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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: I would like to understand better why preferred shares, as represented by CPD, plummeted in 2007-2008 and again in 2013-2016. They dropped about 35% in the first (recession) episode and about 36% in the second one. Most recently, between September 1, 2018 and now, they have dropped about 13%. How vulnerable would CPD be to another huge drop if the economy continues to weaken through 2019?
Read Answer Asked by Philip on April 05, 2019
Q: Hi 5i:

I hold 5% positions in both and have solid gains. I was thinking of dropping one and going to RPD or FDC and raising my tech exposure to 10%. Which one would you drop from my portfolio and do you like this strategy? I have a 5% position in KXS. I am well diversified across all sectors. Thank you.

docsinc
Read Answer Asked by Tom on April 05, 2019
Q: Hi there,

I was wondering if you knew of any Canadian listed ETFs that would be suitable for cannabis US MSO exposure.

Also, if one wanted to exposure, would you recommend an ETF such as MJJ, HMJR or HMMJ - or would you sooner buy a basket of a few big Canadian players?

Thanks!
Read Answer Asked by Michael on April 05, 2019
Q: I come across two high yield U.S. REITs - NLY and AGNC that provide yields over 11%. Do you know anything about them? How does these two compare? If you have to pick one which would be your choice? Are there any special tax consideration in investing in U.S. REITs? Thanks.
Read Answer Asked by Victor on April 05, 2019
Q: In respect to Paul's question, non-eligible dividends are not taxed the same as interest income. As an example, for 2019 the top Ontario tax rate on interest income is 53.53% whereas the top Ontario tax rate on non-eligible dividends is 47.40%. By comparison the top Ontario tax rate on eligible dividends is 39.34%. I'm not aware of why A&W pays out eligible versus non-eligible dividends. TaxTips.ca has a good site for those that want to review tax rates on dividends, interest, etc. at different levels of personal income.
Read Answer Asked by Christopher on April 05, 2019
Q: This may be somewhat of a naive question but I'm new to this :) What options exist, if any, to contribute to the TFSA and/or RRSP of a spouse? What are the tax implications? Do they also apply to common law partners?

Feel free to disregard this question if it is too complex to answer. Thanks.
Read Answer Asked by Andrew on April 05, 2019
Q: Please comment on the recent downgrade TRP received from Moody's citing TRP's weak financial profile to Baa1. Debt to EBITDA is expected to be 5x in 2019, ENB is about the same. Moody's downgraded ENB to just above junk about a year ago to Baa3. It would seem Moody's feels 5x EBITDA is not good, Shouldn't we avoid these companies?
Read Answer Asked by Albert on April 05, 2019
Q: If you followed the Balanced Equity Portfolio and the Balanced ETF would you be fairly well represented in each TSX sector based on previous 5i answers and would you also be well represented geographically ie Canada/US/International ...40% ,35% and 25%. If not what would you suggest to come close to these percentages and TSX sector allocations?
Read Answer Asked by Paul on April 04, 2019
Q: In their recent press release shorting SHOP, Citron says they will donate $200k to the Robin Hood Foundation if the stock is higher one year from today. (Google search says there is a charitable Robin Hood Foundation)

Although the Citron downgrade of SHOP is not new the placing of a bet on the outcome is new - at least to me. Assuming it is legal, have you ever seen this done before? Does Citron actually pay the money if they are wrong? Is this a material amount to Citron or just the cost of doing business to them? If this is for real, should I diarize March 2020 to note that another short attack on SHOP will be forthcoming if Citron is indeed wrong and need to cover their butts?

Appreciate yoru insight.

Paul F.
Read Answer Asked by Paul on April 04, 2019
Q: Any TSX listed stocks that benefit from a higher UK currency vs USD, and/or Euro ? Thanks.
Read Answer Asked by Paul on April 04, 2019
Q: Re Micron from RBC, " Though the industry is experiencing positive sales growth as a whole, MU has been unable to grow sales and is losing market share. This trend continues from the previous year when sales growth at MU and the Semiconductors industry were -20.62% and 3.53%, respectively. Also, " Joint venture partner Intel will be ending its partnership with Micron, which creates another competitor for Micron to deal with." Thoughts on the market share statement and any idea how big of an impact the ending of Intel relationship will be?

Read Answer Asked by Charles on April 04, 2019
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