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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi 5i, my question is on all financials impacted new taxes.

"Dividend tax change: Ottawa is planning to raise billions of dollars from banks and insurers through a change in tax rules on dividends that financial institutions receive from Canadian companies."

Can you put a guess on how this will impact investors?

Thx

Read Answer Asked by Christopher on March 30, 2023
Q: I'm currently overweight financials. Mainly due to new positions in BN/BAM/TD. With over 21% in financial broken down as follows would you begin to trim or consider BN/BAM diverse enough not to be a financial and thus reducing the overall financials concentration to 13.5%

BNS - 2%
BAM -2%
BN - 4.5% been growing this position (ideally want it to be 6%)
EQB - 1% new position
GSY - 2.5%
JPM - 2.6%
TD - 2.21% new position
Visa - 4.23%

10 year investment horizon.

Your thoughts are appreciated

Don
Read Answer Asked by Don on March 22, 2023
Q: I wonder if any of the big six own any US or CAN MBS or CMBS ? Thanks a lot .
Read Answer Asked by Lai Kuen on March 17, 2023
Q: Many companies have become addicted to low interest rates over the last decade. Assuming that interest rates stay where they are for years to come (a rate once considered somewhat "normal"), do you see any problem with any of these blue chip stocks maintaining their dividend ? I'm sure over the course of the next 5 years or so some of these companies will need to renew debt at higher rates.

Read Answer Asked by James on March 17, 2023
Q: Good morning!
As a dividend investor, I am noting that BNS now pays 1.25% higher dividend than EIF. I hold full positions in each. I am considering selling EIF and doubling down on BNS. I see BNS as having - as well as a higher dividend - an upside in the order of 50% when the economy stabilzes and perhaps the Ukraine war is over. I do see growth from EIF, but think that in a 2 to 5 year window EIF might see steady growth with perhaps a maximum of 25% upside, seemingly less than the bank. What do you think of this reasoning, and are there any reasons why this might not be a good idea? This swap would be in registered accounts (50% TFSA and 50% RIF), so there are no immediate tax implications.
Thanks! ... Paul K
Read Answer Asked by Paul on March 13, 2023
Q: Please rank the above companies for level of risk and do you think that our Canadian banks could ever be subject to the issues at SVB? Is BN risky? I read one person writing how his advisor won't let him buy it. Feeling like I don't have much trust in anything right now. How is an investor to handle this uncertainty? I definitely see the benefits of diversity as you had always pushed. I'm also somewhat confused as most advisors have been pushing financials due to the benefits associated with rising rates. Your calm advise would be appreciated.
Thank you!
Read Answer Asked by Neil on March 13, 2023
Q: What are the companies getting attractive in these times?..I bought some BN..it had a 4% drop yesterday..Please suggest any quality companies to watch. Thanks.

Shyam
Read Answer Asked by Shyam on March 13, 2023
Q: Hello 5i team,
I was thinking of taking advantage of this SVB fiasco by adding to my BNS shares.

I mainly hold BNS for income and was wondering what was the payout ratio at this time? Has the ratio increased over the past few years (BNS shares declined ~30% from its all-time-highs in the past year)? How comfortable are you in adding for income purposes?

Thank You,
Andrew
Read Answer Asked by Andrew on March 13, 2023
Q: Wondering why National Bank seems to have better momentum than the other banks like TD even though you recently added TD to one of the portfolios, I believe around $88. BNS has also been a laggard over the years. What is it that prompted you to add TD over NA and would you support selling BNS, TD, or CM to enter NA or RY? It seems like NA and RY seem to have better momentum than the other banks. What would be the risks with this move?
Read Answer Asked by Neil on March 13, 2023
Q: Hi
In looking at the big 5 Cdn banks, it is easy to think they are all being somewhat affected by the SVB shut down, or pressure on US regional banks...or is that jumping to a far fetched conclusion? I see that the Cdn banks have been marching steadily lower lately and have started to wonder whether this is sector related or a fundamental change occurring. Although this may be a bit early in the game, at what point would you feel the Cdn banks are excellent bargains, or is that too optimistic a view of the Cdn banking system, vs the US's regional banking system? As always, I greatly appreciate your thoughts on this!
Dawn
Read Answer Asked by Dawn on March 13, 2023
Q: I have owned these stocks in my non-registered account for 12 years except ETF IGM, T, CTC.A (bought 2 yr ago - up a fair bit). T bought 5 years or so ago. GSY, MFC & GRT.UN a year ago - all 3 up nicely. I buy dividend growers for the most part. I have been retired for quite a while - so, more interested in dividend growth. Large portfolio with banks 40% of total. Do not worry about market downturns: add to positions when they go on sale -08/09 and 2020. Sitting on cash and looking to add to these positions . Do not own ENF.CA - typo. Suggestions?? IFC 5-6 years up 220% including dividends.
Read Answer Asked by James on March 10, 2023
Q: A year ago BNS was $88.xx a share, it is now $68. CWB was $36.xx a share and is now $26.xx. Banks seem to be failing as far as investments. One gets 4.5 to 6% dividends but loses 20-30% on valuation in a year. Can we hope for a brighter future in 2023, or are there better choices for stocks the financial sector
Read Answer Asked by Mark on March 03, 2023
Q: Hello Peter & team,

If a similar question which I missed has already been asked, please ignore this question and point me in the right direction.

The big 5 are reporting over the next few business days. Can you please share with us what we might expect? Good news bad news? Also, please rate each of the 5 in order and whether you think each of the names are a sell, hold or buy at this time and the reasoning for your logic.

Thanks for all you do

gm
Read Answer Asked by Gord on February 28, 2023
Q: hi, on feb 10 you answered to Lawrence that you rank 3 cdn. banks higher that the 2 you recommend, TD and BNS. and BNS you ranked last? I'm confused? what are these 2 in your model portfolio...?
Read Answer Asked by chris on February 22, 2023
Q: Please, advice me which stocks are the best for this year for reinvesting position on tfsa acc, 20,000 $ ?
Or may be some others?
Thank you
Read Answer Asked by dilan on February 13, 2023
Q: Which Canadian Bank has the best current risk adjusted appeal. 3-5 year hold.
Thanks.
Read Answer Asked by Lawrence on February 10, 2023
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