Q: I have about 1k (and growing) saved in an account with RBC as the company I'm working for has started to match monthly contributions for investment purposes. What would you suggest i put it in as far as products offered by them? I currently have a reasonable size portfolio with Tangerine that also gets monthly contributions. Would like to be a little aggressive with the RBC account. Thanks.
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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, I will have to liquidate a substantial amount of my portfolio in the near future and figured I may as well take the opportunity to rebalance my holdings. My goal is to build a fully invested portfolio based on the 5i Balanced Equity portfolio core, with a minor growth tilt. I have read through the Q&A section thoroughly and have come up with the following solution and wanted your opinion:
NON-REG: AIF, BLX, PKI, WSP, XTC (5 holdings)
TFSA: CCL.B, CSU, KL, KXS, NFI, PBH, PHO, SHOP, SIS, SYZ, TOY (11 holdings)
RRSP: ATD.B, BYD.UN, CAE, CLS, ENGH, GSY, GUD, MX, SJ, PEO, ZZZ (11 holdings)
I have 2 questions (please feel free to deduct more credits if necessary):
1) Are there any names you would remove and/or swap out for other names? (I am nearing 30 holdings which from what I have read could be getting too large and inefficient) and
2) Is the division of holdings across the NON-REG/TFSA/RRSP best spread for growth efficiency?
As always, thanks for your amazing service!!
NON-REG: AIF, BLX, PKI, WSP, XTC (5 holdings)
TFSA: CCL.B, CSU, KL, KXS, NFI, PBH, PHO, SHOP, SIS, SYZ, TOY (11 holdings)
RRSP: ATD.B, BYD.UN, CAE, CLS, ENGH, GSY, GUD, MX, SJ, PEO, ZZZ (11 holdings)
I have 2 questions (please feel free to deduct more credits if necessary):
1) Are there any names you would remove and/or swap out for other names? (I am nearing 30 holdings which from what I have read could be getting too large and inefficient) and
2) Is the division of holdings across the NON-REG/TFSA/RRSP best spread for growth efficiency?
As always, thanks for your amazing service!!
Q: I had asked if you had any thoughts on Solar Share bonds. Any response?
Q: Hi, your answers are always illuminating. Recently, you have commented on currency headwind on several companies' future earnings. Does this imply higher or lower canadian dollar relative to other currencies? How much will it affect ? Thanks.
Q: Hi Peterand Team,
Can you please explain to me what are the factors included in calculating the Recessionary Eps 2008/2009 on 5i report. How it is calculated and what are the ranges that the company get A,B,C G... etc. grade On that Metric? Also, can you explain what is the RH scale and how it is calculated?
Thank you for the great service.
Can you please explain to me what are the factors included in calculating the Recessionary Eps 2008/2009 on 5i report. How it is calculated and what are the ranges that the company get A,B,C G... etc. grade On that Metric? Also, can you explain what is the RH scale and how it is calculated?
Thank you for the great service.
Q: With the conflict that is on going with the U.S.A and North Korea is it better to have a wait and see attitude before putting anymore funds into the Stock Market. Thanks . Ernie
Q: Hello 5i team, Michael in particular,
Thank you for your most interesting report on Canadian Midstreams.
You guys are worth your weight in "Single Malt Scotch"
Cheers,
Antoine
Thank you for your most interesting report on Canadian Midstreams.
You guys are worth your weight in "Single Malt Scotch"
Cheers,
Antoine
Q: Could you give a current opinion of this international oil company
Q: For an investor with a higher risk tolerance who is always fully invested, do you think it is possible to profit on a risk adjusted basis from buying into a market dip on margin (assuming a "reasonable" margin rate of <6%)?
Given your experience, what would be reasonable parameters of a system to do this? I am thinking something along the lines of: If the market (e.g. index tracking ETF(s)) drops 10%, deploy 10% margin, drops another 10% deploy another 10% margin, ... subsequently deleveraging by a similar scheme on the way back up. Are there other schemes in the same vein you are aware of which are profitable?
Would it instead make more sense to wait for the market trend to reverse before deploying margin? For example, say you sit idly while the market drops 30%. Then you wait for the trend to reverse (e.g. Spot price > 200 SMA) and deploy margin, perhaps in 20% increments monthly as the trend continues eventually delevaraging at a new market peak.
Thanks as always.
Given your experience, what would be reasonable parameters of a system to do this? I am thinking something along the lines of: If the market (e.g. index tracking ETF(s)) drops 10%, deploy 10% margin, drops another 10% deploy another 10% margin, ... subsequently deleveraging by a similar scheme on the way back up. Are there other schemes in the same vein you are aware of which are profitable?
Would it instead make more sense to wait for the market trend to reverse before deploying margin? For example, say you sit idly while the market drops 30%. Then you wait for the trend to reverse (e.g. Spot price > 200 SMA) and deploy margin, perhaps in 20% increments monthly as the trend continues eventually delevaraging at a new market peak.
Thanks as always.
Q: At this time which would be your Top 5 Picks for large caps and Top 5 Picks for small caps.
Thanks
Dave
Thanks
Dave
Q: Do you think that technology still has legs to it? Specifically, I am considering the FAANG stocks.
Please deduct as many credits as required.
Thank you
Please deduct as many credits as required.
Thank you
Q: I like shareholder friendly companies that routinely increase cash dividends. Here's a list of top names with an average annual growth rate above 10% from 2015-17. Is there any names here you don't like? And are there any names out there you like that aren't on my list?
Cash Dividends
2015 2016 2017 GR (%)
ZCL.TO 0.18 0.82 0.48 63.3
NFI.TO 0.61 0.89 1.30 46.0
GSY.TO 0.40 0.50 0.72 34.2
FSV.TO 0.30 0.44 0.49 27.8
CCL.B 0.30 0.40 0.46 23.8
SIS.TO 0.17 0.22 0.26 23.7
MG.TO 0.77 1.00 1.10 19.5
GIL.TO 0.26 0.31 0.37 19.3
ENGH.TO 0.46 0.54 0.64 18.0
SJ.TO 0.32 0.40 0.44 17.3
XTC.TO 0.24 0.28 0.32 15.5
DHX.B 0.06 0.07 0.08 15.5
ENB.TO 1.86 2.12 2.44 14.5
FSZ.TO 0.54 0.62 0.68 12.2
EMA.TO 1.66 1.99 2.09 12.2
HLF.TO 0.46 0.52 0.56 10.3
PBH.TO 1.38 1.52 1.68 10.3
Cash Dividends
2015 2016 2017 GR (%)
ZCL.TO 0.18 0.82 0.48 63.3
NFI.TO 0.61 0.89 1.30 46.0
GSY.TO 0.40 0.50 0.72 34.2
FSV.TO 0.30 0.44 0.49 27.8
CCL.B 0.30 0.40 0.46 23.8
SIS.TO 0.17 0.22 0.26 23.7
MG.TO 0.77 1.00 1.10 19.5
GIL.TO 0.26 0.31 0.37 19.3
ENGH.TO 0.46 0.54 0.64 18.0
SJ.TO 0.32 0.40 0.44 17.3
XTC.TO 0.24 0.28 0.32 15.5
DHX.B 0.06 0.07 0.08 15.5
ENB.TO 1.86 2.12 2.44 14.5
FSZ.TO 0.54 0.62 0.68 12.2
EMA.TO 1.66 1.99 2.09 12.2
HLF.TO 0.46 0.52 0.56 10.3
PBH.TO 1.38 1.52 1.68 10.3
Q: Hi. My portfolio has no US ETFs. I have some individual US technology, financial and industrial stocks. (total 10% weight). Now, I'm planning to sell some of my Canadian stocks and to increase US stocks to 25 to 30% weight.
I'm in the process of adding more US stocks into my well diversified portfolio. My questions are 1) Do I need to buy into every US sector? If not, what US sectors should I concentrate into buying and what other US sector should I ignore? For instance, I assume I don't need US energy and US material stocks. 2) In my US portfolio, I have GOOG, ADBE, VISA, AIG, CGNX. What others US stocks should I also add?
I'm still unsure how to incorporate US individual stocks into a portfolio. Please give guidance... Have a great day.. Thank you in advance.
I'm in the process of adding more US stocks into my well diversified portfolio. My questions are 1) Do I need to buy into every US sector? If not, what US sectors should I concentrate into buying and what other US sector should I ignore? For instance, I assume I don't need US energy and US material stocks. 2) In my US portfolio, I have GOOG, ADBE, VISA, AIG, CGNX. What others US stocks should I also add?
I'm still unsure how to incorporate US individual stocks into a portfolio. Please give guidance... Have a great day.. Thank you in advance.
Q: "1 - Is there a readily available list of all the Sector and Industry classifications which are assigned to companies. I have had no luck finding it on the internet."
The Globe publishes a list every Saturday of all the TSX sectors, the companies in every sector, and their recent and YTD performance. Does this answer the question?
The Globe publishes a list every Saturday of all the TSX sectors, the companies in every sector, and their recent and YTD performance. Does this answer the question?
Q: I am very interested in the question and answer on free cash flow. I have no doubt it is an excellent indicator but like most others, not fool proof. In looking over the list of top 10 FCF companies, I was gobsmacked by Yellow Media in the list. It is and has been a disaster for it's investors over the years.
Q: Re: your advice to Gary this morning.
Through BMO Investorline we transfer stock in-kind directly from RRSP to TFSA.
If there's insufficient cash in the RRSP, we'll contribute just enough to cover the withholding tax. So we don't have to sell any shares.
We're slowly winding down our RRSPs and transfer only enough, in low-income years, to be able to recover the withholding tax. (Seniors often have enough tax credits to make that possible.)
Through BMO Investorline we transfer stock in-kind directly from RRSP to TFSA.
If there's insufficient cash in the RRSP, we'll contribute just enough to cover the withholding tax. So we don't have to sell any shares.
We're slowly winding down our RRSPs and transfer only enough, in low-income years, to be able to recover the withholding tax. (Seniors often have enough tax credits to make that possible.)
Q: Hello 5i, My financial advisor for my RRSP is with Scotia Wealth Management and I'm not happy with him. If I want to take control of my account do you know what the procedure is? Also are there certain types of investments that can't be in a self directed account?
Q: I am going through my portfolio and finally looked at my balances per sector. Overall it isn't terrible, but I do have to make some changes. I have some Tech positions that I can lighten up and get down to 20% and I have some cash I can add. I have quite a few questions, so please take the credits needed.
Sector Percentage
Consumer Disc 11.75
Consumer Stap 6.41
Energy 7.28
Financial 16.16
Healthcare 5.12
Industrial 7.74
Tech 24.16
Materials 6.3
Telecom 3.69
Utilities 4.54
ETF's/Cash ~7
Should I consider Enbridge a Utility or Energy? Below i have it as a Utility. My other utility is BEP.UN. Should I add to one of these or add another position. They are ~2% each so I could go up on both, or add a third.
I see Magna and CCL are Consumer Disc, but can they also be considered Industrials?
For Industrial I have SIS, WSP, and QST. I was thinking of New Flyer and something else to get my industrial weighting closer to 15 %. Maybe ZCL or is that considered Energy? Or a US industrial?
Do you consider Chartwell Healthcare?(it is above)
Which sector should I focus on first and do you see anything that should be addressed right away. I know tech is heavy and the money should go to other sectors, but which area is lacking the most, Industrial, Utilities or International?
I have approx. 22% in US stocks, but I only have 1.75% IN TDB911 and about 5% in a few US ADR's for international exposure.
What ETFs should I look at to get international and emerging markets exposure?
How much of ones portfolio should go towards stocks Outside of of North America?
A lot of the companies I do own have international exposure such as CSU,MG,TOY,CCL,MX ect;
I am 39 and have fairly high risk tolerance if that makes a difference.
Thanks again for your great service and advice.
Sector Percentage
Consumer Disc 11.75
Consumer Stap 6.41
Energy 7.28
Financial 16.16
Healthcare 5.12
Industrial 7.74
Tech 24.16
Materials 6.3
Telecom 3.69
Utilities 4.54
ETF's/Cash ~7
Should I consider Enbridge a Utility or Energy? Below i have it as a Utility. My other utility is BEP.UN. Should I add to one of these or add another position. They are ~2% each so I could go up on both, or add a third.
I see Magna and CCL are Consumer Disc, but can they also be considered Industrials?
For Industrial I have SIS, WSP, and QST. I was thinking of New Flyer and something else to get my industrial weighting closer to 15 %. Maybe ZCL or is that considered Energy? Or a US industrial?
Do you consider Chartwell Healthcare?(it is above)
Which sector should I focus on first and do you see anything that should be addressed right away. I know tech is heavy and the money should go to other sectors, but which area is lacking the most, Industrial, Utilities or International?
I have approx. 22% in US stocks, but I only have 1.75% IN TDB911 and about 5% in a few US ADR's for international exposure.
What ETFs should I look at to get international and emerging markets exposure?
How much of ones portfolio should go towards stocks Outside of of North America?
A lot of the companies I do own have international exposure such as CSU,MG,TOY,CCL,MX ect;
I am 39 and have fairly high risk tolerance if that makes a difference.
Thanks again for your great service and advice.
Q: Hi Peter, Ryan & 5i Team
Re: Income Tax
When writing Covered Call Options; what is the tax rate on the money received? Income, Capital Gains, or It Depends?
Re: Income Tax
When writing Covered Call Options; what is the tax rate on the money received? Income, Capital Gains, or It Depends?
Q: With so many potential valuation and growth metrics available, it's hard to know which ones are REALLY important. I would love to use a handful (3 to 6?) of metrics that I could use to screen companies in order to create a "to buy" list.
Do you have any recommendations for a group of "must-use" metrics?
(Some that I am considering are: EV/EBITDA, PEG, Price/Cash flow, P/B, Price to Sales, P/AFFO for REITs, Debt/Equity, Dividend yield, Dividend Payout ratio, and a company's history of raising the dividend)
Would I want to use different metrics for growth vs. value companies?
Also, is there some place that I can look up a company's metrics (i.e. EV/EBITDA, P/B, etc)?
Thanks!
Do you have any recommendations for a group of "must-use" metrics?
(Some that I am considering are: EV/EBITDA, PEG, Price/Cash flow, P/B, Price to Sales, P/AFFO for REITs, Debt/Equity, Dividend yield, Dividend Payout ratio, and a company's history of raising the dividend)
Would I want to use different metrics for growth vs. value companies?
Also, is there some place that I can look up a company's metrics (i.e. EV/EBITDA, P/B, etc)?
Thanks!