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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: Good morning
I purchased TD preferred rate reset shares TD.PF.G at $25 par in the IPO just over a year ago. The shares now trade at about $27. The initial dividend was set at 5.5% until April 30 2021 at which date either the shares will be redeemed at par or the dividend reset at the 5 year Bank of Canada rate plus 4.66%. The renewal rate seems to be quite high so I suspect the shares will be redeemed in 2021. If that is the case, the yield to maturity is approximately 3.1%, so I am considering selling and moving on. Is this analysis flawed?
David
Read Answer Asked by David on June 16, 2017
Q: Hello Your A rating and recent report on Cineplex using the word "Monopoly" got me interested in the Sector. Would purchasing shares in AMC Entertainment be worse, equal to, or better than buying Cineplex given the lower valuation of AMC and scale that AMC has? ceteris paribus on the dividends and exchange risk aside. Thanks very much
Read Answer Asked by Michael on June 16, 2017
Q: Good morning,
Your answer to a previous question regarding ala.r indicates that the dividends are not dividends but interest income. Please confirm if they are taxed as dividends or interest. I hold in a cash account.
If subscription receipts are sold before conversion would that be considered a capital gain/loss? When is the expected date for the conversion to common shares.
Thanks
Read Answer Asked by Luca on June 16, 2017
Q: Could you pls. provide your current thinking about the Canadian pipeline and related services sector?
Which companies would be in your top 3 and how would you rate today's buying opportunity? My historical context is that PE's are lofty and yields were low but are improving as sector stock values decline. At what point would your top choices be a compelling buy as a long term hold for the income oriented investor?
Thanks, Hugh
Read Answer Asked by Hugh on June 16, 2017
Q: I own BNS and was just thinking about the rate increases mentioned from the bank of Canada, if rates rise the dollar should also strengthen, and if the dollar strengthens will it not affect earnings at BNS, they do a lot of business outside of Canada. Would it be wise to switch BNS for TD, as most of TD's operations are Canadian and USA focused?
Read Answer Asked by Nino on June 16, 2017
Q: I hold the above in a RIF and have weighted to cover the required withdrawal amount with dividends. Does this sound appropriate and if not, would appreciate your thoughts. Do you see a major loss of principal if markets continue its downward trend. Thanks for all your help.
Read Answer Asked by diane joan on June 16, 2017
Q: I'm considering buying Surge Energy on the recent weakness. What are your thought? I like the dividend. But, what are the prospects for recovery on stronger oil prices? Is there a company you think presents a better opportunity at today's prices?
Read Answer Asked by Grant on June 16, 2017
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