Investment Q&A

Q: I apologies; I mis-phrased my question. The DRIP investments would be in addition to the TFSA and RSP investments (in different securities). As I understand things, a DRIP with a company sponsored plan such as TRP thru Computershare cannot be held inside a registered account. Is this correct? If so the $5k position in the non-registered (DRIP) account would not amount to a $25k per stock concentration and I believe the dividend tax credit would be useful since the account is non-registered. Thank you for your suggestions and service. I like your suggestions but a little surprised that a utility such as FTS was not recommended. Is there a reason you would not suggest a utility DRIP for a long term hold? Jim.

Q: My 36 yr old daughter has a current portfolio of $150k in RSPs and her TFSA. She is interested in enrolling in 6 true company DRIPs that she would start with approximately $5,000 each and contribute to over time. Her intent would be to keep these shares to ultimately use the dividends for retirement income in 20-30 years. In the meantime, the dividend tax credit would be useful offsetting the income earned. Is this a good strategy and if so can you suggest 6-8 companies that she might consider for this purpose? Thank you for your help. Jim

Q: A curiosity: Canadian Tire beat all analysts estimates in sales, revenue( +7.6% and beat estimates) profits( up 26%), etc.... rep0rted this AM.... yet stock is down considerably....
how would you interpret this for going forward?
How do you see this company in short and long term?
Thanks

Q: Is there any reasons for the near 4% fall in the price of CTC,A this morning? Thank!

Yves

Q: Never see a lot of interest from member questions on this Canadian Institution, which has a lot of fingers into Canadian wallet's, with MARK'S, SPORTCHEK and gasoline. The latest quarter looks outstanding. Give your thoughts and where the stock is heading and it's value today.
THANKS

Q: Why do you only show CTC.A (non-voting). Is there a reason one shouldn't buy CTC (voting) other than that CTC.A has a better yield? I assume you don't believe owning non-voting is a big deal.

Q: We are involving our kids (ages 7 and 8) in choosing companies that they are interested in for their RESP holdings. They love watching their dividends get deposit into their accounts, almost as much as I do.

My son has chosen: CGX (because he likes going to the movies), L (because he sees how busy the grocery store and Shoppers are) and ICE (because he likes playing hockey and noticed how busy the rinks are where we live).

My daughter has chosen: CTC.a (because she likes to go to Sports Check to buy her sports equipment) and CARA (because she likes going to a few of their restaurant brands).

I added T, for some stability and extra dividends.

I realize this mini-portfolio is pretty concentrated in the consumer sectors. Do you have any suggestions to diversify things?

Also, given their age, what percentage of their RESP would you recommend being in equities?

Thanks in advance.

Q: I currently own Loblaw (L), ADW.A, and ECI in the Consumer sector. I would like to add PBH to give me two holdings in each of Consumer Staples and Consumer Discretionary, but I suspect CTC.A is a'safer' pick. So I am debating between the improved diversification by taking PBH versus the 'safer' choice of CTC.A. Which should I add? I am looking for steady dividend growth with holdings that might hold up better in down/bear markets. Thanks as always.

Q: What do you think of their latest results ? Thanks.

Q: HI Peter. Thanks for your great service. My question today is I am going to sell RBF 1340 formerly PHN bond. I would like to replace it with stocks that consistently and regularly increase their dividend for the past 5,10 ++ years. They would be inside a rrsp fund. I have a company pension and receive cpp and oas. Please suggest 5 to 6 stocks. Thanks Frank

Q: What do you think of Canadian Tire for a 5 year investment ? Thanks.

Q: I'd be interested to have your opinion of these two companies. Thanks very much.

Q: Hello 5i Team, with the recent CEO change, the stock has dipped. Would now be a good time to buy?

Q: Hello 5i Can I get your analysis on Canadian Tire. I never see it as one of your picks in the consumer sector and yet seems to be on a constant trend up hitting new highs again today. Do you see this as a growth story for a 2-4 yr hold.

Q: Hi Peter,Ryan et al. My daughter age 32 has $32K to invest in her TFSA. My initial thought was a half position in CAO and KXS along with full positions in BNS. ATD.B CTC.A,PBH,
and HCG. Any suggestions and comments would be appreciated for at least a 3 year time frame.
Thanks in advance.
David

Q: Good day to Peter and all the 5I staff,
I am looking to add to our taxable account another position in consumer discretionary sector. What are your thoughts on ctc at this time? It is off it's highs hopefully due to general market malaise. We are retired and this is for a long time hold.
Thanks for everything.
Larry

Q: Comment on today's drop: Canaccord Genuity analyst Derek Dley said he’s “become more cautious” on the outlook for the retail division of Canadian Tire Corp. Ltd. (CTC.A-T) given the “unfavourable movement” of the exchange rate and “continued” weakness in Alberta.

Ahead of the release of its third-quarter results on Nov. 12, Mr. Dley downgraded his rating for the stock to “hold” from “buy.”

“We are forecasting 1.0 per cent, 0.0 per cent and 4.0 per cent same-store sales growth at CTR, Mark’s and FGL Sports, respectively,” he said. We continue to expect Forzani sales to benefit from an increase in digital advertising spending, as recent digital spend test periods have generated double digit sales growth. Our forecast of flat [year-over-year] sales growth at Mark’s, which is considerably lower than the banner’s trailing 12 month average of 4.0 per cent, is founded on continued oil price-related economic weakness in Alberta, which we expect to negatively impact higher margin industrial wear. We note 17 per cent of Mark’s locations are situated within the province of Alberta.”

Q: Hey guys, any insight in the 3% drop this morning for Canadian tire? Of course, I topped up my half position last week at 115!!!

Planning to hold for 5+ years, what's your take on it?

Thanks,

Richard

Q: Hello Peter, after 20 years of mediocre-to-poor investing results (despite being an incredibly smart guy ;-)), I've concluded I'm just either a horrible, or a very unlucky, stock picker. With only 5 or so years til retirement, and with no RSP or TFSA room available, I've decided to build out a non-registered account with, eventually, around 10 companies. I know large-caps aren't your focus, but I'm looking for 'blue-chip' companies, preferably mostly dividend payers, and I'm prepared to sacrifice significant growth for a 'reasonable' assurance of capital preservation. I've started with ENB and TELUS (choices I trust you'd agree with, though you may want to run and sell these now). Can you please suggest a further five companies for this account to acquire over the next several months? (I was considering Cdn Tire for one? Your thoughts appreciated.) Finally, if you could add two similar choices from the US, that would be great.

Q: At present my only Consumer stock (Staple or Cyclical) is CSW.A. I recently took profits on CCL.B. What three Consumer stocks would you suggest at this time. I am a conservative investor and am considering CTC.A as one addition. Thanks, Barrie