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: Hello Peter,
For additional monies for a balanced approach, i was thinking of putting new monies into Nuvei (instead of Shopify), and rest into one of the banks. I already have Topicus. Does this make sense and if so, which bank would be best at current valuation? Fobi AI has had good news releases, yet stock tumbles. Any comments.. Thanks very much.

Read Answer Asked by umedali on October 14, 2021

Q: I am consolidating some holdings in my RRSP. I am thinking of selling 2 holdings to buy the other that has the most potential growth in the next 5-10 years. Which one of these 3 do you think has the most potential growth in the next 5-10 years? I am 35 years old so I am in no rush to use the money.

Read Answer Asked by Anh on September 30, 2021

Q: Can you give me a list of 5 Canadian and 5 US stocks that you would recommend with yields above 3%.

Read Answer Asked by Cory on September 16, 2021

Q: Retired, dividend-income investor who normally holds for the long term. I own a half position in Manulife and am down roughly 7%, including dividends. My long term plan was to sell MFC and rebuy a second Canadian Bank (I already have a full position in Royal Bank).

I have compared the various metrics (P/BV, P/CF, P/S, ROE, technicals, analysts estimates, etc.) for the above mentioned banks as well as against MFC.

Looking at the banks in isolation and already with a full position in RY, I've narrowed it down to either BNS (International exposure and current laggard due to Covid) or TD (more US exposure and 1 year laggard). Of the banks that I do not own, please rank them in order of the best total return over a sufficient period of time for Covid to have subsided (1-2 more years for improved vaccination coverage?). Do you agree with my rationale?

If you include MFC into the bank comparisons, where would you place MFC in the rankings? I have read to buy the banks when their P/E is < 11.0 and buy the insurance companies when their P/BV < 1.0. This would lead me to buy TD (P/E of 9.7) or keep MFC (P/BV of 1.0).

So...keep MFC versus take the loss in MFC and then buy BNS or TD? Your thoughts?

MFC is held in a taxable account and I have no problem taking a loss.

Thanks for your help....Steve

Read Answer Asked by Stephen on September 08, 2021

Q: I know that ranking banks often is like picking shades of the same colour. At this point in time do you feel there is any "clear" division amongst any of the banks for investing purposes? Can you give your order of preference and the magnitude of the gap between each choice.
Thanks,
Terry

Read Answer Asked by Terry on September 07, 2021

Q: I am going into retirement and below are the weightings of stocks held in my portfolio. Although the portfolio performed okay over the years, I wonder if there is too much concentration and would appreciate your ideas on diversification given the economic times we live in. My portfolio is about $2M with an investment loan of $150K for which I use the dividends to repay. Thanks. BNS 37%, TD 18%, CM 14%, BMO 14%, BCE 6%, SRN.UN 6%, RY 4%, POW 1%

Read Answer Asked by David on August 26, 2021

Q: I hold the Canadian banks in my dividend portfolio and they have served me well over the years as a core hold.
Should I reconsider these holdings in light of new taxation rules being suggested?

Read Answer Asked by Denis on August 26, 2021

Q: I would like to add a few (2-4) financial companies to my non-registered investment portfolio. Would appreciate 5i's help in ranking the above names based on total return potential for a 3-5 year hold. Please add any names you feel belong to the lineup, ranked appropriately, Thank you.

Read Answer Asked by Pradeep on August 18, 2021

Q: Would like to create a 10-15 stock portfolio out the securities listed above, to meet my retirement income and growth needs, for a long term hold.
CPD is my current, imperfect proxy for the fixed income portion of my portfolio.
CVE, CNQ, SU would be the only opportunistic (and highly correlated) purchases, to take advantage of the current low valuations for the petroleum industry. These would be sold if the oil & gas market's prospects change.
Please rank all the securities on the basis of return potential over 2-3 years as the primary criteria,
Please eliminate any stock which does not have adequate balance sheet strength, from the lineup.
Please add to the lineup all securites that would facilitate the creation of a defensible, well-diversified, long term portfolio - especially if it is in a sector that I have overlooked.

Thank you for your expertise, and willingness to help me sleep a bit more soundly.

Read Answer Asked by Pradeep on August 13, 2021

Q: Hello. I continue to see positive comments from 5i about growth potential for GSY. I would like to add it my financial sector but that would require selling one of my current financial stocks in order to maintain the assigned weight. Of the stocks listed can you put in order the stocks you might sell to a\quire GSY. Alternatively, does it make sense to keep the current stocks, which are all doing well and for the most part paying dividends and just add GSY, changing the weightng of the portfolio?

Read Answer Asked by Robert on June 30, 2021

Q: I bought all 3 of these banks a couple of years ago: Royal Bank, Bank of Nova Scotia and TD. At that time all 3 of purchase prices were much lower than today's stock prices. I would like to add to my holdings of each. Would you wait until the prices come down a little, or is it more probable at this point that prices will continue to go up? Thank you.

Read Answer Asked by Cathy on June 28, 2021

Q: I am currently way overweight in Canadian banks and would like to gradually cut my overall exposure to about half of my present total value. Would you please rank the above stocks in light of each expected Total Return over the next 3 - 5 years?
Many thanks.

Read Answer Asked by David on June 24, 2021

Q: You have mentioned several times that it is expected that later this year the big banks will be given a free hand in allowing dividend increases, is there any analyst guidance/guesses out there on what sort of increase is 'expected' from the banks over the next 1-2 years (and may be baked in to the share price at the moment). Or is it expected to be more a case of just going back to a more normal cycle of increases rather than catching up.

Read Answer Asked by Graham on June 10, 2021