Investment Q&A

Q: I've been researching large cap high quality dividend growth companies with a >2% dividend yield for cash positions in registered and non registered accounts. For the most part the Canadian banks are the only ones that are attractive on valuation, but I currently have a 20% position. I've love to buy more of CNR, T, FTS, AQN, CAR.UN, TRP but they have run up quite a lot. One strategy is to keep buying the banks to a 30% weighting and reduce back to 20% once valuations get to 13x forward earnings. Two questions, 1. what do you think about this idea 2. In case I have missed some ideas, what are 5 Canadian names outside of the banks you would recommend with decent valuations? Thank-you.

Q: I currently own a combined 25% share in Canadian financials. I love the dividend, but I know it is heavy and I am concerned about the negative news I read about the banks. Is the future really that bleak for the banks. Thanks.

Q: Have any of the big 6 Canadian banks ever cut their dividends and if yes can you please provide specifics as to when, by what magnitude.
Many thanks for your service,
Stevr

Q: confirmation of stock purchase and ex dividend date

the ex dividend date coming up for CM is march 27, so if I buy on the 26th, does the purchase go through fast enough,that I am the owner of record on the 28th so that I get the dividend payable april 29 th ?

Ernie

Q: Hi 5i Team,

I hold about 5% in each of these companies, with the rest in indices (XAW, VCN) and cash. Do you have any recommendations for other companies I should be looking at to diversify? Thanks for the help!

Q: With the possible exception of BMO, the Big Five banks seem to be hitting a plateau. At the same time, there's talk of moderating interest rates. But shouldn't lower rates be a stimulus for banks' business - mortages, etc.? I thought it was the insurance companies that benefited from higher rates. Or is the apparent tapering-off of banks' growth just a reversion-to-the-mean phenomenon?

Q: The short and long term performance of Royal Bank has strongly outpaced CIBC. Would it be prudent to sell my CIBC shares and buy Royal Bank with the proceeds?

Q: Buy, sell or hold? Is your long term outlook unchanged?

Q: Hello Peter and Ryan,
We picked up a few shares of BNS on the drop yesterday. After searching for value stocks with a decent dividend we could not find a Utility, Telcom, or Financial stock that was not over-priced with the recent rise. ZUT or VPU also appear to be slightly over-priced for the moment.
If we are looking for value, dividend, and a little down-turn protection which stock is preferred; BCE or CM? Do you have another value stock in any sector that would be preferable to BCE or CM?

Thank you
Debbie and Jerry

Q: 2:10 PM 1/29/2019
Hi: I am concerned about deteriorating trade relations between Canada and China. Could you please indicate which of the big 6 Canadian banks and big 3 Insurance have business in China and what percent of their entire business is located there.
Thank you.......... Paul K

Q: Can you please rate these four banks in terms of growth and least affected by a downturn.
.

Q: I would like to add to my finance/dividend group. I already own TD,BNS, GSY and MFC. Which should I add or add to and why. In particular why do you prefer SLF over MFC?

Q: Team, what CDN Bank performed the worst last year and which one performed the best?

Q: Currently, which one would you choose.
Thank you

Q: My wife would like to invest in a Canadian Bank. I know you favor the Bank of Nova Scotia . Question: Is BNS still your favorite at this time. According to my calculations the
Canadian Bank Of Commerce has a slight edge in dividends. Thanks. Ernie

Q: How was results, worth keeping?

Q: Currently have BNS,TD,CM,IGM,FSZ and SLF in the Financial Sector comprising 21% of my Income portfolio. I would like to replace CM ( or do you feel fine having 3 bank stocks ) - can you give me some suggestions as possible replacements ?

thanks

Q: I have recently taken over my parent’s investment account management because of health reasons. I found that my parent’s financial advisor had their money tied up and mutual funds with heavy fees, as well as GICs that were locked in for a long period of time. The money is now available for investing. They are retired and in their 80s. I will be keeping most of the money in HISA, GIC, and some short term bonds if the yields ever go above GICs. I would like to include a couple of stocks that are quite secure and pay decent dividends. And suggestions? I was thinking of RY, CM, BNS, PWF, BCE, CU, TRP, and ENB. Do these sound good, and do you have other suggestions?

Q: Hello,
In the banking sector, I presently own a full position in TD. I wanted to add another bank and was looking at CM. I like the yield and appears to be trading at a better PE and PB given the weakness recently in the share price.
Do you have any compelling reasons for not owning this bank?
Thanks,
Dan

Q: My question is about allocation of Canadian Banks in 5i Portfolios and what would be a reasonable weighting in a broad portfolio of 30-35 holdings which looks 80% like a Balanced with 20% Growth. BNS is the only Canadian Bank held in 5i Balanced Portfolio (4%) and Income Portfolio (6%). Historically, Canadian Banks have provided substantial returns through dividends and capital appreciation. But, I like 5i approach of finding companies with value/growth potential in small/mid cap universe and structuring portfolios. By association, my portfolio weight in Canadian Banks has grown to about 15%, CM,TD and RY, in order of 10.5%. 3% and 1.5%, respectively.
Would it make sense to reduce these holdings to align more along the line of 5i approach ?

Thanks.