Investment Q&A

Q: What are the ten highest yielding Canadian stocks which have a sustainable dividend ?As always, thanks for your expert guidance.

Q: What comments do you have on both these royalties? Do you favour one over the other? Have they increased their dividend on an annual basis and is their dividend covered? Would you buy either of them here and if not, what would you recommend?

Q: Hi 5i,

I'm looking to increase my current Financial Sector weighting from 5 to 15%. I currently hold BNS @ 2.2%, SLF @ 1.5%, and GSY @ 1.3%. What would you add too and/or too a new position? I don't like to have more than 5-6% of one holding, of course this would be risk adjusted down according to market cap/safety.

Last part, on sector weightings. I follow your general recommendation and I noticed you changed the following from Oct'18 to Jan'19 as follows:
Consumer disc. 10 up to 15,
Consumer staples 10 down to 5,
InfoTech 20 down to 15, and
Utilities 5 up to 10.

Can you add some commentary behind these sector weight changes?

Thanks, Chris.

Q: alaris royalty, rocky mountain dealerships , div ersified royalty for a five year hold with a growing dividend aqn bce bep.un enb ppl also is their a stock out their that you think could be the next superstar company or companies tsgi?

Q: Good Morning and Happy New Year: I have funds to add to, or start new position in, one of the above companies (I already own a couple of them). If all other factors are not considered, which of these would you recommend with a comment as to why. Also, how would you rate the four mentioned. Thanks, Don

Q: I have a trading portfolio of about $53K, about $18K is in cash right now and I'm looking at investing it again this year after selling a bunch of stocks last year. I currently have about $22K in RBC, BNS and BAC, $3.5K in Go Easy and $1.5K in Orca Gold and would like to keep these. I have a further $7K in various oil and gas stocks which I'm underwater over 50% on, I'm thinking of still hanging onto them as I thinking they maybe at there bottom and like to recoup some of those loses.
I want to invest the $18K in growth oriented stocks that pay dividends and keep them long term, as I'm an investor not a trader. Can you give me advise on what areas of the market I should be looking at in 2019 that were very oversold in 2018 and due to rebound, also specific companies in Canada to invest in, I don't mind also looking at the US but with our dollar down so much this year I think I'm better of with Canada.

Q: Charge as many credits as you see fit...at least 4...got lots. Annually, I follow the O'Shaughnessy system and go through the tedious process of ranking over 90 stocks into deciles. I am screening for stocks that are good value, less volatile and have a good + growing dividend. For value, I use P/E, P/B, P/CF, P/S. For volatility, I use Beta. For dividends, this year I have added 5 year growth % into the process. The resultant summary number is the cumulative of the 7 metrics, with roughly 60% value, 15% volatility and 25% dividend weighting. I then marry this up with a technical screening, using charts with a 200 mda, looking for a rising vs rangebound vs declining chart.

Question 1 = your thoughts on my screening system? I thought of adding in other metrics, but I wanted to keep it relatively simple. Factors such as payout % and ROE can always be a looked at in the next phase. Should I drop any of the metrics if they are redundant?

Most of the stocks screened as expected. However, 3 stocks didn't screen well at all and I am trying to figure out why. It may be that my population of stocks is skewed to value stocks, so if any of the other 3 stocks had growth or REIT characteristics, then they might be seen as outliers.

Question 2 = CSH's fundamentals screened horribly = 10th decile. Could it be that REITs may screen out differently, due to their very nature?

Question 3 =Both PBH and WSP screened poorly = 8th decile. Could it be their fundamental metrics exhibit more growth characteristics?

Question 4 = Reading past 5iR questions on these 3 stocks leads me to believe you are still strongly in favor of all 3. Please confirm.

Thanks...Steve

Q: Hi 5i, Seasons Greetings. I generally am a buy and hold type but could use some tax losses against earlier gains this year. The above mentioned stocks could be sold and repurchased in early January. Would that be prudent? Is there anything I should not repurchase? Thanks, Ted

Q: i own quite a few of your favorite companies kinaxis,the stars group,covalon,great cnd gaming,methanex,square -on square iown long dated options a year out,savaria,knight,enbridge,shopify,largo
i also own some you do not like , like baytex but ithink if oil gets to 60-65 this is at least 4.00, i have an awful lot of cash, so i am looking for one small to mid cap that you really like for the next few months, could be in the u.s. but i prefer canada.has to be liquid.does not have to be in your portfolios.dave

Q: I am finally planing to sell the stocks above. and replace them with a 5% of Telus, Qualcom Great Canadian gaming and Brookfield Asset Man. for a 2-3 year plan.
Would like your comments ?
margita

Q: I would like to top up these positions and trim them back in the future (12-24months?)

Are there any names on the list I should avoid or expect a longer recovery for?

Always appreciate your wisdom.

Q: Following up on a recent question regarding allocating the appropriate amount of monies to each stock, the amount depending on the size, safety, etc of that security. Would you agree with the current split (full, partial, small):

Full = AD (should be partial), AQN, BCE, BNS, FTS, RY, TRP.
Partial = CGX (could be full?), CSH, NFI, PGH (could be full?), TCL, WSP (could be full?).
Small = WCP.

Thanks...Steve

Q: in my portfolio , I have bns 20%,bce20% ipl10% enb10% ad10% and 30% cash. after this pullback , should I invest more in these holdings or go into a different sector , I need income as retirement is coming . thx Jack.

Q: AD results were decent.... why is it down 8%? Time to buy if one already doesn't own or is something going on here?

Q: Your thoughts on Alaris's earnings report, for an entry point and dividend sustainability to hold in a RRIF, are greatly appreciated.

Thanks, Susan

Q: alaris just reported could i have your thoughts.

Q: As of today, what is your best guess or guesses for companies that pay at least 4% dividend, that will have a chance at more than average capitol appreciation going forward. In my income account, among others, I own CGX, GS, TCL.A and VET. Size, sector and risk are not factors, I dont rely on the income and sleep very well during high volatility.

Q: Hi,
thanks to 5i, my portfolio is fairly well diversified and overall doing quite well. The equities listed in this question are the ones I'm down on the most, some are near 25-50% losses. What general guidelines help determine whether to sell these 'losers' and move the remaining funds to other stocks or whether to continue to hold? Can you list each of these with a buy/sell/hold on a longer term (20 yr) view, these are all 1-5% each of the total portfolio. Deduct as many credits as needed since there are really two questions here.

Q: I am considering adding alaris royalty , Descartes systems or ats to my portofolio, what are your thoughts, I know you have recommended these in the past . brenda

Q: Is it a good time to buy back into Alalis mainly for income. thx Jack