Investment Q&A

Q: I have some new money to invest in my TFSA. I am well diversified in my other accounts, and am now wondering what to add to my TFSA. I am a senior so I would say about a 5 year time frame that this would stay in the TFSA, maybe more.
Any suggestions you have would be helpful.
Thanks so much for your help in the past, it has always proved very lucrative.
Shirley

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: My question is moreless about Morningstar's numbers. I have access through my TD trading account. It indicates the Fair Value of SLF pretty much where it is, BCE at $66.64 and ATD at $46.12. I'm not sure if you share the same opinion (?)

SLF - the FV has gradually been increasing, but are projected rate hikes already priced in the present stock price? I would expect the FV to ramp up.

BCE - They show a trailing PE of 21. That, and the P/S seem historically a bit higher than normal. I think your Bloomberg info would show a future PE that may be lower...hopefully.

ATD - This one shows a trailing PE of 16, This, compared to its past, seems "quite cheap", yet the FV doesn't seem to reflect this. Agree?

So what are your thoughts? Would you say SLF, ATD and BCE are good value - in that order based on my above comments, or any opinion of your own?

Q: Countering inflation, can you recommend your favourite 6 companies in Canada and the US with pricing power (dividend payers would be appreciated) Thanks!

Q: We recently initiated a TFSA for a family member (long-term buy & hold); the 10 securities purchased (in approximately equal amounts) were: Aritzia (ATZ), Unilever (UL), GoEasy (GSY), SunLife Financial (SLF), BAM (BAMa), WSP (WSP), Algonquin Power (AQN), Telus Int'l (TIXT), and an ETF called XUSR. Still have ~15% capital (~$12,000) to invest. Which 3 or 4 of these would you have greatest conviction to add to? And/or is there another security which would complement the above?

Ted

Q: Hello 5i team,
Need to build equity portion of a portfolio for a recently retired almost senior citizen.
Very conservative, sleep at night stocks. Not needed for at least 5-10 years.

Need about 10 for RRSP and 4-5 for TFSA.

Do you agree with above stocks or would you pick others?
No oil stocks and no significantly cyclical stocks.
Don't need to be dividend payers but looking for total return of 5-8% or more per year on average.
Can you provide about 12 choices including above suggestions if you agree for RRSP and 4-5 for TFSA.

Take as many credits as needed.
Thank you so much for this great service.

Q: Peter, I am seeing coflicting recomendations on Manulife. I am looking for steady and growing long term dividends. If you would buy Manulife where is a good entry point, Thanks Ken

Q: I realize it's difficult to compare a single company to an ETF , but which of these two do you think has the most upside over the next few years or so, thanks?

Q: Good morning, If I were to buy these three stocks in a separate account and never looked at the prices of the stocks or the account for five years, would I be happy when I saw the results after the five year period, thanks?

Q: Which would you suggest for a financial growth play in a 3-5 year hold? BMO or SLF?? Thanks

Q: These companies are in my husband’s TFSA.
They were chosen from your Balanced and Income Model Portfolios.
Would you suggest adding any other companies to this portfolio?
Thank you,

Q: Is today a good entry point for these stocks?
What is the best one of these three ,3 to 5 year term?

Q: Looking to add more financials and sell off some technology. What would your choice be for 3-5 year growth…. SLF or the more conservative ZWB? Thanks

Q: Hello: I want to add an insurer stock in Canada and the USA. I admire and follow FAST Graphs. The following companies were recently reviewed: Aflac (AFL), MetLife (MET), Principal Financial Group (PFG), Prudential Financial (PRU), Great-West Life (GWO) iA Financial (IAG), ManuLife Financial (MFC), Power Corporation of Canada (POW), Sun Life Financial (SLF).

I would like your recommendations for the best choice in each country: Objective: solid, safe, long-term hold with capital appreciation potential and good consistent dividend income and dividend growth. Thank you.

Q: With rising interest rates, would you prefer banks or life insurance companies for growth and income. Would your top choices for each remain SLF and BNS. Please explain. Thanks

Q: Which company do you believe has greater up-side in 2022: SLF or LWRK?

I currently hold both LULU (down 12%, TFSA) and ATZ (up 40%, cash account). Am contemplating:
* continuing to hold LULU
* selling LULU and buying more ATZ (thus raising my ATZ holding to 4.35%)
* selling LULU and purchasing AMZN. Your advice would be most welcome.

Thank you,

Maureen

Q: I have quite a lot of financials, mostly Canadian banks and insurers with about 20% US. Would like to sell down some and buy something with some more growth in the payment section but still relatively conservative.
Would you recommend one of MA, V, Pypl or other financial as currently looks like a buying opportunity?
Thank you.

Q: Happy Monday Peter , just wondering what value stocks you might think are a good investment right now thx Kim

Q: Withdrew $75000 plus in calander year 2021. Assuming I can contribute $75000 plus $6000 in 2022 .
The contribution will be stocks from my unregistered account. My choices to contribute are, AQN,BCE,EIF and SLF plus cash for which will purchase additional shares of BCE and SLF.
Am I correct on contribution? Any comments on my choices for contribution. Looking for some income plus enough growth to mitigate rising interest rates and inflation.

Q: What are your current top 5 Canadian dividend stock picks? Looking to add to my TFSA holdings.

Thanks,,

Joe