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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: This is actually a followup question to your answer to Steve's question from earlier this morning.

I also hold a core position in TRP. Dividend investor. Intended to hold 'forever'. I'm 43.

I couldn't tell from your answer to Steve's question whether you view TRP as a 'BUY', 'SELL', 'HOLD' or 'GRADUALLY TRIM UNTIL DIVESTED'. You had previously opined that oil will likely subsist as a fuel source in demand for 20+ years. That would take me to age 63. What do you think is the likelihood that TRP continues to pay and grow its dividend for say, 50 years? I know given the time frame, this is a very difficult, speculative, predictive question, but your guess is better than mine. I don't want to hang on to this position only to have to sell it at a massive loss 20 years from now, but that is the scenario that appears to be gradually unfolding now.

I hold a fairly concentrated portfolio of 20 companies, equally-weighted, and each is selected with the intention of holding for their sustained, rising dividend payments in perpetuity. When this is threatened, either imminently or in the medium to long-term, I sell. I sold SU when they cut their dividend and am glad I did.

Given this context, should I exit TRP? If so, should I use the proceeds to start a new position in AQN? I already own FTS and EMA, would this be too much overlap or too much utilities exposure? If so, I am relatively light on Consumer Discretionary (only hold CTC.A in this sector and have been eyeing QSR - do you think a switch from TRP to QSR would make more sense?

Please deduct as many credits as necessary, this was actually *many* questions in one.
Read Answer Asked by Walter on October 05, 2020
Q: A respected analyst stated: DO NOT BUY THE BANKS!!!
Here are his reasons:
- Not only are they facing pressure from a flat yield curve but every aspect of their business is being disrupted by digital-first competitors.
- FinTech companies (both public and private) are disrupting every single one of the revenue channels at the banks.
- There isn't a single reason to own bank stocks other than the dividends however I’d argue if their businesses decline as much as I think they will those dividends might not be safe.
- There are better industries to find dividends where the companies are growing earnings and increasing their dividends. Personally I don’t see any of the banks increasing their earnings for a long time especially if these VC backed FinTech companies continue to crush them.
- If you want exposure to the financial industry I’d suggest going with the digital payment companies: $V $MA $PYPL $SQ

What are your thoughts re: only focus on fintech and digital payment companies in your portfolio?
I note that your top pick for banks in your income portfolio is BNS.TO, which you constantly recommend as it appears "undervalued", however BNS.TO has made 0% capital appreciation over 5 years. Is it time to switch to fintech?
Read Answer Asked by Curtis on October 05, 2020
Q: The Expert Guests on the TV and satellite Stock Market Shows. Announce with pride, how they have "exited the energy sector". A recent TV Guest, wouldn't touch Suncor @ $15.00, then proceeded to issue the benchmark "buy" on Apple. I was in line at the time, waiting to fill up at a Petro Canada, along side a truck packed Hwy 401.
Energy has taken it hard as of late and for obvious reasons, but how much of Suncor @ $15.00 is real ? How much if any, is that hydrocarbons are for now, out of fashion ?


Read Answer Asked by Cacey on October 05, 2020
Q: Is there a Canadian listed Canadian dollar ETF that holds many of your USA favourite companies: NVDA, VEEV, DOC, MSFT, AMZN etc, etc.
If not is there a US ETF that holds a concentration of some of your favourite companies? Not just a sector ETF, but more focused on your favourites. Currently I'm only invested in Canada, and I want to invest, starting small, in some of the USA companies you are recommending, but, if possible with a bit of diversification.

Or if nothing exists, maybe I should just pick two, say NVDA and VEEV and invest in those in US dollars? Would those two be top of the list? It is for a small amount, about 5% of my portfolio.
Read Answer Asked by Gordon on October 02, 2020
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