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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: WPT Industrial REIT was bought by Blackstone on Oct 22, and I was surprised to see the breakdown of purchase details. Of the $22.00 purchase price, approx 19% was paid as disposition price and 81% as a giant dividend. This seems very unusual and costs the holder a chunk of money reflecting difference between dividend and cap gain taxation. I must say this seems unfair. Any comments?

Read Answer Asked by richard on October 27, 2021

Q: Thank you for reading my question
I’m looking for warehouse stocks. Can you share a few from the US and any in Canada

Appreciate all your time and attention

Read Answer Asked by Marla on October 27, 2021

Q: Decision time...all because WIR.UN is being acquired. When WIR.UN was bought in Cdn loonies, I flipped it to the US dollar side of the account. Now will have US dollars to top up one or more of 44 US positions. But which ones? Like BLK, a very large asset manager with exposure to index ETF that has held up well. Or a specialty retailer, DG. Or TDOC that looks to have a bright future but is down at the moment market price wise. Or finally, XYL with it's water machinery and it has market momentum at this time. Me, looking for your take....like which one or some of these at this time or any others US ones you are excited about. Many thanks for your insights, aka guidance to me.........Tom

Read Answer Asked by Tom on August 10, 2021

Q: I see these 2 REITs have been compared before, however they have both moved up lately and I am considering a long term holding 5+ years and would like your opinion which you think is positioned to grow more?
I am looking for industrial do you prefer a different canadian reit?

Read Answer Asked by Lee on June 22, 2021

Q: Hi,

Im looking for an investment thats fairly stable, with some income, some growth and should do well in the next few years. I own no REITS, and no industrials presently.

Can you recommend 2 CDN REITS I should consider? If you have better options than the ones I listed, what else should I consider?

Can you recommend two US REITS as well?

Read Answer Asked by Graeme on May 18, 2021

Q: Hi Guys

I believe in the space REIT's you prefer apartment and Industrial REITS these days. Looking at the Industrial REITS can you let me know which company you would prefer today given their current valuations and stock price they are trading at? I am looking at a long term hold - so out at least 5 years, and looking at total return, hopefully a nice dividend but also a track record of increasing dividend and a solid management team.
Thanks so much

Stuart

Read Answer Asked by Stuart on February 17, 2021

Q: "WIR's historical tax allocation has been 40% foreign non business income and 60% return of capital (ROC). ROC is included in the distribution and is not a separate payout. There certainly is no Canadian dividend tax credit. We would be fine with this in a cash account".
One more question on this CDN Cie !
I keep WIR.UN in my non registered account, since 1) the dividend is excellent and 2) The Cie is well positioned ,are those 2 arguments are enough to justify keeping WIR,UN in my non registered account and to pay the 15% US withholding tax + CDN tax ? any other argument ? since the dividend is 4.8% -15% US tax - CDN tax on 40% foreign non business income ? Thanks again !

Read Answer Asked by Jean-Yves on January 25, 2021

Q: I just moved my RRSP over to Questrade from PH&N and have lots of cash to deploy (5+ year time line). For tax efficiency, I want to hold REITs, bonds, interest investments, US div stocks/ETFs, royalty income funds or any other investments that are not tax efficient in my MARGIN, TFSA and CORP accounts.
(1) Industrial REITs: I have half positions in DIR, GRT - should I diversify and also take positions in WIR and SMU or focus on DIR and GRT?
(2) Other REITs: Can you recommend any other quality value REITs? Is it a good time to invest in residential REITs?
(3) Can you recommend a good high yield bond ETF that has performed as well as PH&N High Yield Bond?
(4) Can you recommend some good value US div stocks (preferred) or ETFs? I am considering ABBV, PG, VZ.
Many thanks for any/all suggestions/comments!!!

Read Answer Asked by Grant on January 19, 2021

Q: Thanks for your aswer for WIR :" historical tax allocation has been 40% foreign non business income and 60% return of capital (ROC). ROC is included in the distribution and is not a separate payout. There certainly is no Canadian dividend tax credit. We would be fine with this in a cash account. With the ROC component, this shifts a portion of income to capital gains tax treatment, as this portion lowers the ACB of the investment. In an "RRSP from a tax perspective the currency of the account does not matter: there is no withholding tax in the RRSP. But since distributions are paid in US funds, holding in a US dollar account will save on f/x conversion fees. #5 They are the same thing, one trades in Canadian dollars. There is no advantage of one vs the other."
Does this means that: 1) I should ask for the tax credit for the 15% US tax ? and 2) most important thing ,will be the income tax (T5) be automatically calculated ONLY on approximatively 40% of the total year distribution, and not on the entire distribution ? 3)nb: I notice in my account that the 15% US tax is calculated on all the distribution and not just the dividend ! normal ?
In such case it is OK to keep in in my non registerd account as you mentionned !

Read Answer Asked by Jean-Yves on January 18, 2021

Q: WPT (WIR.UN.WIR.U) is a Canadian Cie having its business in the USA, but in this case it is mentionned :
« Distributions paid by the REIT to a Canadian unitholder that are made out of the REIT's "current or accumulated earnings and profits" (as determined for U.S. federal income tax purposes) generally will be subject to U.S. withholding tax at a rate of 15% (generally reduced to 0% for RRSPs). »
1) Does it mean that there is no Canadian tax credit on dividends, but only a foreign tax credit for this stock for the US 15% tax?
2) The US withholding tax is taken monthly in my non registered account, it is indeed around 15% of the dividend (5% per year div.). What about the capital distribution: is it paid on top of the 5% dividend, as a deposit in my account or within the REIT itself?
3) Is it worthen to keep this(excellent?) stock in a non registered account?
4) If it were in a RRSP, should it be in the US account (OTC) to avoid US Tax, or it may be kept in the Canadian account and shall not be taxed ?
5) Is there any advantage for WIR.UN vs WIR.U? Thanks a lot

Read Answer Asked by Jean-Yves on January 16, 2021

Q: Looking for your thoughts on a Canadian Industrial Reit. As an income seeker, yield is important but looking for some distribution growth as well.
How would you rank the above? And are there any others I have missed that you might prefer?
Thanks for your great content
Chuck

Read Answer Asked by Charles on January 07, 2021