or, how can I find this info myself?

Q: As a person new to retail investing I have set aside about 10K and had the idea of following the concept of your model portfolio which would mean I would purchase $500 worth of shares for each company. Others have told me this is too little an amount and I should focus on a smaller number of companies, but I really like the diversification over multiple sectors and companies. What do you think? Thanks again for this really great service.

Q: Given all the talk about the Fed tightening and the subsequent effect on interest rates, are we starting to see a withdrawl from dividend paying stocks? NPI in particular seems to be coming down in the last week.

Q: Where do you get information on short positions and insider trading for Canadian and US public companies .

Q: Hi Peter/Team, further to the question asked by Bob, what materials and manufacturing / dividend growing companies would you recommend at this point? Thank you.

Q: Do you subscribe to the belief in the projected up to or more than 10% decrease in the C$ vs. the US$, and if so,(1) what are a few of your top recommendations for some Cdn and/or US share purchases to capitalize on the decrease, and (2) would you invest now or wait for a pullback?? Thank you in advance for your continuing good advice.

Q: great service, worth more but …. interesting day friday where gold dropped $20 and G goes up, REITs and utilities are taking a beating / MFC, SLF increasing … does this point to interest rate increases….. question… where in the business cycle are we and what industries should i be rotating into

Q: Hello Team,
I really appreciate all the advice, you have a solid team. With all this talk on the interest rates I would like to ask a question. I know you believe that rates will remain low or even decline a bit. I was curious what types of investments would be most beneficial in a rising rate environment? Hypothetically.

Thanks very much.

Zen

Q: Your model portfolio appears to be mainly for aggressive investors but may not be suitable for a retired guy. Could you not indicate in some way the stocks that are suitable for aggressive investors and those suitable for conservative investor and let the investor choose. Could you name five dividend paying large/medium cap stocks with fair future growth that are suitable for purchase now with a time horizon of 5 years.

Thanks

Ash

Q: Hi Awesome Team!!!
I have been reluctant to invest in the US stock market as I don't understand the tax implications. Can you advise me what the impact is of profit or losses? Do I file a US tax return?
Many thanks!!

Q: Hello Peter,
Can you tell me what it means when a President of a company is granted shares at $0.00. On May14/13 the President of AGNC received 332,794 shares granted at $0.00. Is this important in any way?
Regards, Max