skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have held IBM in my RRIF for several years. With dividends, I am about break-even on my purchase price. After the KD spinoff, I thought that IBM would move higher on P/E expansion to reflect higher earnings growth. This seemed to happen after the last quarterly earnings report, but now seems to be stalled. IBM popped up as good value on a P/CF screen you did in response to another client's question, so I am reluctant to sell it. However, you have also suggested in your recent answers to questions that GOOGL is very good value right now, and that the 20% discount from the offer price also makes ATVI good value. So would you wait for a turnaround in IBM and, if so, how long would you wait? Or would you move on and, if so, would you switch into GOOGL for a long term hold or ATVI for a short term profit? If the acquisition of ATVI closes within a year, a 20% return in a year, tax free in a RRIF, seems pretty attractive. The other company I have been considering as an IBM substitute is ROP. But your comments about the attractiveness of GOOGL and ATVI at current prices got me thinking. As always, I would appreciate your insights into the relative merits of these alternatives.

Read Answer Asked by David on January 28, 2022

Q: Hi Research Team

I"m interested in Tech companies with good to great Free Cash Flow going forward?
Does your team have a list of 10 U.S. Tech companies and 5 Canadian Tech companies that would fall into this criteria?
Thanks
Cal

Read Answer Asked by cal on January 27, 2022

Q: I have recently learned that the Kyndrel spinoff has been finalized. I have a position in IBM, so I expect I will be receiving some Kyndrel shares. Should I hold or sell these and buy more shares of IBM? I am a patient investor and understand the turnaround at IBM may take some time still.

My stake in IBM is in a dividend-focused portfolio with a risk profile similar to that of the 5i Income Portfolio (though holdings differ). Thank you.

Read Answer Asked by Walter on November 06, 2021

Q: Hi team,
I bought Verizon two years ago in expectation of a stable price and a good dividend. Two years later it is down 11% eating up the dividend and leaving me essentially where I started. Would it make sense to sell VZ and use the funds to buy IBM which has a similar dividend and perhaps some growth potential? I can also claim the tax loss on Verizon.

Read Answer Asked by Ken on October 06, 2021

Q: Hi, as a retired couple looking for US div. Co.s for income and safety, please list from best to worst and those not to buy or your own preferred picks, thankyou

Read Answer Asked by Peter on September 15, 2021

Q: Hello,
I am looking to purchase a stock for my RRIF. I would like to have something fairly safe.
With Amazon/Google being so expensive I would only be able to purchase a small number of shares but with Amazon having recently pulled back is now a good time to start a position? Where it is a RRIF would the dividend of IBM be a better choice or TOI for growth?
Thanks very much.

Read Answer Asked by Leah on August 06, 2021

Q: "Quantum computers would provide the computing power required to solve problems that are currently intractable for classical computers—at least in a timeframe that’s practical." Analytic Insights Magazine.
It lists top 10 quantum computing co in 2020 by alphabetical orders: Accenturre-ACN, Alibaba-BABA, AMZN, GOOG,, MSFT, INTC, IBM, BAIDU, AT&T, Atos Quantum. Your thought on 2021 on my preferences: IBM, GOOG and ACN

Read Answer Asked by Nhung on February 17, 2021

Q: Hello,
I have been reading about FaaS (function as a service) and from my readings it is predicted this will grow in the next 5-10 years. Which current companies would be ones to invest in now in hopes for growth in the future?

Read Answer Asked by Sarah on December 22, 2020

Q: Are there any companies i should look into that are in the machine learning and A.I. space. I believe there has been and will be great opurtunity here

Read Answer Asked by Tim on October 19, 2020

Q: In a recent response to a portfolio question you said you couldn't comment on over 40 stocks in the portfolio but could comment on a few of them. Of IBM you said: "IBM we consider 'meh' and there are better ideas."

My question is this: Couldn't IBM have a place in a diversified RRIF portfolio from the perspective that it provides a reliable income stream to help meet mandatory minimum withdrawals? If you have to withdraw say a minimum of 4% a year, then IBM's 5% dividend certainly helps. If you still don't like IBM in this context, what else would you suggest for a 20 year hold?

Read Answer Asked by David on June 10, 2020

Q: I have the following sector stocks and would like your expert opinion on which stocks I should keep, sell, buy more OR please suggest new stocks I should buy. Please take into account the survivability of the company if economy takes a 1-2 yrs to get back to "normal".
Financial - BNS,ECN,FSZ,MFC,TD,ZBK
Technology - FB,GOOG,IBM,KXS,LSPD,PHO,QTRH
Industrials - AFN,FDX,QST,RUS,SFL,SIS,STN
Energy - FRU,HWO,RDS.SU,VET
Materials - LIF,MX,NEXT,NTR,SJ,TECK,TV
Consumer Discretionary - BOS,BPF,CCL,CGX,DIS,GC,MG,NFI,PDYPY,TCL




Read Answer Asked by Sandy on June 10, 2020

Q: Hello everyone at 5i! I presently hold IBM, and have done so for several years. Other than a decent dividend, it has not done much. I was wondering, should I continue to hold it, or swap it up for Microsoft or Apple, for a little more growth? From a value perspective, would now be a time to do so? And if so, what would you suggest? Cheers, Tamara

Read Answer Asked by Tamara on January 15, 2020