Investment Q&A

Q: I am heavy financials at about 20%, I should probably trim the herd....All but CHW will generate a large capital gain as I have held most for a long time. I hate to sell CHW as it pays a crazy div right now at almost 8%.

I am leaning towards holding all but taking the dividends and putting into other sectors (stock from the your balance portfolio following your balanced equity portfolio) and not adding any new financials to my holding.

Can you provide a compelling argument for selling 1 or 2 of the above for the sole purpose pf rebalancing out of financial. Or is my slow but steady approach with lower tax implications a reasonable compromise knowing I will be heavy financial for several years.

Q: Why are the bank stocks so weak lately. Is this a good time to add or do they have more room to fall. Thank you.

Q: 11:56 AM 4/3/2018
I own RY, CM, BNS, and some TD, and they comprise nearly 20% of my income-oriented portfolio. It is often suggested that I should own shares in one or more insurance companies, but I think the big banks are already in the insurance business so I believe I am already am invested in the insurance sector.
Would you think I need to buy some SLF?
Could you please give me an estimate of what proportion is in insurance business in each of the big banks.
Thank you............. Paul K

Q: In my TFSA currently have BCE, ENB, FTS, TRP, CNR, SLF, BNS and TD - Currently down about 5% in the portfolio. I'm looking to make a change to get some growth in lieu of dividends - what would you recommend keeping and buying.
Thanks

Q: Of the top 6 Canadian Banks, can you rank their exposure to the US from the least to the most exposure?

Q: Hi 5I,

I want to add to my bank positions.
Do you still recommend BNS and TD over the others?
Also is it common for the banks to be more negative in early summer around mid June?

Thanks

Q: hello 5i:
clarification please. "Chris" asked about the big 5 Canadian banks, but I only see 4 listed. Where does BMO fit in this mix?
thanks
Paul L

Q: I need to unload one of the 5 big banks. How do you rate the 5 on a scale from best (keep) down to "worst" (sell)? Thanks for the continuing great service!

Q: Can you tell me if RY is as diversified as TD or is it more of a "Canada" only bank.
Thank You
Craig

Q: I have owned stocks in above companies for a while. I want to make additional investments in quality dividend stocks.
I also own stocks in KO, GE, MSFT and SYY. Total portfolio about Cnd $ 300K and US $ 120K
1st question, In your opinion, should I sell any of the above stocks, if so which ones.
Which additional stocks would you recommend for me to purchase
Thanks for your guidance. John

Q: Hi. In the Financial sector, I own BNS (5%), TD (5%), GSY(3.2%), ECN(3.3%) and Visa (2.4%). Is the banking sector too high? If I need to sell, which one should go first? Is GSY and ECN very similar in nature? Should I own both? Thanks

Q: Hi Peter and Team
I am retired and have only "passive" income in my company investment portfolio but hold an overweight in financials (>35%) such as GWO
With the new budget proposals, I am considering reducing my high dividend financials and purchasing non dividend companies that have a better growth profile, especially after last month's downturn.
Can you suggest 3 positions that I might consider after trimming the positions in my banks and financials??
Your advice as always appreciated
Peter

Q: I own BNS, and TD, and would like to add one more Canadian Bank. Which other bank has the highest US exposure. Which other bank has the best dividend growth, and lastly which one would you recommend for a 3rd position.
Thanks

Q: Hello: I currently own BMO, CM and BNS. I’m thinking of switching BMO for TD as BMO did not increase its dividend as TD did. Also I believe TD has more US exposure which should show better growth. Your opinion please.

Q: Hi Peter and 5i:
In my grandkids (ages 3 and 2) RESP I currently have as core ETF's:
XIU - $14,000
XAW - $11,000
I have this years contribution of $6,000 to invest.
My plan is:
1. Start doing some individual stocks.
2. Reduce XIU by $7,500 and buy TD.
3. PHO - Invest $3,500 (or might you suggest ZQQ)
4. XAW - Invest $2,500
Does the above portfolio approach look reasonable to you? Look forward to your suggestions and always valuable feedback.
Thanks so much.

Q: I have been reading and general feeling i believe is the feds are going to raise rates in 2018, do you feel that is right?, if so, to what affect will that have on bank stocks and IF, you were going to pick 2 in each of canada usa which would you pick, in the order you like them
thanks

Q: In your opinion what is the safest div stock for my income fund

Q: Financials have a way of tanking hard during bear markets. I learned that first hand in 2009 when amongst the carnage I fortunately picked up several banks on the cheap. Now once again i'm looking at td bank for a solid Canadian stock purchase I regard this company as one of Canada's highest quality stocks. Ive read commentary from several sources to the effect that this stock is reasonably priced. And I certainly appreciate that it hasn't moved much this year and there are some tailwinds for financials currently. But bear markets seem to be the time to pick up bank stocks, not when everything seems rosy a decade into a bull market . With that said, would you add td here--or keep it on your watch list for the next severe correction. How would you personally play td.

Q: I realize that BNS is in your portfolio but if you were going to buy shares in a Canadian bank would you still suggest BNS as the top choice. I tend to lean toward Royal or TD as perhaps better choices at this time but would appreciate your opinion and thoughts on how each of the banks is positioned for best growth and how you would rank the three banks for purchase now.

Q: Hello Peter, Ryan & Co.
The Canadian banks are core holdings in my portfolio, which I intend to hold for a very long time. I am a bit perplexed, however, at the recent selloff. I recognize that the current pullback/correction in the market is very broad, but it seems to have been triggered by a fear of rising interest rates - don't banks & insurance companies actually benefit from rising rates? The banks' shares seem to have fallen as much as the interest-sensitive stocks this week (like REITs & utilities), which makes no sense to me. Can you explain?