Investment Q&A

Q: With the prospect of interest rates rising in the very near future, is it time to lighten up on Reits?
Do you feel that there is much more upside in NFI and PBH stocks from their current values?
As always,thanks for your advice.

Q: How useful have you found valuation methods like Earnings Power Value, Graham Number and Discounted Cash Flow analysis in stock selection?

Q: Hi, could you please rank these 6% plus income stocks purely in terms of relative security of the dividend. Any that you feel might little too risky for a conservative retired investor. Thanks.

Q: Another 52 week low for DR. It appears that thhe payout ratio is well over 100%, or is this dividend one to look at from cash flow? Do you still think it is worth holding as an income stock? Perhaps adding to?

Thank you, Stephen S

Q: I see a couple of concepts repeated in your answers: 1) if you have a short term need for cash (buying a house within 1-2 years eg) you should hold cash or cash-like investments (i.e., not equities), and (2) in general, some equity investments may be ok, but only for a 3-5 year hold.

Can you walk through the mechanics of how to deal with the situation of investing when you know you'll need cash after, say, 4 years? Do you buy good diversified equities (eg BE portfolio) and hold for 4 years, committing to yourself to sell only on the day before the 4-year period is up? Or do you buy such equities, but then slowly rotate into cash (when?)? Or commit to rotating into cash at the 2-year mark or some other arbitrary date? Or do you assess the situation at the 2-year mark (e.g.) and hang on, or not, depending on whether the portfolio is high or low?

Wondering what your thoughts are on buy/sell strategy in such a scenario. Thanks.

Q: Would you be worried when CFO leaves after one month.Does he want the summer off.

Q: Is SHOP still considered overpriced in spite of the pullback? What are the market expectations? What are your thoughts on their ability to perform?

Q: Hello. I currently hold zdi in my cash account and am thinking of increasing my exposure to this part of the world (now about 1.5% of that portfolio). I'm wondering about the pros and cons of doing this by adding zea. I realize it doubles my exposure to the UK, but it also adds more of Japan. Alternately, I could just buy more of zdi. Your recommendation, please.

Q: With interest rates likely increasing this month in Canada and also the USA, would you put any extra cash into bond funds (like CBO,XHY) or preferred shares right now; or wait to see if the prices decline with the new higher interest rates?

Thank you.

Q: Do you have an historic comparison of P/E and B/V ratios for NorthWestCompany at today's price? Or would you have better (preferred) comparison tool? I see a lot of analysts have a hold rating on this stock currently.

Thanks.

Q: Are there any reasons to buy bond ETF now ? They almost certainly will go down in the next few months. For the fixed income part of the portfolio is it not better, at this time, to simply stay with GIC ?

Q: Brookfield Renewable, and all the other utilities, have been dropping fast since the Bank of Canada decided it wanted to raise rates. Is this an area we should now be avoiding, or is the sector overreacting to what is likely a minor rate hike? What % of a somewhat conservative portfolio should be in utilities?

Q: Please review Supernus Pharmaceuticals Inc. - SUPN Is this stock suitable for a buy and hold investor? Thanks

Q: Given the increasing speculation that the Bank of Canada will be hiking interest rates come July 12th, which bank or banks in Canada will benefit the best from it? Looking to put some cash into Canadian financials as I am just starting to develop my first portfolio. Thanks for the great service you provide!

Q: Hello Team
I own SHOP and have been wanting to add. The stock is off now from its recent 52 week highs.
Does this seem to be just profit taking on a correction plus a weak tech sector?
Do you deem the stock to be a deal at the moment?
Thank You
Clarence

Q: How do you suggest playing the upcoming increase in interest rates >

Q: Sites classify XHY as Fixed Income and at the same time, show "distributions as dividend yield. Is the XHY "distribution" interest income or dividends for Canadian tax purposes? And if dividends, are the amounts eligible for Canadian tax credit?.....Thanks for the clarifications....Tom

Q: Hello 5i.

I'm currently putting together my RRSP income portfolio.
My plans are to invest approx 50% stock or Stock-ETF and 50% secured.
At the moment 50% secured is in GICs.
I have 30% stock exposure now. ENB-BNS-EMA-BCE-SRU-ECI about 5% in each position.
I'm looking for ideas to diversify my last 20%.
It has taken me 6 months to put this together.

I look forward to your suggestions..

Q: Hi there,

Thanks for the monthly updates emails. I will be looking to start positions in both names shortly and was wondering which name would be better suited to a TFSA and which would be better in a Non-reg account?

Thanks!

Q: With "CAE looks well positioned to benefit from underlying secular tailwind" and "with the Company deserving of a higher multiple", it appears a viable growth stock for a TFSA for a long-term position. Would you agree or suggest a regular account?.....Tom