Investment Q&A

Q: Between the big 5 banks, please rank in order of
a. biggest dividend increases average over the last 5 years.
b. your impression of most likely to perform in the next 5 years
c. least likely to be affected by american geopolitics

Q: My financial holdings are TD, BNS, BMO, MFC and SLF. With the recent surge in the banks I am looking to rebalance back to a 50/50 split between banks and insurance companies. If you were to add a third insurance company, which would it be? Or should I add a non-bank/insurance company like BAM or X which is still classified as financial? I am only interested in large cap, dividend-paying stocks.

Q: Can I get your thoughts on earnings today. Also would you buy after todays results and where would you rate the bank in the big six

Q: Good morning,

I'm trying to help my daughter (who is in her late 20s) with her portfolio which is a bit difficult because she is morally opposed to several lines of business (crypto, oil/gas, AI, defence to name a few) however I did notice she doesn't have any major CA bank equities at the moment. Some of my co-workers use a different research company who I think recently advised their clients to sell TD. I didn't see any recent questions on here about the CA banks lately so could you please tell me what your preferred bank is at this time (regardless whether I listed it or not.) It will be for a long term hold in her FHSA.

Cheerio,
Zara in BC

Q: I have been asked by a 23 year old to provide suggestions for when she initiates her FHSA.

I immediately thought of the banks , which I believe is the premium Canadian sector for long term growth, growing dividends , and safety. I would also recommend a more Canadian diversified security (UMAX ) for her next purchase. Of the above banking securities ( all owned between my cash, tax free, and registered accounts ), which would you start with ? Would you be comfortable with UMAX as second pick ( admittedly hasn’t done much but provides diversification into large cap companies and a good distribution yield). I am only interested in Canadian securities at this point. Should I be comfortable with this approach? Any thoughts would be appreciated.
Thanks. Derek .
Any

Q: Hi

I was wondering your thoughts on BMO and its sale of branches to First Citizens Bank. What do you think of the transaction, any issues with BMO's credit quality (does this improve), is there an overhang on the stock with the pending deal and timing of the close. Overall - is BMO more attractive after this announcement and do you view it as a buy, sell or hold.

Q: A follow up to Mark's question on Oct 2nd regarding buying the Canadian Big Banks, you mentioned that you would not need to buy the banks in a portfolio. Can you elaborate and explain the thought process. Also how would you allocate a portfolio in terms of weighting in such a scenario.

Q: If you were an income investor and wanted to invest in each of the 5 big banks, given current valuations and yield, what percentage of the money you have marked for investing in banks would you allocate to each?

Q: Not that I'm complaining, but what is with Canadian bank stocks in the last six months? I'm used to slow, plodding stocks, and they are rivalling Google for momentum. All of them are up from 23%-38% in the last six months with no sign of a slowdown. It's not like we have a booming economy.

Q: I own the above listed Canadian Stocks. Please rate each one as a BUY, HOLD or SELL and the reasons for your rating. Thank You.

Q: In your opinion, are Cdn. bank stocks overvalued and is it time to trim. Along with two Cdn insurance companies they currently represent approximately 26% of our portfolio

Q: Would you throw some light on “ provision for credit losses “ ( PCL ) that the banks use in their financial statements. It seems to have a significant impact on earnings. How is it determined ? Analysts take it as a poor contributor to earnings. If a bank lowers its PCL how does this actually increase its profitability ? Is there a formula to determine its PCL and how trustworthy is this ? Seems to me that a bank could alter the PCL number to better their numbers. Thanks. Derek.

Q: Hi - Can you provide comments on the recent qtr for BMO and BNS. I would like to add financials. Which would you prefer or is there another you would prefer.3

Thank you

Q: Wondering you thoughts on the Canadian banks. I currently hold TD and CBIL.

Q: I hold these in roughly equal amounts totalling around 30% of my RRIF where income is more important than growth. Should I consolidate these or just leave alone ? Thanks . Derek.

Q: Looking for some growth and a good dividend. Which two CDN banks would you go with?

Q: Hi, I'm considering adding a Canadian bank. I only hold TD. Which bank would you consider to be the best to add at this time for a longtime core holding? I'm thinking of doing a quarter position at this time and build that position over time. Also I started a quarter position in ATD recently and I'm watching it at the moment. Would you consider ATD to be fairly safe at these levels and an attractive stock to increase that position at the current price or wait to see if it's still in the bottoming process. Thank you as always for your expert advice!

Q: Hi Peter, I would like to get your opinion regarding a TFSA income portfolio with a bit of growth coming from Lumine. Can you give me your thoughts on dividend safety and dividend growth of the following. The objective is to use income in retirement and have a bit of growth. Dividends have been targeted at 4-5% as an average.
thank you in advance

Q: Worst case scenerio how much downside do you think the banks have in the next four years. RY,BNS and TD are all oversized positions. Thinking of lightening up in non taxable accounts or should I just sit on my hands ? Crystal ball gazing I know !

Q: I have owned RY inside my RRIF for over 20 years and it has done very well. However it now seems to be trading at a premium to the other Canadian Banks. I hold it primarily to generate income, so I am wondering if I should sell it around the $180 level and invest the proceeds into another Canadian bank. I already hold TD, BMO and BNS and wonder which of NA and CM would you prefer? Or would you stick with RY despite its premium pricing and lower yield?