Investment Q&A

Q: Wondering if it is time to trade T. Been reading about NWC and wondering if this is a good dividend stock to replace T. Are there other dividend stocks you would recommend.

Q: I sold TRP today at basically a break even price because I do not want to wait out the final outcome of their recent split up plan and to see how their debt is allocated etc. I was in the stock for long term income given I am recently retired. It will be hard to find an equivalent yield, given capital preservation is a prime objective along with the income. TRP was held in a non registered account for tax advantaged dividend income.

With long term capital preservation a goal along with income generation, and that I hold all of the above listed companies already in appropriate proportions and don't wish to add to them or their sectors (no more utilities, financials or telecoms) what other Canadian blue chip dividend companies would you consider for long term hold with decent dividends for income? I also already have enough allocated to bonds, GIC's and cash accounts so I'm not considering these assets either.

Manageable debt levels and ability to maintain dividend growth, hopefully at the rate of inflation or higher is the main criteria I would hope to have in replacing TRP for the long haul. Thank you for your valued insight in giving me suggestions to look at.

Q: BAM, BEP and EIF are each at about 2.7% of my total holdings. I can top up one to 5%. Which would you choose and why? And if the answer is 'none of the above', please suggest two Canadian companies with dividends >4% with some growth you would recommend, irrespective of sector. (T, NPI and SU already held and not wishing to increase my investment here at this time.) Thank you.

Q: What order would you rank these four stocks for most potential in the next 2-3 years from your dividend portfolio?

Q: Hi,

I am considering a half position in NWC after reading your recent report. Considering their P/E relative to peers, low debt, well established beachheads in frontier markets and any other relative factors, can you give an opinion on where their takeover candidacy might be currently?

Thank You,

Tim

Q: Hi Guys

NWC has had quite a decline from over $38 a month ago to a little over $30 today. What are your thoughts about the company at this point. Is it a buy with the price drop, is their market dominance in their markets somehow altered, will they return to form in the next year or so, and is it a buy at this price?

Much thanks

stuart

Q: Hello. What do you think of a switch from NWC to AW.UN (both in an RSP)?

NWC is currently 1.4% of our portfolio at a gain of 24% (40% with dividends).
AW.UN is currently 1.7% of our portfolio at a slight loss of -3%, but with a gain when including dividends.

Thanks.

Q: Retired, dividend-income investor. I know you "just recently" added to NWC. I had also planned to top up an almost full position, but was waiting for a pullback.

Since then NWC has reported and the market reaction is not kind...down 8% at the time of writing this question. What are you current thoughts, now that you have additional information? Would you add now or wait a few days for the dust to settle?

Thanks....Steve

Q: Please comment on their recent quarter result. Also your opinion on buy or hold ?

Q: We have held NWC in one of our unregistered accounts for a number of years and consequently have a 61% capital gain. In light of today's results would you advise to hold it or pay the tax and move on to something else?

Q: There are a few obvious similarities here in terms of market cap and dividend yield, a few obvious differences in trailing price/earnings and sectors (staples/discretionary). Hoping for your insight into which one you would sooner own for the next two years assuming we are going soon going to enter a recession (or are already in one). Or maybe neither?

Q: We hold L and up 90%
Would you endorse swapping L in exchange for NWC ?
Correct if wrong but NWC seems cheaper in terms of valuation.

Q: Retired, dividend-income investor. I have monies dedicated to top up reasonably full positions held in BCE, FTS, LIFE, NWC, PLC, TRP. Ignore asset allocation. In what order would you deploy monies, based on total return over the next few years?

Thanks...Steve

Q: Best Canadian small cap dividend growers that have delivered shareholder value to date and have the potential continue to do so in the future. Your current opinion?
Thanks.

Q: You have an updated report on Enbridge (ENB) dated 24 January. In the SUMMARY section of that report I see the words "bond proxy". That's an interesting concept. I own a full allocation of ENB because it is a safe, stable source of tax-advantaged income - indeed a sort of "bond proxy". Staying with that idea, are there other equities/ETFs/products that 5i would consider to be "bond proxies"?
Can you suggest a few?

Would a close look at your Income Portfolio provide a selection of appropriate names?

Tax-advantaged income is preferred over interest-producing products.

Thank you,
IslandJohn

Q: For my wife's Cash account. Ignore asset allocation...I already own all of these and have some top-up monies available and assigned towards each of these 4 = BNS, FTS, NRGI, NWC.

I have designated monies to invest/month over the next 3 months (I am roughly half way into my re-investment strategy).

In terms of upside potential, what order would you buy these? My thoughts => NRGI, then BNS, then FTS, then finally NWC.

Thanks...Steve

Q: I've been looking at my allocations and am very low in consumer defensive, consumer cyclical and materials. Could you give me some recommendations for companies in these areas that give a 3.5%div or more. For US and Canada. Ones that you would consider now a good time to buy. Thank you.

Q: Hello, I am underweight Consumer Defensives, currently having only a small position in Costco.

Could you rank your favourite ideas in this sector with growth potential and current valuation as important criteria?

Thank you, Doris

Q: Hi 5i,
3 questions I believe, so please deduct accordingly:
In each of the following groupings which name do you see as having the largest gain (dividends and capital gain) after a three year hold and, if you would, brief reasons for your choices. Also, if any seem to you a bad idea to buy and pay little attention to for three years, please say so,
1. BIR; ARX; CNQ
2. NWC; EMP.A
3. ZQQ; TXF
I look forward to your thoughts. Thanks.
Peter

Q: NWC is taking a small beating this morning following a downgrade to "hold". My understanding is that the reason for the "hold" is that the share price got too far ahead of itself. I suspect that 2023 performance guidance will be subdued. Is there anything I'm missing that warrants a drop of over 6% today?

CARL