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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 a follow up to Greg's question in regards to negative interest rates on Sept 5.

Are negative rates generally good or bad for bank stocks? Since they will still charge a premium for mortgages and lending, as well as getting tighter with lending would theoretically mean less delinquencies. Also, I imagine they would still charge fees on any accounts that they already do, wouldn't charging to hold money (as a negative interest rate) be another source of income?

What other stocks typically do well in a decreasing or negative rate environment?

Sorry if this is rambling a bit.

Thanks
Read Answer Asked by david on September 10, 2019
Q: What are your thoughts on VDIGX when compared to VYM and VIG.
Thanks
Read Answer Asked by Francesco on September 10, 2019
Q: This is a follow up to my questions about EFT TERs.

Thank you for the information about Canadian ETFs. What about US ones? For example, IEFA fund facts shows:

Expense Ratio 0.07%
Management Fee 0.07%
Acquired Fund Fees 0.00%
Expenses Foreign Taxes 0.00%
Other Expenses 0.00%

There is no mention of transaction fees. I find it difficult to believe the transaction fees for European markets are $0. Do you know where I would find that information?
Read Answer Asked by Federico on September 10, 2019
Q: Hello 5i Team
I currently own Shaw Communications (SJR-B), which I have owned for several years.
The purpose to owning shares of SJR-B is to match the payments I make monthly to Shaw for my cable and internet.
Shaw has not raised it dividends ($0.09875 per month) since March 2015 and has declared the same monthly dividend to December 2019. Yet their cable/internet charges increase every year!!!!
My yield on cost is 5.46 % and the current yield (based on Friday close of $26.15) is 4.53 %. Essentially the stock has become similar to a "preferred share" where the dividends don't increase and the share price fluctuates with the rise/fall of interest rates.
The questions I have are:
1 - What are your thoughts on Shaw going forward and should I keep it and accept the reasonable yield on my book cost (the do nothing option).
2 - Sell the shares of Shaw and invest in BCE/Telus where the current yield is similar with the high probability of increased dividend growth and limited capital gains. I currently own approximately the same dollar amount in each of BCE/SJR-B/T
3 - Sell the shares of Shaw and invest in Rogers where the yield is lower with the probability of increased dividend growth (Rogers recently raised the dividend after no increases since 2015) and possible capital gains.
4 - Sell the shares of Shaw and invest in a preferred share ETF (CPD/ZPR) with a similar yield, since I the likelihood of a dividend increase from Shaw appears low and the probability of capital gains with the preferred shares ETF is higher with increased interest rates in the future (?).
Thanks for the excellent service.
Read Answer Asked by Stephen on September 10, 2019
Q: Hi 5i .. i hold these REITs currently: Bpy.un (1.5% of my portfolio), car.un (3%), chp.un (2%), crt.un (1.5%), iip.un (1.7%) ... to simplify things, and diversify further, would it make sense to sell these and just buy an etf like VRE or ZRE? (for a 60 yr old div investor .. which is preferable?) ... or, is the status quo the way to go? thx!
Read Answer Asked by Patrik on September 10, 2019
Q: As we don't have a good Canadian choice for stocks related to pets, what do you think of these US companies (or any others in this sector) ?
Which ones do you see as having a potential for strong growth in a near future ? Where would you invest in the sector ?
Please deduct as many credits as you see fit.
With many, many thanks,
Jacques in Montreal
Read Answer Asked by Jacques on September 10, 2019
Q: Hello,
My portfolio mentioned that I need to add more international exposure to my portfolio. Can you suggest some good international ETF(s) or individual stocks that would be good for me to help balance my portfolio?
Read Answer Asked by Ryan on September 10, 2019
Q: I have a small US account and am looking to add a couple of companies to it. I realize that you do not provide extensive coverage of US stocks but would it be possible to recommend a few small to mid cap growth companies with a one to three year time horizon. Sector and volatility are not factors. Thanks.
Read Answer Asked by Rob on September 10, 2019
Q: I am looking for a revenue opportunity in $US and AQN:US pops up as a possibility. There are no Q/A on the US dividend providing version of AQN and I would appreciate your views on this aspect if possible. Thank you. In follow up to my question on Algonquin/$US, from the list of Canadian companies paying $US dividends, which stand out for 3-5 year revenue? Thank you.
Read Answer Asked by Gregory on September 10, 2019
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