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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: Good morning, Peter. Just renewed for 2 years at advantageous price. Wish all decisions were this easy. Power Fin has finally reached positive traction for me after several years under water receiving dividends only. Given your liking for SLF, would you swap PWF for that, stay as is or move proceeds to a bank or telecom? Portfolio is reasonably well-balanced.
Thank you and kind regards,
Geoff
Read Answer Asked by Geoffrey on February 17, 2014
Q: I am (still) overweight in financials...BNS 10.3%, TD 13.2%, PWF 2.3% and SWF 3.7%. I sold out our position in BMO and bought G & AEM for a total position of 3% in Precious Metals. I am thinking of selling PWF and adding to either Precious Metals or Energy sector (PEY, SGY & VET) for an 11% weighting. Does this make sense to you? 5i seems to be generally positive on PWF... Canadian Banks seem to be well managed, protected from competition and well capitalized so the question becomes why sell anyways. The PWF is inside the RSP so there is no capital gains tax to pay.
We are near retirement age but our dividend income seems to be exceeding our expenses without considering CPP and my wife's small pension.
Thank you.
Read Answer Asked by James on February 17, 2014
Q: Hi 5i Team,
There were two preferred shares recommended on BNN this afternoon, PWF.PR.S (rated P1) and BRF.PR.E, that I would like a second opinion on.
Both offer healthy yields, and sell at discounts to their call prices. I am thinking of boosting my preferred share content in my dividend-oriented portfolio. Other than interest rate risk, do you see any red flags on either of these issues?
Many thanks,
Brian
Read Answer Asked by Brian on September 30, 2013