Investment Q&A

Q: Hello 5i
I noticed that I-shares Canadian Dividend Aristocrat ETF (CDZ) lists a 0.60% management fee and a 0.66% MER. Does this mean the effective cost to the customer is 1.26%? I don't understand the distinction between the two values.
Thanks,Richard

Q: (Prevoiusly known as Davis & Henderson)
Re: All the comments about DH Corp initiating a DRIP. If you own shares thru a Broker (i.e TDDI) and you own a sufficient quantity of shares that your dividends allow the purchase of at least ONE SHARE then your Broker will purchase for you (called a Synthetic DRIP, with no commission)as many shares as possible (only whole shares, no fractions). This is why Mike has been recieving re-invasted dividends since March 2013 (as have I). One qualification is, at least with TDDI you need to have this feature turned on for the respective A/C. This cannot be done by the Client. You must contact your Broker to ascertain or request that the feature is enabled.
Company DRIP's are an economical way for small investors to start to build a position and also re-invest 100% of the dividends including fractional share purchases.
Hope this provides some clarification.

Q: I was doing some research on CXI and, this morning, I found an article signed by 5i Research on the Seeking Alpha website. I quickly returned to the 5i site to see if you posted it here and I didn't find anything. If you are writing for other websites, how can we find out about it and is there a way you could notify us when one of your pieces is published?
Robert

Q: With Target leaving Canada, is it expected that REITS, especially those exposed to large retail, will be dropping in price.

Q: Just a comment further to the discussion around the DRIP recently announced - I have been having my dividends re-invested since I first bought DH back in March 2013. I now have 13 additional shares over and above those I purchased. I just assumed they always had such a option.....

Q: I bought Kelso two weeks ago and it has now dropped 17%. Should I be worried? Has something changed with the company?

Q: Do you have any thoughts on DH starting a dividend reinvestment plan. Is this an indication that their cash flow is tight?

Q: Overall what is your take on the basing pattern and now lift in the gold price? Do you think it may be going into a long term upward swing or perhaps just world jitters and or seasonality. Thanks.

Q: what is your take on their earnings release. dave

Q: 9:01 AM 1/15/2015

Hello Peter
I am considering buying shares in 3 or 4 of these companies for our annual contributions to our TFSAs, and to our Cash account, and would intend to hold them for many years.

I have several concerns with these stocks, mainly high debt and high Payout Ratios [POR] on some:

ET : 69% POR, very low debt, 8 year rising dividend... looks good to me!

AD : 135% POR, very low debt, 7 year rising dividend

DH : 115% POR, Debt/Equity = 1.0, and 5 year rising dividend + special dividends

AW.UN : 118% POR, Debt/Equity = 0.6, dividend flat for 4 years

CSH.UN : POR very high, Debt/Equity = 3.5, dividend flat for 5 years

CSW.A : 91.5% POR, zero debt, and 5 year rising dividend + special dividends

All have reasonable dividend yields. I am looking for companies that will best withstand severe corrections and have a high probabiluty of continuing and increasing dividends.
I would appreciate your comments and suggestions on these and would ask you to please rank them in order of preference.

We always appreciate your excellent advice,
Thank you........... Paul K

Q: What do you think of Canacol. They seemed to have had great news back in September of last year and the news in December / January made the stock take-off from its lows. I think they have a bit of debt. Is it solid moving forward outside of the price of oil?

Q: Hi, Peter and team,
ACC keep going lower, Time to get out take my losses or still have chance to go back up ?
Thank you.
Regards.

Q: Could you please tell me the names of Canadian companies that should benefit from the low Canadian dollar, that have expenses in Canadian dollars but revenue in U.S. dollars. Thank you very much.

Q: Could I have your opinion of Snap-On Tools.
Is the debt level acceptable, and is it a buy.

Q: Hix only has $25M in assets. Can you suggest an inverse etf without leverage to protect the value of my holdings in this down market? Thanks

Q: I read somewhere that magna is looking for acquisitions. Would exco fit the bill or Martinrea or would they be looking at a U.S. company?

Q: For a long-term hold in the retail commercial real estate space, which do you prefer, REI.UN or FCR, and why? Thanks.

Q: Hello Folks:
Currently we have approx. 65% large cap US. stocks and the reminder a few Canadian stocks and cash. We have slowly divested ourselves of all Canadian energy producers except for a good chunk of IPL. Do you have a few particular Canadian stocks you could recommend to use up the cash. I am am hesitant about materials/energy and financials.
We are quite confused and any help you could provide is immensely appreciated. Thanks so much!
brian clarke (age 68)

Q: How much exposure does each of the big Canadian banks have to oil and related risk of loan losses? What is the oil exposure and which banks are more exposed? How much should one be concerned?

Thanks

Q: Peter and team,

I have a couple follow up questions from the January 8 report on BEP.UN. The debt is high... if interest rates rise, will it sink the company or can the company continue to fund their operations without worry? Is there big margins there to absorb increased cost of debt? Are you concerned abou the debt at all?

Next question is around oil prices. You stated that oil prices shouldn't affect them at all but wouldn't low fossil fuel prices lead to cheaper energy production from fossil fuel burning plants and therefore BEP.UN would see even further decline of power production from existing assets and therefor decline in earnings due to more economic power coming on first?