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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: In a question from Darren on living off dividends in retirement, your answer did not mention the punitive tax treatment of dividends with respect to OAS clawback. I would appreciate your comments on this. My understanding is that the preferential tax treatment of dividend income is that it is based on an dividend payments by companies on earnings after the company has paid tax on its net revenues and the favourable tax treatment to the individual investor is only to level the overall CRA tax take. Why then are seniors being hit double with tax.

I have benefited greatly from your expertise and the daily dialogue in the Q&A. Thank you.

Cyril
Read Answer Asked by Pat & Cyril on March 23, 2016
Q: Hi Peter and Staff,

If I bought a stock, and never added to the position, but later sold it to generate a tax loss, am I correct in assuming that the Adjusted Cost Base (ACB) and the Book Value are one and the same? My broker supplied only book values. (I'm assuming that CRA considers ACB and Book Value to be different when an investor continues to add to a position, either through trading, or when enrolled in a DRIP program.) Am I correct? Is this why some advisors recommend that in order to simplify your tax return, you shouldn't enroll in a DRIP in a non-registered account? Or is calculating ACB when you DRIP easier than these advisors suggest?

Thanks as always for the valued advice.
Read Answer Asked by Jerry on March 23, 2016
Q: Peter and team,

I have holdings largely in line with the balanced equity portfolio. I've been considering adding some US stocks like SBUX, APPL, etc., but I have a question. If one holds the BE portfolio, is there really a need to add more US/global names? It seems the names in the BE portfolio have well diversified earnings sources and do business all over the world. Are we really adding anything with the out-of-Canada stocks?

Thanks
Read Answer Asked by Marc on March 23, 2016
Q: Help! I'm not an analyst or an accountant and I'm trying to do the calculations for EV/DACF on my oil stocks. I have added preferred shares to my EV less working capital(just added this recently). DACF= CFO+financing costs + exploration expences. Income tax and interest expences are already included in CFO so I'm not sure if I should be adding them in again? Would it work just to add financing activities and investing activities to CFO to get DACF. My head is swirling but i am determined to get it right. Need your help badly. Thank you for your service.
Read Answer Asked by Cheryl on March 22, 2016
Q: hi experts; what are the chances of getting paid out when it comes due next year?thanks brian
Read Answer Asked by brian on March 22, 2016
Q: Dear Team,
how would you rate these two biotech stocks? Trillium, having received financing, is now considered a 'strong buy'.
Thank you for your input!
Read Answer Asked by Sigrid on March 22, 2016
Q: Hi, I've read your bullish comments on a stock I've owned for years, PBH. If you look at a chart of PBH, it recently seems to be parabolic, which is usually a very bad sign for a stocks future.

Comments?
Read Answer Asked by Graeme on March 22, 2016
Q: Would like your view on pli after today's news,
sounds promising. Expensive here?
Thanks
Read Answer Asked by howard on March 22, 2016
Q: Your rating on this stock puzzles'me at a b+ the stock is range bound and illiquid when one gets in very difficult and expensive .RPI.un is rated at a C+ and has much the same problems with liquidity but much more growth and just increased its dividend .I hold both these stocks but the latter is a far better performer with a whole letter grade lower by your system
Your rating metrics confuse me .
Regards Stan
Read Answer Asked by Stan on March 22, 2016
Q: So, following up on David's question, any idea why current price is so much less than the offer price ?
Read Answer Asked by Don on March 22, 2016
Q: Please identify CAD hedged ETFs that track the world index, the way that VT does (VT would work, but it is only offered in
USD). I just looked up VXC (all world except Canada) but it is not identified by Vanguard as being CAD hedged.
If one ETF will not do the job, please list a basket and I'll buy the separate ETFs in a ratio to match VT. The important part is that the ETFs suggested be Cad Hedged.
Also, I plan to put this strategy to work in a TFSA. Are there any tax consequences I should consider at the outset?
There has been much written at 5i over hedging. What would be 5i ETF strategy for global coverage, in a TFSA, for a long term hold?
Read Answer Asked by Kat on March 22, 2016
Q: AMGN seems to have a broader range of products on the market than GILD which appears to be hepatitis-c drug weighted, so why is AMGN not the better stock to purchase in your view? Thanks for your take vis-a-vis these two US stocks.
Read Answer Asked by Doug on March 22, 2016
Q: What do you think of INN.UN? And do you see it benefiting from a low CAD?
Thanks.
(Sorry if this question got posted twice - my internet wasn't working and I'm not sure if it went though the first time).
Read Answer Asked by Arthur on March 22, 2016
Q: Would buying while the company is restructuring and looking at cutting costs be considered a risky move? Should I wait until a few quarters pass so that the stock can prove itself? What are your current thoughts on the company overall?
Read Answer Asked by Grant on March 22, 2016
Q: How does the valuation of Fairfax compare to other insurance companies such as Sun Life and Manulife? And how does the future earnings growth rate in the next 5 years compare to these two companies? Thanks.
Read Answer Asked by Michael on March 22, 2016
Q: Hi Peter and Team - Would you be able to give me an update on Mirasol Resources, regarding both their balance sheet and their properties. This is one of Brent Cook's recommendations. I have seen him interviewed on BNN a few times and have been quite impressed with his knowledge and general approach to investing in junior gold companies. Am just wondering if you have had any experience with his success in this field. Thanks.
Read Answer Asked by Rob on March 22, 2016
Q: I have 50k in ZDV and 50K in ZPR, now wondering what to do with additional money I want to contribute on a weekly/monthly basis. I am thinking of adding XEI,or ZRE but not sure. I like continuous income that I can re-invest while my underlying security rises. I was also thinking of investing for international diversification but I will not get the dividend tax advantage, so also looking at taxes. I can always continue to add to my existing positions, sitting on the fence not knowing which side to go. Any suggestions for a middle aged man.
Read Answer Asked by Nino on March 22, 2016
Q: How did the earnings look to you and would you put money in to it.
Read Answer Asked by Tom on March 22, 2016
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