Investment Q&A

Q: Hi 5i team
I would like to thank you for all your sound advice since inception. I would need to trim up to 5 stocks from this portfolio. If you were in that position, which ones would you cut starting with first to cut up to fifth. These stocks are in a rrsp with equal percentages. Thanks. Gilles

Q: I am a 3-5 year medium and long term investor. I need to increase my position in Consumer Staples by about 3%. I currently hold ATD 3% and PBH 3% are in my taxable account. I have full confidence in the management of ATD but I now wonder if their business model has not changed a bit compared to the company I bought a few years ago.
1- If the electrification of transport raises from 2 to 10% within 3-5 years, how many customers will ATD lose?
2- If you have an electric car will you wait 15 minutes to recharge your battery in a convenience store?
3- Can ATD still grow by buying competitors at attractive prices?
4- Will future growth come in less profitable areas such as grocers and if so the P.E. will drop.

What do I do? Can you help me sort this out?
Buy more ATD? Add DOL? Add a little to the 2 already owned and add DOL, not DOL...

I'm lost.

Thank you.

Yves

Q: My top holdings are:
GOOG 6.61%
AAPL 5.21%
AMZN 5.12%
NVDA 4.61%
V 4.23%
NPI 3.75%
WSP 3.58%
PBH 3.37%
XBB 3.21%
COST 3.1%
OHI 3.48 %
ENB 2.8%
JPM 2.72%

They make up 50% of my portfolio. I have 12% in cash. Would you add or reduce any of these positions? Long investment horizon(17 years). I’m over weight consumer cyclicals and FS (3% BMO and 3% BNS). Light industrials @7%.

Q: Hello,
Would you consider PBH a good inflationary stock?
Thank you

Q: good afternoon

i have positions in both PBH and NWC. PBH is growing slowly but steadily and NWC has been basically flat, albeit with a decent dividend. What would you say to selling NWC ( no gain) and reinvesting the proceeds in PBH? I have long horizons. Thanks.

Q: I have purchased your Portfolio Analytics tool - so far so good. For my RRSP, I need to increase stock holdings from 2% (average) to 5%. This will assist me to better align my industry allocation while increasing my average stock percentage . Do you feel its a good time/right stocks to bring to a 5% holding - PBH, WSP, WELL and SIS? All are currently at approx. 2% and I have a 17 year investment horizon. If you feel WELL is too much risk can you suggest another health stock?

Q: I want to consolidate my smallest 5 holdings into 2. Using long term share appreciation as the only factor which two would you choose.

Q: I am looking to add a consumer staples stock to my portfolio as I currently own none. Could you please give me your opinion of PBH and L? I see Loblaw as more of a value play and PBH as growing more over the next 2 years. I am concerned over the difference in valuations between the two companies but would like some growth. The dividends are similar for both. Is one riskier over the other? Should I buy one over the other or perhaps buy both? Thanks.

Q: I am looking at putting together a portfolio of set-&-forget Canadian dividend-paying stocks, in what will be my only unregistered account, making up about 30% of our overall portfolio. The registered accounts (70% of portfolio) are now all in mixes of VGRO, VBAL and XAW.
My emphasis is on stable large cap companies, with a sprinkling of smaller cap, low beta, decent and growing dividends. I expect to draw down the capital at 6 - 7% per year (in addition to the dividends). Beyond the drawdown, capital preservation is secondary to the income.
What are your thoughts on the following mix? Additions/deletions?
Communication: BCE, T
Consumer Discretionary: CTC.A, LNF
Consumer Staples: NWC, PBH
Financials: BNS, TD, SLF
Industrials: SIS
Materials: SJ
Real Estate: CRT.UN
Energy & Utilities: ENB, AQN, FTS, ACO.X, BEP.UN (or BEPC)
My other thought is 100% CDZ but I'm not very impressed with the historical returns and the (relatively) high MER.
Thanks. Lotar.

Q: Hi 5i
I am looking to rebalance my consumer cyclical and defensive portions of my portfolio.
I would very much appreciate your recommendations on the better CDN and US stocks to consider in these areas. I have reviewed your portfolios and reports and am very much a dividend opportunist but would not shy away from growth

Thank you

Peter

Q: 50-yr old investing for retirement. Have historically been a dividend fiend but open to juicing the growth side a bit more as a result of the excellent advice I can now obtain from 5i. Considering adding to either my consumer defensive/staples allocation or increasing international exposure (the latter via an ETF). Hoping you might help me deploy a half position in an RSP and jump in one direction from a corner of the fence (and understanding you can't personalize such advice) - considering initiating a position in NWC (CA), PBH (CA), or WMT (US) or adding to an existing position in ZWE (European covered call ETF). My current geographical exposure is 34% US; 33% CA; and 32% International (XEF, ZDI and ZWE). My total covered call ETF exposure is around 8% of my equity portion and geographically diversified. Other suggestions for staples and international ETFs will be appreciated. Thanks for the great service!

Q: I am an investor with a fairly balanced, income oriented securities portfolio with a relatively high weighting to financials. I am thinking of adding the securities noted and am interested in your thoughts on each, as well as how you would rank them on a relative basis. Thanks for your thoughts.

Q: Happy New Year to the great team at 5iResearch and thank you for the great advice I have received from you over the years. It has been very profitable. I have a reasonably well balanced portfolio with a small amount of AQN ( ~0.5%) but no PBH. I am considering selling AQN and buying some PBH as I am relatively low in Consumer defensives. Which of the 2 companies do you prefer?

Q: Thanks for all the advice and enjoy some quiet time over the holidays.
After the year end flurry of tax loss selling and portfolio adjustments, I will have new contributions to well balanced RESP and TFSA in 2021. Could you suggest 3 companies to add for each for long term holds and growth ?
Cheers, Peter

Q: Happy Holidays everyone! I am relatively new to 5iResearch (few months) and must say that my results have been outstanding to say the least (SHOP, WELL, XBC to name a few - AC being the only one down so far). Thank you for that 5i.

I hold ET but am negative, as I am with BPY.UN (by more than 20% on both). I need to increase exposure in Technology, Industrials and both Consumer Cyclical and Defensive and decrease in Real estate. I do like some revenue but it is not essential for the next 3-5 years.

In no special order I am thinking LSPD or SYZ, TFII or WSP, PLC and PBH. What are you suggestions for growth here. Please comment and/or place in order of preference - objective being to recapture lost value in BPY.UN and ET over coming 12 months.

I understand this may represent many questions. Please take necessary credits. Thank you.

Q: Hi Peter and Staff
Reference a question I just sent on industrials regarding my investment philosophy vis a vis risk level and number of stocks (ETF of my own for each sector).

I need to subside other income by about the same amount as my dividends earned however in using the water the flowers and pull the weeds I invest my dividends each month and sell something(s) for my draws.

Tomorrow I will have some funds for Consumer Staples......

1, If you were to own the 4 above, in what % would you own them?

2. IF you were to add for consideration WMT, PG and COST, please regig the % between the 7

Thanks for all you do

Dennis

Q: Could you rank your order of preference today as I would like to add one of these 4 stocks, irrespective of sector? I am looking for total return for long term hold. Thank you.

Q: I have a DOY balanced portfolio (Alpha-Balanced for guidance) , with less than 10 year timeframe.
I’m underweight communication services, and energy. Not a fan at this stage of oil or precious metals. Overweight in industrials and technology.
My concern is with my overweight in technology. Reading a number of opinion articles that refer to the tech boom as another dot.com. The reply often is oh but this is different.
Here’s my two cents worth especially related to tech stocks I own. First of all investors/traders seem to be jumping in and out of technology based on the latest COVID-19 / vaccine news.
Re KXS; will still be in demand long after Covid-19. LSPD; somewhat sensitive to Covid-19 but have done a good job diversifying and adapting restaurant services etc. Will do well in recovery.
Maybe more acquisitions.
SHOP; like Amazon will carry on even though the valuation is high. Younger generation will still shop on line.
Now comes the tricky part. WELL and VEEV. I don’t quite have a handle on. Not sure if the demand for their service will still be there post COVID-19.
Your comments and/or thought would be greatly appreciated. I have a feeling that many of your clients would be interested in what you have to say.
I’m an experienced investor but don’t have access to the kinds of info I once did. I depend a great deal on your unbiased expert opinion.
Merry Christmas

Roy

Q: Hi 5i team,
Need to up my % in the following two sectors consumer cyclical and consumer defensive.

Can you point me to a few stocks from each sector that are fairly valued and are included in either your balanced or income portfolio? Or if there are other canadian stocks outside your model portfolio that fits the bill.

Thank you.

Rino

Q: I am considering harvesting a current loss in QSR and reinvesting the proceeds in PBH. For a long term investor, which company do you think will offer the better overall return ( dividend plus assumed capital growth) over time and please explain why. Many thanks

al