Investment Q&A

Q: There is a saying "the first dividend cut cut is never the last dividend cut". Excluding resource stocks, in your experience, is this true more often then not?

Just as a company paying its first dividend is a very strong buy indicator, is a dividend cut equally as strong a sell indicator?

Thanks.

Q: The U.S small caps index had a 10 day string of gains, which hasn't happened for 5 years. It looks like animal spirits are finally back, and I'd like to buy before the "take-off". It seems it's easy to miss the boat these days, which happened to me with with U.S banks! Do you think this IWM move will carry over to the TSX small caps? I'm considering buying 1/3 positions in BAD, DHX, and ACQ. Thank you.

Q: Good morning,
Please compare the merits of the Central Fund of Canada (CEF.A) with Sprott Physical Gold Trust (PHY.U) as investment vehicles for Gold.
Thank you

Q: is this category and these stocks good picks and or are there better ones in this field.
also how will rising interest rates 1 2 percent effect these stocks and dividend stocks in particular

Q: Hi 5i,

I am retired and have a 5-10 year investment horizon. I love your Q&A database and find it provides almost all the answers I need.

My question is a general one around interest rates, but I have provided A&W as an example.

I have heard for, it seems like more than a decade, that when interest rates rise, then the price of dividend producing equities will suffer as folks move to bonds and other more growth orientated companies or funds. I have always thought that, say A&W with a 4.4% dividend (and a visible healthier food strategy driving higher sales) would retain its value unless interest rates rise "a lot". The dividend is likely very stable and tax beneficial, so very attractive.

Now, with conditions forming out there that may lead to rising interest rates, and maybe "a lot", how concerned should I be with, say, holding my A&W.

General comment. I notice that some of us who ask questions like to define our status (retired) and time horizon (5-10 years) as we pose a question. I would be supportive in providing a general profile that is maintained at your end so you can "look me up" when answering questions. Optional for us, as some might not want to share. Just a thought.

Love your service.

Q: is their a report coming up for heo ?(h20 innovations ) what other companies on your radar? or what in your mind is the next hot sector thank you for your time . deduct credits for exra questions no problem (thank)s.

Q: Team 5I
Your independent service is very much appreciated.

Previous Question: from other member on Oct 3 2016
How would your adjust position from Oct 3 2016 have in view of projected present US situation.
Re: dividend aristocrats vs dividend growth

Q: Purchased several years ago at $25. plus, I am now looking at a pref. that trades around $14.
Current yield is just short of 10%.
In your opinion Is it time to double down and enjoy more of the juicy yield or bow out and lick my wounds?
The position makes up less than 5% of my portfolio and is my only preferred share holding.
Should you think it prudent to sell this security, would you please suggest an alternative.
I am 70 and comfortably retired.
Dave

Q: mandalay mnd thought on this company thank you or would you prefer. ami

Q: This company seems to have sold off somewhat after the US elections. Would you consider this a buying opportunity?

Q: Interested in your opinion on this company. I've held it since its inception on premise that lithium is and will continue to be in demand. They have a large deposit near Tesla's giga battery factory in Nevada plus a large deposit in Argentina. Stock has shown weakness last couple of months.

Q: Would you view this as a good entry point for a 3+ year hold? The stock price has not been this low since early 2013. At this level, there appears to be some potential for price appreciation along with the dividend.

Q: I know it's not your primary focus but I am wondering if you could provide some basic information on the above company. An article in Seeking Alpha suggested this US REIT is undervalued because it invests primarily in B Class shopping centres which may be out of favour because of concerns over the growth of e-commerce and how that change of shopping habits will kill these types of properties. If you accept the premise that these smaller plazas are not going to disappear, does this company represent a good value play? It pays a 9.5% (US) dividend and I don't to be in it just to chase a dividend.

Paul F.

Q: A member question regarding "Forever" stocks prompted me to backtest to 1999 a 30 stock portfolio (20 Canadian, 10 USA) that, even then, probably looked like "Forevers". I used the Globe Investor Gold service for this purpose.

This "Forever Portfolio" started at $1.3M and today is worth $10.2M - not a bad endorsement of buy and hold.

2 Questions:
1. I could not find stock symbols for a number of companies, such as Apple, Google, CP
or Constellation Software and Cineplex. Can you recommend a source that could help
in this regard?

2. A few companies seemed to have surprisingly low total returns over this 17 year period - namely BCE flat; FFH -10%; AT&T -2%; KO-N 22%; GE -8%, and VZ-N -8%.
Does this seem reasonable to you or might there be glitch in the system that produced inaccurate total results for these stocks.

Thank you for your help here.

Q: This company currently has 14% subordinated notes (TBL.NT) issued that mature September 1, 2020. Last trade was at 114.5. I reviewed the annual report and noted that almost 53% of these notes are held by insiders. The balance sheet shows negative shareholders' equity but the company reported after tax profit of over 11 million in each of its last two fiscal years. I'm thinking of buying some of these notes in my RSP as fixed income exposure and would appreciate your comments.

Q: Hello:
I have been thinking of adding some ATD.B to my portfolio but have noticed the stock has been down slightly since the Trump win. Is this a bit of nervousness because of
ATD.B holdings in the U.S.?. Is the market wary of Trumps approach to anything not
American. I noticed Trans Alta Renewables & Alqonguin have reacted in a similar manner.
Thanks: Jerry

Q: Hi, I would like to have your general view on Fairfax Financial Holdings, as far as qualify and long-term growth. Also, do you know why is it taking a hit at this point in time, and whether you think it is a good investment. Thanks very much for your service.

Q: Please comment on a small (1/3 of 1%), long position in this company.

Q: A follow up, a few weeks back I was considering selling my Jpm shares, your advice.." was maybe not so fast, best perhaps to continue on as an owner". Good call.

Q: I noticed that under the 5i report that SIS is listed as an industrial stock. I thought this stock is more of a stock that belong in the health care sector. Which sector is more appropriate.

Thanks
D

On another note I would like to thank everyone who make this a wonderful web site for all of us wanting to learn and being able to ask any question and get an unbiased answer.