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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: Hello, CDN Banks are trading at or near their 52 week lows. BNS and CM have a dividend yield of over 5% now. Do you believe, their valuations have reached close to or near their bottom and it makes sense to add, for income and growth, with a time horizon of 5-10 years. If so, what will be your preferred order for these names ? Thanks

Read Answer Asked by rajeev on July 04, 2022

Q: I noticed that ZEB..holds the six major banks. However, its dividend distribution is 3.33%. The lowest of the dividend from TD and RY are 3.8/ 3.9. and the others are 4%+ . Any reason for that? May be a good reason to switch over?

Read Answer Asked by DAVID on June 13, 2022

Q: Results in recent 1/4 looked good, what is your outlook for next 12 months. screaming buy at these levels? Please rank above list. Thankyou

Read Answer Asked by Albert on May 26, 2022

Q: Seems like there is some indiscriminate selling of rate reset prefs
last few days. Not sure this makes sense.
What are your three top rate reset ideas at the moment, that are NOT in the energy/pipeline sector
Thanks

Read Answer Asked by john on May 10, 2022

Q: Among banks, 5i seems to favour TD and BNS, though since 2019 patient investors have done well with just about any of the Big-Five-plus-NA.

But supposing interest rates are now set to rise, won't banks tend to find a trading range? In which case, wouldn't ZWB, with its covered call component, provide greater total return? Or do its MER and trading expenses claw back too much of its income?

Interestingly, since inception, ZWB's share price seems to have done as well as (for example) BNS, in spite of the potential for its positions to be called-away.

Read Answer Asked by John on March 25, 2022

Q: In your view, what impact will the Liberal/NDP cash grab on the Canadian Banks have on their stock prices. Each of them are expanding outside Canada....does this help mitigate any new tax? Is there one Bank that is better able to handle things and more favored now as a result? Would you just begin exiting the Banks? Thank you for your insight.

Read Answer Asked by Curtis on March 22, 2022

Q: Recently Veritas’ D.Souza cut most of the big canadian banks to sell. Could I have forward P/E for each of them? I doubt it, but do you agree with M. D’Souza that the banks are a bit overpriced looking at 2023?
Thanks

Read Answer Asked by Denise on February 14, 2022

Q: I am considering add more bank stocks and here's what I got based on their P/E:

TD:12.36x
RY:11.99x
BMO:11.69x
BNS:11.50x
CM:10.57x
NA: 10.79x

I have 150K cash available. Would you agree to add National Bank, CIBC and Bank of Novia Scotia equally since these 3 have the cheapest valuation?

Thanks,

Read Answer Asked by Yang on December 24, 2021

Q: Hi Team,

I only own bank of Nova Scotia and look to add more weight on financial sector. Can you please make top two of your picks in the list of names?

Thank you,

Read Answer Asked by Yang on December 17, 2021

Q: Hi, is it a good time to add to CDN banks, with expectation of higher rates and trend for returning capital to shareholders. If so, which ones will you consider as winners, over next several years ? Could you rate them, in order of priority ? in the same token, do you have a particular view on CIBC as the dividend yield and P/E ratio seem to be most attractive in the group ? Thank You

Read Answer Asked by rajeev on December 07, 2021

Q: Hello, my discount broker has the following product in its inventory of fixed income products:

National Bank of Canada Announces NVCC AT1 Limited Recourse Capital Notes Offering
Montreal, 14 April 2021 -

National Bank of Canada (“National Bank”) today announced that it has entered into an agreement with a group of agents led by National Bank Financial Inc. for the issuance of $500 million of Limited Recourse Capital Notes, Series 2 (Non-Viability Contingent Capital (NVCC)) (Subordinated Indebtedness) (the “Notes”).

The Notes will bear interest at a rate of 4.05% annually, payable semi-annually, for the initial period ending on but excluding August 15, 2026. Thereafter, the interest rate on the Notes will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 3.045%. The Notes will mature on August 15, 2081.

Obviously, the day I need the capital (it would be in my RRIF), I need to sell the note with the associated broker commission. The interest rate today is 4.21%. Are there disadvantages in putting some money for income in this type of product (I have seen offerings from other financial institutions as well) and if so, what are these? Thanks!

Read Answer Asked by Martin on December 06, 2021

Q: Hello team, from the list above could you please rank in order to:
1> Keep and or add for full position or
2> Sell now & move on, and
3> what would you replace the sale positions with?
Thanks
Carlo

Read Answer Asked by Carlo on November 15, 2021

Q: I am trying to steer my and my husband's TFSA's more toward growth. The stocks listed are some of the stocks in our TFSA's that I am considering swapping out in favour of growth-oriented stocks on my watchlist. Can I get your opinion? Do you think that any of the listed stocks have enough growth potential to belong in a growth-oriented TFSA?
Thank you, Doris

Read Answer Asked by Doris on November 15, 2021

Q: How would you rate the following Canadian
banks for investing new money at the moment?

TD, BNS, RY, BMO, NA

Thank you so much,
Rita

Read Answer Asked by Rita on November 09, 2021

Q: With all the speculation about major dividend increases once restrictions are lifted, would investment in banks be a good short term strategy (hoping for a boost upon announcements), or has the expectation already been cooked into current prices? Any guesses as to who will announce the largest increase?

Read Answer Asked by Rick on October 22, 2021

Q: I wd appreciate your ranking of the Canadian banks.
thank you

Read Answer Asked by John on October 21, 2021

Q: I know that ranking banks often is like picking shades of the same colour. At this point in time do you feel there is any "clear" division amongst any of the banks for investing purposes? Can you give your order of preference and the magnitude of the gap between each choice.
Thanks,
Terry

Read Answer Asked by Terry on September 07, 2021