Investment Q&A

Q: I wonder if any of the big six own any US or CAN MBS or CMBS ? Thanks a lot .

Q: A few days before three US banks collapsed, CIBC CEO's bought $3 million in CM at about $58 a share, tripling his skin in the game, presumably a big sign of confidence in CM. Today's price dipped lower still -- is this a good entry point?

Q: Please rank the above companies for level of risk and do you think that our Canadian banks could ever be subject to the issues at SVB? Is BN risky? I read one person writing how his advisor won't let him buy it. Feeling like I don't have much trust in anything right now. How is an investor to handle this uncertainty? I definitely see the benefits of diversity as you had always pushed. I'm also somewhat confused as most advisors have been pushing financials due to the benefits associated with rising rates. Your calm advise would be appreciated.
Thank you!

Q: Wondering why National Bank seems to have better momentum than the other banks like TD even though you recently added TD to one of the portfolios, I believe around $88. BNS has also been a laggard over the years. What is it that prompted you to add TD over NA and would you support selling BNS, TD, or CM to enter NA or RY? It seems like NA and RY seem to have better momentum than the other banks. What would be the risks with this move?

Q: With whats happening in the markets currently with CM's admission of mortgage issues with SIVB debacle, rising rates, volatility etc could be the beginning of a big mess in the Financial services sector.

Although long term you are bullish on 4 of the 5 names do you think it would be prudent from a risk aversion viewpoint to step aside on these names and wait till things settle?

Can you also please comment especially on EQB and GSY and their outlook/risks in this cyclone.

Thanks

Sheldon

Q: Hi
In looking at the big 5 Cdn banks, it is easy to think they are all being somewhat affected by the SVB shut down, or pressure on US regional banks...or is that jumping to a far fetched conclusion? I see that the Cdn banks have been marching steadily lower lately and have started to wonder whether this is sector related or a fundamental change occurring. Although this may be a bit early in the game, at what point would you feel the Cdn banks are excellent bargains, or is that too optimistic a view of the Cdn banking system, vs the US's regional banking system? As always, I greatly appreciate your thoughts on this!
Dawn

Q: In layman's English, could you explain why SVB went under and whether it will cause any lasting damage to Cdn Banks...and are there any Cdn banks you would add to today? Thanks, great service.

Q: I have owned these stocks in my non-registered account for 12 years except ETF IGM, T, CTC.A (bought 2 yr ago - up a fair bit). T bought 5 years or so ago. GSY, MFC & GRT.UN a year ago - all 3 up nicely. I buy dividend growers for the most part. I have been retired for quite a while - so, more interested in dividend growth. Large portfolio with banks 40% of total. Do not worry about market downturns: add to positions when they go on sale -08/09 and 2020. Sitting on cash and looking to add to these positions . Do not own ENF.CA - typo. Suggestions?? IFC 5-6 years up 220% including dividends.

Q: If you held Canadian banks today, would you sell, just continue to hold, or top up positions?

Q: Which Canadian Bank has the best current risk adjusted appeal. 3-5 year hold.
Thanks.

Q: Good evening, 5i team

I appreciate having your thoughts on keeping 2 out of these 5 for a pretty condensed portfolio. I sided with BNS & CM among the big 5. Thank you!

Q: I must progressively restructurate a non-registrated portfolio, recovered in early 2022 for self-managing... Here are the percentage of each stock vs all portfolio, and also indications (+/-) if they are at a profit or at a loss on paper. stocks at profit are: BIP.UN (8% of portfolio), CM 5%, DIR. UN 3%, BIPC 1%, BCE 5%, ENB 2%, SGR.UN 1,5%. Stocks at a loss are: BN.PF.D (5% pf portfolio), TRP 1.5%, VET 1.2%.
My objectives are in order: stability, dividends, and some growth if possible.
Some stocks represent a probably too high percentage of the portfolio, I would not sell them “only to rebalance the portfolio” if they are still safe (to avoid non necessary capital gain tax), but I shall sell if they represent a risk. On the other hand, I would not sell stocks with a loss if they respond to my objectives.
I have already balanced a good part of this portfolio with ETF and a selection of stable dividend stocks. Those are the remaining stocks from the original portfolio..
Please give me suggestions for each stock according to objectives as : keep, sell, or sell partly. All of your comments are always greatly appreciated.

Q: HI,
sorry for the long list. could you just rate these as a buy, sell, or hold right now. I am a long term investor.

Q: Can you offer a coles notes assessment as to why these two banks declined 25% this year vs. 10 or less for the rest of the big 6?

Q: The above companies dividend yield is more than 6%. Three of them, BNS, CM, and POW have dropped in price by 20% or higher. BCE has dropped by 8%, and TRP has dropped by 6%. ENB has actually increased in price around 8%. I own all of them. Thinking of adding some Canadian dividend shares. Question is which of these dividends are safe going forward. Can you rank them based on dividend safety. Also, please rank them for potential price gain/loss for 2023. Any other with reasonably good dividend, dividend safety and potential for gain in price.

Q: Merry Christmas everyone and thank you for a wonderful service! I'm looking to purchase six different companies that have preferred shares and would like you to help me pick them. Security of dividend and safety of the companies (staying power) is the top priority here. Therefore if two preferred picks are in the same sector I don't mind as I'm not sure how much diversity matters here.

I currently own TRI and CSU preferred shares and would also like your opinion on them, thanks.

Q: Last year at about this time I asked you which was the worst perfomrning Canadian bank for 2021. Apparently It was RY and I bought it and it is down 3.3% to this date.

So 2 questions please

1)Which was the best performing Canadian bank stock in 2022 and what was the performance.

2) and which was the worst performing Canadian bank stock for 2022.

I picked up this strategy from your investor Suite article a few years ago and figure I can't go to far wrong following it.

Thanks and Happy New Year


Sheldon

Q: Hi 5i,
I wonder if you could give us some guidance. My wife holds the above in her RSP, with all being more or less a full position except for ENB at 2X, BCE, CM, and SU at 1.5X each and CHR and DXT at .5X each.
She has until the end of 2024 to convert to a RRIF and currently has $40K to contribute to her RSP and has the room for that contribution.
She would like to invest in some different names, or divest/reinvest in those she has, with an eye to maximizing value before the conversion to a RRIF and to continue thereafter. She's not asking for much - just safety, capital appreciation and income ...!
Based on this info, can you offer any thoughts on new names to add or which of the existing to either pull back on, or dump entirely if that extreme measure seems warranted?
Thank you 5i, and we wish you all an excellent holiday season.
Peter

Q: hi,
following up on question/answer on CM recently. you mention CM has a way of getting into trouble eg 1990's. are you saying you see trouble in CM specifically somewhere now? excluding dividend, CM is up 15$ over 10 years( 37%), and over 5 years CM is down 3$ and change(-7%). BNS is up $10 over 10(16%), down 14$ over 5(-16%). at least over these specific time frames, CM "outperformed". depends on timing for sure. but I am curious about your comments? do you have faith in the CM CEO?? is there a wave of loan losses coming??
I own both presently.
cheers, chris

Q: CM is approaching a 52-week low following disappointing quarterly financial results. On the other hand, it is one of the big six banks with a ~6% dividend that it just increased. All things considered, is CM a bargain that should be picked up for a long term hold? Or, would it be better to buy a slightly better performer like BNS that is also value priced and offers a similar dividend.