Investment Q&A

Q: Hi Peter,
I Would like to expand my question posted earlier. Here is the original, and your reply:

Q: Hi Peter,
I am helping my kids who are in the mid-twenties to invest. The funds will be in RRSP & in TFSA for long term. Would you please recommend a list of ETFs and/or Stocks to invest in for growth. I would like to have the portfolio diversified globally and invested into various sectors.
Thank you,

Asked by Roger on November 08, 2023
5I RESEARCH ANSWER:
We can suggest: CSU, BN, WSP, TFII, ATD, SLF for a conservative mix of stocks from differing sectors. XIC could be a general Canadian ETF, and VFV a US market ETF. We prefer international exposure to be done through an ETF. VIU is an easy solution in our view (it is ex North America).

I have a tax efficiency question. If I am holding VIU in either RRSP or TFSA, would the dividends, even distributed through DRIPs, be subject to an international withholding tax of 15%? If that is the case, do you have another suggestion for investing in an international EFT where dividends are minimized, and the value of the EFT is in growth?

Do you have a suggestion for investing in the emerging market? Again, an EFT with the similar focus on tax efficiency.

Thank you again,

Q: I hold a basket of small, speculative tech stocks, each with a small investment only in my TFSA. Those listed above are down significantly in value and I wonder whether any are worth continuing to hold? I would appreciate your views.

Q: Good Morning Peter & team,

Have $6000 to add and do not have enough exposure to chip manufacturing. Was thinking about QCOM but read a few of your comments and don't necessarily like they're dependency on cell phone. NVIDIA has had the big run up along with a few of the other popular names. Is there a late bloomer/less popular name you might recommend for a 3 - 5 year hold if not longer? Growth is the priority.

Thanks for all you do

gm

Q: Hi Peter,

I'm a bit confused re: the dividend for DRI Healthcare. Your profile shows a current dividend of about 9.6% (even higher for DHT.U) but other sources such as G&M and Morningstar show it at 3.49%.

Why the difference? Please clarify.

Many thanks for your excellent service.

David

Q: Hello 5i team,

I recently subscribed and bought a significant qty of CSU debentures @ the strike price of 133.
With the Canadian economy perhaps going into a recession? and rate cuts, how would you project the price to behave over one year? The percentage drop in price is more than the yield. Can one expect a total return of 8% for the next year? Would you suggest a sell and deploy in stocks?
Appreciate your analysis on the subject.
Regards
Rajiv

Q: Apparently there are successful fund managers that charge only a percentage of their profits and not a MER on holdings….How does one find and evaluate such folks… l

Q: Good morning - I understand that AAP is the parent of Carquest, which in our region is a well-run autocrats supplier. I know some shop owners personally and am impressed with how professionally the Carquest organization is run ( at least at the regional level). Then I look at the AAP stock history and analyst comments and it does not look great. What are your thoughts on AAP? Sleeper or stay away?

Q: Hello,

I am trying to determine whether tax loss selling would make sense in my current scenario. I have an over 20% weight position with CSU. I want to reduce this position which will trigger a large capital gain. Does is it make sense to sell my fixed income positions in CBO, XHY and VAB which will trigger a tax loss to help offset the CSU capital gain? I can also leave as is and hope the interest rate situation turns around in 2024?

Thanks for your help.

Q: Could you comment on DRM earnings and outlook? Thanks!

Q: Could you tell from which metals (gold, silver, copper, others) these royalties’stocks or ETF are getting their revenues/profits. And in what proportion? If possible, from which countries?
I own OR (gold), SSL (gold only?). Also these stocks: MAG (silver only?), FVI (silver&gold?).
I hope the question is not too complicated. Thanks a lot.

Q: Hello 5i,

Would you be buyers of Dexcom today? With the recent drop in share price do you think their growth story is attractive? Or is there too much competition in this health/tech space?

Appreciate all you do!

Q: I bought GSY at its peak. Is it time to dollar cost average now or would you wait for the price to drop more?

How do you see the stock price move if interest rates stay stable until mid 2024?

Would you recommend different stocks which pay 3-5% dividend with room to grow 50% over the next 12 - 18 months,?

Q: I have had good success with industrial reits, having held DIR.UN for several years, and having 2 other industrial reits bought out over the years with nice profits. And then there's NXR. A more recent purchase and clearly a mistake, as it is currently the highest percentage loss in my portfolio (fortunately a small holding: only about 1% - but was about 1.5% initially). Question - do you see any hope for this one, or better to just move on now that it has shown a little strength? This is in an RSP, so the loss can't be claimed. I would like to take advantage of the current relatively high yields in some better-quality names to hopefully make my RSP a little less prone to this kind of loss.
Thank-you

Q: Do you see QSR as a buy now? If so, are there other stocks in the same sector that you like better? This would be for a medium to long term hold. Thanks.

Q: The question today by George has made me question my investment set up....specifically about CDIC and FSRA insurance. I think you discussed deposit insurance in prior questions, but I can't find them.

I have the bulk of my investments with RBC Direct Investing (all of my equities), half of my fixed income in an Insured Annuity with the other half with Fisgard Capital Corp (FCC is a mortgage company). Between my wife and I we have 3 RRSPs, 2 TFSAs and 2 Cash accounts at RBC. At FCC, we have 2 RRSPs and 2 Cash accounts.

I think my set up is fine, but thought I would check to see if there are any holes.

Q#1 = what is the difference between CDIC and FSRA insurance (never heard of the latter)?
Q#2 = is the insurance related to the financial institution going belly up?
Q#3 = is there a "coverage" difference between the asset class? Like equities vs fixed income?
Q#4 = is the $100,000 coverage for each account (like RRSP, TFSA, Cash) or by account holder (husband vs wife) or by institution (RBC vs TD)?

Just to throw this out...would it be an idea to have a blog on this topic? I think it might be too big a topic to cover in this question-answer format. If you've already done one, please add a link.

Thanks for your help...Steve

Q: With the recent report showing that retail sales seem to be slowing, how vulnerable do you feel these companies will be to downward share price pressure - and your best guesstimate as to what degree and for how long?
Many thanks.

Q: Can you please comment on ECN's recent quarter which the market does not seem to like. Are you still positive on the name, and if so why and if not, why not. Finally, on a scale of 1-10, (10 being your top picks) for small cap Cnd growth names, where in the pack would ECN fall. They treated me very well for the first few years but have struggled after the special dividend and I am now worried that my expectation that they repeat their previous performance may be ill placed.

Thanks for the objective view

Scott

Q: For a 5 year plus hold, could you please compare WELL and LMN. Which one would you recommend?

Q: Hi - thoughts on where Teck’s share price goes from here? Not much of a bump with the announced sale of the coal business to Glencore, Thought we might have seen a bit more of a move up / premium on the sale. Are there any other catalysts that you can see at this time that may cause the share price to spike? Feels like things may just drift downwards/sideways for a while, especially with the cost overruns that were announced last month in other parts of their business.

Q: TECK made a big move today, selling their coal business for $9 B (US funds). Wondering what you think of the deal, and more importantly, what do you think of TECK.B as an investment now that it will be divesting the coal business. The stock rose about $3 initially on the news, but then fell back to just below the previous close, so clearly, some people were not impressed with the deal.