Investment Q&A

Q: Which Canadian Bank is your favorite right now, and why ? P/E, loan losses, strengths ?

Q: If you had 10K to invest - and were interested in dividends and some growth, in what order would you rank these regarding total anticipated returns ?

Q: Thanks to the markets I have large gains in the above banks in registered and non registered accounts. Thinking of trimming back and diversifying in to ETFs for retirement. Any suggestions for Canadian ETFs, also thoughts on XAW. Please deduct credits as needed. Thanks Steve

Q: I'm thinking to rotate some profits in BNS, MFC, POW & TD into GSY for a long term value/income and BANK or HMAX to add some extra income.

What do you think of the move and how would you rank BNS, MFC, POW & TD, are all worth keeping a position in?

Of BANK/ HMAX which would you prefer or is there a better name for a banking & insurance extra yield ETF.

Q: I’ve recently subscribed to 5i, and appreciate all the good information that you have on your website.

A question: how do you choose which stocks to research and which to not research? In your model portfolios, you have included a number of big-name stocks (BCE, L, TD, BN, amongst others) that aren’t rated. I understand they are included in your model portfolios to provide sector diversification, but would I be correct to infer that if you rated them they wouldn’t likely be “A” stocks?

A somewhat related question: your Income Model Portfolio includes BCE, CNQ, FTS, H and TD (amongst others), all non-rated, but your Balanced Equity Model Portfolio does not. Does this mean that although you view these stocks as being good dividend-payers, you also think they have limited upside?

Thanks

Q: I currently only own TD, X and EQB in my RRSP. I would like to sell EQB and thinking of buying BN. Is this a good replacement stock or is there a better financial stock you like at this time. Money not needed for 20 years.

Thanks

Q: Creating TFSA for 25 year old daughter. Started off really timid with VBAL then slowly started to add individual names. Small quantity in US names. If 10,000 left to add, what would you suggest to balance it out and be diversified, based on current prices, value, potential upside, while managing huge swings in price with things like metals/oil/gas? I want her to see the benefits of investing and feel the pressure so don't want to make any huge mistakes. Thanks for your great advice!!

Q: A follow up to Mark's question on Oct 2nd regarding buying the Canadian Big Banks, you mentioned that you would not need to buy the banks in a portfolio. Can you elaborate and explain the thought process. Also how would you allocate a portfolio in terms of weighting in such a scenario.

Q: Hi there: I have been retired for 5 years, in my late 60's. In which order of the above will you buy, given that a few of them are in their all time high. Could u rank them from high (10) to Low (1), and what entry price make sense to you. From a dividend return point of view, and from a Growth point of view. Take as many credit as you see fit. Thank you again

Q: I am in the process of sending my daughter funds to start a TFSA. She deals with Royal Bank. Can you suggest what is best for her to start. Mawer Mutual Funds or GIC's, or? Any suggestions would be greatly appreciated!
Thank you Gordo

Q: Hi Peter: Regarding Richard's question on July 2 about TD mutual funds, I have just completed my claim (which involved transactions thirteen years ago) online in minutes. The value of the claim was revealed up front. Very client friendly unlike most others. Publish at your discretion.

Q: BN is sitting at 7.5%, AXON - BKNG are 5% and the rest are 3% positions totaling approx. 83% of my stock assets. I have some 1-2% positions in my cash account (GSY, ATZ, PRL, CLBT, HPS.a, BNS,SU, TMDX, TVK and CNQ. I'm heavy tech, financials and industrials going into H2 2025. Would you add to, remove or change anything is this was your account (assuming you're 52 and plan to retire in 8 years). Not looking for a person allocation but rather if it was you, what might you be looking to adjust, if anything. Note I have no utilities currently. Thanks and have a great weekend.

Q: Do you like these two banks which one would you prefer would you buy them now or wait

Q: Need to raise some USD. Do you think city group will still appreciate or should i sell part or all now. Same goes for TD.

Q: Hi Folks,

With some uncertainty in the future, including possible US tariffs and reaction tariffs, I curious if you have any thoughts on what those actions might mean for the short and medium term. I assume they would be withdrawn at some point (so not asking long term). Specifically, how banking (TD, BNS), and companies CSU and DSG and the overall TSX. Please free free to deduct 5 questions.

Q: In comparing total returns of the respective banks from Pre-Covid and then from Mar 16 2020 to present why does 5i continually endorse BNS - is it simply the DY ?

Q: Hello - I am an income investor. My view has been to construct my portfolio with companies that pay growing dividends as a way to offset inflation. With BCE’s announcement of reduced expected dividend growth in the future I am considering shifting that portion of my portfolio somewhere else. Can you please provide the stated expected ranges of dividend growth (as a %) of these companies? Please take all the credits you wish. Thank you

Q: Hello, Are Canadian companies listed on US exchanges considered separate entities ? For example, if I buy TD bank on the US exchange because I have funds in my US brokerage account and something happens to TD US, would I have been protected if I bought it on the TSX instead ?

Q: The Labour Contracts being signed today at 30 % and 40 % increases Airline Pilots, UPS, Port Workers in BC and more to come by Auto Makers and Hollywood means more inflation down the road and higher rates by Powell. This could go on for years. Causing defaults on Mortgages ,personal bankrupcy , credit card defaults. It does not look good.



Then there is China and unemployment of 25 and under at 26 % . No Jobs. China is fully built. Apartments Condos High Speed Trains, Highways etc. Nothing else to build. This will cause unrest with the young. What can XI do.. Not more military. They have the largest in the world

Then there is the expansion of BRIC by adding 6 new Members like Saudi, and Iran. plus 4 more.

And what about stealing of goods from all retailers and nothing being done to stop this stealing. Even people walk in to LCBO and help themselves and staff is told not to interfere. Why because every bad guy probably has a gun,




Question Why Own Stocks Why not Just a laddered Bond Portfolio of 1 to 7 year bonds with a yield of 7 % plus for the next few years.


Sorry for such a negative outlook . Look forward to your comments.


RAK

Q: Hi 5i Team,

I'm wondering if you have any suggestions for using options to generate routine income. So far, I mainly write puts on companies that are temporarily out of favour but that I wouldn't mind holding for a while and also collect a dividend if I end up having to hold for a bit (e.g, ENB, TD, BN, CVS). I do this randomly (e.g., once or twice a year on a couple of companies) but would like to increase the frequency. I don't have a good sense for what expiry date I should choose (I typically go out six months or more) or the best strike price (I usually pick around the current price). Do you have any good ideas for the current market that you could suggest and could you recommend a resource to do more research. I'm currently thinking of writing puts on TD, CVS, and BTI and wondering if I should scatter their expiry dates.

Thanks as always,
Lisa