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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: Hi 5I team. Can you please tell me if companies in general have been increasing their dividend payout ratios? Where might a little guy like me find this information? Benjamin Graham had written something like "Never buy a companies stock only for its dividend." Probably pertaining to value traps but in this environment many people are being forced to do this. This makes me worry about some of the higher debt levels and earnings decreases perhaps many companies that are increasing their dividends are chasing investors in hopes of higher stock prices. I realize every company has a different story but market sentiment pushes everything in the same direction irrelevant of what is happening individually. Thank you
J
Read Answer Asked by Jeremy on July 20, 2016
Q: Hi, I am considering replacing my IWo by IJR or SLY ( S&p 600 small cap growth). I was reading David Swensens book "unconventional success". Brilliant book. He talks about how Russell 2000 is not a well structured index as compared to S&P 600. Which has a better structure and therefore results in better performance. What are your thoughts on this. Also what portion of a portfolio would you suggest for small cap growth based ETF like this. This is for an otherwise diverse and aggressive portfolio. Your advice is most valuable. Cheers, Shyam
Read Answer Asked by Shyam on July 20, 2016
Q: In the technology sector, I have OTC(2.8%), WIN (1.5%), ESL (0.62%), AYA (1%). They represent 5.92% of my portfolio. WIN and ESL are not doing well but the loss is not significant. Since I have low exposure to this sector and would like to add more, what stocks should I be looking at? The ideal sector weight should be around 10%. Thanks
Read Answer Asked by Esther on July 20, 2016
Q: The BMO cl B were bought Dec 2014 and have dropped significantly. In the mail we received the option to convert shares into non-cumulative floating rate... Is this a good thing to do? What is the advantage to convert? They are held in a registered account. Are there any other options to recoup our loss. Thanks
Read Answer Asked by patricia on July 20, 2016
Q: Currently 25% of my portfolio, is in individual US Stocks.I have recently sold some positions and I am wondering the best strategy on re-allocating the money.

Should I look at US stocks as part of my total portfolio and add in sectors and areas that I need more exposure too? (in stocks)

Or should I be looking at trying to get total portfolio diversification in US funds?

I was thinking IWO would add diversification with growth over time. At the same time I think Google may do better than IWO; however it isn't as diversified.

Also have 18% of my portfolio in tech, so should I pass on Google? I believe Google is becoming a stock that you can buy and hold for a long time and do well.

As always thanks for the advice. Cheers.

Read Answer Asked by Colin on July 20, 2016
Q: Recently I overheard a retired investment advisor talking at a luncheon I attended. He said that since the liberals were spending so much lately that they will be soon looking for ways to increase government income. His feeling was in increase (up to 75%)in capital gains tax. His suggestion was to sell anything which had large gains now. This kind of concerns me as I hold shares in firms like Bell and others which I have had for over 30 years. Thank you for your thoughts on this. I read all the questions people submit and feel I am learning a lot from them
Ken Beatty
Read Answer Asked by Ken on July 20, 2016
Q: Hi Peter;
I am looking to purchase two energy stocks that have a majority of their portfolio in natural gas, a medium and a large cap. Would Birchcliff Energy (BIR) and VII Seven Gen do the trick? If not, which ones would you recommend?
Thanks,
Ron
Read Answer Asked by Ron on July 20, 2016
Q: There is a report in the G&M today that it may be time to trim BMO as it may be a little over priced now based on its historicals. Interesting I was thinking the same a few days ago and am contemplating selling my holdings. I have not yet sold as I really don't see much to buy at this point from an income perspective. Thoughts on BMO and possible stocks to rotate into? Thanks in advance.
Read Answer Asked by Mark on July 20, 2016
Q: I own eleven oil and gas stocks as listed above in a $2.5 million portfolio. My advisor recommends selling the first seven stocks on the list and adding to the last four positions. I'm primarily interested in capital gains with dividends being a secondary consideration. Would you recommend selling the first seven stocks? If so, what gas and oil stocks would you choose as replacements? Thanks for your advise.
Read Answer Asked by George on July 20, 2016
Q: DBO is planning to get permission from stock holders at its annual & special meeting on Aug 17,2016 for a ten for one reverse split.In my experience this is never good for small investors because once the reverse takes place the value of the stock invariably drops.If it goes through, should I sell? Could you tell me why they are doing this other than to attract larger buyers who can't purchase stocks under 5 or 6 dollars.DBO has 175 million shares out. What do you think of that number? Does it need a reduction. As always thanks for your advice in advance.
Read Answer Asked by Dave on July 20, 2016
Q: I am considering selling Badger to buy New Flyer Ind. as I believe NFI has better prospects over the new year or two. Would you agree? There is only a small capital gain on BAD and the portfolio is otherwise balanced.
Read Answer Asked by jacques on July 19, 2016
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