Investment Q&A

Q: I am a conservative retired, dividend-income investor with a pension and CPP. My portfolio includes mostly dividend-producing holdings (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WEF, WSP, WCP, ZLB, XIT, Sentry Cdn Inc, Sentry REIT, TD Health, RBC Cdn Equity, Fisgard, and Annuities).

I am looking to add ZWH-T for income and some growth, acknowledging the T1135 inclusion and the dividends being treated as interest income. This would be held in my non-registered cash account.

Question 1 = would any dividend withholding taxes be reconciled at tax time, due to the USA-Canadian tax treaty?

Question 2 = would ZWH be an appropriate investment for my profile above? At first glance, it doesn't look like we have much foreign investments, but when you prorate the foreign holdings and/or income we have 30% non-Canadian investments (AQN, WSP are good examples). Is 30% too high for our profile?

Question 3 = I don't read anywhere about any hedging of the Canadian dollar. Am I at any currency risk?

Thanks for your help...much appreciated,
Steve

Q: Hi team. I'm trying to find an ETF that pays a dividend of 4% or more that has NO canadian exposure. The best one I have found is a new ETF called ZDH (International dividend ETF). The good: The PE is 13.3, which is surprisingly low (if you could verify), the yield is 5%, it's hedged, no holding has a weight above 2.3%, the largest sector is 27%. The bad: I don't recognize ANY company in the top 10 holdings, the MER is 0.45%, the liquidity is weak (can be a good thing when buying). Also, the dividend is above 4%, which as we've seen on the TSX this year, that often means trouble (CJR, WCP, LIQ, WIN, TMC, D.un). Would you recommend this to someone 1 year from retirement? He would give it a weight of 15%. Please take your time to respond. I'm in no hurry. Just want to be extra careful on this move since it applies to my dad. Thank you and great work!

Q: What do you think of this company and the reports? A sell, hold, or buy?
Is the dividend safe? Thank you!

Q: Thursday saw a further 10% drop in the share price of BNK, on massive volume (3x normal). However, I saw no clear news to justify the drop. Do you have any insight whether the Albanian tax problem is more serious than first appeared ? What is your prognosis for this stock ?

Q: What effect will the expected interest rate increase in the U.S. have on EFN? Have they borrowed. a substantial amount of money to finance acquisitions.
Thank: Jerry

Q: Hello again gurus!

I am interested in increasing my US holdings.

I presently hold the Vanguard Total Market and like its very low MER. I intend to add to my US holdings. What is your opinion of the BMO's ZWH?

Would you suggest that I simply add to my Vanguard Total Market Fund or put my new money into something like ZWH which, while it has a higher MER, also has a higher dividend?

Either way, I intend to buy and hold the ETF's.

Thanks.

Q: What are your thoughts on richards packaging as a long term growth stock with a 5% dividend in a TFSA Could it be a potential takeover stock by a larger company?

Q: What's with BNS? It's been dropping all week. Can you shed some light on this and what is he outlook for it?Thanks very much,

Q: John Embry wrote an article for the Daily Buy Sell Advisor (Investors' Digest) yesterday which was quite disturbing. It concerned the massive short selling of gold & silver and the exposure of banks, especially the Deutsche Bank to derivatives. Deutsche Bank is reported to have exposure to derivatives exceeding the entire world's GDP. I have concern for the world's financial system. Can you provide either further insight or guidance?

Q: Enbridge announced 14% increase of dividends and dropped like a rock 3%. Last year ENB about the same time announced about 30% dividend increase and shot up 20%.

So increase is an increase, why the reaction is totally different from last year ?
Do you see any other bad news today and going forward >

Q: Thanks for your great analysis.For what it is worth today BMO CF & RY 1ncrease target price ranging from $18.50 to $22 with Buy & Outperform ratings. Thanks

Q: I would like your opinion on Saputo, would it be a buy at this time. Thanks for all the great information this year.

Q: FC-T has a high yield over 7%, which is a better return than any of it's convertible debentures. a free cash flow of 5.47M, However a book value of 10.28. They have never reduced their dividend. Do you see this company as a reasonable investment for income.

Q: Greetings all. I'm looking to add some U.S. Growth stocks to take advantage of their recovering economy and to diversify against possible continued weakness in our own over the next few years. I understand you don't cover the U.S. here, but are there any companies that your team is excited about in terms of growth stocks in a couple of the higher weight sectors? Thanks very much.

Q: I have a very small allocation to two junior miners - Nevada Copper (NCU) and Sherritt (S). I plan to crystallize losses on one of these positions and consolidate into the other. Given high risk tolerance, which of these would you prefer to hold long term.

Q: a question on western was some time ago..they are trying to hang on, and would you buy trinidad western or precision...or more likely none of the above..don

Q: Bonjour, please comment on the future of this company.
Merci
Ronald

Q: Good day, is TA worth (risk/return) buying at $5? I am thinking that there will likely be (another) dividend cut which will push the shares lower short-term, but after that, they could bounce back to $7-9 - at which point I would exit. What's your thoughts - thanks.

Q: Prefs make up about 5% of my holdings. Most are solid, however
I am underwater on CSE.PR.A and AZP.PR.A and am looking at selling to offset gains elsewhere.
Could you make a suggestion(s) as to a good and somewhat similar home for the proceeds?
I was thinking about CSE and/or AQN. ( My feeling is CSE is a a bit of a dice roll on a deal getting done)
I hold BEP.UN in a registered account, but am light on utilities otherwise.
Thank You.

Q: In their most recent 10-Q, I don't understand what's going on in the Cash Flows from Investing Activities for the past 9 months - can you explain what is meant by 'purchases of marketable securities', 'proceeds from maturities of marketable securities', and 'proceeds from sales of marketable securities'?