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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 have an RRSP account that I have had for years with only mutual funds in it. It doesn't have very much growth and I'd like to do something else with the money, but don't want to pay it a lot of attention, but rather let it sit in the background and grow for the next 15-20 years. It represents about 25% of my total holdings. All my other accounts are fairly balanced, mostly with your recommendations, but I realize I have no REITS at all. I'm wondering about rolling this one into a group of solid dividend producing REITS. Are you able to mention 5 or so that would be diverse and relatively safe for this kind of hold? If you find 20% too large of a position for REITS please suggest some other larger stable co's that I could buy and forget. Thanks. Kim
Read Answer Asked by Kim on August 09, 2018
Q: Hi 5i,

I own all the above in the healthcare sector. After reading many comments on JNJ, I am getting a bit concerned. Would you continue to hold on or would you replace it with something else in the same sector? It is inside an RSP so no tax for selling and it is a long term hold as I do t need the money for over a decade.

TIA!
Read Answer Asked by Wayne on August 09, 2018
Q: I need to beef up my foreign holdings. What is your recommendation on emerging markets ETF
Read Answer Asked by GRAHAM on August 09, 2018
Q: I only own 2 USA stocks, JNJ and PFE. JNJ has grown over the years to 2 full positions so I need to reduce my holdings in JNJ. JNJ pays a nice 2.7% dividend and has grown significantly. What recommendations would you have for a replacement that pays a similar dividend and has some growth potential. I am retired and rely upon the dividends generated in my RRIF.

Wayne
Read Answer Asked by Wayne on August 09, 2018
Q: I have held both Amazon and Shopify as a means to gain exposure to the online commerce sector. Given the relationship between the two, would you recommend owning choosing only one, continuing with both or adding another name into the mix?
Read Answer Asked by SCOTT on August 09, 2018
Q: Hi Peter, Ryan & Co.,
I bought PKI about 5 yrs ago, and it's done very well for me. I am a bit disappointed, however, with the rather slow dividend growth (this is the reason I bought it). As you noted, it's payout ratio is only 35%. So now I'm debating whether or not I should sell my position and invest in something else with a higher, growing yield, or wait in the hopes that PKI will be a bit more generous to its shareholders. What do think? Is the company hoarding cash for a specific purpose, or can I expect dividend increases in the future? Thanks,
Brian
Read Answer Asked by Brian on August 09, 2018
Q: I have some funds to invest. I am underwei
ght in MG and PBH. With their recent significant declines in stock prices would you recommend either MG or PBH a good buy now?
Read Answer Asked by Dennis on August 09, 2018
Q: Hello 5i,
Upon the recommendation of selling JNJ 64 shares with $6,000 profit, should I add PG to my portfolio or add to my ABBVIE, MRK and CSH.UN. Now I am at 5% in health sector holding these four stocks. I have 60 positions in all with 46 positions in segregated funds. I am 72 years young and investing for income. This is going mostly into an RRSP.
Thank you,
Stanley
Read Answer Asked by STANLEY on August 09, 2018
Q: I want to make sure that I am not overrating SJ. I try to buy quality companies and I have owned this one for several years because of the many positives you and other analysts have given it. One of those positives was management and with a new CEO and the selling out by Stella Jones International I am wondering if management may have regressed.

The latest results seemed solid in that guidance was maintained while sales and margins increased. I am thinking that it is the decrease in profit is what is weighing on the stock. Management says that the decrease is due to the transitioning of a Class 1 railroad company from a treating services only contract to a full service "black-tie" program and they go on further to say that they bought untreated ties from the Class 1 company and once they treated these ties they didn't make as much money due to higher costs. If I remember correctly, this is the same problem they said they had last quarter.

First, do you know what this program is all about? It seems to me that the Class 1 company is moving to a full-service on-going type of contract rather than a bare-bones contract to contract scenario. Ongoing regular revenues are usually better for a supplier so why is this one costing them money? Short-term pain for long-term gain? Or a management snafu?

The second drag is operating costs in the US southeast. Again, did management make a mistake or is this just one of the integration hiccups that come with takeovers? So I am back to my earlier comment about whether management is not what it once was or are these just growing pains. SJ has always been a lumpy stock mover and should I just view it as being out of the limelight for the time being with better things to come?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on August 09, 2018
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