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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: Regarding asset allocation, I need to do some trimming and adding. I need to trim RY and use the proceeds to add to ZWE. In a perfect world, I'd like to nail both dividends, so I wanted to bounce the plan past you.

The ex-div date for RY is Oct 25 and the ex-div date for ZWE is Oct 27. So that means I would get the RY dividend if I sell on or after Oct 25. I would get the ZWE dividend if I buy on or before Oct 26. Did I get this right? Thanks, Steve
Read Answer Asked by Stephen on October 20, 2017
Q: Hi 5i:
Thank you for the continued great advice, insight, and the opportunity to renew at the existing membership rates.
I would like your opinion on an article in the Globe and Mail last week – Scotiabank’s AT1 security a hit; other banks expected to follow suit.
BNS issued 1.25B$ internationally through a sale of a new hybrid security that has many of the attributes of a preferred share, but is legally classified as debt. This note qualifies as additional tier 1 capital, pays interest at 4.65% for 5 years and floating thereafter, has no scheduled maturity and converts into equity in times of distress. The new hybrid security also gets around the 25% tax on any passive income generated by investors who are not resident of Canada.
There are more details in the article.
If other banks follow suit what do you think will be the effect on the retail rate reset preferred share market in Canada? Would there be a probability of the banks redeeming their preferred shares currently issued when the first redemption option comes due and replacing with this new hybrid instrument?
Thank you.








Read Answer Asked by Dennis on October 20, 2017
Q: My wife and I are retired and are income investors. We are considering reducing our 35% bank exposure. These investments have done very well over the years and we do not want to reduce the quality of our portfolio, but think that perhaps a little more diversification would be desirable.

We are looking for one or two non-large-cap Canadian companies with a growing dividend/distribution preferably greater than 3.5% for a very long-term if not forever hold. We want to avoid more financials, utilities, and retail, office, industrial, and apartment REITs.

Some possible purchases we have identified are: KPT, ITP, CSH, ZCL, AGU, BIP, HLF, BEP, UFS, BPF, AND NWC.

What do you think of reducing our exposure to banks and buying some non-large-cap companies?

What do you think of our list of possibilities? Do you have any other suggestions? If you have two or three good candidate suggestions that would be great.

As always, thanks!
Read Answer Asked by Doug on October 20, 2017
Q: I bought NMX in 2015 at .36 and sold it in 2016 for 1.84 then bought it back again at $1.09. It is up 60% since July. With today's surge it has reached 10% of my portfolio. Again. But compared with similar projects it is undervalued (ie Mason LLG.X that is at 2.25 and is no where near starting production). My dilemma is do I hold on or take profit. I am well diversified and going to retire in 60 days.

Thank you for your input!
Read Answer Asked by Bryan on October 20, 2017
Q: I'm looking to establish a position in the tech sector. I'd prefer something with a reasonable valuation, good growth prospects and insider ownership. I see on BNN today you recommend both CLS and ABT. Are either of those a fit for my criteria or would you suggest something different?
Read Answer Asked by Rob on October 20, 2017
Q: Hello 5I; After checking my percentage of portfolio in each category I find I only have 2 percent in Energy> I have the above 4 positions with the largest in Keyera. Reading questions and answers I see you recommend 10 percent. Would you agree with my positions and would be obliged if you would recommend others or even the renewable energy space. Thank you for your time. Barbara
Read Answer Asked by Barbara on October 20, 2017
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