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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: My question is regarding POW. It seems to have been hit harder than a lot of others in the financial sector. I figure IGM's low growth is likely a drag on the stock, and low interest rates aren't exactly helping GWO.

Would you be concerned about POW's lofty yield and whether or not the current dividend can be sustained in this environment?

Do you have any issue in bringing my portfolio weighting up to 5% in this stock at today's price?
Read Answer Asked by James on April 17, 2020
Q: My question on these two companies performance during the past month.
They usually goes up or down together in the past. But the last month or so, POW decline and PWF goes steady and up a little. Any particular rationale for that?
Which one is a better hold in these turbulent times. Thank you
Read Answer Asked by DAVID on April 08, 2020
Q: Do you like POW long term? Is the reported payout ratio of 60% accurate? It doesn t seem to show a lot of growth, should it be a concern? Do you see the Europe exposure as positive? Or would you just buy GWO? Generally speaking, are the lifeco / financial services companies less risky than the banks? I already have a full position in SLF. I am looking for another core holding (financial) for my rrsp acount. Thank you for your help!

Read Answer Asked by Pierre on April 07, 2020
Q: Power Financial has merged with Power Corporation. The dividend is over 8% and just recently raised before this covid virus. But when they were two companies, combined the dividend would be much higher for two companies so do you think they would still cut the dividend?
I know they haven't created much value over the years but now being a merged company, do you see more upside? I know you prefer Sunlife. I just think Power Corporation has more divisions they could spin off once this downturn is over. Do you agree?
Read Answer Asked by Helen on April 07, 2020
Q: POW has now fallen to a price giving a similar yield to ENB, around 8%. For a senior living on dividend income, which of the two has the safer dividend for a long term hold? You have tended to favour SLF in the insurance/financial space, so would you still recommend SLF over POW for dividend safety and growth, despite its lower yield? If you don't like any of these three stocks, what's your top Canadian pick for a senior looking for a decent safe yield, with some potential for long term growth?
Read Answer Asked by David on April 06, 2020
Q: My wife and I are seniors drawing from our RRIF's and we are 'buy and hold' type of investors and need income. Your recommendations to 'harvest' capital losses is something that we have not really done previously but this suggestion is resonating with us now. If we were to do this I think we would look for 'proxy' purchases for at least the 30 day waiting period before we could repurchase the same equities if we wished.
Could you suggest some appropriate 'proxy holdings' we should be aware of for the following equities?
1. The REITs HR.UN, BPY.UN......would ZRE be a good holder?
2. EXE
3. POW
4. FM
5. MTY
6. TFII
Please use my question credits as appropriate. With thanks
Read Answer Asked by Gary on April 02, 2020
Q: Gordon Pape suggesting selling marginal companies in this environment and claim the loss. Which of the above if any would you consider marginal?
Thanks
Jeff
Read Answer Asked by JEFF on March 24, 2020
Q: Why are all the insurance companies getting slaughtered? Because of ultralow interest rates? Good buy at these prices? Think the dividends are safe?

What would be your favourite?
Read Answer Asked by John on March 23, 2020
Q: Hello 5i--I'm looking at these companies for the dividend yield. A bonus would be their recovery to previous highs. What would your ranking be for the three to achieve these goals? Thanks, Ron W
Read Answer Asked by RON on March 18, 2020
Q: seem to have a lot of questions about the safety of dividends and will they be cut.
I thought I would add another one to the fire and ask you power corp. and power financial became one company now and the management said it would raise dividend 10% in second quarter. do you see this being in jeopardy now with the market tanking day after day. do you also see banks possibly not raising dividends anymore this year [Canadian] until things get better hopefully.
Read Answer Asked by hans on March 17, 2020
Q: Hi,
Can you list 5 stocks with 4% yield having a good balance sheets.
Thank you for your support
Read Answer Asked by Edward on March 16, 2020
Q: After the "blood in the streets" kind of day we have had today, March 12, was I "crazy" to add to my holdings of the aforementioned? Are their dividends as reliable as I perceive them to be? FYI, I am a year away from retirement at age 60 and value dividend income for a portion of my portfolio.
Read Answer Asked by David on March 16, 2020
Q: Hello 5i
This is a mixed bag inquiry. Looking for some perspectives on the above watch list. I m wanting to increase my overall US & tech sector exposure plus add to my CDN financials. All positions have yield income to weather the storm for the next few quarters
I m considering half positions (2%) in each.

Read Answer Asked by Brant on March 13, 2020
Q: Good Morning
The TSX has dropped about 30% from its peak but POW has dropped 39%. I will greatly appreciate it if you could provide some insight as to why POW has dropped so much compare to the TSX. Are there any specific issues related to this company?
I am inclined to start gradually buying at this level by buying every time there is a further drop from the $20.39 level.
Thank you
Read Answer Asked by Terry on March 13, 2020
Q: Could you provide me with a list of 5 or 6 companies that are buying back stock and that have good growth prospects. These could be in any sector and any exchange in Canada or the U.S. Thanks.

Rob
Read Answer Asked by Rob on February 06, 2020
Q: PWF's investment in fintec (wealthsimple) as weĺl as their dividend looks interesting for a 5 to 10 year hold. The reorganization with POW also looks to have potential to unlock value and increase dividends. Do you recommend investing a full position at this time and if so, in which company. Alternatively, is there a better investment in fintec?
Thankyou
Ian
Read Answer Asked by Ian on January 20, 2020
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