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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: AD is now paying a 9% dividend which makes it very tempting. I have been investing a long time and have generally found high yield dividend stocks often disappoint. On the other hand I also understand that there are moments where the market will misprice stock values and create opportunity.
So in the case of AD am I correct that holding the stock (which I do) is reasonable and that the stock should appreciate to a value supporting a 4 to 6% yield.
On the other side, at a 9% yield the general market does not share my view and I think predicts a material event or dividend cut.
I have a long time frame and high risk tolerance.
So my question is when does the high yield give you cause for concern?
Thanks John
Read Answer Asked by John on April 23, 2019
Q: Hi
After reading the most recent Q about AD, I am left as an investor realizing information was in the hands of National before widespread and publicly available.
Please comment on why it is appropriate for NA to have information that was unavailable to regular investors.............and who may have been buying today and therefore lost money. (with full awareness would not have been buying)
What is an investor to think about management who did not reveal publicly before revealing to at least one analyst? From my understanding this is illegal. There have been documentaries written on this form of behavior.
Thanks
Read Answer Asked by Dave on April 18, 2019
Q: Just a follow up to my question about the drop in Alaris today. So an analyst at NA drops his/her target price and the stock drops 10%? Was there any specific reasoning behind the downgrade and where would an investor get that information? If there is no fundamental change to the companies business, why would investors sell out of their positions? I have heard portfolio managers comment that they don't pay any attention to "price targets" and base their decisions on their own analysis and the fundamentals of each company they invest in. As you have said before, there are always 2 sides to each trade but it seems a lot of people react to an opinion and sell before they done any checking. Your comments please.
Read Answer Asked by Rudy on April 17, 2019
Q: Relatively balanced portfolio....Analytics shows heavy Canadian financial and need to add US communication and Industrials. Have
BAM 6.25% AD 2.82% FSZ 2.2% GSY 1.9% BNS 1.5% SLF 1.4% ZBK 1.4% ECN .87%
VB .8%. Which would you trim/eliminate and which US communication and industrial would you add. 5 years to retirement.
Thanks
Read Answer Asked by Craig on April 16, 2019
Q: Hi 5i and team
Thanks for your sound advice during this last market correction. It made me finally understand why it's important to concentrate on limiting losses rather than going strictly for gains. I need to eliminate two Financials from portfolio. It is in a RRSP account. I do prefer a combination of income and Growth. Thanks for your help.
Gilles
Read Answer Asked by Gilles on April 12, 2019
Q: I have the above securities, as well as RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry Global REIT, and fixed income via Fisgard Capital, Annuities, a company pension, CPP and soon-to-be OAS.

I really focus on asset allocation and am a little light on Consumer stocks, holding CGX, PBH and TCL (although some consider TCL to be in the Industrial sector). I am normally a buy-and-hold investor who trims-adds around core positions.

Question 1 = I am looking to add 1 more consumer stock and am looking for a dividend ideally > 3%. Based on my stock-ETF-MF mix, are there a few stocks you could suggest that would fit in my above set of securities.

Q2 = if I was to consider ideas from the Income Portfolio, is there an issue with having multiple food stocks....like PBH and A&W and NWC. Why have more than one food stock?

Q# = because A&W is a ".UN" company, how are their dividends treated for tax purposes? Are they eligible for the dividend tax credit?

Deduct as many credits as you deem appropriate....got loads and will never use them all up.

Thanks as always...Steve
Read Answer Asked by Stephen on March 21, 2019
Q: what would be you top five CAD equities that you would purchase that have a significant dividend and some growth that do not include the financial or energy sectors
Read Answer Asked by David on March 18, 2019
Q: Hi team,

How do you feel about Alaris Royalty these days, specifically wrt their most recent Q4 and year end results?
Earnings certainly looked pretty good! Do you feel they are sustainable going forward?
How does their stated 'outlook' read to you?
Is the pain of the past 2-3 years behind them now?
They have an unusually high yield and I realize this does add some risk when the yield is above 5% but perhaps they have finally turned the corner.

As always, appreciate your insight!

Cheers,
Steve
Read Answer Asked by Stephen on March 06, 2019
Q: I have $25,000 in my TFSA invested in the above companies, eaqch with a weighing of between 8% - 10%. Looking to add another $10,000. I'm 63. Preference is dividends and some growth. Looking for stability if another December 2018 were to repeat itself.
May I please have your suggestions, in order of preference. Please deduct appropriate credits.

Thank you.
Read Answer Asked by Larry on February 26, 2019
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