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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: Hello & Happy Thanksgiving to all.

I’m considering lending my 18-year old daughter some money at 3% so that she can invest in securities that yield 6-7% (preferreds, etc). The favourable dividend tax credit, and other tax credits (personal exemption, tuition etc) should keep her tax bill close to zero.
Would you suggest an etf, like CPD, or would you pick a basket of individual names like ENB, BCE, NPI prefs?
At this stage in the cycle, would you go Rate Rest or Perpetual?

Any website you can suggest that rates the various preferreds? The TD monthly Preferred Report is the only one I know of.

Thank you
Read Answer Asked by Carlo on October 11, 2016
Q: Hello Peter and Staff
Please dock whatever questions you feel are appropriate. I believe HCG is only residential mortgages which caused you to drop it from the portfolio due to recent rules introduced. I also believe First National is in the same boat,ie beaten up because of its residential nature lending to home owners. I guess the CEO was on BNN and said the banks may take 20% of their business. FC and AI and TMC have not suffered the same fate so far. Are they not affected?
Also ,if you were to buy TMC for yield to replace FN, do you buy TMC or TF?
Thanks for all you do
Dennis
Read Answer Asked by Dennis on October 11, 2016
Q: "Austin

Q: I keep reading about this, but NO ONE can tell me exactly HOW to ENROLl in these DRIP Programs. I even dropped into the office of Agnico eagle around the corner, and they did not know.....telling me to see by broker. I also wrote to someone I respect very much at ROB, but to no avail. Can you please tell me how?"


With many decades in existence & probably the best site in Canada is:

http://www.dripinvesting.org/boards/boards.asp


It is a free, moderated and honest site. I have used it and helped many, many people across Canada with beginning a true DRIP and answering questions for over a decade.

The 2 main stock transfer agents which handle ~90% of all DRIP's in Canada also respond to some questions at this site.


OB, OperaBob, Robert Gibb is the Canada Board moderator. He has been on tv, & quoted & interviewed on some news sites over the years like the Globe & Mail....


There is a board for exchanging shares also.

http://www.dripinvesting.org/boards/BoardMsgs.asp?BID=8


Hope this is helpful.
Read Answer Asked by Stan (1) on October 07, 2016
Q: Looking for financial sector allocation suggestions as replacement for HCG/mortgage sector. Already have positions in EFN/ECN/CXI/BNS/SLF...any suggestions? or okay with going to 20% on tech vs current 15% 35 years old, money is all in registered accounts, little debt, and no need for money in next 10-20 years
Read Answer Asked by John on October 07, 2016
Q: I am resending question thanks for your patience. I was curious whether tf would be affected much by the new mortgage rulings, as it is a short term commercial investment grade mortgage lender. The share price seems to be climbing since the new laws were announced. It appears to have a high dividend with adequate coverage.. Thanks Tom
Read Answer Asked by Tom on October 07, 2016
Q: I sold not only HomeCapital but EQB, because Cohodes, our nemesis, is now shorting it as well. Now I'm left with First National. As much as I'd like to think I'm a long-term investor, my gut tells me once retail investors read about the news on alternative lenders this weekend, the stock sell-off will accelerate. Some insiders are also selling, even the CEO of HomeCapital who sold a massive amount of shares at 34.50 right after that buyback announcement? Another insider sold over 400k at 27.50 less than two weeks ago? For me, the last nail in the coffin was Sherry Cooper's interview yesterday on BNN (Dominion Lending). Most surprising, the CEO of First National came on Bloomberg basically saying: "It's bad for us and banks will take 20% of our market". Question: Would you sell First National and replace it with Surge Energy, which is back in an uptrend? Thanks.
Read Answer Asked by Matt on October 07, 2016
Q: I only hold one REIT:REI and I am not too happy with its performance. I was up 15% and now back to 0%. What do you think about a switch to AX to almost double the dividend and (I expect) capital gain when the stock recovers.
What do you think about the future prospects for both?

Thank you.
Read Answer Asked by JR on October 07, 2016
Q: Good day,

I know that your focus is not the US but the landscape is changing with the election so perhaps you could just be a sounding board. I have a large position in JNJ (for growing yield and broad diversification), a full position in EXE (for yield), and a 3% position in CRH (for growth). JNJ trades at a premium, justly so. I was thinking of swapping these holdings except maybe EXE for CVS, NVO and DHR. DHR is now focused since its spin off of Fortive and has been a long-term outperformer (it is devices and consumables). NVO (drugs) and CVS (broad healthcare) are great growth stocks that are beaten down compared to JNJ and together offer comparable yields. What would be your thoughts?

Thanks!

Derek
Read Answer Asked by Derek on October 07, 2016
Q: This company appears to follow the growth by acquisition model with its most recent acquisition, a US funeral home operator, having been a success based on their sales and earning improvement. It is also trading at all time highs. What is your assessment of this company and if it could be a long-term position, would you look for a lower entry point. I have no position in it at this time though regret not having bought some at $15 when I first came across it.
Read Answer Asked by Michael on October 07, 2016
Q: What are your views on this company ?
What would be good growth alternatives for investing in Mexico ?

Many thanks for your outstanding work,

Jacques
Read Answer Asked by Jacques on October 07, 2016
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