Investment Q&A

Q: Can you comment on the current attractiveness of RIO as both an income and growth investment?

Q: I am interested in stocks in the material sector, both US and Canada. Any ideas and suggestions?

Q: My portfolio analysis indicates I am somewhat uderweight in basic material. My present holdings are FNV and NTR. Now that I am retired, my risk level should be considered low to moderate. Dividends are not particularly important. Could you suggest 2 or 3 companies in that sector that have good prospects over the next 5 years. If none are particularly interesting at this time, I would rather wait. In the same vein, could I suggest adding the option of searching by specific sectors in Questions? Thank you.

Q: Hi 5i, I'm invested in Nestle and like the diversification and div. but the problem is the fees my broker charges me when I receive the dividend they take approx. one third of it even though its in an RRSP. Guess the tax treaty with the US doesn't matter here. Can you give me another suggestion and do you know if the international ETFs have this problem?

Q: I hold the above 2 in the basic materials sector. Both are involved in copper production with Teck about to increase its exposure to the metal materially by year end. Copper is known as an economic indicator and the worry was in late 2021 that a drop below $4.20 would indicate a worsening economy. Currently, the price is $4.57 with a high in 2022 of almost $5.00 so as of now the economic signal has not turned negative where copper is concerned, however the inversion of the yield curve indicates otherwise. With both of these stocks at or near 52 week highs would it be wise to sell now before copper turns down before economic conditions worsen?

Q: With the surge in commodity prices I bought positions in BHP and RIO. My portfolio is well diversified and mainly in value supported by yield. BHP and RIO combined only represent 3.3% of the total portfolio.
What concerns me at this point is the current noise about a potential recession later this year. That could hit metals and minerals fairly hard, particularly if the recession, if it happens, is worldwide. Spending on infrastructure construction as well as the demand for manufactured products could decrease substantially.
My first question is whether you support this scenario of a late 2022 recession. My second, obviously, is whether it's time to trim, sell, or just chill and ride out any downturn in the economy as I generally do. I do like the dividends of both RIO and BHP although they could easily be cut.

Q: Great dividend payers, what do you think of a basket of these three?

Q: If one is to consider commodity exposure, do you have any recommendations? TECK or RIO or both? Thanks.

Q: I hold two major mining companies based on inflation expectations and yield.

With the current conflict in Europe came a surge in commodity prices and the threat of sanctions against the major Russian production of such strategic metals as aluminum.

I looked at the operations of both companies and didn't see anything significant in Russia that might suffer from sanctions or even expropriation. I would have expected both to move sharply higher.

They both dropped with the invasion of Ukraine. I'm missing something. What is it?

Q: Regarding Brad's question about RIO's dividend: according to its report, RIO is paying out on April 10 its final semi-annual dividend of 306.72 pence ($4.17US) and a special dividend of 45.60 pence ($0.62US). The $10.40 that Brad mentioned is the total annual 2021 dividend which includes the interim and special dividend that was paid out last summer.

Q: Good morning,

Looking to understand the Rio Tinto dividend announcement- are they declaring a new $10.40 div or are they summarizing the cumulative dividends for 2021?

Thank you

Q: My total holdings are highly diversified across the sectors. I have some cash in a USD RRSP so dividends and some growth is welcome. I am looking to RIO, TECK, WFG, WMB and CCJ for their respective thematic relevance over a 3 -5 yr hold and would appreciate your comments on your one or two more favoured of this list.

My thanks.

Q: In my total holdings, I am very well diversified across sectors (perhaps need to increase Industrials). Specifically, in an USD RRSP acc't, I am 20% cash after some adjustments (high-grading and trimming).

In this acc't, I am considering WFG, CCJ, RIO for the thematic and fundamental merits of each of the three. Which might hold the best growth possibilities going forward and why?

My thanks.

Q: Are the dividends sustainable?

Q: What companies mine both gold and copper? Which ones are recommended?

Q: I suspect these companies will be important as technology advances and we need those raw materials. Thoughts on that? Also the yields seem very high are they covered by cash flow or are the higher yields a reflection of the low share price?

Q: Peter & Co,
Nickel 28's Stock price (C$0.89) certainly does not appear to reflect the production, production growth, earnings or earnings growth of this nickel/cobalt miner.

EPS – Q3 US$0.07/share, Q1-3 US$0.19/share

P/E – 2.74x (assuming Q4 similar to Q3 and converting US$ to C$)

Debt - $79 million, down from 107.1 in Q3 2020

Cash – US$3.84 million

Product Pricing – Nickel and cobalt pricing is very strong and is projected to remain so.

I find this stock price to be very frustrating. What problem am I missing? Chinese partner? Venture Exchange? Microcap? Illiquid? Geography?
With appreciation,
Ed

Q: If there is no withholding tax on this stock’s dividends, would you recommend it over BHP? Thank you, Bill

Q: I bought RIO at around $76 US and it has been going down ever since. I plan to hold on to this stock for 3+ years and just wondering if this is sector related?
If it's sector or cyclical related, would you pick up a bit more at the lower price or wait until there is momentum again?

thanks,

Paul

Q: Good morning,

Looking for your insights on the why the rather poor performance since May (down by 30% or so) given inflation concerns and rising material prices.

Thank you.