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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: 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.

Read Answer Asked by Paul on June 30, 2016
Q: In my portfolio I have 15% in preferreds, thats my fixed income, 8% of that is in Great West Life GWO-R, Fortis-J, Power Financial-S,all of which are straight perpetuals. The other 7% is in CPD,Claymore Preferred. I paid $25.00 for each of these Preferreds, so am down on each one, they pay a dividend of 4.7%.
With the news of interest rates about to rise, should I sell these? Thank you and cheers to Peter!
Read Answer Asked by Shirley on September 16, 2014
Q: Hello Peter,
I am looking to make a move ( 5-7% weighting )on either SLF or GWO, maybe both. Ford recommends GWO as a Strong Buy. Could I have your opinion on which one you would pick? I would consider either one or both, to be ``cornerstone holdings``. In other words, long term growth with steady div. income, within a moderate to medium risk, but well diversified, portfolio. Thank you sir!
Read Answer Asked by Rick on April 16, 2014
Q: Hi Peter & team,
I have 1,000 shares of GWO in my cash account portfolio since
June 2007,it went down quite often but never went up much from
my cost of $31.50 also dividends are still the same as when I bought them. Do you have any idea for replacement? I have SunLife, TD and NA as well. Thank you.
M.N
Read Answer Asked by Motoi on February 14, 2014
Q: Hi Guys. As a new member I have started to invest in your model portofolio ie sold UEB and bought CGX. I have about 600 shares of CPX which I bought at around $24.00 most of it is in RRSP and TFSA. Should I hold or sell and deploy the money to other stocks. I,m thinking buying GWO to protect against rise in rates. Also have about 4000 shares of BNS in investment account for income I,m not happy with the concentration but it has been good to me for the last number of years. Thanks for your advice. I,m really happy with you service .

Mike
Read Answer Asked by Michael on December 08, 2013
Q: Hello team:

I owned some PWF which I accumulated between 25 to 28;
now it is over $ 35, I enjoyed the nice dividend
I recently added some SLF (half position) so that if interest rates slowly increase, the life co would offset the loss of value of the bonds in my income porfolio
Which Life co would you add to PWF and SLF ?; Thanks!
Read Answer Asked by Michael on November 27, 2013
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