Investment Q&A

Q: Hi 5i; Thanks for your wonderful advice. You have helped my portfolio to grow for many, many years.

What would be your top picks at this time, in each of the following sectors: consumer discretionary, real estate and industrials. I am underweight in these and am looking for growth.

Thanks, your fan
Cathy

Q: With mortgage rates increasing and housing becoming less affordable would now be a time to buy IIP.UN and TCN.

Q: Hi,
I plan to sell my XLRE to raise US$ to add to some of my other US holdings that have been beaten up. For another real estate type holding which do you think is a better choice TCN or FSV? This can be held for 7-10 years till retirement.
Thanks,
Kerri

Q: Blackstone bought a position in May 2020 and paid book value for the shares. The stock is now trading at 87% of the book value. It would not surprise me if they are looking to buy out the company. In any event, the stock seems undervalued.

Q: TCN has been absolutely crushed in this market. Do you continue to like the company?
If so why? Would now be a reasonable time to acquire shares or would it be better to continue sitting on the sidelines until we see some signs of interest rates stabilizing? And what is your sense as to when this might happen?

Q: Can you please provide your top 10 canadian dividend stocks which can also provide some capital growth. Time frame is 5 years. Is now a good time to start buying or should I wait?
Thank you

Q: Why did it dropped so much? The company bought a lot of the houses at much lower prices and it can raise rent. Thanks.

Q: Hi! If you listen to Larry Summers from Harvard on Wall Street Week he speaks of stagflation, Fed not raising rates quick enough, and difficulty with getting a soft landing. If you had to create a brand new portfolio today with a tilt towards income and could choose a combination of 16 stocks from either the US and Canada what stocks would you choose?

Q: Hi again 5i

Just a follow up to my previous question Redding TCN. My observation after some research leads me to believe that NWH has not only fallen less on hard markets than TCN and pays a 6.2% dividend substantially more than TCN
Would this be a good exchange long term?

Q: Hi 5i extremely informative staff! I have been holding these four stocks in my cash portfolio with long term intentions(5 years) for diversification contrary to my desire to have 4plus dividend % performers
They are also down substantially in the last 6 months

Can you please comment or recommend holding for long term or replacing them with suitable high dividend replacements in the same sector if possible
Please deduct the credits that you deem appropriate
Thank you

Q: Hi There,
I have a fairly large position in CAR.UN and I'm thinking of selling half and buying either DIR.UN or TCN.
Of the two noted, would you have a preference of one over the other?
Thank You

Q: Federal Liberals are reviewing tax treatment of residential REITS claiming "(REITs) are increasingly trying to amass large portfolios of Canadian rental housing, putting upward pressure on rents,” the announcement states, “We will put in place policies to curb excessive profits in this area"

Clearly such a restriction would not be good for REITs but as TCN is the only name I own in this space could I expect it to not be impacted?

Q: Other than higher interest rates, is there a reason the US housing REITS have been so weak of late? Does the same reason apply to CAR.UN which have been down.

Q: You recently answered Sheldon's question and gave a positive view of this stock and its last quarter report. It keeps dropping significantly with the market. With its reasonable valuation and more generous dividend I'd like to buy a full position of Tricon for a 3 year hold. With rising rates and mortgage costs the rental market in the US should be strong (folks need a place to live). Is there a bear thesis you can put forth to suggest this current proposed investment has more downside than I now am seeing? Thank you

Q: Hi Peter, Ryan, and Team,

Two questions; please deduct credits accordingly.

Question 1 - I plan to sell one ETF (HXS) and two stocks (SJ & TCN) for a tax loss and then buy them back after 30 days. Please suggest proxies for each that I could buy as a replacement for the 30 days. These are held in a margin account.

Question 2 - I own WCP in my RRIF, and find that its volatility is harder for me to handle than I had thought. (Its beta is 3.26). Now that I'm in the black with it, I was thinking of two alternatives; selling WCP and adding to an existing profitable position in TOU (beta = 1.62), or starting a new position in XOM (beta = 1.07). XOM would increase my US exposure which needs to be increased, according to Portfolio Analytics. What's your take on this strategy?

Alternative ideas for each question would be welcome, and as always, thanks for your insight.

Q: Comment and outlook on their earnings please


Sheldon

Q: Hi Peter, Ryan, and Team,

In reading answers to questions posed by others, I get the impression that 5i isn't in favour of averaging down as an investment strategy, due to the potential for further losses. These possible losses are of course greater for individual stocks and less so for ETFs, according to what I've read.

However, if a non-registered account contains some cash, and the holdings are ones that 5i has made positive comments in the past, in what order might you consider adding to the following?
HXS (down 8.86%)
SJ (down 18.7%)
TCN (down 12.62%)

Thanks for your guidance and respected advice.

Q: Hi There,
If TCN was held in an unregistered account, is the dividend eligible for the dividend tax credit or is it classified as interest like a REIT?
Secondly, is this a stock you would be comfortable holding for 5 plus years given the current interest rate environment?
Thank You

Q: Hi Group what the heck is going on with TCN. Time to get out with a small profit ??? > You say you like the stock in some of your answers on questions. Looks like another dog in waiting or do you see it differently thanks for your views

Q: Seems that for the next 3 years, TCN revenue is forecast to grow by 2.0% per annum. But, now for the big but, TCN earnings is forecast to decline by 32% per annum over the same time period. Time to bail on TCN???.....Tom