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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: Retired, dividend-income investor. I currently own ZLB (RRSP, max'd out), XIT (RRSP-TFSA, max'd out), ZRE (Cash, 3/4 position, will add to over time), ZWC (Cash, close to max'd out). I also have some legacy positions in RBF1018 (RBC Cdn Equity Income-D...MER of 1.0) and CIG50217 (Sentry Cdn Income...high MER), both of which I have averaged roughly 7-8% return over the last many years, prior to this crisis. On top of the above I own AD, AQN, AW, BCE, CSH, CM, FTS, NTR, NWC, RY, TRP, WSP in various amounts to achieve my overall asset allocation targets (not to mention my fixed income portion of my portfolio.

I normally like to run a concentrated portfolio of around 20 positions, composed of +/- 6 ETF-MF and +/- 14 stocks. I have mapped out the use of my current cash (15%) into monthly repurchases over the next 6 months. My question relates to the combination of ETFs, but focusing on ZWC. I own ZWC for its high CC dividend, but recognize that the upside is potentially limited in a recovery. Also, when mapping out spending my cash, I reach an uncomfortable level of too high an allocation per individual stock. That led me to consider adding another ETF. I looked at several, and filtered them down to CDZ, XEI and XDV. I have chosen CDZ as my candidate to add. Looking under the hood at the ETF holdings, they appear to not overlap too much with my own individual stocks.

Do you like this strategy? Does it result in a significant overlap in stocks, held either individually or within the existing ETFs?

Thanks for your help...Steve
Read Answer Asked by Stephen on March 26, 2020
Q: Hi Peter, VCN and XAW are in one portfolio, VXC is in another. Would you add to these or is there a better choice considering the Canadian dollar or Covid? Thanks.
Read Answer Asked by John on March 26, 2020
Q: Hi folks, I would like you to reco some good dividend ETFs in the Candian space that you think are potentially a good buy for now. By 'good', I meant the company should have solid fundamentals, and the price should be low so the yield is high. I do not expect the US tech to boom forever, I would rather reap my 7 to 8% percent and hope it last forever. Thanks :) Tony
Read Answer Asked by Tao on March 26, 2020
Q: I have exposure to these etfs in my rrsp. Would you recommend selling zwe and adding zeq? How much overlap is there between xef and zeq?
Read Answer Asked by Steve on March 26, 2020
Q: I am wondering about the risk to APR's dividend, given that they have triple net leases..
The yield is over 20%. Do you expect that a number of tenants who operate the dealerships may go out of business or otherwise declare bankruptcy? If one assumes that this economic contraction should not last more than a year, and there would be pent up demand, would dealerships give up on the business or would most be expected to cut expenses and just try to get to the other side?

i realize they haven't increased their dividend, but at 20+%, its a moot issue.

Should I take a bite now or wait to see the next quarters results?
Read Answer Asked by arnold on March 26, 2020
Q: I sold some securities today in my personal account at a loss to offset some CG's I had. I know I can't buy the shares back for 30 days in my personal account; but do you know if can I buy the same security in a Corporate account that I own?
Read Answer Asked by stephen on March 26, 2020
Q: Of these 9 equities + ETFS, which would you see as reasonable to hold on to if one believes there is a prospect of recovering from the current economic storm from the virus? Some have been held for a long time are still positive, most are down; TOU is the worst (85% drop) and is now very small. They are held in a registered account, so tax loss selling is not an issue. Thanks for your excellent service.
Read Answer Asked by Leonard on March 26, 2020
Q: Good Evening
NWC
It is my understanding that NWC is providing food like the supermarkets to the public. Therefore, is it a safe bet during this coronavirus environment? Have they ever cut their dividend ? Is their dividend safe?
As well, some analysts saw their acquisition of an airline as negative. What is your opinion?
Is it advisable to average down at this level?

REI.UN
I own both the stock and a couple of their bonds. What is your opinion with respect Rio Can surviving the coronavirus crisis?
Please deduct one credit for each company.
Thanks again for your insight.
Read Answer Asked by Terry on March 26, 2020
Q: Thanks for your work, much appreciated. Regarding dividends from Canadian banks: I have problems figuring they won’t cut. The crisis will take months or most likely 1-2 years (vaccine is the only definitive solution, what we are doing now is only mitigation). The debt load will be very large (mortgage, loans, etc.). Banks will have to keep some money for provision.
Am I missing something ?
Read Answer Asked by Martin on March 26, 2020
Q: Canada had 1 million ei claims. the us had 3.3 million claims 10 times pop are we that bad
Read Answer Asked by wayne on March 26, 2020
Q: DFN, the high-dividend split share fund that people sometimes ask about, has missed its first dividend since its inception in 2004. It even paid the monthly dividend throughout 2008-09. I see the share price is up this morning. I don't think people realize they will not receive the dividend and that it could be many months or even years before the dividend returns.
Read Answer Asked by Jerry on March 26, 2020
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