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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: 1. Do you recommend purchasing these stocks now, and why pls? 2. How much could TRP price drop if the behind schedule Coastal Gaslink project takes even longer to complete?
Read Answer Asked by Ron on May 29, 2023
Q: In response to my earlier question:
Thanks for highlighting that the "Shares Outstanding" hasn't gone up a lot in the last decade.
I am looking at the data provided from gurufocus and their numbers for "Outstanding Shares" match with what you mentioned in the earlier answer.
But when I look at "Common Stock" it has been doubled in the last decade period. It remained flat until 2019 at 5660 mil and jumped to 11399 mil by end of 2022. Do you think this is because of the split in 2020?
Can you please clarify the difference between "common stock" (which doubled in last few years) and "shares outstanding" (which somewhat remained steady in the same period)?
Should I not look at "common stock" while looking at a company's balance sheet.
Thanks again for addressing my concern.
Read Answer Asked by Jabs on May 26, 2023
Q: I usually look at EPS, company debt, payout ratio and their # of common stocks while reviewing a company financials.
How would you justify Telus's 135% payout ratio ?
Company earned 1.22 (2021) and 1.15 (2022) and paid dividend of 1.27 (2021) and 1.36 (2022)
Long term debt is increasing and they have almost doubled their common stocks in last few years. All leads me to believe there may not be much growth in terms of the stock price in next 2-3 years.
Their cash flow doesn't looks sufficient to cover their dividend unless I am missing something here.
Thank you for your guidance.
Read Answer Asked by Jabs on May 25, 2023
Q: Hi Peter, Ryan, and Team,

Lately, Telus is under-performing Bell by quite a lot. On days when both stock prices are increasing, BCE goes up by a greater percentage than T, and conversely, when there's a decline, BCE declines less. We own both in our combined accounts, and Portfolio Analytics indicates that our Communication Services sector should be increased. If we wish to do this, is BCE the safer stock?

Also, is there something going on here that is causing this under-performance of Telus?

Thanks as always for your sage advice.
Read Answer Asked by Jerry on May 08, 2023
Q: Many companies have become addicted to low interest rates over the last decade. Assuming that interest rates stay where they are for years to come (a rate once considered somewhat "normal"), do you see any problem with any of these blue chip stocks maintaining their dividend ? I'm sure over the course of the next 5 years or so some of these companies will need to renew debt at higher rates.

Read Answer Asked by James on March 17, 2023
Q: Non registered account : I sold a majority of stocks in 2022-2023 in order to convert them into a diversified dividend ETFs portfolio.I though intend to only keep" safe stocks for long term".Please could you rank them in this "safety perspective" , a "hold,buy, or sell" comment would be greatly appreciated,considering the fact that in this case,selling a stock would result in "buying an ETF in the same sector" .Many Thanks for your excellent website ,J-Y
Read Answer Asked by Jean-Yves on March 13, 2023
Q: This question concerns a well diversified Canadian portfolio (~30 holdings), focused slightly toward growth.

Looking to add to positions in ATZ, DOO, BN, BAM, GSY, KXS, TRI, PBH and T as well as initiate a partial position in WELL, all for long term holds (5+ years).

Would you rate any of these as a wait-and-see rather than a buy today? Please rate (1-10) in terms of your conviction to buy today, along with suggested target buy range [great, okay].

Thank you.
Read Answer Asked by Peter on February 28, 2023
Q: I've dithered and let my position in Shaw run. To get prepared for the takeover, I'm thinking of moving in Bell, Telus and Sunlife in equal weightings. Looking for safety and dividends, any better ideas?

thanks in advance for the help,
Andrew
Read Answer Asked by Roger on February 21, 2023
Q: I AM TECH HEAVY AND WANT TO REBALANCE MY PORTFOLIO. WOULD YOU PLEASE SUGGEST TWO CANADIAN AND TWO US STOCKS IN EACH OF THE FOLLOWING SECTORS. CONSUMER DISCRETIONARY, CONSUMER STAPLES, MATERIALS AND COMMUNICATIONS. I HAVE BEEN A MEMBER SINCE DAY ONE OF 5I AND RATE YOU THE BEST OF THE SIX NEWSLETTERS I SUBSCRIBE TOO. THANKS FOR THE GREAT WORK AND TAKE AS MANY CREDITS AS NEEDED.
Read Answer Asked by Ross on February 21, 2023
Q: I have BCE and T for Canada. VZ for USA. What additional telecom stock(s) would you recommend to round off this sector?
Thank you,
Roger
Read Answer Asked by Roger on February 14, 2023
Q: Hi 5i,
I was watching a recorded market call yesterday from early Feb, with Ryan Bushell. He made the case that T will outperform BCE in the coming years (he seems to be very much a long term investor) and he laid out a number of reasons why he thought BCE might underperform T. It made me look at my holdings in each and wonder if I should switch out my BCE for more T.
In reviewing them, the share price of BCE has declined just over 8% in the past year while T is down 9.3%. Their P/E is near the same, but BCE's ROE is currently 15.6% to T's 12.7%. The current yield on BCE is 6.26%, compared to 4.9% for T. Based on my purchase price, I'm earning a little more than that on each - 6.55% on BCE and 5.12% on T.
I know that Ryan's take is based on his view of the future for each name, and he thinks the future is rosier for T. But based on the numbers I've laid out above - which I recognize are all about the past and not the future - I don't see a compelling reason to jettison the BCE I hold in my RSP and use the proceeds to bump up my T.
I would be very interested on your thoughts on the two, looking ahead.
Thanks,
Peter
Read Answer Asked by Peter on February 08, 2023