Investment Q&A

Q: I was very surprised to read your answer to a question from Dennis on September 28th and I’m looking for an explanation as I hold BNS in all my accounts and have always considered it one of Canada’s top blue chip companies that has been paying a dividend for over 100 years. You ranked BNS second from last in dividend sustainability behind high debt, high payout ratio, low growth companies like BCE, T and ENB. Thanks.

Q: Assuming I would like to divide recent funds into 4 companies that I can set up as DRIP’s and leave for 20 years what would you recommend. I am diversified otherwise.

Q: Hi Peter and 5i,
Would you please rank the companies for the sustainability of their dividend going forward?
Would you also rank them in the order that you would purchase for yield and dividend?
Thanks so much for your input.

Q: Can you tell me how many times BNS and TRP have met or beat earnings expectations in the last dozen quarters please? Thanks

Q: I am considering adding to a number of these Income Generating names. I know you are generally not a fan of averaging down but is there an entry point that you would add to these names in the current market.

Thanks
Tim

Q: Hi 5i,
I've just started following EQB with an eye to getting in.
In the past week all 5 major banks are nicely up (even CM!) as is NA.
Conversely, EQB has had a sharp drop followed by a bit of a bounce, but is down overall.
I realize a week is not long and typically not a period of time from which to draw conclusions. However, the opposite direction of WQB's trajectory to other banks has me confused.
Can you explain why its trajectory over the past week would be so markedly different from other, bigger, names in the sector. Is it a sign of some fundamental weakness that isn't well publicized, is it just one of those short term things that defy explanation, is it due to a difference in its business model that is seen as a weakness, is it size related and is it typical for it to go in the opposite direction than most other names in the sector?
I'd sure like to have better insight into EQB, given its behaviour over the past brief while.
Thanks 5i,
Peter

Q: Hi 5i,
What companies are on your lost of long-term hold dividend positions? I’m building a dividend portfolio and sincerely appreciate your always valuable perspective.

Thank you!

Q: Hi: a reader wrote recently that BNS has lagged behind the others for the last 10 years. You replied “Typically, underperforming banks tend to 'catch up' in the Canadian sector”. Isnt 10 years enough time to “ catch up” ?

Q: your thoughts please on the quarter

thx

Q: Retired, dividend-income investor. I have funds available over time to invest in / top-up some of my positions to meet long term asset allocation targets. I plan on continuing to invest these funds over a number of months...as I have been over the past 8 months.

The question is = in what order do I buy the following = XST, XIT (several BNN-ers say to avoid adding to technology at this point), BCE, BNS, LIFE, ZUT.

One method is to wait for these securities to hit my price targets (based on hitting a combination of fundamental and technical targets (a little bit is kind of bottom-feeding).

A 2nd method is looking at setting the order of buying, based on where one thinks each security is relative to their historic value.

Ignore asset allocation...these are smaller amounts and the AA is reasonably good right now.

My suggested order, subject to where each security's price is at (please shoot holes in my plan):
Sept = BNS,
Oct = XST-#1 (in 2 tranches-spread out),
Nov = ZUT-#1 (ditto),
Dec = XIT-#1 (ditto),
Jan = XST-#2,
Feb = ZUT-#2,
Mar = XIT-#2,
As each hits their price target (minor adds) = BCE, LIFE.

Please state your order and why.
Thanks...much appreciated...Steve

Q: 5i team: a 10 years comparative chart of these 4 banks reveal a strong tendency of BNS to lag the rest and NA to grow faster. Is BNS having challenges in its management , or is Latin America investments pulling them down ? , Will they ever recover ? , would you recommend instead NA for a better growth ?, what is the downside of owning NA ?, thanks !!

Q: I am considering increasing my Canadian Bank exposure. I know timing is never perfect, but given the recent pullback in Cdn Banks, and the headwinds going into a potential recession, is this a good time to buy RY, TD and BNS, or would you wait and see what plays out in next 3 to 6 months?

Thanks
Tim

Q: Good Morning, I have some BNS which I purchased at $70.00. I'd like to add to it with the div rate being so attractive. I'm looking at a 3 year time horizon.

Has BNS ever cut its dividend? It did not appear to be the case when I looked over the past 40 years but please confirm if this is the case. Do you see any potential catalyst for it doing so? Thanks!

Q: Hello 5i team, Scotia is falling again, it is at 62 , in one of your messages you said that it is becoming atractive (it was at 64 then), what would be a good entry point to buy? thanks

Q: Morning.
Cdn dividend portfolio of 10 stocks
BCE, bns, cibc, eif, enb, ppl, Royal, tc td, and Telus
Which 2 would you get rid of..and why?
What would you replace them with, (dividend above 4%)
Thank you

Q: Hi Peter and team:
Thank you for the advice you have offered all these time, giving us readers a sense of direction.
I'm a retiree and looking for a balance of income and growth, and currently holding the above in the financial sector and need to trim down as per the Portfolio tracking service suggest. Could u rank your preference from the Income and growth , from Most Prefer (5) to the least (1). Feel free to add names not in the list above.
Deduct as many points as you see fit. Thank you as always
Thank you

Q: With multiple xdivs coming up, what would be your top 10 Canadian dividend picks? Thanks

Q: I always kick myself when I come to realize a missed opportunity and tell myself that next time, i'll recognize the trend and take advantage of it.

This is me asking that question now.

What 5 US and 5 CDN positions, in your opinion are very much out of favour right now but have quality fundamentals with an excellent chance for share appreciation over the next 3 years?

Q: This is a general comment in response to D's question asked on August 14, regarding BNS. I would agree with 5i that it's the valuation; yield and growth + the price we pay for a stock creates future value.
For example, owners of quality individual shares obtain stock splits every decade or so. 200 shares of BNS bought in 1990 for $4,800, for instance, with splits, are now 800 shares. When you multiply 800 shares by the price of $80 it's $64,000. And, dividends now provide more than half the purchase price ($3.10 times 800 = $2,500) Stocks get safer as time goes by. BNS now has a $60,000 buffer before we lose capital; however you have to wait a couple of decades to get it.
D should be a holder of BNS and quality companies that pay a dividend. Yield + Growth + the price paid for a stock, will create value.

Q: Good day,

I did some rebalancing based on your response to my Feb question. I bought GOOG which paid off, GXE which sort of didn't (yet), and held the rest, and definitely should have listened on LLY and TFII... Wow.

My NVDA took off, and I believe ZWT mostly gained from it and the mega caps as well. NWH.un continues to wallow.

I'm looking to diversify, as I'm heavily concentrated in tech and Energy. Are there any materials that you expect to have a high demand on the horizon? Similar to Uranium/Lithium

Would you take some NVDA gains, and sell ZWT (I hold AMZN, GOOG, NVDA, TSLA separately), Sell NWH, in the current market, and then where in the above sections would would distribute it? Did I miss the boat on TFII and LLY?

I've also held BNS on and off the last 5 years, would you exit that in the current interest market?

Please recommend a couple options in each of a few sectors that you find most compelling right now, thanks.

[Apologies for the disjointed question, the text box on mobile is pretty small]