Investment Q&A

Q: I am a retired, conservative, dividend-income investor with a pension, CPP, Insured Annuities and the following securities: AD, AQN, ALA, BCE, BNS, CGX, CJ, FTS, ECI, PBH, RY, TRP, WSP, WCP, WEF, RBC Cdn Equity Inc, Sentry Cdn Income, Sentry REIT, Fisgard Capital, ZLB, XIT.

I am looking to top up my industrial sector holdings. I have WSP, and those contained within AD and Sentry Cdn Income Fund (Progressive, Republic Serv, Transforse, United Parcel, among others).

I am looking for dividend payers and have narrowed it down to DH,MG, TCL.A (filtered using P/E, P/B, P/S, P/CF, Beta, as well as technicals). DH (your rating = B+) looks good due to its FinTech exposure. MG (your rating = B+) is a possible concern due to the car cycle being long in the tooth. TCL.A (not rated) is possibly in an industry that is fading away.

Which would be your top pick for both security of dividend and capital appreciation? Please rank them in order of your preference as well as how they might fit with my other holdings.

Thanks, Steve

Q: Guess you'll be busy w/Brexit - but wondering where I might invest some CAD & USD held on behalf of my kids in light of vote result?

Q: In addition to providing advice on specific stocks to buy ( which you are working on) can you provide advice as to timing and quantity of the purchase assuming cash. To be a little more specific, would you deploy the bulk of the cash today or over the next week and what time would you enter in? Thx

Q: Given yesterday’s UK referendum result, I expect there will be widespread panic and big declines on markets worldwide on Friday. I’m guessing your immediate advice will likely be “don’t panic, do nothing, wait and see how events unfold, etc”. In my specific case however, while I was expecting the “remain” side to win, I was also fearful and preparing for the worst just the same to the point that I am now 50% in cash. That is a lot of dry powder and I plan to start buying first thing Friday morning and into the coming days. What advice would you give someone who has been “doing nothing” for a while and is now looking to put sidelined cash to good use. Where do you think the best opportunities will be (both Foreign and domestic) to pick up specific names (or ETFs) that will get beaten up in the coming days worse than they likely deserve. Please provide a few names or ETFs for someone looking to be opportunistic on this occasion.

Q: If the market opens tomorrow in a blood bath, which companies would you buy?

Q: Hello 5i,
Now that the Brexit vote is in and the markets have reacted and likely overreacted.
Are there 4-5 stocks that you would buy that have little to no exposure to the UK or Europe that have been pulled down with the tide and should bounce back sharply once sanity is restored?
Thanks
Dave

Q: Hi Peter and team. Just heard the news this morning. Can you suggest a few good large cap stocks with good yields to pick up if there's a significant drop in price. Looking mostly for good yield, relatively safe and at least a bit of growth. Preferably Trading on New York Stock Exchange or as ADRs. Thank you. Tulio

Q: Hi, Just sent a question....the company is CALM.US.
I did type the ticker on the "Companies Addressed in this question" field. What did I do wrong?
THX,

Q: Your thoughts on the following tentative plan will be appreciated:

Looking to tweak our equities some over the next year or two to provide for a bit more US exposure and sector diversity and less in mutual funds. We looked at about 10% of our equity holdings in yesterday's review with our IA and tentatively landed on this:

1. Cdn $ - Sell Dynamic Dividend Income Fund and (some of our) RBC Cdn Equity Income Fund tentatively in favour of iShares Core S&P 500 Index ETF CAD-Hedged (XSP).

2. US $ - Sell CI American Value Corporate Class Fun and TD US Mid-Cap Growth Fund tentatively in favour of SPRD S&P 500 ETF.

PS. Our IA seemed to hesitate about us selling any of our RBC equity fund as he feels it well-managed and performing well again this year (11% ytd).

(Context: Retired. No pension. Conservative. 35% GIC, 30% preferred, 5% alternative, 30% equity, preferring blue-chip safe dividends.)

Thank you.

Q: I have been holding Canexus in the hope that they would transfer to SPB shares. I am currently up 14% on Canexus and I don't know whether I should take a little profit, or let it go through the process of being bought by SPB. Obviously more risk this week then in the past. Is CUS a sell because of the current risk? Cheers.

Q: I am looking at these 4 stocks for a combination of growth and income. Do you see any problem with these or do you have a better suggestion? Also, do you feel now is a good time to buy or would it be better to wait until summer is over?

Q: Hello Peter and the 5I team

I am using SHERWIN-WILLIAMS CO as an example. I like to use ROE as one of the main numbers I look at before I buy a stock, is there a point when a high ROE is a concern. SHW has a ROE of 145 ( according to my RBC banking brokerage info) is this too high? At what level do red flags come up and what causes extremely high ROE. What statistics do you look at and could you rank them for their importance in your check list.

Thanks

Q: CHR has been in a bit of a downtrend the last few months,could you comment on that ?

Q: Hello Peter, I have two losers, CIX and POW in my portfolio. Kept hopping for a recovery but getting tired of waiting. I would appreciate if you can help me to find replacement for them. Is there a chance for them to recover in the next 6-12 months?
Thank you, J.A.P. Burlington

Q: This company appears to have stumbled after a recent purchase--should I hang on for a recovery or take a small loss ???

Q: Hello Peter,
Any idea why paramount resources is going up everyday recently? I own chartwell retirement, sienna senior living (SIA), concordia healthcare and hydro one. I would like to take a bit more risk for higher rewards. I would like to sell hydro one and put the proceeds towards chartwell, sienna senior living, or concordia. Chartwell is 2 percent of my holdings, sienna senior is 3 percent, and concordia is 1 percent. I was thinking of increasing sienna senior to 4 percent where i get a nice dividend and a potential upside. I was initially thinking of concordia but there does not seem to be much interest in a takeover or does this process take along time. I would appreciate your comments. Thanks very much.

Q: I have not had a 'raise' in a while from RioCan. I have held the stock since 1999. Is it time to part company? It's near an all time high. Can you suggest a REIT which does give good increases every year? A high ROC is nice, but not required.

Paul

Q: Would appreciate your comments on this company -would you recommend a buy here?

Thanks

Dave

Q: Good morning Peter and Team, In your answer to Rod, isn't CUD another "equivalent" to VIG:US and VGG that trades in US stocks? Its one-year chart shows better performance than the two Vanguard ETFs cited.

Thanks as always.

Q: Could I please get your opinion of this fund for a RESP.

Thanks

Dave