Investment Q&A

Q: I am a Canadian citizen/resident. I use my non-registered investment accounts to hold dividend-paying Canadian companies as well as U.S. companies that pay no/small dividends. I use RSPs for U.S. companies that pay larger dividends. I use TFSAs to hold securities such as Canadian REITs and companies with unusual dividends such as BEP.UN and BIP.UN. My understanding is that BIPC is essentially “equivalent” to BIP.UN, but that BIPC will pay fully eligible dividends for which T5s will be issued (not sure if the BIPC distribution will be paid in CA$ or US$). Here are my questions: (a) given the above considerations, would it make sense for me to sell BIP.UN/BIPC within my TFSA, using the cash to acquire more of Canadian REITS and/or similar types of securities (with unusual dividends), and to reacquire the same value (of BIP.UN/BIPC shares sold) through purchase of shares of BIPC in a non-registered account? And (b) do you know whether it is known yet in which currency the future BIPC distributions will be paid?

Ted

Q: Good afternoon, As a long-time Chartwell investor, of course I'm not pleased with its recent price decline. In our combined portfolio, I've allocated it in the healthcare sector. If I believe that the NWH.UN tenant base is more secure, would you be OK with a switch from Chartwell to Northwest Healthcare Properties, Do you concur with this thesis?

Thanks, and stay healthy.

Q: What are the Canadian equivalents thanks

Q: Hi,

Do you agree that many REITS and utility companies are historically way overvalued considering their lack of growth?
If I was to invest in REITS and utility companies for the next few years, could u pick 2 REITS you like for US and 2 for CDN exposure?
Could you also pick two utility companies you like for US and 2 for CDN exposure?

Q: Hello,

I note that each of these has sold off with the market and are now yielding between 7.14% and 9.4%. Unless people are moving out of these homes in fear, I think whatever vacancies are caused by Covid-19 will be filled by the aging population. Being on sale to the extent that they are seems overdone given that they continue to function and receive their revenues. Do you agree and would you be a buyer of 1 or all of these at these levels for growth and income? Please indicate a favourite if you have one and the reason why.

Q: Hi Everyone at 5i! I hold HR, and have ridden it up and now down. It’s dividend is 17%. Should I just hold it, or add to it? How stable do you think the dividend is? Cheers, Tamara

Q: Is this company healthy enough to add to for a 3 year term? Thx J

Q: Hello,
Do you consider Chartwell a buy, sell, or hold at current level.
Please provide your thoughts about the company.
In the past, you liked the company because of the type of properties they owned. Has that become a liability during corona scare?
Thanks,

Q: What are some industrial reits?
Do you recommend entry into this sector at this time?

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).

Q: How do you feel about investment in REITs in general in this economic environment?
Could ARE be a good choice because of its focus on properties leased to government, university and private research facilities?

Q: Hello,
Do you consider H&R a buy, sell, or hold at current level. How safe is their dividend.
Please provide your thoughts about the company.
Thanks,

Q: Which residential reits do you believe have the highest quality tenants? i.e. less likely to defer, default, delay etc. rental payments . Also which reits have the best balance sheets and financial strength? Are any worth investing in at this stage or do we need to see were the dust settles?

Q: At a 15 % yield, the market must be anticipating a distribution cut. A 2/3 cut brings the yield down to 5 % which seems reasonable for this Brookfield company , even with the inherent problems they will have with retail and possible office properties. What does the balance sheet say about distribution strength? Would Brookfield be very reluctant to cut one of their major companies? Would you nibble on this one or stay away from the sector altogether? Thanks

Q: Wondering about this stock in light of recent pullback. In your opinion, how safe is the dividend? Any other comments and outlook would be appreciated. Thanks, Don

Q: Please comment on updates on Apr 1.It did issue another one o Mar 25.Txs for u usual great services & advices

Q: I would like your comments on HOM.U. With the recent drop in the price of the stock ($8.50), do you think this could be a buying opportunity? In your opinion, what would be the impacts of COVID-19 on the stock? Thank you very much.

Q: What are your thoughts on being opportunistic on Wall Financial given that the shares are off approx. 40% with the recent market turmoil?

Q: Hi Gang
Can you give me your 5 top reits at this time given this environment
Thanks for your help
Mike B

Q: Thank you to the whole 5I team for your precious help during these difficult times. I am retired and I hold shares in a corporate account of DIR and CAR with losses of approximately 30% each. The company is expected to close within 3 years. Do you think these 2 titles will go back to their paid level by then. If not, would it be appropriate to sell them take a tax loss and migrate to companies with slightly lower dividends but with more growth? I thought of BIP and BEP or BAM. If not, do you have any other suggestions?