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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 trying to understand the tax ramifications of return of capital. In a simple case where a fund had increased in market value by 10% and has a yeild of 10% all of which is return of capital, there would be no taxes payable. However, if I sold the fund, there would be a total of 10% payable as capital gains. As a result I have always assumed that return of capital is the best yield as long as the market price of the fund has not gone down. Am I looking at this too simplistically?
Read Answer Asked by Don on February 13, 2023
Q: I see the positive case for TCN - with higher interest rates house affordability is reduced which should bolster the rental market. But some ponderings on TCN:

1. Doesn't TCN own their properties? If so, wouldn't their asset $ go down if/when house prices drop, which seems to be the current trend?
2. Do they carry a lot of debt compared to cash flow, and if so wouldn't their interest servicing costs be higher compared to their rental revenue?

Sorry for the lazyness, I haven't done a deep dive on them and pawning it off to you!
Read Answer Asked by Kel on February 13, 2023
Q: Hi 5i, first thx for the earlier answer to a Q on MGs quarter. My question is on your view of the financial health and dividend sustainability?

Also, my feeling is that there is much pent up demand in the auto sector that didn't get fulfilled due shortages, supply issues. What would you see/forecast for 3 to 5 year hold in this company?

It's still above my cost and I love fire sales.

Thx
Read Answer Asked by Christopher on February 13, 2023
Q: I am a value dividend investor of 77 years, Portfolio analysis says I am over 20% in Financial industry. I hold BAC, BNS, FSZ, JPM, MFC, SLF, TD, X. I am up in all except one and the dividends keep rolling in. I am loath to let any go. If it is needed, please suggest a substitution.
Read Answer Asked by STANLEY on February 13, 2023
Q: I bought these two stocks years ago when you had them in your portfolio, they have gone a fair bit south since then but I am seeing some interest from analysts in these being in a buy position again.
What are your thoughts on taking a position now given the sector they are in
Read Answer Asked by Jim on February 13, 2023
Q: Good Morning,

Could you please explain how a margin account works for the newer or inexperienced members. A general explanation on costs, taxes, overall thoughts, etc would be appreciated. Thanks again.
Read Answer Asked by Darby on February 13, 2023
Q: When I put the subscription costs of 5iresearch for my income tax return under which category the money can be claimed? Portfolio manegement ?
Miroslaw
Read Answer Asked by Miroslaw on February 13, 2023
Q: Hello 5i,
In the "Managing your Prtfolio" section of the Portfolio Analysis it is mentioned that a sector should be no more than 20%, yet I am warned tht I am near 20% in an industry. What is the reason for the difference? Could it be that the industries make up a sector and here are diffeent values for industries than for sectors?
Thank you
Stanley
Read Answer Asked by STANLEY on February 13, 2023
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