Investment Q&A

Q: Good afternoon and Happy Friday,

I would like to discus 4 stocks. Feel free to take four credits if you like. First of all I have 4 main drivers of my account now propelling it to new all time highs. They are SBUX, DIS, ABBV, and MEOH. As for AD.UN I simply am just wondering if you know when they may announce their next dividend?

Starbucks for the next 3 to 5 years out looks like an amazing investment. It represents 11.57 % of all my accounts. I am comfortable with the large weighting considering the outlook. My cost is $18.27 and I have been told to trim and sell but have never done so. What is your outlook for Starbucks and do you see a split in the near future?

As for Disney the outlook looks great as well. It is hard not to want to sell a stock that has risen so much so quickly but its only 6.75 % of my accounts. With the latest streaming developments and once the parks get back to normal I cant help but think there is a ton of more runway to go. What is your outlook on DIS and do you think they will bring back the dividend anytime soon? I bought the stock for dividends but I am very happy with the share price.

What is your opinion of ABBV for a long term hold?

I bought MEOH at $45.00 a share. Considering I watched it go all the way to approximately $9.00 and back I am tempted to sell now considering I am almost back to even. But considering methanol prices and the future of the company maybe I should hold for the long term and watch the economy recover.

Thanks
Jimmy

Q: Years ago I thought it would be good to add some preferreds to my RSP so I bought HPR . It hasn't done well but has a dividend of 5%. I'm thinking of switching to AD.UN but it's already had a good run. but has a high dividend. What do you think.

Q: Hello 5i,
I was looking up some old answers about AD. An old answer from Sept. 19, 2019 states that AD had an ongoing tax dispute with CRA and potentially the US Treasury. Have these issues been resolved with the AD.UN income trust structure? Are these issues still a potential overhang for the AD.UN structure?

thanks for your insight

Q: Dear 5i,
For relatively safe income would you invest in either AD.UN or DIV today?
If yes, would you purchase in RRSP, TFSA or NonReg account?
Is 100% of the DIV income eligible for the dividend tax credit?

seasons greetings

Q: Just wondering what your thoughts are on Alaris.

Would you be buying at these levels?

Q: My interpretation from the quarterly report is there will be an expected increase in the quarterly dividend to 45 cents per trust unit. The last payout was 31 cents. Is this correct about the dividend increase. This is the exert from the company:
Following the GWM Contribution and the restart of distributions from BCC and Kimco, the Trust's Run Rate Payout Ratio is approximately 74% when including distributions, overhead expenses and current distributions to unitholders expected for the next twelve months. As calculated, the Run Rate Payout Ratio is expected to generate approximately $15.9 million in excess cash flow or $0.45 per unit;

Q: Retired, dividend-income investor. Your thoughts on the Alaris Royalty latest quarter results? If you need to wait for the conference call, that's ok.

Thanks...Steve

Q: Taking into account AD as an income trust, I presume distribution would be taxed as income and would be best in RRSP whereas TCL dividend would receive dividend tax credit and best in nonregistered accounts. To me that seems at highest marginal rate that these would provide similar incomes in above situations. Is this correct?
Secondly, do you recommend one above the other?
Income, safety of dividend and capital are the most important considerations. I prefer a long term hold and can tolerate a moderate amount of volatility.
Thank you for this great service.

Q: Will there be a lot of selling pressure on the these stocks during tax loss season. Should I sell now and buy back at the end of the year.

Q: Can you comment on the recent rise in share price ? Thanks. Joe

Q: Just a question about the conversion, and the cost basis of my units. At the end of August, the value shown on my statements agreed to my records. Say it was $100. When I checked today, the cost value is shown at $50. Can you easily answer why the cost would be impacted? Perhaps a problem with my broker? I don't know much (read nothing) about Income Trusts. Thanks.

Q: Does the conversion to an income trust affect shareholders with regard to dividends and potential dividend increases/decreases going forward. Will this move be an overall benefit to shareholders of the new entity.

Q: Do you see any reasonable prospect that any of the above will rebound or should I just sell and move on?

Thanks for your great service, Paul.

Q: In regards to my vote for Alaris converting to an income trust amoungst other matters. In your opinion, what would be in the share holders best interest. I hold my shares in an unregistered account. Could move them in kind to a tfsa or rsp account though.

Q: Your comments And recommendations please on Alaris latest earning.
Thank you

Q: I have several beat up stocks that are now small holdings so looking to clean up the mess a bit and reduce my holdings to a more reasonable number. These are all in my unregistered accounts so will generate a tax loss although that wont do me much good this year with no likely gains to harvest.... So my general plan was to sell some and consolidate in other holdings I already have: ( use as many credits as required)

Sell HSE ( 1/4 position ) and add to my 1/2 SU . I get the tax loss to carry forward and move from HSE that is mostly heavy oil to SU with less downside.

Sell CHW ( 1/4 position) and add to my 1/2 SJ. These 2 don't really match up well like HSE and SU but the CHW is such a small position, unlikely to move until late in the recovery and with the div suspended I think I am going to take my lumps on it. I am a bit lite on SJ anyways.

Sell my MX ( 1/2 position) and add to my MAL ( 1/2 position). Once again not good matches but these 2 are small position in the same account. MAL hasn't done much in terms of stock movement but has generated a good yield over the many years I have owned it. I am not feeling the love in the energy sector for the next few years and I have a felling that the good old days in oil and gas might be at an end with the cost of solar improving and the steady growth in electrifying transportation....

And last sell 1/2 position of AD and buy ALA ( 1/2 position). Once again not a great fit in terms of sector but yields are comparable and ALA is essentially a utility ( and not a oil and gas) so should be a somewhat stable yield.

I wish I had a few big winner I wanted to sell to harvest the tax losses now but will just need to put them in my pocket for the big recovery in a hopefully not to distant future... These moves reduce my small holdings, Get rid of some holding you don't have in your portfolios, de-risk my portfolio somewhat and finally move that money into companies a bit better placed to maintain their dividends during covid/post covid

Q: Please rate the above for the following criteria (best first):
Safety, valuation, dividend sustainability,long term strength,
thanks

Q: Thank you for your answer; between those companies, which one are your favorite for holding in the long run and would it be relatively safe to invest in them ? I only know personally fiera and keyera.

Q: Granted that these companies differ in dividend (only with AD), size (DOO largest, AD smallest) and type of business (sports equipment, fashion products, and equity financing to private companies), how would you rank these four stocks for future growth runway today (highest to lowest) if sector was not a consideration? Thanks for your valued input!

Q: Today's or recent news show that Alaris is pursuing a corporate reorganization to convert from a corporation to a publicly-traded income trust.
Can you share your opinion on how this will affect investor? What are the pros and cons and what material impact we could see going forward?