Investment Q&A

Q: I am looking to build a corporate portfolio (i.e. ~40% tax on dividends and distributions), and will be adding a position monthly, then topping those holdings up on a monthly basis ongoing. My timescale is 30 years, and really the only important thing is amount of money at the end. What holdings would be reasonable for such an account? Any preference as to order I add them?

I grew up with Money Saver magazine, so my gut feeling is just to buy a set of big, well run companies that pay dividends. However, the current popular zeitgeist seems to be to just buy an all-in-one fund, like VGRO, and not overthink it.

Please take as many credits as needed to answer this question as completely as possible. Thank you!

Q: Been a while since you provided feedback on CES (ticker CEU). I am a long suffering holder of ESN and considering a swap if ESN results don't improve after the next report. What are your latest thoughts on ESN? Thoughts on this swap (ESN for CEU) or do you have another preference if I swap out ESN ... if so, why?

Q: Hi there,

I've been reading up on the US vs International stock cycle as of late. It appears as the cycle of under and over performance tends to happen in cycles. Obviously no one can predict the future, but do you think International will outperform over the next few years considering where are are in the economic cycle, rates, valuations etc? Can I please have your thoughts?

Thanks!

Q: If you had to choose between John Deere and United Rentals for two to three year growth which would it be?

Q: What are your thoughts are on STEM, the business, and whether it is a good buy and hold company? Clayton

Q: Hello, Thank you for your answer to my question on adding to my rrsp stocks. Can I ask the same of my husband’s rrsp - in what order would you add new money to the listed 6 stocks?

Thank you, Doris

Q: I would like to get 5iR thoughts on the Trans Mountain Pipeline. Which companies do you think will benefit financially when the pipeline is completed. Thanks … Cal

Q: I am looking at selling HR,PMZ , AD , ( 10% total weighting) keeping CRR and buying KMP(2.5%); all held in my RRIF.
Halifax ( where I live ) is booming ,has a strong rental housing market and KMP has a significant presence there. With continued high immigration and constrained construction the metrics look good for this sector. Some markets have rent control. While concentrated in Atlantic Canada, they are also growing in ON, AB ,and BC.

Your thoughts on KMP and on this portfolio change would be appreciated. Better rental reit suggested ?
Thanks
Derek

Q: Can you please comment on the takeover of magnet forensics? Only a 15% premium…
What does this mean for me as a shareholder, and so you see any competing offers? Should I hold, or sell and re-invest the capital elsewhere?
Thank you for your insight

Q: Hello,

I am a recently retired individual. Over the past few years my wife and I have moved the majority of our investments into various income generating shares and units. (CDN Banks, Utilities, Pipelines and other higher yielding investments). One of our higher yielding investments is a holding in EIT.UN. We currently have about 3.2% of our combined retirement savings invested in EIT.UN. I'm hoping that you might be able to help me better understand how that vehicle is able to pay out an approximately 8.75% yield, on an ongoing basis? The dividend of $1.20 per unit appears to have been paid out continuously, since August of 2009.

I believe that a portion of the $1.20 that is being paid out per unit each year, is a Return of Capital but I have no clear understanding of what that might actually mean? Is an investment that is returning an investor's capital to them able to do so indefinitely? Wouldn't they eventually run out of capital to return to the investors and would that then necessitate a precipitous drop in the annual payout?

While we are enjoying the current dividends we don't wish to be blind to a potential decrease in those distributions and/or an accompanying drop in the principal value of our investment. Lastly, as it may apply to any tax considerations, please be aware that all of our retirement savings are held in various registered plans (RRSPs, LIRAs & TFSAs).

Thank you!

Q: Long time subscriber. I know back in 2018, 2019 and 2020 this often came up on the questions recommendation lists. How does NVIDIA fare now? Is this still a growth story and is this a good entry point?

Q: Hi 5iResearch
What is your take on STAG, and does it have a good chance of recovery in the next 12-24 months?
Can you please recommend three or so stocks in the US real estate sector with a good dividend (3-5%) and a reasonable expected growth.
Thank you,

Q: Are there any other ETFs in Canada that are structured in the same way as this where one gets no cash distribution at all but pays a capital gains tax only when sold. Thanks

Q: What are your current thoughts on TEAM (Atlassian)? Do you see much upside for it this year if these market conditions continue and the fact that it is not profitable? Is it undervalued or overvalued at this point? Or do the long term potential benefits outweigh the current headwinds it is facing? Do you see it as a buy, hold or sell at this point? Held in a registered account so a small tax loss is not possible. Please suggest other options if you have higher conviction in other names (open to other sectors to continue diversification in a tech heavy portfolio).

Q: Hi Peter & team:
IF I buy CSU.DB today at 138 $ and tonight CSU makes their recall announcement , the baystreet computers will grind away for about TWO milliseconds and tomorrows opening price may very well be about 115$ to 118$, and THEN a gradual decline to 100$ over 5 years.
My question is do you agree that this debenture is riskier than it appears since new buyers after the announcement will also expect to make money during the 5 year roll-off. Please poke holes in my theory if you wish...

(Of course the 5 years could also start in 2035 ...)

Q: Where to hold Bonds? As I am winding down my income producing years and shifting to drawing down my savings I am wondering where I should hold bonds. We currently hold no fixed income as we will get a pension from my wife's work when she retires( so historically considered that out fixed income). Bonds haven't really been on my radar with rates so low the past 10+ years but things are changing both in terms or yield and my investment needs. I have 4 options to stash some bonds TFSA, RSP, unregistered and within my Inc. I more or less have things in the right place currently with growth in TFSA, US in RRSP and CAD in unregistered accounts. My plan was to sell some USD large caps once the steam runs out of the current rally and buys some high grade corporate bonds, in or around 10-15% of my portfolio. A bit of the old traders strategy of sell in may and walk away...

So to circle back, the easiest place to do it would be in my RRSP, but some of the reading I have done has suggested I do it in my TFSA as I can get the yield out of the TFSA tax free account at any time instead of locking it in the more restricted RRSP accounts. Shifting the TFSA from growth to income also seems like an appropriate move at this stage nearing retirement ( me semi-retired, my wife in 4 years or less). The 3rd option I am considering is doing it in my INC and using the yield to " pay the bills" so to speak of keeping the Inc cash flow positive as my earning drop with me working less.

Q: My question is about SVOL. It appears to be an interesting way to hedge against volativity but I cannot really get a grasp on it. Can you please add it to the list of stocks/ETFs so I can track it. Right now it is overbought and pays an almost unreal yield. Finally can I have your opinion....seems risky.

Q: What is your opinion about investing in Mobileye?
The company was recently spun off from Intel (After having bee acquired in 2017). The company is expanding its ADAS portfolio, created a mapping power house, defined safety standards that are considered and adopted by regulators and has made significant progress in the technology and adoption fronts. It is marching towards more and more autonomous driving solution. Unlike TESLA, it is not fully vertically integrated (i.e. it licenses and sells to many car manufacturers).
How would you compare it to Tesla's autonomous car technology and market position? Which company would you prefer if one is interested in exposure to automobile autonomous driving?
(Please add MBLY to your database).
Thank you for your excellent servie!

Q: I hold SIS in a cash account and am up 4.5%. Considering selling it to purchase either EIF or AW.UN. Given my quest for solid dividends along with some growth and moderate risk - balanced with my aversion to paying capital gains tax - which course of action would you suggest and why? (Mindful of one of your favourite quotes about the stock market being a device to transfer money from the impatient to the patient...) Thank you

Q: Hi 5I
I still have my 6500 in my Tfsa
What’s your recommendation, doesn’t matter
about risk or sector
Thanks again
Maurice