Investment Q&A

Q: Hi Peter, Ryan, and Team,

In Saturday's Globe and Mail, David Berman wrote an article called "BCE’s dividend yield is back above 6 per cent. Here’s why that’s a buy signal" Portfolio Analytics indicates that we're low in the Communications Services sector, and given that Berman's back-dated numbers are compelling, we're wondering if now would be a good time to buy some more BCE. Your thoughts? Thanks in advance for your insight.

Q: Please advise of 10 companies (Canadian) I can buy in my new TFSA and add to and DIP for next 30 years , This will be my retirement.
Thank you
Cec

Q: Of the holdings in the Income Portfolio, can you suggest a few names that have the best prospects for growing their dividend over the next decade, through all market conditions?

Thanks.

Q: I've been curious about the Buffett Indicator (the ratio of total stock market valuation to GDP) for Canada. Am I correct in saying that it is about 1.7X or so, whereas it should be closer to 1:1 ? If so, what TSX stocks / sectors are pushing it up so high? I grabbed three large caps from different sectors to have a look at their present valuations...

You mentioned that BNS is historically cheap with a P/B of 1.2, so I'm guessing this one is fine.

If one looks at BCE's present P/E ratio it would be approximately brought back to 2012 levels if today's BCE stock valuation was reduced by "today's Buffet indicator overshoot".

TRP's present P/Cash Flow appears to be fairly high compared to some metrics in the past decade. Again, if the stock price was reduced by that 1.7 factor, maybe the valuation becomes more realistic.

I am only able to compare to metrics going back the past 10 years, so this may be part of the problem. Or perhaps I'm analyzing things wrong here and you have a different way at looking at this (?)

Q: Peter, if we are in for a a big long term bear market what are some canadian div payers that would suit 75 year olds that need the div? Thank you for your advice Ken

Q: Good evening
BCE, according to a financial analyst, paid 114% of profit in the past year as dividends. As well , BCE paid 351% of their free cash flow in dividends during the last year.
The analyst further concludes that this is unsustainable and that BCE dividend could be cut.
Can you please provide us with your opinion regarding the sustainability of the BCE dividend?
Thank you

Q: Hi, Could you please compare the two Telcos with respect to their current valuation, historical average and past performance, respective to each other. Also, how would you rate them for future dividend growth and capital appreciation. If we own both, what would be your choice, if we wish to buy more of one of them, Today. Thank You

Q: Any idea why Telus shares can’t be owned by non-residents of Canada? My broker informed me that my T.TO shares will be converted to “Non-Canadian” shares which don’t trade. I can switch back to regular shares only when I want to sell them. I’ve never run into this before and have been non-resident >10 years.
I prefer Telus over BCE but should I just switch over to BCE?

Q: Historically speaking, what is the average rate of return of ETF’s compared to individual stocks?

Q: Do you see these stocks being hit because of the Rogers outage? James

Q: Hi, Both BCE and Telus are presently trading about 15% below their recent highs, with general market decline and perhaps due to higher interest rates scenario in the near term. Both companies have announced excellent results and dividend increase, currently yielding 5.75% and 4.75%, respectively. Analysts are generally positive on both stocks for income and some growth and have not adjusted their earnings expectations downwards. Could you please comment on their present and historical valuations.

Our understanding is that Telcos and Utilities are good sectors to own, to protect from market downturn, current as well as in a recessionary environment. do you agree ? Also, when Central banks are done with their tightening cycle, say by 2023 end, do you see the valuations of these companies bouncing back to previous highs, assuming, there is no change to their business fundamentals. Thank You

Q: I can get 5% + annual return to maturity on many triple B+ rated corporate bonds in the 6-8 year time frame. Do you see much risk of default or other issues with corporate bonds with companies like Enbridge, TD, Loblaws, and BCE? (I realize their face value will fluctuate as interest rates go up or down)

Q: Greetings 5i,

Can you rank in a list the top5 Canadian Banks, top 3 Life Companies, and 2 Telcos in order of preferance for purchasing today for longer term hold.

Can you briefly outline your reasons as to why you ranked the Lifecos as you did in comparison to the others on the list.

Cheers!

Q: Hi, There seems to be a systematic decline in equity values, for past two days, in sectors like Utilities and Telcos, which are considered proxy to bonds, due to their higher yields. They held on better than the market, in general, during past few months. Do you think, the fear of rising rates has finally caught up with these sectors and these stocks might come under pressure, even more, in near term, as Fed and BOC continue with their plans to hike interest rates. What's your advice ? We have about 10% weighting in each of the two sectors. Thank You

Q: In our unregistered, income account I recently sold LIF and have decided not to return to that stock after 30 days. Instead, planning to buy more of one or two of the existing stocks.

Since this is an income account, yield is important and also quite happy to see total account balance steadily increasing whilst tapping off the cash.


I need some help deciding which ones to add to, and have 3 criteria:
1. Best yield
2. Current portfolio weighting
3. Best value over next 5 to 10 years

1. From highest to lowest yield:
TCL.A, BCE, AQN, EIF, BNS, CPD, T, SLF, QSR, ZRE, RY, LNF, FTS, BEPC, NTR

2. From lowest to highest weighting:
ZRE, LNF, TCL.A, QSR, AQN, NTR, BEPC, SLF, CPD, T, BNS, EIF, BCE, RY, FTS

3. Can you please help me to rank these stocks from highest to lowest value / growth prospects, or if that is to big a task. Please recommend overall best 3 selections given my criteria.


Thanks,


Jim

Q: I need to increase telecom portion of my portfolio, so I am considering buying one of these four: BCE, Telus, VZ, and VOD. Can you please rate these companies at the scale of 1-10 in terms of anticipated total return and safety (I am a conservative investor) over the next 5-10 years. Please disregard tax credit and US withholding tax consideration as I am in a high tax bracket and, if needed, can free up some room in RRSP. Thanks.

Q: Good morning,

For a long term income play, do you prefer BCE or Telus in the Telco space and why? Thanks.

Q: Regarding the list above, could you rank them from best to worst, in terms of fundamentals and the ability to survive economic downturns.
Deduct as many credits as you wish. Many thanks for you assistance.
John

Q: Telecomm seems to be performing well, relatively speaking. How would you rank these telecoms for growth, dividend safety and inflation-resistance, in general? Are there other telecoms you prefer? THANKS!

Q: I would like to increase my holdings in telecom stocks. I currently have BCE and would like to know if you would recommend buying more BCE. Or buy one or two other telecom stocks, such as T, RCI.a, QBR.b, or etc? Again, primary aim is income and secondary is balance equity. I plan hold them for more than 5 years. Thanks, Roger