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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 am close to retirement and have about 2/3 of my total portfolio in a corporate taxable account. All are equities with 53% Can, 39% US, 2.5% EM and 6% cash.
What could you suggest to recession proof and at the same time be tax friendly to help mitigate my risk given the aggressive 94 % equity holdings?
The other personal 1/3, of which 20% is in a non registered account, comprised of RRSP/LIRA/TFSA has about 33% fixed income.
Thanks
Jeff
Read Answer Asked by JEFF on March 25, 2019
Q: It seems to me that there are straws in the wind of a coming recession (inverting yield curve, global growth warnings, trade wars, Brexit hits, etc.). Would you agree with this hypothesis? What assets would you recommend for building a more recession proof portfolio? Should we leave stocks almost entirely and go to bonds? I have no real recession plan yet feel I need one. Any help is, as always, appreciated.
Read Answer Asked by Elizabeth on March 25, 2019
Q: Lots more discussion this weekend over an inverted yield curve. I have two questions:
1) Is this something to be worried of, and do you think investors should be more conservative in the next 12 months?
2) Didn't the 3 and 5 year yield curve invert in December 2018? If so, I'm assuming the 10 and the 2 inverting isn't a huge surprise, although markets have done really well in the past 3 months.
Read Answer Asked by Mike on March 25, 2019
Q: I’m under the impression that 5i research preference for a pipeline yielding company top pick is Enbridge versus Trans Canada RP .
However fundamental analysis shows that TRP has more attractive entry price, better management performance over the past 5 years and lower debt better level.
KPI benchmark shows: TRP lower PE of 13.7 vs 22 for ENB, better ROE 15.2% versus 7.2% for ENB , significant better Ebitda to debt ratio of 4.8 vs 5.4
while both stocks have similar price to book and dividend yield and dividend growth projections. Future 2 years EPS growth shows that both projections are within the same range and ENB is scheduled to have a lower 2019 EPS versus 2018
What am I missing here ?
Read Answer Asked by Jean-Yves on March 25, 2019
Q: Hi,
after trading over $71/share in February, the stock is down more or less 10% since their earnings release. I thought they had a good quarter and I was happy with another dividend increase.
In your opinion, what may be factors explaining this downtrend? Is this more related to the sector rather than company specific?
Also, I don't have a full position in the stock. Would this be an opportunity to increase my position or given the price action, is it better to wait and see where things settle? To be honest, I see the market telling me to stay away for now.
Appreciate your opinion as always.
Thanks,
Dan
Read Answer Asked by Daniel on March 25, 2019
Q: Hello,
I have held FSZ for a few years now (small position of less around 1%). The share price has not moved basically since mid-2013. I am very happy with the dividend (another increase this quarter) and it appears to me they are a well managed company.

I know they operate in a sector that is not favorable but are there any catalysts on the horizon that might be a positive for the share price in the mid to long term or should one simply hold this for the income?

Would National Bank eventually buy this out (I know this is speculation but had to ask)?

And, what would be a good target % to hold in a well diversified income portfolio inside an RRSP for the average investor? I have full positions in BNS and SLF.

Thanks,
Dan
Read Answer Asked by Daniel on March 25, 2019
Q: 7:42 AM 3/25/2019
I am looking to invest in 10 or 12 of these companies for a very long time: RY, CM, BNS, CNR, SU, CNQ, NTR, ET, NWC, FTS, EMA, NPI, AQN, BIP.UN, BEP.U, ENB, TRP, PPL.

I am concerned to select companies with the highest probability of surviving a severe recession intact while continuing to sustain or increase dividends over the next 10+ years.

I fear some may have too much debt or other "hidden" problems to survive a major downturn so could you please comment on debt levels and vulnerability.

Could you please arrange them in order of "security of income", safest first, and maybe single out any weak ones. I am not overly concerned about future price fluctuations as long as dividends can be sustained.

I quite realize these are not the same as government bonds and do not have the same levels of safety. I intend to hold them purely for rising income with no intention of selling.
Thank you............. Paul K
Read Answer Asked by Paul on March 25, 2019
Q: I am looking to take a position in this fund .
Does this fund go up as a rule when the overall market go down
How are the monthly distributions for tax purposes calculated. If I take a position now I would not be taxed at year end for the months that I did not hold the fund or are taxes applied at year end for the full year to all holders regardless of when the fund was purchased.
Thank You
Al Mississauga


Read Answer Asked by Al on March 25, 2019
Q: Good morning Peter
I own shares of GWO. If I were to sell them now, to take advantage of this buyback offer, could you explain how I would determine the price for each share. Is it market price or some price I determine between $30 and $35?
Also do you recommend sell all of my GWO shares if they trigger a capital gain?
Thank You
Read Answer Asked by Jean on March 25, 2019
Q: Looking at investing in these Canadian companies paying US $ dividends for a non registered account to help with my snowbird expenses.
Would be 15% of total stock/bond portfolio of mainly banks, utilities, reits, pipelines. Age 69.
Appreciate your opinion on these. Any others?
Would you equal weight or what individual % would you allocate? Any other thoughts?
Thanks. Derek
Read Answer Asked by Derek on March 25, 2019
Q: Good Morning 5I.

I have the following positions in my RRSP ...
BNS 6.5%
TD 5%
BCE 5%
ENB 4%
BEP.UN 4%
SRU.UN 4%
MFT 3?
CDZ 5%
ZWE 4%
ZWH 9.5%
The list above cover the equity side of my portfolio.
The other 50% is in a GIC ladder yielding over 3.0%
I plan to retired within the next couple years.
Could you please comment on any changes needed that stand out to you?
I think I should add more US exposure and possibly another reit, what would you suggest?

Look forward to your reply.
Read Answer Asked by Stephen on March 25, 2019
Q: Good Morning
Both GS and KWH have buyout offers. What is the best way to collect the remaining dividends until these purchases close? Will tendering to these offers ensure you collect these dividends or should I wait until the ex dividend date expires, then tender?
Secondly what would you suggest as a replacement for both.
Thank you
Read Answer Asked by Marty on March 25, 2019
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