Investment Q&A

Q: ALL hit another 52-wk low 14 July. It has done *miserably* compared to AFL. Yet , ALL remains a long-time member of the AAII Model Dividend portfolio. AFL is long-time favorite in the portfolio of “Crossing Wall St” ( the latter now has an ETF under the symbol CWS). Do you consider ALL oversold ? Is it a good value at around at USD 101 assuming two more Fed rate hikes of 25 basis points each? Or would you instead favor AFL?

If you are not impressed with EITHER of the above insurance companies, do you have a dividend payer you do favor? Your reasoning please, it always helps, thanks.

Q: Can you suggest 5 beaten down, safe financial names with good long term prospects? Please include any relevant US companies that are available as EDRs. Thank-you.

Q: Hello: I want to add an insurer stock in Canada and the USA. I admire and follow FAST Graphs. The following companies were recently reviewed: Aflac (AFL), MetLife (MET), Principal Financial Group (PFG), Prudential Financial (PRU), Great-West Life (GWO) iA Financial (IAG), ManuLife Financial (MFC), Power Corporation of Canada (POW), Sun Life Financial (SLF).

I would like your recommendations for the best choice in each country: Objective: solid, safe, long-term hold with capital appreciation potential and good consistent dividend income and dividend growth. Thank you.

Q: What are your top 3 CAD and 3 US positive momentum stocks currently?

Q: Hi 5i Team - I am considering increasing my holdings in financials. Could you provide a couple of ideas in each of small cap, mid cap, and large cap companies, concentrating on Canadian companies but any U.S. suggestions are welcomed too. Thanks.

Q: What's your current view on Prudential given the potential for raising rates? Do you have a preferred US financial institution in a rising interest rate environment?

Q: A family member would like to build a US dollar portfolio with US stocks. My thought would be to do it along the lines of the 5iR Cdn Balance Portfolio. For example, JPMorgan would be the US stock for the BNS. With this in mind, and being able to tolerate risk and for a long-term intention, like 10 years, what would you suggest the 15+ position US portfolio would look like?....Thanks...Tom

Q: Today the U.S. 10-year yield is ~1.4585%. If you believe this rate will be 2% by year end, what would be the most direct way to play it?

Q: I recently asked a question about a substitute for SLF for tax selling purposes. I was wondering what you might think about a US substitute for slf? I know there is no dividend tax benefit. But, I will be rebuying whatever I buy in a RIF, therefore no tax consequences.
thanks for the great service as always

Q: Could you please compare numbers on AFlac and Chubb in terms of EPS growth, Dividend growth, and debt levels. Do you have a preference? Also, can you please confirm that US common share dividends received in an RRSP are not subject to withholding tax.

Q: I own Sun life but would like to add another growing insurer that pays a decent dividend. I am considering buying any one of the above or perhaps you would offer another better qualified company. Much thanks. Maureen

Q: Would you advise selling all shares now at such a drastic downturn or hang on! Thanks for your input.

Q: Hello, I am thinking of selling Great West (GWO) and replacing it with a US life insurance company such as Metlife or Aflac. Does this make sense? Is there a better name in the US? I already own SLF. Thanks, Gervais

Q: Hi 5i: I'm still considering a purchase of AFLAC. The news regarding employee complaints seems no worse, though a few legal firms have made it a point of announcing that they are investigating. Re its quarterly report, I find it hard to decide how well it's doing given the tax effects and yen currency effects. What is your assessment? Do you think it's buyable yet?

Q: Hi 5i: Thanks for the recommendations regarding US insurance companies. Unfortunately, your recommendation of Aflac came just before news that some employees were accusing Aflac of some malfeasance, with lawyers now investigating. Such events cannot of course be foreseen. I guess it would be wise to hold off any investment until more info is available. Do you have any updates on this issue yet? Many thanks.

Q: I have some US$, and am looking to buy something that won't be hit by rising rates or NAFTA. I think a large US insurance company might work - what do you think. If that makes sense, could you recommend a name or two? Many thanks.

Q: Given that Aflac AFL is trading near its 52 week high, would you wait for a pullback, or suggest an alternative in that sector in the US?
Thanks