Investment Q&A

Q: With Bank of Canada suggesting this week that interest rates will likely not rise, but with the US Fed just suggesting likely two more rate increases, what do you think of buying Canadian Dividend Paying stocks right now? I think they are generally seen as positive when interest rates stabilize, but will Canadian dividend company stocks tend to decline in sympathy with US dividend stocks? For Canadian dividend stocks (3%+) what do you see as attractive next year - i.e. ones less affected by trade wars, lack of oil supply options, possible real estate bubbles, inter-provincial disputes, possible NAFTA turbulence!!!!!

Q: Dec 21- Bad day for US & Can markets 2) Triple Witching Day & maybe Mo/yr end port. rebalancing. 3)Tax loss selling The big 6 can banks especially BNS dropped sharply on above average volume & near/at 1 yr low.Your take please on BNS.Txs for u usual great services & views.Merry X'mas & All the Best for the New Year

Q: Based on the recent market turmoil, can you recommend 5 dividend paying stocks to buy now where it may be possible to get some capital gains over time.

Q: Hi Team,
I hold these 6 lossers and like to trade as the follow to crystallized the "tax loss".
sell ALA buy PXT,
sell BNS buy TD,
sell MFG.PR.G buy MFC.PR.C
sell SOX buy WSP
sell KPT buy PRI.un
I understand my queston have too many companies in one question, please deduct as many as it needed and I sincerely thank you for all these years of your team's best service and help my retirement investment portfolio.
Merry Christmas and Happy New Year to you ALL.
Tak

Q: Can you please provide analysis on TD, RY, and CM in the current economic /political environment, and your recommendation of which Canadian Bank would be best to purchase at this time based on price, dividend and opportunity?

Q: Hi Peter:
Season greetings to you and your team.
I would like your opinion on the trade(s) I was thinking about.
1) Sell full positions in POW and NFI.
I've had POW for 5 years and it has done nothing during that time except go down about 20%. However, I also think that at $24.00 it has potentially hit a bottom support number. I would be happy collecting the nice dividend it pays.
I also think based on your recent answers to questions that NFI has potential going forward.
2) If I sold POW and NFI, I would add to the positions that I already have of the other companies that are mentioned.
I'm well diversified and this would not interfere with my sector or geographical weightings or the amount of dividends I am receiving.
I think both scenarios have their positive attributes and would appreciate your thoughts. Do the trade or remain the course.
Thank you very much for your valued opinion.

Q: Charge as many credits as you see fit...at least 4...got lots. Annually, I follow the O'Shaughnessy system and go through the tedious process of ranking over 90 stocks into deciles. I am screening for stocks that are good value, less volatile and have a good + growing dividend. For value, I use P/E, P/B, P/CF, P/S. For volatility, I use Beta. For dividends, this year I have added 5 year growth % into the process. The resultant summary number is the cumulative of the 7 metrics, with roughly 60% value, 15% volatility and 25% dividend weighting. I then marry this up with a technical screening, using charts with a 200 mda, looking for a rising vs rangebound vs declining chart.

Question 1 = your thoughts on my screening system? I thought of adding in other metrics, but I wanted to keep it relatively simple. Factors such as payout % and ROE can always be a looked at in the next phase. Should I drop any of the metrics if they are redundant?

Most of the stocks screened as expected. However, 3 stocks didn't screen well at all and I am trying to figure out why. It may be that my population of stocks is skewed to value stocks, so if any of the other 3 stocks had growth or REIT characteristics, then they might be seen as outliers.

Question 2 = CSH's fundamentals screened horribly = 10th decile. Could it be that REITs may screen out differently, due to their very nature?

Question 3 =Both PBH and WSP screened poorly = 8th decile. Could it be their fundamental metrics exhibit more growth characteristics?

Question 4 = Reading past 5iR questions on these 3 stocks leads me to believe you are still strongly in favor of all 3. Please confirm.

Thanks...Steve

Q: I am down to 30K in my RSP and no TFSA, looking to have 6 total positions. Thinking SPB, TCL, AQN & DIV. I know Diversified is higher risk but I feel comfortable with that company at today's levels. Would you be okay with those 4 and what 2 would be best to add for Dividend with some growth but overall safety. Should I add a specific bank like BNS or would ZWB be better for me right now?
Same question for AQN, would I be better removing single stock exposure and going with ZWU?
Charge as many q's as necessary.
Thanks!

Q: I am planning to realize losses on the above companies to offset capital gains with a plan to repurchase after 30 days. In order to maintain sector exposure in the intervening period I would like identify proxies for each holding. My thinking is as follows:

TECK.B == XMA
BNS == TD
TFII == ZIN
NFI == ZIN
WEF == CFP
VET == XEG
WCP == XEG

Please review my suggested proxies and add / amend as needed. Alternatively, if you think I would simply be better off holding cash until repurchasing please say so. Thank-you very much for your help.

Q: do You think it is a good time to buy these stock? for long term investment like snow ball.
appreciate your time!

Jacky

Q: My wife would like to invest in a Canadian Bank. I know you favor the Bank of Nova Scotia . Question: Is BNS still your favorite at this time. According to my calculations the
Canadian Bank Of Commerce has a slight edge in dividends. Thanks. Ernie

Q: Hi 5i, Seasons Greetings. I generally am a buy and hold type but could use some tax losses against earlier gains this year. The above mentioned stocks could be sold and repurchased in early January. Would that be prudent? Is there anything I should not repurchase? Thanks, Ted

Q: After close on 11/29,BNS filed a mixed shelf of up to $40b.Does it includes the issue of shares?Your take please.Thanks for u usual great services & views

Q: Hi, I have a pile of different rate reset preferred shares that have done nothing but lose value, and I am considering ditching some of them and buying bank stocks. Of the choices between the big five Canadian banks which ones would you favour the most, I am looking for steady dividend payers that could go up in value. .........thanks Joseph.

Q: I bought BCE two or three years ago and watched its value peak about 3 times before settling back down now to levels pretty much where I bought it. In the meantime, I've had the benefit of a good dividend.

When I look at the 3 year chart, it is beginning to look encouraging again. so I was thinking that maybe some folks are buying into the telecoms because they like the stability offered in an economic downturn. I was about ready to sell and look for something with a bit more growth. Maybe I should hang on?

Would you recommend anything else with a similar dividend and stability in this economic environment?

Q: Good morning 5i,
I believe you have said somewhere that you would prefer the American banks at the current moment. I am wondering if I am remembering correctly and if so, would you stand by that, and again if so, would you buy bac now instead of BNS, all things being equal.
thanks as always

Q: Can I have your comments on BNS's earnings and announcements this morning? At first glance it doesn't seem likely to be well received. Would this be a time to switch into a better performing bank or add to the one that is underperforming? Could you suggest which US bank and which Canadian bank you would switch to? (no problem if this is a multi credit question).

Q: Hello 5i team,
Since its inception, your balanced equity portfolio has generated something like 16% compound return pa; it has beaten the other "advisors" hands down and I enjoyed the ride. Congratulations!
Of the 6 major banks, BNS is the worst performer with a 5-year return of 7% compared to TD 47%, RY 35%, BMO 33%, NA 30% and CIBC 24%; and yet BNS is perennially in your BE portfolio. Why?
Thanks,
Antoine

Q: I think that 3 more increases in interest rates are expected by end of 2019. You commented recently that one of these banks stock dropped due to bad loans. Is the info on bad loans available in the QLY rpts or elsewhere? I understood that the banks generally do well in rising interest rates but will this be offset by fewer mortgages?
Thanks

Q: I have a 10% position in TD and a 2.5% position in BNS. Would you reduce the TD position and use the proceeds to bring BNS up to 5% or just add to BNS using the 25% cash position in the account? In addition, I have 5% positions in V and BAC. Over exposed to financials period? I am a retired conservative investor who would ideally prefer to have good dividend with some growth. I have substantial gains in all financials mentioned.

Thank you for your great service.

Tom