Investment Q&A

Q: What are your thoughts about these companies, aiming for dividend growth and capital apreciation. Do you suggests any alternatives with similar strategy and sector?

Q: Hi,
if you were putting a fund together comparable to VGG, but for Canadian equities, what might be your first 5 top picks assuming the same criteria for the ETF? Also, what would be your 3 honorable mentions?
When comparing CDZ and VGG what are the main differences in terms of the stocks that make up these two ETF's?
Many thanks,
Dan

Q: Hi, I was going to add to my consumer cyclicals by adding LNF based on your previous comments to others. However, I see this has a low volume of shares trading each day. This raises a red flag since if something should go wrong (e.g. bad quarter), the stock can drop considerably more as people scramble to get out. Do you see this as a valid concern? My other holdings in this sector are MG and CTC.A, both at full weightings. Can you suggest any others?

Q: This is actually a followup question to your answer to Steve's question from earlier this morning.

I also hold a core position in TRP. Dividend investor. Intended to hold 'forever'. I'm 43.

I couldn't tell from your answer to Steve's question whether you view TRP as a 'BUY', 'SELL', 'HOLD' or 'GRADUALLY TRIM UNTIL DIVESTED'. You had previously opined that oil will likely subsist as a fuel source in demand for 20+ years. That would take me to age 63. What do you think is the likelihood that TRP continues to pay and grow its dividend for say, 50 years? I know given the time frame, this is a very difficult, speculative, predictive question, but your guess is better than mine. I don't want to hang on to this position only to have to sell it at a massive loss 20 years from now, but that is the scenario that appears to be gradually unfolding now.

I hold a fairly concentrated portfolio of 20 companies, equally-weighted, and each is selected with the intention of holding for their sustained, rising dividend payments in perpetuity. When this is threatened, either imminently or in the medium to long-term, I sell. I sold SU when they cut their dividend and am glad I did.

Given this context, should I exit TRP? If so, should I use the proceeds to start a new position in AQN? I already own FTS and EMA, would this be too much overlap or too much utilities exposure? If so, I am relatively light on Consumer Discretionary (only hold CTC.A in this sector and have been eyeing QSR - do you think a switch from TRP to QSR would make more sense?

Please deduct as many credits as necessary, this was actually *many* questions in one.

Q: Retired dividend-income investor. Looking to add to my Consumer sector. I already own PBH, NWC, PLC. I am looking to add one more name, preferably with a dividend > 3%, although dividend security and dividend growth are more important than todays yield.

I have looked at CTC.A, LNF, MG, PRMW and QSR. I have researched each using both fundamentals (beta, P/E, P/BV, P/CF, P/S, ROE) and technicals (higher highs and higher lows, above 200mda), as well as current analyst estimates.

CTC.A comes across as just "ok". LNF has already had an incredible jump recently, so I am hesitant to buy at current prices. MG is not bad, but shows a ROE = -1%. PRMW looks good except for the ROE = -9%. QSR also looks good, showing a ROE = +29% (I can't find P/BV and P/CF anywhere). The bottom line is there doesn't appear to be a stand out obvious buy. I am leaning toward one of MG, PRMW or QSR.

Would you please rank all 5 companies from best to worst for the following (assuming a 3-5 year hold):
a) Dividend security
b) Capital gain potential
c) Total return potential

Thanks for your help. Much appreciated....Steve

Q: Morning Team,

Curious to get your thoughts on Canadian Tire's performance of late. Do you think this increase is sustainable and why? What has changed in your opinion to cause such a significant recovery since the beginning of the pandemic?

Q: Hold all three of the above in my TFSA. Two years to retirement. Will need good income at that point. Your thoughts please - buy, sell, hold?

Q: Hi Peter and Staff

At the time you added Leons to your income portfolio you obviously liked it "better" than Canadian Tire......I am not sure if it was because of the higher dividend. Looking at current price and possible recovery in price as well as dividend, how much better do you like one than the other and would you switch Canadian Tire for Leons looking at combined returns of dividends and stock price gains.
Thanks for all you do
Dennis

Q: Can you please rank these stocks in terms of current valuations / market timing?
I am planning on purchasing 2 or 3 over the next few weeks and am wondering where to start.

Thanks.

Q: I have enough cash to add to two of the following positions: ZDI (ETF), CTC.A, GWO, SU, EIF. Which two should I add to, and why? If you think I should only add to ZDI (being a diversified ETF) at this time, please indicate so. Thank you.

Q: Good Day Team,
I am down about 40% on this stock. It is 4% of my portfolio. It seems to me that it will take a long time for this stock to climb back to the price when it was purchased.
Should I still hang on to it? Just can't seem to decide.
Thank You,
John G.

Q: Whenever we recover from the current Covid-19 crisis, and business starts to return to some semblance of normal, how much growth do you see in
- New Store Openings for CTC's various retail franchises?
- In growing the membership in Triangle credit cards?
- In growth in sales through e-Commerce?
Collectively, does the growth potential post-Covid 19 look sizeable, or do you see CTC as pretty much a low-growth business?
Thank you.
Edward

Q: I am underweight the following positions: ZDI, CTC.A, EIF, SIS. If I were to add to one of these positions, which would you recommend? For longterm hold. Thank you.

Q: Dear 5i team,
Would you have concerns to buy a really small number of any of these, say 50 shares, none are in my portfolio. The prices seem very attractive and I have not sourced key info that would say ‘no’ but I’d like to check in with you in in case I’ve overlooked something.
Which would you say is best, and no worries if you consider them all a ‘no’ right now.

In the energy arena, in light of several posts about bankruptcies, could you enlighten further please:
- are there any that stand out as being at greatest risk of that happening
- for big/medium names like ENB, CNQ, SU, KEY for example, would you consider them solid enough to be ‘immune’ to bankruptcy (assuming they are not in your group of ‘greatest risk’)

As a dividend investor, do you as a team ever produce a list of stocks most at risk/greatest likelihood of cutting dividends? Are most investors surprised by dividend cuts or is there a set of clear indicators that a cut is coming?

Thank you!

Q: Like other stocks, Canadian Tire is down a lot. Are there any new risk with this stock or is it just part of the large sell off. Do you think it is ok to start chipping away at it?

Thanks, Paul

Q: Questions on Canadian Tire:
Does 5i feel CTC's Finance arm's lending criteria exposes it to significant losses (and a surprise to the market) in the current environment? Based on your view of the lending side of the business, does 5i feel the Finance arm supports or detracts from an investment in Canadian Tire at this time?
Finally, how strong does 5i view CTC's web presence, and its competitive position digitally versus strong competitors like Amazon?
Thank you
Edward

Q: Requesting your thoughts on Canadian Tire as it is not mentioned much over the years. One of the gurus on TV says it is limited to growth by just being a Canadian stock. Wanted to know your thoughts on its future growth or will it be just by more acquisition over future years.

Regards

Q: Good Day Team
I have held these two stocks for a few years and have never seen them go past the level that I purchased them for.
So have been on the sinking end. I want to grow my portfolio and these seem to be losers.
Should I hold on to them or is it time to sell.
Thank you,
John G.

Q: I did a screen on "undervalued" companies with growing dividends. My aim is income and dividend growth. Possibly a DRIP if available. Which 2 companies would you choose and why?

Q: Can you please provide any suggestions of companies that offer decent growth and earnings that are out of favour/are undergoing tax loss selling.

Thanks