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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 would like to "park" some money in a safe dividend paying stock. Your service provides lots of choices/recommendations. However, can you say with any degree of comfort which sector or particular dividend paying stocks therein would be less sensitive to an interest rate hike, and less of a bond proxy. Or, are all stocks paying a reasonable dividend subject to this risk. I was thinking of Enbridge. Thanks very much. Bill.
Read Answer Asked by Bill on May 01, 2017
Q: For the past couple of years i have been building my Canadian equity portfolio. I have approx 25 names and the portfolio is approx worth 250k with a fairly even 8-10k per name. Up until now when i added new money i just purchased a new position in a company based on sector need. Now that i am at the point of not needing any new positions i am struggling to decide which companies i should be adding my new money too. What in your opinion is the best strategy for adding new money into an established portfolio?
Read Answer Asked by justin on May 01, 2017
Q: Greetings 5i,

Looking to further enhance geographical diversification in my overall portfolio. I have fairly balanced exposure to NA, about 8% Europe, but only 1% Asia so I am looking to bring up my exposure in that region. My question is regarding exposure to India specifically. I wish to dollar cost average into this geographical region therefore I have been looking for a mutual fund rather than an ETF due to cost prohibitive transaction fees of $9.99 with my institution. What are your thoughts on Excel India Series D fund (EXL770)? I have it as No load, Mer 1.75, Min $250 and subsequent $50. Im open to suggestions and or direction keeping in mind the dollar cost averaging is preferred to me over a big initial commitment to a geographical region like this.

Cheers!
Read Answer Asked by Duane on May 01, 2017
Q: Dear 5i, I've read some good questions lately on REITs and return of capital, dividends, business income, and the adjusted cost base for these securities.
I just wanted to follow up and ask if my understanding of the different tax treatments is correct.
1. RRSP: all monies paid to the RRSP is basically exempt and no need to keep track of ROC, dividends, etc.
2. TFSA same as RRSP
3. Cash Account, monies paid to the account must be kept track of and the ACB will be reduced each time ROC is paid back to the investor.
Please confirm this means over a very long period of time the ACB could be reduced to zero or even negative? Is the ROC, Box 42 on a T3, the only amount I have to keep track of?
and another question, on BYD.UN, Why is BYD.UN allowed to operate under .UN status and in your opinion will they eventually be required to convert to a Corp.?

Read Answer Asked by Keith on May 01, 2017
Q: Just reading your response today to Brad re his BCE query and your thoughts on analysts recommendations. Could you please provide any additional comments on this as we tend to view these summaries of analysts as a reasonable guide in our thinking when buying or selling, but I'm not not sure how totally prescriptive these are. How much faith should we place in these summaries?
Read Answer Asked by Peter on May 01, 2017
Q: Just reading your response today to Brad re his BCE query and your thoughts on analysts recommendations. Could you please provide any additional comments on this as we tend to view these summaries of analysts as a reasonable guide in our thinking when buying or selling, but I'm not not sure how totally prescriptive these are. How much faith should we place in these summaries?
Thx
Read Answer Asked by Peter on May 01, 2017
Q: The first baby boomers aged 71-72 (~1945-65) will begin cashing out their RRSP's or converting them into RRIF's or purchasing an annuity, this year. As will all the major boomer shifts, it is exciting to look at and predict the impact their money will have on government (tax revenues), financial institutions, personal wealth etc. What sectors will benefit; insurance companies like (SLF), banks (BNS), brokerage/ investment firms (FSZ), other. Where will the bulk of this money flow to: fixed income (bonds, debs, gic's, savings acc's) or (pref's and dividend stocks, common stock) or annuities. I welcome your thoughts and predictions on this interesting matter.
Read Answer Asked by LARRY on May 01, 2017
Q: Very interesting article. I don't know if you have read it. The World According to a Free-Range Short Seller With Nothing to Lose.

https://www.bloomberg.com/news/features/2017-02-09/the-world-according-to-free-range-short-seller-mark-cohodes

Publish if you wish.
Read Answer Asked by Peter on May 01, 2017
Q: There is a link to an article in today's Globe by Meb Farber that calls into question the generally accepted wisdom that companies that grow their dividends are superior investments. (at least I think it is a generally accepted theory) Is this a theory that you have come across before or do you think that his argument has merit?

http://mebfaber.com/2017/04/26/dividend-growth-myth/

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on April 28, 2017
Q: I note that buyouts are increasing among the small cap stocks. Today alone Lumenpulse and Canam are going private at nice premiums. IRD also gone this month. I am not sure if this is the start of a trend. Are there any companies you would consider as buy-out targets in the next 9 months? I have my eye on Ten Peaks.
Read Answer Asked by Murray on April 28, 2017
Q: More of a feedback comment than anything else. Thank-you, thank-you for this wonderful service you provide. I have been a member of this service from the beginning, and I have followed you careers for sometime. I used to be a mutual fund investor, and overtime slowly dabbled in stocks to take control of our family finances. This service has been invaluable to me and I suspect so many others. In light of some recent company issues I wanted to reinforce the quality of this service. You may not pick all the winners, and that's not your job, but you have certainly helped this individual take control of his families investments and taught him to choose my own winners rather than throw darts and gamble. I may not ask many questions, but the information and insights on this site are outstanding. Thank-you for sharing your talents. - Cheers
Read Answer Asked by Philip on April 27, 2017
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