Investment Q&A

Q: Hello.
I would like to ask you to put your Income Investor Hat on for this question. But in saying that, I have to add that I am not willing to be an Income Investor who gives up Capital value just to collect an income stream.

The situation is one you may have seen before....... Significant number of BCE shares held in Senior's investment account. To identify the sensitivity of the situation, the amount affords dividend payments that exceed combined company pension and CPP together. The BCE income stream affords the lifestyle as it is today.
This is great except for the lack of diversification and the associated risk of a single stock position being so large.

The question to start, I have to ask whether for a senior who has been comfortable for over 50 years investing in a single stock, does a third party even talk about diversification?
If yes, from what you see here how would one go about identifying investment choices and creating a diversified portfolio with similar attributes as BCE has offered throughout these years. (Bonds not currently desired due to low income yield - And the Pension Plan is already an excellent Bond proxy)

Given the Market activity over the past 14 months and BCE price holding up while other dividend paying investments are declining in price/ increasing yield, I sense this is a good time to begin this diversifying activity.

Thanks for the effort you put into offering us all Market and Stock insights.
Dave

Q: Hi Peter and Team,
BCE is hitting an all-time high today. I own a small position and have been watching over the last 6 months or so for an exit point, for two reasons: 1) it is held in an RESP which we need to take some $$ out of, and 2) I chose BCE to sell because we expected little in the way of growth. Perhaps I am wrong...?
What are your thoughts on the near/mid term outlook for BCE? We could instead consider selling a couple of other holdings: ESL, GRC, AVO, CNQ, AW-UN, GUD, HWO, TII, MIC, WIN, and Sprott Small Cap Equity Fund.
What would you suggest selling?
Thanks again for your excellent service!

Q: This is a general question - What stocks would you suggest I consider adding to a RRIF today? Currently 50% is investment in the following positions - BCE BEP.un CGX CSH.un DH ENB MDA SJ SLF ZRE and ALT.b.....I follow for the most part income and balanced portfolios and I am keen to know what is best for a registered account......Tom

Q: Could you comment on what pick and pay will mean to BCE as far as the stock price is concerned...

Q: Hi, BCE shares took a hit (3%) after Shaw's announcement of buying Wind Mobile. Price decline was not as severe as Telus, though. But, as per analysts, BCE also has a subscriber base in BC and Alberta, which may face competition due to Shaw's ability to offer competitive TV/Wireless bundles. BCE recently completed a secondary @57.10 after purchase of HBO Canada from Corus. However, shares have mostly traded below the offering price and now took another hit. I added the stock recently in $55 -$56, for strong dividend yield with some dividend growth potential. Do you think the Shaw overhang will be there for a long time or BCE stock could trade back above $57 in 2016? It would help me to decide whether I should consider reallocation to other sectors like IT, with more certain growth prospects. Thanks

Q: I am sitting on a small amount of cash ($50000)I would like to invest into dividend canadian compagny. I really don't know where to put it. It is for dividend revenue until I died! It is extra money that is not part of my retirement assets. So looking longterm (20yrs), good structured company. What would be appropriate. I understand that you do not take any responsibility toward my decision to buy or not. Thank for your help!

Q: i have been reluctant to buy telcos because of customers reducing or dropping tv packages at ever increasing rates.i would very much appreciate your opinion on this and how it could affect future earnings and growth profile for bell and telus . thanks for the great service!

Q: Hi Peter What your thoughts on bce bought deal financing?
Kind Regards
Stan

Q: I am a retired, conservative dividend income investor, with a well diversified portfolio of stocks, ETFs and mutual funds (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WCP, WEF, WSP, XIT, ZLB, RBC Cdn Eqty Inc, Sentry Cdn Inc, Sentry REIT, Insured Annuities, Fisgard Capital), as well as a company pension and CPP.

Question # 1: BCE is 4.0% of my TOTAL portfolio, but 6.1% of just my EQUITY portfolio. When you discuss stock weightings, is it of the total portfolio or only the equity portfolio? What general guidelines do you recommend? I use roughly 2-4% per stock, and 4-10% for either ETFs or Mutual Funds.

Question # 2: My asset mix is 65% equities and 35% fixed income. Within equities only, my mix is 25% finance, 18% utilities, 17% consumer, 4% health, 14% industrial, 9% info tech, 10% energy and 4% materials.

I am looking for a very conservative, blue-chip, dividend-paying stock (> 3% dividend) to add and I'm not sure which sector to top up. Please point me to the right sector (or two) with 3-5 stocks to consider.

Thanks, Steve

Q: My position in BCE has crept up to almost 8% of my portfolio which feels a bit high. Its currently trading within 5% of the 52 week high so I am thinking of reducing the position a bit (to around 6.5%). I would like to replace the yield, div growth and risk profile. I was thinking of adding to my BEP.UN holdings (now at about 3%). My telecom total holding is now at 10.5% and my Utilities/Industrial holdings are about 12%. My Brookfield company (BIP.UN and BEP.UN and BPY.UN)holdings represent 13% now. Your thoughts on this move please. Many thanks

Q: Which Telecom is your favorite, being the one that will offer the most growth and capital appreciation over the next 5 years? T, BCE, RCI.B or SJR.B?
Or will they all appreciate similarly?

Q: 9:35 AM 8/23/2015
Hello Peter & Staff :

I have a large Prov of Ontario bond representing 3.5% of my portfolio, maturing soon with a 4.3% yield. The only altenative I have is to replace it with the safest most reliable dividend stock that I can find as I choose not to buy bonds, GICs, or preferreds because of the very low yields and the risk of capital loss on preferreds.

I searched today for any Provincial bond worth owning and I don't come up with much : The bond with the highest yield that I can find is an Alberta bond maturing 2029 that yields 2.49% to maturity, so any "safe" stock that can beat that return surely is better even if they cut the dividend by 50%

I am expecting a very protracted very rough time in the markets in the next years ahead. I would like a stock that I can hold indefinitely that has a rock-solid balance sheet, reasonably low debt, reliable growing dividends, and long-term stability.

It seems to me that the "safest" sectors with good yields are financials, telecoms, utilities, and the few consumer stocks with decent dividends, and I have been searching through all your answers and am considering CM, NA, GWO, BCE, FTS, EMA, CSW.A, and CSH.UN as possible candidates.

Could you comment on these companies please, indicating which you believe to be "safest" for long-term ongoing dividends, and explain your choices for me, and perhaps list them in order of preference.

Your answers are always most appreciated, Many thanks...... Paul K

Q: BCE or ET? My thesis is to hold this for income and I would like to consolidate my portfolio. In order to do so I need to choose between these 2. Which one would you choose?

Q: Peter what your thouhgts on BCE what the CRTC done to the major telcos is something I would expect to happen in Russia nt here
Stan

Q: Hello Peter, I manage my elderly mother’s accounts. Investments are well-diversified amongst her RRIF and non-registered account. As she had significant unused TFSA room available, we decided to contribute a few stocks and some cash from her non-registered account. Currently, the TFSA is 50% WSP, 23% NPR.UN and 27% cash to be invested. The situation changed, however, when she (thoughtfully) decided to name her grandchildren as the TFSA beneficiaries, which causes me to consider the TFSA’s makeup on a more standalone basis (including to protect the children’s legacy). With a 5-year plan, would you agree with acquiring BCE with the remaining cash (with its almost 5% yield and some growth potential) or do you agree with my inclination to perhaps buy CDZ instead (giving up some yield but gaining some diversification safety and presumably better growth potential). Or you may have a different recommendation. Thanks in advance!

Q: Hello 5i.
I would like to compare apples to apples. For example I'm comparing BCE to the TSX60 over a period of 5yrs. In TDwaterhouse I look at the graph for BCE for 5yrs and it shows a 55% increase. When I compare it to the TSX60 capped Index it shows BCE at 80% and the index at 25%. Why the difference of 55% and 80%? What goes into calculating the value of BCE over this time frame. Is it the appreciation of the stock price plus the compounded dividend reinvested? Is it the same for the index? Also is it the same for mutual funds?

Q: I own come some reset preferred shares (including BCE) They have lost a lot of their value. In your opinon, will these shares regain their value.What will it take for this to happen.
Thank you

Q: I loved your article; Five Quick Fixes For Your Investments.
I am especially interested in the following: Dividend growth is far more important than dividend yield.

I know there exists the Canadian Dividend All-Stars list, however, it contains an overwhelming amount of data. Can you recommend about 8 Can. stocks to buy now and hold indefinitely primarily for the dividend growth, with the intention of re-investing the dividends? (This would exclude the banks and BCE, which I already own.) Thank you in advance.

Q: I follow the insider trader info on the TSX website and note BCE is sold almost every day by insiders. Does this raise an alarm with your researchers.

Q: What do u think of BCE or is there some other one that u can refer