Investment Q&A

Q: Hi. I see in many responses related to Canadian banks that when you reply that you prefer bank a, b, c over bank X, is the a, b, c in order of preference? Sometimes the order changes from different responses.
Would you be able to list the Canadian banks in order of preference for a 5-10 year hold. I understand that in 6 or 12 months the order may change, but I'm looking today what it would be. Thanks

Q: Which Of these two banks will bring me the best return in the next six months? Or is there another bank you would prefer?
Thanks

Q: How do you rank these stocks for an investor starting a position in Canadian banks (minimum 5 year horizon)? Thanks.

Q: How would you rank the banks? Strongest to weakest in this environment.
I'm considering selling some far "out of the money" puts to get some income. And if I get assigned, so be it. I'll suffer with a few bank positions yielding close to 8%. Geez, we're talking about bank stocks! I figure if they get into trouble we're ALL in really really BIG trouble.
For example, TD at $40 would yield me 7.9% in dividends. That's like 10.2% in interest. Or RBC at $58 would yield me 7.4% in dividends.
So which Canadian banks would "crack" under pressure and which wouldn't.
Thanks and take care!

Q: I plan to retire in 3 years and want to set up a portfolio of dividend paying stocks for my retirement in a non- registered account. Can you please give me your thoughts if I buy the following in 20% amounts at each S&P drop of 3-5% over the next 1-3 months. CM RY, NA, CWB, BCE, T, H, BIP, BEP, BAM.
Are there any others you would recommend today?

Q: I have just read that the European Banks are going to stop paying dividends and that the US banks are under a lot of pressure to follow suit. Do you think that The Canadian Banks will also suspend dividends?

Q: Please suggest replacements for the above stocks. I want to harvest some capital losses.

Q: Hi team - I was hoping to get your general thoughts on leveraging during this time of turmoil. Some of the Cdn banks are throwing off significant yields, CIBC for example 8.09% at the time of writing. I can't find any info on when they last cut their dividends even during the 2008 crisis. I'm considering using my HELOC at 3.45% (interest payment s only) and buying one of the banks and collecting the difference between the yield and interest charges. As well, writing off the interest payments next year as carrying charges in a non registered account and thinking the stock will grow in value over the next year or so. Is this a sound strategy or should I shake my head, your thoughts? Thanks.

Q: Retired dividend-income investor. I currently own BNS and RY. I was planning on topping up BNS, then read an answer about harvesting capital losses. I had already take enough losses to cover my gains to look after 2020 income tax implications.
I selected BNS for its international diversification and RY for its USA diversification.

I am now considering harvesting my new BNS capital loss and was considering either CM or BMO for immediate replacement, wait a bit then do my original top-up later. Which bank to you consider the better replacement?

Thanks...Steve

Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian financials in the order of their weights in our portfolio. Financials makeup roughly 7.5% of the total portfolio including cash positions and we like their dividend. TD, RY, BNS, BMO, SLF, CM, and MFC. I like to reduce exposure to financials and also like to reduce number of different shares. Two questions:
1. Is 7.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce financial weight and to reduce the number of shares in financials?

Q: Hi 5i Research Team:

I have traded Forex before and am new to stock trading. 90% of my RRSP, RESP and TFSA is in cash and I'd like to avail the current market conditions by "gradually" buying the dips.. and holding it over the long term, 5 to 10 years. I understand that no one can time the market or its bottom.

After exploring the reports and questions on your site, I have identified the enclosed 29 stocks based on following criteria:
- Current Retracements of > 75% over 52 week high & low
- Dividend Yield > 5% (in some cases, like WEED, which is a bit risky, I understand there's no dividend in the near term.. and I am simply going for the upside swing over the next 2 years... same for CRON and Air Canada)

Considering my 90% cash position and strategy to partially buy in on dips over the next few weeks, can you please advise if my stock selection is sound. In addition to my stock picks, please advise anything else that I should keep in mind.

Thanks for everything you do. Much appreciate.

Q: is it time to buy this bank now? thanks

Q: Which Canadian bank looks most attractive right now?

Q: Are you aware of any research that provides detailed analysis regarding oil patch exposure of the big 5 banks?

Q: What would be the top 3 Canadian banks have the best/quickest rebound potential ? thanks

Q: Thoughts on the CN banks? Low rate environment; Cdn economy hampered economically due to low oil and lacklustre mtg/productivity . How does this factor for growth in our banking oligopoly? I would think the 4-5% dividend yield is relatively safe but I cannot see where the stock price growth would come from other than wealth management divisions and perhaps trading which is somewhat risky. Thanks.

Q: Assuming we get a rate cut of 0.5% by Poloz tomorrow, or, over the next few months, how bad will that impact CIBC's NIM and can we estimate the hit on their earnings? Is one bank more exposed to NIM than others? Regional banks are not reacting well right now. Thank you.

Q: Good day 5i Team,

Would you be able to recommend few tickers for a cover calls strategy? Any suitable companies that are traded on TSE?

Thank you,

Q: Please pick 1 of the following 12 stocks to sell, and explain why?
Aqn, zre, bce, cm, enb, ipl, npi, ppl, Ry, trp, t, td
Thank you for your help

Q: Wajax and Transcontinental have several things in common : mid single digit p/e, moderately high yield, relatively safe pay-out ratio, and a turnaround in earnings seems possible. Can you think of any other companies whose profile hits the 4 previously mentioned criteria. Thank you.