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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: These companies are trading at close to 10% yield. The share price is back to where they were ten years ago and the dividends have since doubled. Are these companies not the buy of a generation right now? In my life I will likely never see these valuations again. Or I missing something huge??
Read Answer Asked by Joel on March 13, 2020
Q: Hi 5i team,
Publish if it is any help or not. There is not much to do in the market these days, as it is what it is. I am just catching up on the Q&A and notice some negative comments about 5i on repairing damaged portfolios. Well, I don’t put any blame on 5i. We are in a bear market. I have been around the markets for a long time and bear markets happen, although this one was the quickest from peak to trough, although I doubt this is yet the trough. In a bull market, cash is trash. In a bear market, cash is king. You have said many times in your answers that asset allocation is our own personal decision. It is up to all of us to manage our own portfolios, raise some cash once in a while, review our asset allocations and to be able to sleep at night.
Thanks for all your work, especially during rough patches.
Dave
Read Answer Asked by Dave on March 13, 2020
Q: Hi Peter. I own ZWH.U which is down about 26%. I had thought that the covered call strategy would have provided some shelter from the downdraft, but it appears that really isn't the case. Oh well. My question relates to going forward. Since the covered call strategy will likely limit future gains, what ETF would you suggest for ZWH.U's replacement in my US accounts? thanks, J
Read Answer Asked by John on March 13, 2020
Q: Peter and team
I sold off all my equities part way through this recent collapse.
I have followed your BPort, along with some picks from the GPort.
I do not have the time to diligently follow individual stocks anymore, and was thinking of switching to ETFs.
What are your thoughts about splitting some 400k in cash between ZCN,ZDV, and ZUE. Is there too much overlap in the two Canadian ETFs, and what are your thoughts on going with the "hedged" ZUE?
This is a non registered account. I am pretty sure that ZUE is treated as a Canadian Equity with no foreign withholding tax. Correct?
Thanks

Phil
Read Answer Asked by Phil on March 13, 2020
Q: I see the Jeffries downgraded Welltower yesterday, with a price target of $52. I realize that COVID-19 isn't helping here, but this stock is being beaten down to similar levels to that of airline and cruise ship stocks. Do you see that as logical?

I see that this stock can fluctuate from about 20% below Morningstar's Fair Market Value to as high as about 10% above. Of course at the moment we're talking closer to -30%.

In your opinion is the balance sheet okay?
On my TD Wealth screen the dividend payout ratio - 290% - seems out of whack but I believe it should be calculated differently for REITs (?)

As always, thanks for your informative responses.
Read Answer Asked by James on March 13, 2020
Q: So if they close the markets for an extended period, does one still receive the dividends?
Have they ever had a "brokerage holiday" akin to the "bank holiday"
Thanks.
Read Answer Asked by John on March 13, 2020
Q: I currently own IHI and GOOGL (only about $8000 in each} and with the recent severe downturn am looking at adding additional funds ($16000) to my portfolio. Am considering MFST and/or ESLT or would you recommend just adding to my existing holdings. These funds are in an non-registered account.
Ed in Montreal
Read Answer Asked by ed on March 13, 2020
Q: Hello 5i
This is a mixed bag inquiry. Looking for some perspectives on the above watch list. I m wanting to increase my overall US & tech sector exposure plus add to my CDN financials. All positions have yield income to weather the storm for the next few quarters
I m considering half positions (2%) in each.

Read Answer Asked by Brant on March 13, 2020
Q: Hi,

If you were to look at your Income Portfolio with a critical eye, are there any companies or ETFs there that you would consider at high risk of reducing their dividend/distribution? If so, why?

Thanks,

Gord
Read Answer Asked by Gordon on March 13, 2020
Q: Oil analysts on BNN have said the producers with good hedges on will do the best through this price war and corona virus impact. What large, mid and small cap producers hedged out for several months this year or further? Thanks
Read Answer Asked by Gordon on March 13, 2020
Q: 5i
Being retired with~40 % in bond ETF`s as my fixed income and thus part of my relatively safe part of the portfolio , i was quite surprised when equities dropped so much today , that the bond ETF`s dropped considerably as well ie CBO , ZAG and XBB . They all dropped ~4% .
Can you help me to understand why bonds would drop so much under this scenario ? If investors are fleeing to safe havens such as treasuries and bonds and out of equities why do bond prices drop particularly as much as it did today ?
Thanks
Bill C.
Read Answer Asked by Bill on March 13, 2020
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