Investment Q&A

Q: To avoid dividend withholding tax in an RRSP, the best solution from a tax perspective is to hold US ETFs that hold securities directly, such as VTI. This was your answer to my first question.

Is there any downside for a Canadian RRSP investor to own a US listed ETF such as VOO? Thanks again.

Q: My elderly parents are looking to invest $15,000. If you were to buy Canadian banks which two would you buy? Also can you recommend something else that they can put there money into. Low-medium risk.
Thanks

Q: Hi 5i,
Can I get your opinion on the future for NCU? Given the current SP and copper in the ground, worth taking a small position?
Thank you

Q: Was in a quandary over ET after purchasing as an income stock several years ago. Currently underwater by 30% and was wondering about buying more as my position is small. I know 5i seldom recommends averaging down but in this case would averaging down be an opportunity? Normally I would sell after a dividend cut but these times are not normal. Company has no debt ( I think ) and room to increase dividend. Is management just being ultra-conservative about increasing dividend? Would this be a tax loss seller or a buying opportunity?

Q: Hi, I was going to add to my consumer cyclicals by adding LNF based on your previous comments to others. However, I see this has a low volume of shares trading each day. This raises a red flag since if something should go wrong (e.g. bad quarter), the stock can drop considerably more as people scramble to get out. Do you see this as a valid concern? My other holdings in this sector are MG and CTC.A, both at full weightings. Can you suggest any others?

Q: To follow up on my panic questions this weekend on docu, I have too much of it in my account and it’s causing me stress. How likely do you think the stock is to return to a high? My cost price is about $242. As long as I’m reasonable confident that it will go back up, I can handle holding it. I just don’t know if this is like a dot com type of spike wherein the stock never recovers from an old high. Thanks.

Jason

Q: What is your opinion of Dollarama, is it a buy, hold or sell - is the dividend safe?

Q: Worth Holding 1% in my RRSP for ten years? Is dividend OK?

Q: Need Dividend yearly, is AWI:CA ok for cash acct. long term?..Cec

Q: I have taken an initial position in Vitalhub and would like your take on the recent contracts signed over the past couple of days. I’m considering adding as stocks in this space are getting strong support. Thanks to your advice, I got in early on WELL and am wondering if we might not be seeing the same scenario play out in this one.

Q: What will this latest news of the special dividend and Spinoff mean for Constellation stock price?

Q: Please, which stocks will show growth in the next 6 months?
What would you recommend to buy? Thank you!

Q: HI the great team, please rank them in order of high potential and less risk.

Q: Thoughts on SZLS? Thanks

Q: With regards to your response to Member Brian Oct 20, 2020. Which bank stock to buy? National maybe small and regional, but the growth of the bank has been far superior to the other Canadian banks.
Dating from Dec 31, 2015, National stock is up 65%, the nearest rival Royal is up 30% and BNS has grown .02%. Since March 23, 2020 National is up 75%. Far ahead of rivals. National pays 4.3% dividend and BNS is 6.5%. However which one would you prefer to own. Many seem to forget this company and I don't know why. Just my observation, love your site, and you've made me a ton since I joined. Thanks to your Team PS even XFN ranks third in returns

Q: What do you advise about Risk Parity as a strategy to reduce risk while generating a reasonable return. Of the 4 named risk parity ETFs do you have a preference?

Q: Would you expect an incredible run on the general markets when a successful vaccine comes out including oil prices getting a good bump or just a slow gradual momentum until things get back to normal.

Q: I am down in XEI and ZRE about 20% and 25% respectively;
in DGRO 2%.
Do you think it is worth waiting for a turnaround or should I
look to exchange for something more hopeful?
Although DGRO is only down a bit it has never gone up.
Would something like VUG be more growthy?
I would appreciate your assessment.
Thanks.

Q: Hello 5i,
As always, a huge thank you for all you do!!!
Income-focused investor.
My question is in response to a previous question, in which answer to, you seemed to favour PID over ZDI. I hold ZDI and have previously discounted PID as an option for two specific reasons: 1) ZDI is almost 3x larger in market cap (328 million versus 124 million (from Globeinvest)) and also the average volume is many times greater (today's volume notwithstanding - PID seems relatively illiquid). I have seen previous answers re: ETF's in general where you are less keen on what are almost micro-cap ETF's for other than the most niche of offerings. I have occasionally had concerns about ZDI's relatively small market cap as it is. The yields between these two are only about 1% with ZDI being marginally higher. So, given the foregoing, do you see the growth profile of PID so much of an advantage that you would still endorse it over ZDI? I would have no problem switching, but my previous concerns would need to be allayed somewhat before considering the move.
In general, what would be the "line" for an ETF market cap below which you would not endorse?
Your thoughts??
Many thanks - be well and stay safe!!
Cheers,
Mike

Q: What ETF's are available to a Canadian RRSP investor that are not subject to a US withholding tax on the US market holdings within that ETF? The added cost of HXS makes it virtually equal to ZSP with the US tax withheld so anything other than HXS. Thanks.