Investment Q&A

Q: I am a buy and hold investor with 5 to 10 years of time horizon
I have roughly 7.5% of my portfolio in a 8 different preferred shares. They are in the order of their weights: PWF.PR.F, EFN.PR.I, ENB.PF.I, TRP.PR.K, ALA.PR.K, GWO.PR.M, FFH.PR.M, ENB.PR.A. All except one (FFH.PR.M) are either Perpetual or Minimum rate reset preferred. Minimum divided rate at reset or the current rate for perpetual on the face value is from 4.76% to 5.8%. In the last few weeks, their prices have dropped considerably. I am using preferred as part of my Fixed income. Because they are perpetual or Minimum rate reset, I expected them to be much more stable or even appreciate with the cut in the the interest rate. What is your advise under the current circumstance. My guess is that their dividend is at risk and that’s why they have dropped? As you can see they all have dividend paying common shares. What is your advice? Should I sell some of them and if so which ones?

Q: goeasy just put out a shareholder update, it seems very positive.
can you comment
dave

Q: Good afternoon,
With the US$ significantly spiking up of late due to extreme market volatility, would it make sense at this time to journal US stocks such as AQN, BAM.A, etc back to the TSX Cdn exchange? This may well be a short term trade if and when the US$ drops back to more reasonable levels. As usual your thoughts and comment would be most appreciated. Thank you.
Francesco

Q: Retired, dividend-income investor. I own ZWC and ZRE and am thinking of topping them up. Their share prices have obviously taken a hit and buying more at these lower prices with magnified dividend yields "appears" attractive.

What I am wondering is related to the continuation of the dividend. By my numbers, ZRE is yielding 7.4% and ZWC 10.5% (annual dividend divided by current stock price). Am I correct that the yields are supported by not only the underlying security, but the covered call option? What happens if the underlying security reduces their dividend? I guess my real question is...is there a risk of the ETF dividend being cut?

Thanks...Steve

Q: I understand that a covered call investment is not the holding to have during a market rebound.

Instead of ZWE, which ETF would be appropriate holding to capitalize on a rebound.

Q: It has come down from a high of 120 plus per share
other than coming down with the market , are there any fundamental changes ?
is the dividend safe ?
I am thinking of adding a partial position with a 2 years plus hold and to get some
dividends; slow capital appreciation
thanks

Q: There still has to be trucking at this time-Do you feel TFII would be a buy

Q: Is QSR going to zero because of the Coronavirus? How long can it survive with restaurants closed? Is it time to sell?

Q: I expected Canadian Appartment REIT to hold-on better, since people need a place to live and debt will get cheaper for the company. My sister, a lawyer, says that courts are expected to be understaffed, and so, landlords will not be able to force renters to pay. She thinks that renters who lose income due to a layoff will prioritize their car payment over their rent. I don't like that possibility one bit. I'm still positive on my position. If that makes sense to you, I'll sell and buy the U.S index. Thank you.

Q: Which Canadian monthly income ETF would you choose XTR or ZMI? Is there another you think may be better?

thanks,
Paul

Q: BBU has fallen much more than the market in the last month.Actually over 50%.Are there any company specific attributes that would have contributed to this type of drawdown?Kim

Q: Hi 5iR Team, I'm totally confused by your recent addition of ZRE to the portfolios. It is my thought that REITS will be among the hardest hit of all sectors. Mortgages will not get paid, many small businesses will collapse, rents will not get paid, lack of mall shopping will mean some malls will go under, Sr's who depend on REIT income will be effected, etc., etc.. Why would I invest in ZRE? What numbers am I missing in this equation?
Thanks Team. Cheers, Chris

Q: Hi, what do you think of the coronavirus impact on CAE and CIGI?

Q: Looks like a good entry price here, do you feel the dividend is secure.

Q: PKI: is starting to look good "for long-term hold" at some point; however, my concern is their dividend (low P.R.) and debt (very high): if things get worse they will need to conserve cash and worry about debt. repayment putting the dividend at risk, I would think?

Comments please.

Q: Just read your March 17 Stock Market Update article regarding "Where is the bottom???" and the bear Market histories. Very enlightening.

I have been almost entirely in cash for over a month now and noted your portfolio changes. You mentioned Adding a new 4% position of BMO Equal Weight REITs ETF (ZRE) in the Income Portfolio. ZRE has been very steady since inception in 2010 gaining almost 40% over that time period until the recent unprecedented and understandable 37% drop since Jan 31.

My question is where should we park our cash while we wait out this terrible situation? Should we just leave it as cash? Is the BMO ETF a suggestion for a short term hold? I did read your Trade Rationale and was a little confused by your comment "remove some of the 'tail risks' that might be seen if there are issues at any individual company." Am I right in thinking this is in reference to ZRE being an ETF? Apologies for my ignorance.

Thanks for all you do

gm

Q: My queston is regarding the U. S. dollar. Why does everyone keep flocking towards it during times of crisis when they have such massive, massive debt, thanks?

Q: Never owned this resource stock; however, it's B.S. is pristine. With this COVID-19 situation and a high probability of things really slowing down, this stock probably has more downside - or not? My feeling are, you buy this one when there is blood in the street: high PE. The other thing is, they pay no dividend of any consequence, which they could afford. I don't think I've ever owned a resource stock other than O & G.

Appreciate your comments.

Q: I am 88 and have followed the market for many years, and your valuable service since inception. I am leaning towards selling 50 of my 80 equities and following only your Balanced Equity Portfolio rather than my own intuition. Life would be easier!! I hold 15 of the recommended BEP stocks, but do not hold AEM ATD.B BAD CAE DSG GC GIL NFI WSP. I have like others, lost 50% of my 4 million $ portfolio, and am considering trying to utilize my losses. My options appear to be; 1.Selling all my stocks; 2.Selling only my losers and all those not in the BEP; 3.Buying back immediately those in the BEP that I don't presently hold, and the rest after 31 days.
4.Waiting for a turnaround before any buybacks. Your opinion will be much appreciated on which of these or no action or a better strategy suggested by you can achieve my goals of reducing my portfolio to the BEP total and utilizing my present losses at the same time, and does it make sense in timing in this meltdown environment ? Many thanks in advance for your consideration.

Q: SBUX: closing stores for 2 weeks. May be longer depending on how this COVID-19 pans out, I realize. On my buy list at some point. According to CIBC Investors Edge they have no debt. - is that right? Low P.R. and ROE of 22%. Buying back an additional 40M shares in addition to remaining 16M, for a total of 56M.

Do I have the right data going forward. Additional analysis appreciated.