Investment Q&A

Q: Could you suggest a diversified mini portfolio of Cdn stocks from your BE portfolio? The portfolio is too small to accommodate the full BE set of stocks. Thank you and happy new year.

Q: I’ve held PBH through thick and thin for over 5 years waiting for the “growth” to materialize and yet after this time I’m down nearly 20%. How long do you give a company to perform before moving on? Even if I was just breaking even I’d have some more patience with this but the opportunity cost of 5 lost years and a 20% loss is telling me it’s time to find something else. Your perspective would be appreciated. Thanks.

Q: We often see conflicting analyst opinions, but ratings of MDT seem to be on one extreme or other. For what it’s worth, MDT appears on various lists of “best stocks for 2023”. And just this week, Barrons carried this story: “ Buy Medtronic Stock. Shares of the Dividend Aristocrat Look Attractive” (January 2). This morning RBC-DI downgraded MDT from outperform while CFRA maintains a Buy. Both RBC-DI and CFRA seem to reasonably good track records. I have held MDT shares from multi-year highs all the way down to today’s miserable level. (Tax loss not useable).

I have previously asked you about MDT and possibly others here may have done so too. Would you care to take a side in this frustrating debate with your reasons? Thanks.

Q: What is your favourite defence (military) ETF?

Q: I must progressively restructurate a non-registrated portfolio, recovered in early 2022 for self-managing... Here are the percentage of each stock vs all portfolio, and also indications (+/-) if they are at a profit or at a loss on paper. stocks at profit are: BIP.UN (8% of portfolio), CM 5%, DIR. UN 3%, BIPC 1%, BCE 5%, ENB 2%, SGR.UN 1,5%. Stocks at a loss are: BN.PF.D (5% pf portfolio), TRP 1.5%, VET 1.2%.
My objectives are in order: stability, dividends, and some growth if possible.
Some stocks represent a probably too high percentage of the portfolio, I would not sell them “only to rebalance the portfolio” if they are still safe (to avoid non necessary capital gain tax), but I shall sell if they represent a risk. On the other hand, I would not sell stocks with a loss if they respond to my objectives.
I have already balanced a good part of this portfolio with ETF and a selection of stable dividend stocks. Those are the remaining stocks from the original portfolio..
Please give me suggestions for each stock according to objectives as : keep, sell, or sell partly. All of your comments are always greatly appreciated.

Q: Good Morning and Happy New Year

I have a few different accounts and I am very well diversified with dividend payers across the board assuming it was one big account. I will be getting one more registered account where contributions will be small and it will not have a lot of funds. I am going to treat this account as if it was on its own. Right now all I have in it is ZDV. I know it is hard to be diversified with only 4 holdings but if I were only to hold 4 stocks in this account what 3 others would you recommend to go with ZDV? I would like to have all 4 paying a dividend as well.

Thanks

Q: Could you provide any information/prospects on the above stock? Thanks.

Q: Asked by Doris on January 09, 2023
5I RESEARCH ANSWER:
We are not big fans of the staples sector overall right now in the US. It has fared decently over the last year but valuations are at the higher end now, as growth should moderate alongside inflation. Also, now that bonds offer more attractive yields, we think the relative attractiveness of staples is lower than it was a year ago (more safe alternatives for stability and yield now).

We think it is difficult to be too hard on COST though. Overall, we think staples names in Canada look a bit more attractive due to what looks like lower valuations on average. In Canada, we think PBH, ATD and NWC are worth looking at.

this is an answer you gave regarding staples . would you feel the same eay about hwalthcare stocks, such as gilead, etc

Q: I'm seeing conflicting information about BAM and dividends.
Your chart does not show a dividend for BAM - yet other sources say the dividend is 4.3 % and BAM is a good stock for income.
Does BAM pay a dividend and - if so - is 4.3% correct?

Q: Hi 5i, I currently own Loblaw preferred and like the fact it’s in the food industry decent dividend and us perpetual. It also trades below $25 which I like. What I don’t like is the PFD-3 rating. Should I have any concerns here and what are your thoughts on this preferred.

Q: Further to your comments posted Jan 10 to Donald re EGLX, could you elaborate on your comments about needing further revenue and financing clarity. What do you feel needs to be done to make such improvements? Are you aware of what company efforts are being made to achieve any of the above ?
Many thanks, as always.

Q: what is your feeling on Medtronic now? If I buy it in a US RRSP is there still a whitholding tax?

Q: What's your opinion on etf's that follow insider buying like the PKW
Invesco BuyBack Achievers ETF. I was trying to look up others like KNOW Direxion All Cap Insider Sentiment Shares and The Guggenheim Insider Sentiment ETF (NFO)which I can't even find the ticker in my td trading accounts for the latter two and finally the INK Canadian Insider (CIN) Index.

If there are trading vehicles/etfs that one can add to their portfolio do you recommend them or stick to using them as tools to find individual stocks such as Oracle ORCL the top holding in PKW Invesco BuyBack Achievers ETF. I'm confused by Oracle because it looks like there's more selling so I don't why it would be a top holding. Anyways just trying to educate myself please help. P.s. is there any stocks in these indexes that attract your attention? Cheers

Q: Ruchir Sharma, Chairman of Rockefeller International and Founder & Chief Investment Officer at Breakout Capital suggests that the US$ may have peaked and that it will start to decline in 2023 due to nat'l debt. The narrative was suggesting that USA role as world leader is starting to wane. Conversely, if the C$ strengthens, Cdn exports will be negatively impacted. Does 5I have an opinion on the matter?

Carl

Q: These are my current holdings and I am looking forward to 2023. They are held in relatively the same quantities in 5 different accounts, a RRIF, 2 TFSA's and 2 Non registered accounts. I am retired an enjoy the income. Do you see any issues with these holdings or have any suggestions looking forward. The only non dividend holding is AR.
Take any extra credits as necessary. Thank you in advance. Enjoy and appreciate 5i'S help. Happy New Year.

Q: I’m looking to put a fairly large cash position to work (my portfolio is 30% cash) over the short term and would like to atleast gain some income (while I wait for a short-term recession scenario to play out) but limit large equity exposure. Can you give some short term bond etfs or some liquid traded products that would serve that purpose. I own a large position in zwb already but realize I’ll still get dinged in a pull back (at which point I’d shift that position back into underlying bank equities for a recovery). And also what kind of yields would I be looking at? I also would like to be paid out atleast monthly. Thanks

Q: I need to add income equities to the TFSA as the income target is underwater. With this, I'm pondering adding BMO Covered Call Canadian Banks ETF(ZWB-T) to the TFSA for extra income, rather than say ENB that I would prefer to hold in a trading account and also rather than hold a small capitalization stock like AW.UN. What do you say about this option, ZWB for a mate over the age of 71?
If you are aligned with this approach, are there other Covered Call ETFs that you would suggest from my consideration?
Many thanks for the hints!!!......Tom

Q: HPS and HPF - what are the prospects for these two funds, and I assume the outlook for and relevance of preferred interest rates to investment in one of these funds?

HPS.A - not related to the above - do you expect Hammond to raise capital by way of share issue, or otherwise, for the announced 40m expansion commitment.

Q: Hi there,

I've been digging into a few of the Fidelity funds which have seemed to perform well over the short, medium and longterm. What are your thoughts about the follow funds and if you were going to build an asset allocation using one or a selective mix of the funds, how would you go about doing so? Also, can you please provide any insights on the different classes of mutual funds available? I believe F and F5 are available to DIY investors.

Fidelity Canadian Growth Company Fund
Fidelity Canadian Large Cap Fund
Fidelity Canadian Opportunities Fund
Fidelity Greater Canada Fund
Fidelity Special Situations Fund

Thanks!

Q: I am looking for a good ETF focusing on dividends. What are you thoughts on HAL. Are there others you would consider better options?