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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: AEG seems unusual in terms of its extremely low dividend payment to cash flow ratio, price/book, and other ratios. Its 12% 3 year dividend growth average is very attractive. However, the negative earnings, etc. are concerning. Is this a stock you would buy? Which North American insurers would be more desirable for growth/safety of dividend?
Read Answer Asked by David on September 28, 2023
Q: Hi 5i
I am a little overweight in financials, about 2% each in above Canadian names and about 1% each in US names.

I am underweight real estate / property.

I would like to sell a financial. Probably MFC which essentially has paid me a nice dividend for a few years but hasn't really had a significant gain. Selling would provide a small capital loss that I could use. Certainly recent market downdraft has been a factor.

Would you agree that MFC is the one to sell?

2nd question is which real estate stock(s) or REITS to replace up to 2% of portfolio or simply go to ETF ZRE which is in the income portfolio.
I prefer individual - your favoured 2 or 3 but would definitely consider this ETF w good yield.

Criteria for buy(s) are (for retiree.)
(a) high yield i.e. 4% or more, mainly to replace income from MFC.
(b) low overall long term risk as compared to other REITs and
(c) low to modest growth.

re Reits buy all now or average in over 3 to 6 months?

Please subtract as many credits as you see fit.
Thank you for always helpful advice.
Read Answer Asked by Tulio on October 13, 2022
Q: Peter and His Wonder Team
I am cleaning up the portfolio and have decided to sell one of these stocks. Which of these 2 financial institutions, in your opinion would be a better keep in terms of security and upside. I know these are outside of your scope but I do appreciate your thoughts. Thanks!
Read Answer Asked by Ernest on March 08, 2022
Q: I have quite a lot of financials, mostly Canadian banks and insurers with about 20% US. Would like to sell down some and buy something with some more growth in the payment section but still relatively conservative.
Would you recommend one of MA, V, Pypl or other financial as currently looks like a buying opportunity?
Thank you.
Read Answer Asked by Tulio on January 10, 2022
Q: I would like to add a few (2-4) financial companies to my non-registered investment portfolio. Would appreciate 5i's help in ranking the above names based on total return potential for a 3-5 year hold. Please add any names you feel belong to the lineup, ranked appropriately, Thank you.
Read Answer Asked by Pradeep on August 18, 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: I own Sun life but would like to add another growing insurer that pays a decent dividend. I am considering buying any one of the above or perhaps you would offer another better qualified company. Much thanks. Maureen
Read Answer Asked by Maureen on September 21, 2018
Q: I currently have a half position in CXI, I also have an almost full position in ECN. CXI isn't doing very much and I was thinking of moving the funds from CXI to ECN. Which one has the better potential?

I have Aegon ADR for a few years now. It is now moving in the right direction, but I am still down on it (in SDRSP). Is it worth holding or do you have some other International Financial companies that you think are better?

Lastly I have a half position in Alacer. Is it worth hanging on to, or would a switch to FNV or Anigco be better?

Read Answer Asked by Colin on January 24, 2018
Q: I have about 35 % in the above stocks in my TFSA and they have gone up nicely. The rest of my TFSA portfolio is following loosely your income portfolio ( + ZPW, ZWE, ZWH etc). My question is whether I should lower my exposure to the financial sector above?
Do you have some suggestions as to which US companies I could buy were I to sell some of the banks. I bought the US banks for growth as the rest of the stocks on the Can. side are mostly income producers.I already own Alphabet, Apple, Microsoft and Visa in my RRSP.
Thank you for your answer.
Read Answer Asked by Heidrun on October 31, 2017
Q: Aegon's latest press release stated the company will purchase 52 million shares to offset the dilutive effect of 2016 end year and 2017 interim stock dividends. Why didn't the company just pay and continue to pay cash dividends? It seems they are complicating what should a fairly routine process. Is there a tax benefit for the company by doing all of this?
Read Answer Asked by Kenneth on September 29, 2017