Investment Q&A

Q: Would you please suggest 5 Canadian companies and 3 US companies that have dividend yields of at least 3.25% annually that have a high probability of capital preservation over a five year time frame? Thanks for your great advice,

Q: thoughts on the quarter please? Thx

Q: Hello Peter and staff,
What are the PE ratios for all four companies? Would you consider PE for BCE and Telus to be on the high side? Also, any idea why ATA is not participating in the rally given good numbers, and do you think investors are waiting for next earnings from Nuvei as the stock is stuck where the short sellers pushed it to.. Thanks very much.

Q: Hello Peter and staff,
What are the PE ratios for both companies and what are the payout ratios for the dividends Is there site to help us calculate the payout ratios? Also, do both companies still offer good value or would you say they are fairly valued and best to wait before taking full position? I have seen companies paying out over 100 percent and is that red a flag? Thanks very much.

Q: I have these holdings in a TFSA shown in descending %. First four at 15% each. Next three at 10% each. Adding $7000. Any additions to what I have? Any new ones? I appreciate the %'s are personal choices ( Part of let the winners run camp). Would you advise trimming?
Have good day. Thanks.
Paul

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: In 6 months my Telus International (TIXT.to) has gone under water 6% : Had I chosen Telus (T.to) , I would have been up over 11%. Ignoring the recent correction,TIXT had already fallen behind Telus.
Is there a better future for T over TIXT ?
Should be be fearing interest rate hikes in the sector ?
Are there seasonal factors to consider ?

Q: Hello.
I have owned all 3 of BCE, T and RCI.B for years in an income-generating portfolio of dividend stocks, around 12% of the total.
Considering selling RCI.B and splitting the proceeds between BCE and T, to simplify and to capture more income from BCE and more growth from T.
Does holding RCI.B provide some "diversification" value amongst the three?
Thanks as always.

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: Currently own Telus but it appears to be stuck in a trading range. Would a switch to BCE for a telco position, offer more growth in addition to a slightly better dividend? Many thanks.

Q: Telus, Maple, Well and others are Canadian stocks in the medical game in Canada and the USA. Are there other Canadian players in the same league? Can you please compare them from a financial performance, competitive and management perspective. Well has dropped by 50% since Sept/2021, very gradually. I'm wondering if there is a reason for the gradual decline. Is there a better stock in the same sector? Canadian or US. Also, is there still momentum pushing down WELL. Do you think it will be beaten by the competition in the next 2-3 years? Is it a sell from this perspective?

Q: I have held Telus for the 4 years and overall it has been solid. However, it now appears expensive and slow growing. Interested in your thoughts and if you'd recommend another stock in its place. I have a +10 year horizon in my investment accounts (TFSA, RRSP, RESP).

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: If I wanted to park cash, for 6 months or longer, is there any choice between MFC and Telus ? Something else?

Q: I was planning on growing my position in these companies during 2022 in my TFSA account. Is there any of these companies you wouldn't invest in or replace for an other company (please indicate witch company you would replace it by).

Also can you say in what order you would rank these companies from highest to lowest, highest being you favourite and lowest least favourite?

Q: I don't have any telecoms in my portfolio & would like your comments on how well or badly they will react to inflation. Which ones would you recommend or would another area be more appropriate? It's for my RRIF so I would like some growth & a safe dividend. Happy New Year
Dave

Q: With proceeds from a recently matured GIC that paid 3% I am thinking about buying 5 Canadian dividend stocks with a current yield focus and that as a mini portfolio gives me the best chance to get my capital back in 5ish years. In effect creating my own market linked GIC that I get income from, not my bank for guaranteeing the capital on a specific day 5 years hence

Categories and top contenders in each to buy today are;

Bank - BNS
Lifeco - SLF
Utility - FTS
Telco - T
Pipeline - ENB

What do you think of the strategy? What would be your top choices today in each category?

Q: Hi 5i Team,

I am looking to invest approx. $6k in my TFSA and approx. $28K in my RRSP for Jan/Feb of 2022. My potential stock picks for each account are:

TFSA - AT, TOI, CJT
RRSP - T, BEP.UN, BAMR, SJ

I am leaning more towards T & BEP.UN for my RRSP since I do not have much exposure to Utilities in my overall portfolio exposure (Tip my hat to your Potfolio Tracking for pointing that out!)

I am leaning towards adding to AT (I already own a significant amount of shares but I am extremely tempted by the current stock price) or CJT since I believe the potential ecommerce headwinds for the company will be significant over the next few years.

If you could rank or provide your thoughts on these companies in this current (depressing) market environment it would be of great help. If you have better candidates to look at that would also be welcome. Plan to hold for 5 to 10yrs.

I am new to this service but just wanted to say that I have been very impressed with 5i so far. I appreciate all the work you do for DIY investors and wish you and your staff a Merry Christmas and a better new year.

Thank you in advance.

Q: I am putting together a list of stocks to purchase in my TFSA for a 10 year hold. I am a very conservative investor and want income and some growth from my TFSA.
What companies would you add or delete from this list? Should I include a few US names?

Thank you.

Q: In my dividend portfolio, I have half positions in these stocks. Can you put them in order of which you would bring up to a full position first to last in light of their current value? Thanks!