Investment Q&A

Q: I was planning on adding to my position in GWO later on this month; should I buy today to take advantage of today's pullback? Any reason not to add to my position at all? This is a longterm hold for stability and dividend. Thank you.

Q: Hello Peter and team, this is regarding the news about GWO restructuring and reductions in Canadian workforce (1,500 employees over the next two years). What do you read in that news? Does this mean that GWO is losing business to the benefit of Sunlife and Manulife? In your opinion, what will be the impact of this transformation on the stock price in the long term? Would you buy GWO at this time. Regards, Gervais

Q: If Canadian interest rates stay flat over the next several years but US rates rise, will that still have a positive impact on Canadian Life Insurers like GWO?

Q: I am thinking of selling GWO and PWF and replacing them with a 50/50 split of ZUB and ZBK. I would appreciate you thoughts.
Thanks.

Q: Hello, I currently hold BNS, CM, & SLF in my financial sector portion of my portfolio. Which would be the better addition, if either, FSZ or GWO.
Thanks

Q: Hi,

I read the IMF has warned about the system risk posed to the financial system, including insurance companies, by Deutsche Bank. I own shares in GWO. Should I sell the shares and allocate the money into a safer company. If yes, which company would you recommend?

Thank you!

Q: Hello Guys,

How do you feel about these two insurance companies ? Currently, my position in insurance companies is strictly GWO. I am considering taking my loss in GWO, selling some GWO and purchasing SLF to better balance that sector.

Q: Hello Folks:
Would you consider it a good move to transfer funds from GWO into BIP.PR.C (Brookfield Infrastructure 5.5% preferred).
Thanks again
brian

Q: Without regard to sector,in which order would you rank these as the better dividend paying stock for a long term hold.I am talking 5 years plus

Q: The proverb about our hometown life giant goes …
“ don’t buy Great West Life's funds, just buy their stock "

This WAS a "put-away stock” ( added to through the decade ) .
Now our investment has been seriously eroded due to my non-reaction to Brexit.
Listening to David Baskin’s comments on bonds and lifecos , perhaps I should trim the sector anyways .

Does one sell GWO here , or is the plunge an over-reaction that we should ignore ?

Thanks you

Q: Big drop after earnings report. What is your advice on the stock. Buy, hold or sell. Thank you.

Q: This headline was in the Financial Times today - do u agree with it?
"Great-West Lifeco Inc downgraded to sell as Brexit weighs on earnings"
Thanks

Q: I am retired, have a 50/50 asset mix, moderate risk tolerance, and hold GWO (along with financials TD and BNS) in a diversified portfolio. If interest rates stay low (or go lower) for say the next 5 or 10 years, this could reduce insurers' income, push them to consider riskier investments, and raise their actuarial liabilities. Interest rates have been declining for years, so insurers have faced this reality for years already, but I'm wondering at what point the low interest environment really hurts their bottom line and financial strength. What am I missing in this assessment? Should I sell GWO? Thank you for your advice. Ted

Q: Good morning,

I own GWO and IFC for an aggregate position of about 3.5% in my portfolio. What do you recommend as a guideline allocation for "insurance" in one's portfolio?
If I'm low at 3.5%, would you recommend I add to my existing holdings or initiate a position in Sun Life?

Thank you,
Robert

Q: 9:53 AM 6/29/2016

Hello Peter:

Today you made this distinction between "Safe" and "Secure" dividends in your answer to Grant asking about Superior Plus : "We would consider the dividend 'secure'. 'Safe' is a different category completely".

1. I am looking to concentrate on companies whose dividends you consider to be in the "safe" category, and which yield over 3.5% as these should/must be at least the main core of any pensioner's holdings for reliable income. This can be confusing to sort out since I presume that you will not consider all banks, utilities, telcos, REITS, Pipelines, etc. qualify as "safe".

2. So if you could sort out a short list of the few that qualify for the "Safe Dividend" category it would be most appreciated. I do understand that disasters do occasionally happen, and any company no matter how safe can get into trouble.

2. This brings up the problem of portfolio concentration caused by owning only a few names or sectors. Is it better or "ok" to just own a portfolio of only "Safe" dividend stocks, or are we advised to dilute the quality of our portfolios and own some less safe dividend stocks to supposedly "diversify" risk? This harks back to the people whose portfolio consists of only the big five Canadian Banks and who have done brilliantly for the past 50 years!

Your considered opinion on this issue will be most appreciated........ Paul K.

Q: Comments on the latest qtr, would you add to an existing position on this small pull back? TD seems very negative compared to last qtr. Any chance of a dividend hike soon? Thank You Ron

Q: Hi Peter! I hold a large position in GWO through a stock purchase plan. The stock hasn't really moved a lot in recent years and I'm wondering what you think the prospects are for the company over the next 2-3 years as an investment? Ian

Q: Are you aware of any changes contributing to the jump in stock price today for GWO? Ian

Q: Can you please comment on the drop in prices after their earnings release. Are they buy, sell or hold. Thank you.

Q: Hello, i have royal bank, manulife and sunlife, would Great West Life be appropriate to add to my financials? Or could you offer your view on Great West Life. Thank you