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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: Hi, looking at the financial sector. I have TD and IFC and looking to add another. The options I am looking at is another Canadian bank that benefits from US exposure (RY), a US bank (JPM) or ETF of banks (ZBK), or diversifying away from North America to a major UK (LYG) or European (ING) bank. My objective is downside safety paired with dividend income and some growth. I realize global stocks aren't your focus, but would appreciate any thoughts you might have on relative merits of these stocks.
Read Answer Asked by Benjamin on March 13, 2024
Q: Peter and His Wonder Team
I know this is not a fair question but I would appreciate your opinion which is always helpful. I have held this stock for several years and am even. I will spare you of all the metrics...Please.. just your over view will suffice. Is this large bank a legitimate long term contrarian hold, a value trap or just "dead-money"? HA! HA! Thanks as usual!
Read Answer Asked by Ernest on November 13, 2023
Q: Good morning,

I have questions regarding the taxation of foreign dividends. I know that for US dividends, the 15 % tax does not apply for stocks held in a RRSP, but does so in a TSFA or regular account.

- What about non US stocks listed in the US? Are they simply treated as a US stock since they are listed in the US or do other rules apply depending on where the company is based? Good examples would be stocks like LYG (UK) or BABA (China).

- More generally, is the deduction applied automatically when the dividend is paid or does it have to be declared manually by the shareholder on its annual tax report?

I understand fiscal matters are not your specialization, but I figure you or other members might have had the same questions at some point.

Thank you!

Read Answer Asked by Pierre-Charles on August 16, 2018
Q: I currently have a full position in BNS & 1/3 in LB, can you recommend some foreign banks that I could buy on the NYSE that you feel are more undervalued than their North American counterparts and may offer good equity growth. Risk is not a huge concern but if you could outline that as well for any recommendations that would be great and if you feel taking a position would be ok. I understand this isn't 5i's focus but any suggestions would be appreciated.
Craig
Read Answer Asked by Craig on January 26, 2018
Q: Hello Peter,
How do you think the euro zone stock markets will perform compared to the US market over the next 6 months? My only exposure to a European company is Garmin; which i bought after reading your piece , in Globe and Mail. I have done well and am wondering if you have any other recommendations that I can use to add to my Europe exposure?
Regards.
Read Answer Asked by Rajiv on December 08, 2017
Q: My allocation to US financials is higher than I had planned at approximately 26 to 28%. I do not HAVE to sell, not having strong ideas where to redeploy. However, subject to your input, I thought it might be prudent to sell or trim. (Selling or trimming would also provide cash reserve in case markets faint-- although 'gathering' dry powder is often counter productive). I ask your input, with reasons, on which of the following financials you would trim or let go entirely:
- WFC ; KIE (US insurance ETF) ; Lloyds Bank London (the ADR listed as LYG)
- KKR; BX (Blackstone)

I read various reports and did research. I didn’t find THAT much that I didn't like in the above. I am hoping you can tell me which ones are likely to show least total return, and why. I’d be grateful for your suggestions supported by your reasoning and any other thoughts you have. Many thanks
Read Answer Asked by Adam on November 15, 2017
Q: Just a comment on the answer you gave to the question posed by Kolbi on Llloyds bank. Unless the rules have changed very recently I believe the UK has no witholding tax on dividends paid to foreign residents. UK residents have a $10K dividend tax free allowance (reducing to $4K next year) after which they are taxed 7.5%. Don't feel to sorry for them though, their TFSA is $40K a year!
Read Answer Asked by Andrew on October 31, 2017
Q: Would you kindly rank the following bank ADRs: LYG, SAN, IBN, for a the next year or two, and your rationale. They are potential buys within a TFSA. I realize the currency conversion and dividend tax are major drawbacks. But the single digit prices of these ADRs and apparent change in sentiment for the financial sector in Europe, as well as the sentiment in emerging markets, as well as India in particular is currently compelling to me. What are your thoughts. I'm leery of etf's these days, for example XID. Too many piling into etf's may not end well in my opinion. Finally I'm also curious whether your opinion of Fairfax India has become more favourable at all since the last question on it was answered. To me Fairfax India avoids currency conversion and potentially benefits from watsas knowledge and resources. What are your thoughts
Read Answer Asked by Vicki L on May 29, 2017
Q: Hi Peter and Ryan, I have held Lloyds and Santander for a long time still down 35%. Should I sell both due to the uncertainty of Briex and buy some more BAC, C, TD, BNS That are also held in equal amounts. US Banks are ADR's.
Do you know when Lloyds will receive the next Dividend and how much it will be ?
Thank you, to you and all your staff for excellent advice, I have all the stocks in your Balanced and Growth Portfolio's and the best performance I've ever had. --- Ian
Read Answer Asked by Ian on March 31, 2017
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