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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: I have a non-registered account which is invested in roughly equal weights of 13 Canadian blue chip dividend payers (NTR, RY, BNS, TCL.A, T, BCE, SLF, QSR, ENB, FTS, LNF, BEPC, AQN) and CPD. I am in the process of re-organizing it a bit and have some additional cash to invest.

I have tinkered with SYZ, FSZ and LIF in this account and none of these quite fit the profile I'm going for (steady eddies thru next economic cycle, decent and reliable dividend).

Over the last year or so, I have been tweaking this account to get it to the point where it will be very low (or no) maintenance. Game plan is to drip for another few years, then start to take the dividend in cash to live off. Capital preservation and dividend reliability are obviously key.

Looking for some guidance on choosing 2 or 3 additional holdings from the following list:
EIF (nice div, needed industrial exposure)
AW.UN or ZRE (are these OK in an open account?)
CVD or XHY (some fixed income to smooth out any upcoming lumps) or other fixed income idea.

Do CPD, CVD, XHY make sense now with tapering about to begin in the US?
All comments about this strategy and my stock selections are most welcome.

Several questions here - please take several credits


Thanks in advance,

Jim



Read Answer Asked by Jim on September 15, 2021

Q: Apparently I am not overly observant because I just realized my WSP has gone from the income stock I first purchased to a growth stock. As a result of the share price going up four-fold while the dividend remained the same I am now sitting on a big capital gain and an outsized position with a relatively low yield. In your income portfolio it sticks out for the same reason, contributing a huge “since inception” return but low yield. I would like to at least reduce it and put the funds to work in another industrial with higher yield but can’t land on anything. I want to like MAL but of course it is much smaller cap. Any suggestions? What would you replace it with in the Income Portfolio if you were so inclined?

Read Answer Asked by Stephen R. on September 09, 2021

Q: Would like to create a 10-15 stock portfolio out the securities listed above, to meet my retirement income and growth needs, for a long term hold.
CPD is my current, imperfect proxy for the fixed income portion of my portfolio.
CVE, CNQ, SU would be the only opportunistic (and highly correlated) purchases, to take advantage of the current low valuations for the petroleum industry. These would be sold if the oil & gas market's prospects change.
Please rank all the securities on the basis of return potential over 2-3 years as the primary criteria,
Please eliminate any stock which does not have adequate balance sheet strength, from the lineup.
Please add to the lineup all securites that would facilitate the creation of a defensible, well-diversified, long term portfolio - especially if it is in a sector that I have overlooked.

Thank you for your expertise, and willingness to help me sleep a bit more soundly.

Read Answer Asked by Pradeep on August 13, 2021

Q: Hi !

Would you suggest a top-five list of Canadian companies that have a monthly dividend--with an eye to capital preservation?
Perhaps the same parameters except that it would be for American companies?

Much appreciated!

DD

Read Answer Asked by D on August 12, 2021

Q: My wife has full positions of BMO, ENB, LIF, POW and RSI in her RRIF. She has some cash to deploy, looking for quality income stocks with decent dividend yields. Would you have any suggestions?

Thank you!

Read Answer Asked by Chris on July 30, 2021

Q: In an account I look after, the goals are capital preservation and income generation. There is sufficient diversification from other holdings. Some changes are required and I am considering either one of or both of EIF and TCL.A. Their market cap is below $2B; do you see them as reasonably secure and stable. If you had to choose only one, what would you go for? Thank you for your excellent service.

Read Answer Asked by Leonard on July 30, 2021

Q: Wow, that was some news about EIF's acquisitions. Good for EIF...and thanks for your previous comment to me about not seeing any reason to change (May 17, 2021).......Now with a weighting of 2.3% but with a risk rating that I would say is 3, moving up to 4 out of 5, I'm pondering increasing my EIF weighting....Me, like the 5.67% dividend, too.......What say you, aka your take please!!!......Tom

Read Answer Asked by Tom on July 06, 2021

Q: On May 17th, your response was "EIF and FSZ as well, though those may be considered 'just' income with perhaps less capital gains potential." With that comment, I thought I might realize the gain on EIF, like 30%....and then redeploy it elsewhere.I say this as the chart shows EIF runs up and then pulls back...and at the moment, it might be topping. Within my income portfolio, EIF weighting is OK. Without considering the income tax implications, am I wise to do it, trim the gain, or as EIF would be a long-term hold with a dividend nearly 6% and expecting to hold until the fundamentals change, just do nothing?......Appreciate your insight on this.....Tom

Read Answer Asked by Tom on May 19, 2021

Q: This is my margin portfolio, all position weightings are between 3%-5%.

The projected yield is 3.31% with a 3-5 year hold.

I realize 24 positions is a bit overkill but I can't seem to choose which to remove, which would you recommend?

What positions would you add to the portfolio?

Take as many credits as needed.

Thanks for the great service

Read Answer Asked by Robert on April 26, 2021