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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 have 37% (200K+) of my portfolio in CN Rail. It is in a taxable unregistered account. I would like to diversify a bit but afraid of the tax repercussions with selling (Up 100%+ capital gain). Also can't find many stocks that have been able to beat CNR over the long term. CN is basically a monopoly and a diversified hauler of goods. Note my registered accounts are fully invested. I try to sell 10,000 of cn stock a year to invest in other stocks but at the same time buying 15,000 of cn.

1. Should i be concerned with such a high % portfolio in one company? What is recommended
2. Should i be so concerned with capital gains tax?
3.What companies should i be looking at with the selling of CN that has been consistent with future growth?
4. Should i continue with 10% of income spent on cn stock. first 6% gives employee an extra 35% of stock.

Read Answer Asked by Thomas on July 18, 2017
Q: Hi,
Further to your reply: "ENB pays its dividend in Canadian dollars. You could buy it in the US, in a US account, and dividends would be converted, but you would incur exchange fees.
Rather than looking at this strategy, we might instead holding some US exposure in general, for general diversification, and avoid trying to predict currency movements"

Since I'm seeking USD income, I'm looking for the biggest bang for my buck (so the Dividend Tax Credit is something I would want to take advantage of). Would my strategy work with something like a ENB.PR.U (USD preferred)? Or does the same currency conversion issue occur. Thanks again.
Read Answer Asked by Carlo on July 18, 2017
Q: ,,It is almost similar to a private equity firm where the investments will need time to grow in value and then the holding company may need to do something (sell, IPO, etc,) to actually realize the value and get some liquidity.,,
I do not understand your comment. I have a 60% gain. I can sell now and realize the profit. What do I don't know?
Read Answer Asked by claude on July 18, 2017
Q: The July 15th edition of the Financial Post carries an article with the headline "Worst drought in decades devastates Europe's Crops" with the article focusing on a wheat-farmer in the Tuscany region (province?) of Italy. After doing a quick check online it seems that drought is somewhat dispersed throughout regions in Europe.

Would this European drought be significant enough to impact global grain supply and prices?

Would this be time to consider purchasing POT?

Thanks!
Read Answer Asked by Chad on July 18, 2017
Q: Dream Global Real Estate continue to diversified not only by Tenants but also geographically in Europe, and although they are payout is higher it keep improving. what do you think of the announcement of a big acquisition into the Netherland of $903.00 million worth of properties? I am thinking about participating on the offering they are given about 4.5% discount?
What is your opinion on the stock and the acquisition?
Read Answer Asked by OSCAR on July 17, 2017
Q: Hi 5I
I am looking to sell off some ETFS as I am too heavy in financials, have done well with them just too heavy, cvan you advise what I shouls stay and what could be sold in my RRSP. I also hold band stocks.

Thanks
Read Answer Asked by Paulette on July 17, 2017
Q: Dear 5i,

I currently own XHU and am comparing it to PUD.B.

PUD.B is more expensive, with a MER of 0.67 vs 0.34 for XHU.

PUD.B is attractive because it appears to involve a strictly quantitative screen including 5-year non-negative dividend growth and Piotroski scores; whereas XHU involves quantitative but also qualitative assessments by Morningstar analysts (economic moat, uncertainty index, distance to default).

PUD.B is higher conviction, with 40 holdings vs. 75 for XHU.

Do you think that over the long-term, PUD.B will have higher dividend growth? Higher total return? If so, do you think PUD.B is worth the higher MER compared to XHU?

Thank you.
Read Answer Asked by Walter on July 17, 2017
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