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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: This is hypothetical.

I have $100K invested in a Canadian corporation which pays a dividend of 4% annually. Today that investment is worth $110K.
Do I take the capital gains which equals 2-1/2 years of dividends and look for other investments or look for this company to pull back and buy it later? Another option is to do nothing. Given the frothy market, taking the gain today looks like a good move.

For a registered account there are no tax implications. For a non-registered account there are tax implications.

How would you view this situation from each perspective?

Thank you
Read Answer Asked by Ronald on April 06, 2021
Q: Hello Folks:
It recently appears Tech stocks are moving opposite direction to industrials such as Cummins, Caterpillar, John Deere and others.
I would think the reason these industrials have moved up so much is based on an improving economy. If so why do tech stocks decline when these industrials increase?
Do you feel there perhaps continues to be more upside in these industrial stocks than tech? What are your views on these industrial stocks (including Honeywell) as longer term holds with aggregate an weighting equal to tech?
Thanks for your excellent service
brian
Read Answer Asked by Brian on April 06, 2021
Q: With the takeover of BPY by BAM.A , I thought the preferred of BPY would have jumped closer in price to the equivalent of BAM preferred. even though they said they will stay under a BPO sticker wouldn t they benefit from the better security abd credit umbrella from BAM. I see a possible trade here. Your thoughts?
Thank you.
Read Answer Asked by francois on April 06, 2021
Q: I remember reading a question about old stock certificates and how to find if the company is still active but I couldn't find the reference in the database.

I inherited 500 shares Belmar Resources Inc. (an Ontario company) but have no idea who/what they are? What should I do to find out?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on April 06, 2021
Q: Hope you and yours have so far successfully avoiding covid-19.
Our portfolio is below
Cons Discr 5%: US:NIO, US:CELH
Cons Stpl 3.8% - US:COST
Energy 6.2%
Fin Svcs 38% - BNS, GSY, RY, SHOP, SLF, US:BAM, US:JPM, US:MCO, US:V
Health 4.2% - US:MDT
Ind 5.8% - US:RTX, CNR
Real Est 2.7% - US:RDFN
Tech 13.4%
Telcom 5.7%
Util 7.4%
Cash 8%

All the fin svcs are up nicely but V and BAM have only small gains. We like both but think we should reduce this overweight sector and re-balance among the Industrial, Health and Real Estate sectors.
We are down 41% on NIO and down 12% on CELH but we are prepared to wait unless you think their prospects aren’t worth the wait.
We’d appreciate your view on what to sell in fin svcs and what to buy in Ind, Health & Real Est.
Many, many thanks.
Read Answer Asked by TOM on April 06, 2021
Q: Would JEPI be appropriate for US income and some growth with low volatility. What are pros and cons of this investment?

Thank you
Read Answer Asked by Raj on April 06, 2021
Q: Hello!
I am underwater on my First Capital Realty shares (currently yielding 2.62%) and considering replacing them with Choice Properties REIT units (currently yielding 5.43%). Doing so would double my income from this position. My thinking is that CHP's income profile is more stable than FCR's. What are your thoughts on this trade? More importantly, would you make the switch now or wait for the economy to open up more? Once vaccinations are rolled out and the economy more or less returns to normal, does FCR's share price have more upside than CHP's? FCR's share price has rallied more in recent months.
Thank You!
Read Answer Asked by Brian on April 06, 2021
Q: I am helping a grandson (age 22 in medical school) set up a TFSA with a small initial investment in one ETF. I am trying to choose between an international ETF (XAW or VXC) or a Canadian ETF (XIU). What would you suggest?
Many thanks.
Judith
Read Answer Asked by Judith on April 06, 2021
Q: Do you know what factors have contributed to Mission Ready's huge increase in revenue growth (aside from winning better contracts)? From 2012 to 2018, the most they generated was 8.5M, and then as you've indicated, they generated roughly 21M and 60M in 2019 and 2020 respectively. I assume some of 2020's growth can be attributed to COVID, but 2019 and Q1-2020 not so much. Any insight into their recent success would be welcomed.
Read Answer Asked by Marc on April 06, 2021
Q: I am interested in investing a portion of my portfolio USA market. It seems to me that the safest way to do this is through good quality ETFs with minimal dividend payout. Their stock market is far too large for me to consider managing individual stocks.
It is my preference not to buy a broad market index with thousands of stocks, rather to purchase ETF’s covering specific sectors that together more or less cover the major components.
At this time, which ETFs would you choose for ...
1.Health Care
2.Industry
3.Cyclicals
4.Value
5.Small Cap
6.Technology. ?
Financials and Resources are well covered in Canada.
Thanking you in advance.

Catherine
Read Answer Asked by Catherine on April 06, 2021
Q: Could you please provide your recommendation from a utility/energy investment standpoint. I have mentioned 3 possibilities here. Trying to gain insight around management effectiveness, leverage etc. For instance, FTS seems to have superior mgmt effectiveness from an ROE, and leverage standpoint, so is that considered superior or depends on investment objective as one is growth vs income oriented. In the end, looking for alternatives as I already own these, and Brookfield has performed very well so now over weighted. Thanks
Read Answer Asked by Steven on April 06, 2021
Q: Which of the above companies do you see as performing quite well when the market picks up over the upcoming year and over a longer term of 2-3 years?
Thank you for considering my question, I look forward as always to you answer.

Thanks, Jim



Read Answer Asked by Jim on April 06, 2021
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