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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: Hello 5i Team
Given 5i are not tax experts, could you please comment on the subject below as I could not find a clear answer.
1 - If I own, in a taxable account, a US based REIT (i.e Monmouth REIT) and if a portion of the distribution is "return of capital (ROC)", is the US ROC treated the same as Canadian ROC (i.e. deducted from the capital cost of the US REIT each year therefore reducing the adjusted cost basis)?
2 - Or is the US ROC "lost" and I pay tax on it similar to a dividend from a US corporation?
3 - I have noticed the US REITs do not post the tax breakdown of the annual distribution as the majority of Canadian REITs do.
Any suggested source of information for this topic?
Thank you
Read Answer Asked by Stephen on August 04, 2020
Q: My two US industrial companies just reported. The SYX results looked quite good to my inexperienced eye. Not so sure about XYL even though it was advertised as a beat. XYL basically has not beaten earnings in the last year or so and I am wondering if there are better US opportunities. I do hold SIS, TFII, CAE and WSP but overall am a bit underweight industrials. Any suggestions?
Read Answer Asked by Paul on August 04, 2020
Q: I was puzzled ( STARTLED, actually) in June this year to see that AAII added MDU to its “ Stock Superstars” model portfolio. MDU struck me as a rather sick company operating in an environment that appears to be adverse ---if not downright hostile--- to its business. However when I checked some analysts’ reports I saw several (including CFRA) have a BUY rating on this company notwithstanding its depressing descent down in share price. MDU appears to be a value , even deep value, company, a group that often has hidden dangers. MDU’s s PEG is sky high at 2.53, but ROE and ROCI are not shabby for its industry.

Is this a company you could--- in a sober moment -- buy if you wanted a boring bond proxy to reduce overall portfolio risk? MDU seems to me more suitable for contrarian value investors. It is not uncommon for me to miss something , but is AAII mistaken in calling this business a ‘stock superstar’?
Read Answer Asked by Adam on July 31, 2020
Q: What are your thoughts on the retail sector's long term outlook? For ex: does a company like JWN have enough upside to make it worth a long term bet, given that it has a growing ecommerce channel and was better positioned financially than some of its competitors? If and when the dividend would be reinstated, it looks to be an intriguing yield buying in at the current prices, albeit with considerable risk of continued short term volatility.
Read Answer Asked by TRINA on July 31, 2020
Q: Hi, I have owned ONEX for about a year and down 18%. I would like to own a private equity co. ONEX's purchase of Westjet was bad timing and the airlines will continue to struggle going forward for some time I think. In a recent question about ONEX, you said ONEX has lost money and revenues have not changed for the last 8 years, so just curious, what drove its stock up from $35 to $100 between 2013-2018?? Would you continue to hold? I'm thinking of selling ONEX and switching into KKR or BX?? Or possibly buy more BAM? In this low rate environment, PE should benefit right? Looking for long term growth in my LIRA. Thanks!
Read Answer Asked by Keith on July 30, 2020
Q: Hi
This company is giving 12% dividend. is it sustainable? and please give your thought on this. is it buy?
and please give top 5 US growth stocks for three yrs hold.
Thank you,
KT
Read Answer Asked by kaushikbhai on July 30, 2020
Q: I own the following 6 tech names (ROP is technically an industrial but fast moving into software) in my RRSP, each at about 2% weighting. I am thinking of gradually adding one or two FANG names to round this up. I am looking at MSFT and/or GOOG. If these makes a good complement, do you consider one or the other a better buy today?
Read Answer Asked by Christian on July 30, 2020
Q: Hi. These companies are all from the industrial group of the S & P Dividend Aristocrats list. I'm looking to invest in one or two of them, to hold for the long term. Do any stand out to you? Any that you would avoid?
Read Answer Asked by William on July 29, 2020
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