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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: In 5i's opinion are the dividends on these 5 stocks sustainable and if so which 3 would 5i recommend to buy for income at the current prices.
Thank you.
Read Answer Asked by George on July 25, 2019
Q: Hi 5i,
How economically sensitive are CHE.UN's business streams? I know they don't appear to have done a great job running the business. There doesn't appear to have been material growth and there hasn't been any dividend growth for a long time. The dividend now looks like it should probably be halved and that cash saving repurposed, probably to debt reduction. But what I'm more interested in is whether you think that a recession would be likely to put their enterprise at substantial risk. Or whether you would not expect their arc through an economic downturn to put them in significant danger of failing. Thanks.
Read Answer Asked by Lance on March 29, 2019
Q: Good morning. I've been riding this loser CHE.UN for some time and have noted your previous comments on same. I think I should sell now and take my lumps. Where should I reinvest in this sector, with dividends and potential for growth. Thanks
Read Answer Asked by alex on March 19, 2019
Q: I am a young retiree and am not allergic to volatility. I own each of the above REITS in my RRSP or TSFA for tax purposes. They represent collectively 7% of my total portfolios including my taxable account. My taxable account holds a mix of growth and dividend paying companies. It's a rather large holding. I don't own bonds because I don't understand the first thing about bonds but currently own 23% in money market or Guarantied Cash Deposits. I would like to add to my revenue generating part and would like to tone the risk down a bit. Where would you go from here?

Thank you very much for your support.
Read Answer Asked by Yves on February 01, 2019
Q: Hi 5iR Team, The idiosyncratic reasoning of stock analysts never ceases to amaze me. In January TD raised SPB to an Action List Buy, their highest BUY rating for a stock. Meanwhile 5iR sells SPB? Confounding.....
In an event my question is on FAP and CHE. Over the last 25yrs I have owned both of these companies from time to time for income and modest growth. They have always managed to accomplish that goal for me. At this time they are trading at or near their lows for quite some time.
What are 5iR's current thoughts on these stocks?
Thanks Team. Cheers, Chris
Read Answer Asked by Chris on January 29, 2019
Q: Good day!
I am an income investor, living on dividends. On Oct 24th or so I sold 50% of my full position in ALA for tax loss reasons, planning on buying it back late November in an ideal world. I sold over $21, and it is now at $16 or less.
However, I also have a 50% position in Chemtrade and also a 50% in American Hotel. All have somewhat larger dividends over the 10% mark. I have 'reasonable' confidence in a long term hold for all three, and see the great dividends as being very well paid to wait.
Anticipating a possible dividend drop for ALA, I might consider deploying partially or even fully into one of the other two, thinking their dividend payment is more likely to remain where it is in the short term, and yet the upside in each might be as good as ALA. I would appreciate your comments on these thoughts, and any guidance you could muster as to which direction to go.
Thanks!
Paul
Read Answer Asked by Paul on November 16, 2018
Q: Another source has made the following comments:

Higher commodity prices and solid demand for a number of its more important chemical products should lead to improved operating results in the back half of this year and extend through next year. With a free cash flow (FCF) yield of 11% based on last year’s results, and a FCF yield that moves to around 14% based on this year’s projections, Chemtrade is selling at a very attractive valuation.

In addition, the 9.6% dividend yield should be well supported by cash flows with a payout ratio estimated to come in at around 70% this year. As operations improve, we expect the stock to react positively as its payout ratio declines further. This offers us a compelling valuation for a company with improving fundamentals.

I know you aren't happy with its past performance but it looks like it's getting very attractive for income?
Read Answer Asked by Myles on November 12, 2018
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