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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: In an Investment Brief from ARC they outline their concerns regarding BCE and its' payout ratio. Specifically they feel that if the Special Annual Pension Contribution and M+A expenses were deducted from Free Cash Flow then the payout ratio would be in the 84%-88% range (rather than the stated 69%-72% range). This may limit the ability to continue to grow dividends.

Should this be something to be concerned about? It is currently about a 2.5% weighting in my portfolio. If I were to exit BCE, either partially or completely, would Telus be the only real alternative in the space?

Thanks for your wonderful service.
Read Answer Asked by Brian on November 08, 2016
Q: Hello,

The following 5 companies are on my buy list to complete my portfolio:

PBH
TOY
NFI
BCE
CAR.UN

I have room for two in my TFSA, two in my non-registered and one in my RRSP. How should I divide the above 5 stocks into these accounts?

My plan is to buy on pullbacks. But I'm thinking about buying CAR.UN now because it has already pulled back on the mortgage news. Does this make sense?
Read Answer Asked by Carla on October 11, 2016
Q: In view of the effect on the market of the unknowns coming up in the next few months - with US election and its aftermath, and good possibility of US bankrate going up in Dec. I am thinking of going defensive. I have quite a few of the stocks listed in both your Balanced and Income portfolios, could you please list for me which of these stocks you would designate as best 'defensive' - (whatever that means). Thanks again, always look forward to hearing your comments.
Read Answer Asked by Arthur on September 26, 2016
Q: What does it mean when a company like BCE files for debt shelf of up to $4 bln. Does it affect in negative or positive way price of company stock on the market.

Is it OK to by BCE now or is better to wait for market response to this
news about BCE.

Andrew.B
Read Answer Asked by Andrzej on September 14, 2016
Q: What are the US and Canadian companies, that have what they call a wide Moat? What would be your definition and criteria of wide Moat companies?
Read Answer Asked by Herbert on September 13, 2016
Q: Hi,
I am retired and 63 years old.
I have 50K in ALTAMIRA HIGH-INTEREST CASHPERFORMER - F
NBC200 in my RSSP waiting to be deployed. I will not need that money for the next ten years. I told my broker that this investment was not even keeping up with inflation.
He suggested to buy CUF.un (20000$) and PWF (30000$).
Would you think of better alternatives?
Thank you
Read Answer Asked by Serge on September 13, 2016
Q: Can you provide an updated assessment on SunLife (SLF)given recent results? I am looking to invest new money in blue chip dividend payor for son's TFSA account and also considering telcom (BCE) as an alternative. Should I go with SLF for now given the recent run up in BCE stock price? Thanks again. John C
Read Answer Asked by john on August 11, 2016
Q: Peter, could you please recommend 5 Dividend {low volatility} stocks for a long {3-5 years} term hold.

Thanks Valter
Read Answer Asked by Valter on August 04, 2016
Q: Good morning,
I own BCE preferred shares BCI-INC-CUM RED 1ST PR-AA. The value has dropped in half since my purchase. I understand these can be redeemed in 2017 for $25.
If BCE decides not to redeem the shares and extends the security can they change(reduce!) the rate of return which is currently 3.5%?
Read Answer Asked by Margot on August 02, 2016
Q: Greetings Peter and team:

I hold the BCE, Brookfield and Fairfax preferred shares referenced. Obviously they have not fared well over the last few years. I am wondering if there is any reason to hold them at this point? I did notice on Monday when the market was broadly down that they were among the few holdings that were up. Do you think holding them as insurance against a market decline has any merit, or should I just book the loss and move on? As always, your insight is appreciated. Thank-you,
Read Answer Asked by Stephen R. on July 27, 2016
Q: Thank you 5i for your excellent service!!!

I have divided up my portfolio into thirds.
One third is a diverse group of ETFs.
One third is cash and a group fluid group of stocks made up primarily from stocks you recommend. SJ, CCL, SIS, KXS... etc.
One third is made up of the seven stocks listed above. Do you have any concerns about any of these being a long term hold. I know Magna is cyclical but is that a concern?
Cheers,
Bryan
Read Answer Asked by Bryan on July 19, 2016
Q: Hi Peter,
Enghouse has not been doing well. Do you still like it for long term hold? Any idea why Brookfield Bussiness Partners is going up today? Also, does recent announcement of Brookfield raising $14 B for the Global infrastructure Fund refer to BGI.UN? If so, is it better to invest in BGI.UN or BIP. UN? Lastly, Telecom stocks are stable but the PEs are quite high. Can you shed some light please? Thanks
Read Answer Asked by umedali on July 13, 2016
Q: My question regarding BCE.PR.S. After a number of years of owing this preferred, is it worth holding any longer. It has lost a lot of value since my purchase, I believe it has a floating rate dividend.
Thanks for your opinion. I was thinking of switching to BCE common share.

Shirley
Read Answer Asked by Shirley on July 11, 2016
Q: I have owned this preferred for 3+ years and am getting impatient with it. I purchased it for income, but have lost more in value. I am thinking about selling it and taking my loss and just buy BCE and collect their dividend, and hope for a little growth.
Is this a good idea, what are your thoughts. Any other suggestion would be appreciated.
5i has been very informative, I really enjoy it.
Shirley













Read Answer Asked by Shirley on July 11, 2016
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