Investment Q&A

Q: 'Yearning for yield".

Would it be reasonable to consider some of the high quality utilities like FTS, PPL,TRP etc. to be substitutes for fixed income stocks such as GIC's or bond etf's?

A year ago US high income stocks like NLY, HTS, AGNC and MTGE dropped in price significantly and looked scary given the fear (terror) concerning interest rate increases. Given the current set of circumstances, would you be in favor of buying these now with the expectation of modest price increases but 10% plus yields for a 1-2 year hold - or is the risk/ reward still unattractive?

Thank you for all you help.

Q: What are your thoughts on the Brazil economy. I own a small stake in XBZ, which has provided a decent return over the last year, although it is quite volatile. With the upcoming World Cup and the media attention this will bring, do you think now is a good time to sell my stake in XBZ and wait until after the World Cup finishes to reinvest in this ETF?

Q: Hi Peter and team,
Thank you for your recommendation of Exco. We hold it in our grandson's RESP . It's up nicely. We also hold Linamar which is also performing well. Our question is: What do you think of the auto industry at this time? Your comments on Exco say that this company has a large industry risk. Is it time to take profits? We value your opinion.

Q: Is there anything new to report with Absolute Software (ABT)? It is hitting 52 week lows. Is it time to average down or avoid. Your opinion very much appreciated

thank you

Q: Hi: I am interested in opening a position in Enbridge. Are there any near-term catalysts, positive or negative that I should take into account prior to investing? Does the Northern Gateway project pose any risks or has this already been priced in to the stock? Anything else you could tell me that would be material to my decision making process would also be much appreciated.

Thanks!

Q: I have around 6K in AGF.B and have been holding for a while. With dividends it is close to break-even. Does it make sense to sell and buy equal amounts of GS-T, IGM-T and CIX-T?

Q: Descartes System G
DSG
Dear Gentlemen,
I just wonder why DSG is down (15% since bought )
I have a 15% position in my RESP of only 6 stocks equal weight all from 5IR PF & Income
Your advice buy more or wait ?
Thanks You.
My best regards

Q: 5IR Income PF
Dear Gentlemen,
Is it possible to add the Sector & Industry for stocks in Income PF ?
Thank You
My Best Regards

Q: Hi Peter and the 5i team, It is always interesting to read the Q & A section. In relation to your reply to Maggie's question and Scot's follow up, I am as close to Harry as you can get. I purchased Royal Bank for 7.27 per share in 1994; never touched it. I have to spend the dividend as I depend on it for income (the real meaning of income-investing)so that my wife can go shopping and I go to canadian tire - the usual thing. The yield of the shares on cost is 40%. My problem is that it is getting to be 9% of the portfolio. My only regret is that I didn't do it with all my bank shares. I am putting this out to underline that it is real, not just a hypothetical situation. Henry

Q: As income sources in an RRSP which one would you regard as higher risk, XHY or TMC? Thanks

Q: Hi team:
I sold half of my position in CPD (i shares for preferred shares)
which I held for over a year, finally break even
I am looking for abit of income (dividends) with low risk for
capital appreciation
I already have WTE.un and Bep.un and Peyto, which one would you choose to add with the new money coming out from CPD ? thanks!

Q: Hello 5i
Thanks for the great responses. I am having trouble finding a post where you answered questions on fixed income, suggesting which bond etf’s you would use at the moment, both in the American and Canadian market. I cannot find it through the symbol search, as it is a general category question. I wonder if you could point me to that post or, sorry about the repetition, let me know once again what you would choose for fixed income at the moment.
thanks

Q: I have RBC managing a portion of my portfolio (RRSP). I have not been impressed with their service. They had the majority of my money in long term bonds earning a pittance plus they were bought at a premium. My overall return has been a abysmal but they still collect their management fee of 1.5%. ( I started with $450,000 6 yrs ago and now have $400,000) I recently got annoyed with this lack of performance and instructed them to sell the various bonds. Now I need to place the cash. Any suggestions?
RBC is suggesting a series of GIC's and some bond funds such as : Ipco monthly income,I shares advantaged short duration high income ETF,Lysander corporate value bond class templeton global bond fund.

I am 72 and must take money out of my RRSP whether I need it or not...
Can't thank you enough for this great service.

Q: I have held dividend select 15 (DS-T) for a number of years at has been lingering for a while and only recently is trading at the level I bought it at . It pays a good dividend
What are your thoughts on it.

Q: Peter

You were going to provide a link to the online dividend presentation that you gave This was going to be under the media section I have looked several times and have not been able to find it Could you please send me the link Thanks Paul

Q: XTC Exco Technologies Limited is have a nice run up. Are you aware of any news that is causing this?
Thanks
John

Q: Dividend reinvestment gives impressive returns for a stock like Royal Bank. But after 20 years, how do you calculate the adjusted cost base foe tax purposes? Would it be easier to buy more stock periodically on the open market with the dividends. Do you pay tax just the same even if you are in the company's reinvestment program? In the example given by one of your subscribers on Royal Bank, were taxes paid taken into account? Thank you.

Q: what is your present opinion on KPT?Thanks. Ebrahim

Q: This question is about adjusted cost base. Say I own the same stock in 2 accounts (one unregistered, the other an RRSP), purchased on separate occasions. If I want to sell the non-registered stock, would my ACB be the average of both purchases?
Thanks for clarifying!

Q: re: AVO - is it the next Amaya?

Financials show no problems. Management appears to have enough confidence to reinvest significantly. It appears CEO stepping down was cause of illness.

If this is all true, shouldn't we consider AVO a buy at these levels?

Thanks for all you do

Gord