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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: I am down significantly on these ETF's, down 17% with distribution included on ZPR with it representing 3.6% of my portfolio and down 7% on ZLI or 0.8% with distribution with ZLI representing 3.1% of the portfolio. These were added prior to the rising interest rate environment with the desire for income. Given the unit price have declined so significantly on ZPR (24%), would it be a good move to average down on this ETF in this interest rate sensitive environment? At least the ZPR is mainly held outside registered accounts so the significant capital loss could be used to offset other gains if I was to sell? What would you do with these funds at this point? Hold, Sell, Average down or...?
Read Answer Asked by Andrew on July 15, 2023
Q: What am I missing about PBH: high crazy debt, low ROE, high P/R . High interest rates must be hurting them with all this debt. I never bought because it always seems expensive. My neighbour and his LP have held 7% shares for many years - bought low single digits. I should have listened to him all those many years ago - LOL.. Too expensive to buy now as I can get better returns in banks: capital and compounding dividends. Just curious on your comments. I thought ofd buying at $79.00 and, of course did not do so.
Read Answer Asked by James on July 14, 2023
Q: Hello 5i,
In a previous answer you indicated that DE could be purchased in a range somewhat below $6.30 per share as I recall. I initiated a position slightly under that and now need to add my next tranche. Since that time, however, they have raised their dividend and the share price is now around $7.30. The short term chart is fairly strong. The question is: what would now be an attractive entry point for my second tranche? Should I try and wait for a pull-back of some sort or just bite the bullet and proceed?
Thanks!!
Cheers,
Mike
Read Answer Asked by Mike on July 14, 2023
Q: 10:31 AM 7/11/2023
We would appreciate Peter's opinion because we are concerned about the litany of advice we hear against large portfolio concentrations in individual stocks or sectors because we are repeatedly told this is bad.

But in your answer to Angelo's question on the 7 giant US technology companies on June 23rd 23 you said "some investors like concentration. In fact, done right, concentration is one of the better ways to increase wealth. But for a general investor, we would suggest a cap of about 30% here.

5i seem to be content with 15% in the Brookfields

June 22nd to James you said "We typically get nervous as our [individual] weightings approach 10% and caution against a 'one stock' portfolio".

In our own portfolios of Canadian stocks, as long term forever holders would not the same logic apply to hold a 30% or more weighting in the 5 big Canadian Banks through all the ups and downs of the markets, for steady dividend income with some growth?

One family member has comfortably held RY since 1968 and 10 shares bought 55 years ago have grown to 326 shares today through 4 stock splits and dividend reinvestment when available, and never regretted or worried about it.

The same logic must surely apply to holding other large sector positions: 15% in 3 Pipelines, 35% in 7 Utilities, and 2 Telecoms.

I know most Brokers and Advisors like to advocate "diversification" and "trimming" and switching to "hot" sectors but it seems to me that much of these strategies are designed, even with the best of intentions, to just encourage trading and switching to generate fees.

So Peter's best advice please - in the end how bad is it to just hold a concentrated Canadian Blue Chip portfolio in Financials, Pipelines, Utilities, and Telecoms with a small 15% scattering in some other sectors? This way we have few worries, no foreign currency risk, miss the thrilling scary ups and the frightening crashes [like Nortel and Concordia], but sleep at night.

Thank you............ Paul W. K.
Read Answer Asked by Paul on July 14, 2023
Q: Hi All,
I have recently bought TRP and it has been falling ever since. I don't know whether I should continue to hold on to it and hope that this downward trend will reverse itself or sell and move on to something with more momentum?
Will the completion of the Keystone Pipeline inspire some upward movement in the stock? Also is the dividend safe?
Thanks for your valued opinion.
Jane
Read Answer Asked by Jane on July 14, 2023
Q: What is your opinion on the insurance providers currently and future outlook? I had owned MFC a couple of years ago for a number of years where the money was essentially dead money the entire time. I was lucky enough to get out with a small profit back then and now I am looking to re-enter this space.

In the past few years with the lower bond yields I think this played a huge part in the performance of these companies but now with the rapid rise in yields will these have a breakout going forward? Is SLF still your favorite? As always thanks, your opinion is always appreciated
Read Answer Asked by Kolbi on July 14, 2023
Q: TD advises that "growth at LEG (Leggatt & Platt) is below the industry average, and worse, is declining. The most recent EPS was $2.00, a decrease of -32.4% YOY.

Should I be kicking this one out of US portion of portfolio? If so, why?

Looking for steady income in US dollars.

If I'm kicking out LEG, what else might you suggest?

Thanks.

Read Answer Asked by Sylvia on July 14, 2023
Q: I have 2 unregistered accounts and hold too much money in HISAs. I would like to invest more in Horizon's total return ETFs that pay no distributions. I have been looking at HBB but the chart looks nothing like similar Canadian bond etfs. Today, July 10th, HBB is trading at the same level it did 5 years ago but XBB is 13% lower today, VAB 13% lower and ZAG 15.2% lower. Can you explain this large difference? Should HBB now track in a similar way to XBB? Thanks!
Read Answer Asked by Grant on July 13, 2023
Q: For tax reasons, I want to buy some ETFs or stocks in my unregistered account, that pay little or no dividends. Which of the Horizon's total return ETFs would you recommend at this time? HSAV seems to be really unstable and I am concerned it could be a money loser in the short term. I read in the G & M that the manager of Langsford Wealth Counsel in Oakville has been buying HXDM with better valuation than the US. Thanks!
Read Answer Asked by Grant on July 13, 2023
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