Investment Q&A

Q: Hello 5i,
I have just opened up a Family RESP (currently ages (-0) and 1.5 yrs) and have been going through the RESP questions as well other questions. I would like to contribute $2,500 this year for existing grandchild and $5,000 next year when #2 comes along.
I think you would agree that at this point it is probably best to start with an ETF? So, given that, could you please give me a couple of your top recommendations for this point in time/cycle/interest rate environment, etc.. Should you feel that some individual equities might work better solo or in combo, any suggestions would be welcome. Based on what I have read, I was leaning towards VGRO, but am not sure that would be your top recommendation, so a couple of ETF and/or equitiy suggestions would be much appreciated!!
Best to all - and, as always, Many Thanks!!!
Cheers,
Mike

Q: My only holding in the communication sector right now is a half position in Telus and I would like to increase my weighting in the sector. Would you recommend that I top it up to a full position or purchase something else in the sector. I am also underweight US equities right now so I would accept a Canadian and/or US recommendation.

Q: Wondering if you could provide an opinion on the above company. It appears that the share value is on an upswing and analysts ratings are positive with a substantial target price. I am now showing a positive gain and wondering if you would rate these as a buy, sell or hold.

Q: I read an article about company spinoffs in cdn moneysaver. Do you know of any ticker symbols for ETFs on CDN or US markets that cover these new companies? thank you. mike

Q: Can i get your quick thoughts on LPSN Third Quarter Results? Getting hit quite hard today.
Thanks

Q: I regretfully bought both of these stocks for the high dividend payouts. At this point Im sitting at a 50% loss on both stocks. They each represent a decent chunk of my total portfolio. Also they’re in my TFSA. Should I take the loss on these now or wait them out for a bit? Thanks!

Q: Appreciate your thoughts on these 2 silver stocks for capital gains

Q: Please comment on recent quarter. Is it worthwhile starting a small position?

Q: I'm beginning to take socially responsible investing more seriously. If possible, would you please suggest 5 Canadian and 5 American companies that you consider to be socially responsible, AND at the same time, economically investable.

Q: Hi,

What management need to do to bring the price higher! ECN as under perform compare to EFN. I am long since 2017 with an acb of 3.66%.

Thanks

Q: PZA has been on a steady decline since September and is yielding 9.2%
Is this a good entry point or would you speculate that further price erosion is in the cards? Thank you

Q: 1. I was considering buying FCR for a nonregistered account as it has a fully eligible dividend, but I see it is imminently converting to a REIT - is there any way of knowing how the distributions will be classified going forward (and therefore the taxation treatment)?
2. What do you recommend as tax efficient real estate holdings for a nonregistered account? Many thanks.

Q: CIBC Investor's Edge will allow you easily to journal Cdn stocks to your US side and collect the dividend in US dollars - no fees! 6.95/trade fyi

Q: Thoughts on results and going forward.

Thanks for your help.
Dale

Q: Hi there,

KXS looks like it's finally breaking out after a period of consolidation. It currently represents a 3.5% weighting in my portfolio. Is now a good time to bring it to a full weighting of 5%?

Thanks!

Q: Hello 5i Team
Further to previous comments this morning and apologies for the length.

Comments on the Brookfield family of companies, US $ dividends and tax implications.

From the Brookfield website:
Please note that the quarterly dividend payable on Brookfield's Class A Limited Voting Shares is declared in U.S. dollars. Registered shareholders who are U.S. residents receive their dividends in U.S. dollars, unless they request the Cdn. dollar equivalent. Registered shareholders who are Canadian residents receive their dividends in the Cdn. dollar equivalent, unless they request to receive dividends in U.S. dollars. Prior to the September 30, 2016 payment date, the Canadian dollar equivalent of the quarterly dividend was based on the Bank of Canada noon exchange rate on the record date.
Beginning with the March 31, 2017 payment date, the Canadian dollar equivalent of the quarterly dividend is based on the Bank of Canada daily average exchange rate exactly two weeks (or 14 days) prior to the payment date for the dividend.

What this means is the Brookfield entities "declare" their dividends/distributions in US$ and the transfer agent (Computerserve) pays the broker in Canadian dollars (as the broker i.e. beneficial holder is a Canadian resident ) regardless of whether the shares are held in a Canadian or US dollar denominated account. If the shares are held in a US$ dollar account the broker then "buys" US$ to pay the share owner's account. This results in a small under or over payment of the actual dividend/distribution depending on how exchange rates have moved. This is how my brokerage (RBC Direct Investing) explained it.

Further to the tax issues:
The limited partnerships (BBU, BEP, BIP, BPY) pay distributions which are recorded on a T-5013 (and not a T-3 or T-5). The distributions are a combination of eligible dividends, interest income, foreign income, return of capital and other items depending on the entity. Companies have until March 31 to issue each years T-5013 (similar to a T-3 issued for REITs) which results in delays in filing annual income tax. Therefore it is better to hold the LPs in a RRSP/LIRA/TFSA if you want to simplify your annual tax return, however if the entities are held in a RRSP/TFSA there may be foreign withholding tax that cannot be recovered. Previous years breakdown of the distributions can be found on the individual LP's web page. Each individual should review their tax situation with a their individual tax expert.

BIP and now BEP move to create a Canadian Corporation which will issue eligible dividends will make life much simpler from a tax perspective.

Q: Hello 5i,
I just sold POW to take a small profit as it always seemed that as soon as it stuck its head out of the sand it burped and slid back down. Now it appears that POW is on an increase due to sector advance. Is this sector advance strong enough to jump back in to POW now or wait until POW crawls back into the sand? The funds are sitting in Oaken savings at 2.3%.
Thank you for the great service,
Stanley

Q: Patrick Horgan was on BNN recently and described REITs as the ‘sell of a generation’ and said that they are priced like techs stocks were in 2000. Any comments?

Thanks,
Jason

Q: Do you agree with Patrick Horan's thesis that reits are currently overpriced and should be shorted ? if not can you name some non-Canadian reits that look interesting?

Thanks for your assistance.

Q: Hello 5i,
Not so much a question as a comment: I went on the SEC website (EDGAR?)and looked up the filing for the BEP split and printed off some of the Q&A. There is a huge amount of information there and it might help if 5i could perhaps do a Blog on some of the more salient points in terms of some of the benefits, mechanics and risks. They do make the point under the "Risk" section that this subsidiary company will only be operating in two South American countries from what I can tell - Columbia and Brazil, I think.
Also, they seem to reiterate that this offering is a Special Distribution and is over and above the regular distribution and will not cost the existing unitholders anything, other than any applicable tax implications.
Lots of info to digest on this one, so any help 5i might be able to offer would probably be much appreciated by any number of members. It also appears that the completion date is as of yet undetermined but will be sometime in 2020.
Hope this is of some help.....
Cheers
Mike