skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

As per an earlier question we posed, we then increased our positions in 12 of the 30 companies. At this time we would like to increase our investments in 6 of the remaining 18 companies. The intent is to increase the other 12 in approximately 4 months. Which 6 would you add to today? Please rank them, include a small blurb explaining each choice and suggest an entry point. Thanks!

Read Answer Asked by Peter on September 29, 2021

Q: I have a 1.7% weighting in Fortis, which is the only utility I own in my RRSP. I'm hesitant to do so because of their gargantuan debt levels. With total liabilities of around 33.4 Billion, this is higher than their total market cap of around 27 Billion.
Net Debt to EBITA ratio around 6.2x , and low interest coverage of 2.3.
Free cash flow also only covers around 11.5 % which is quite low.
So do you still see Fortis as an attractive investment for a 10 year hold ?
Thanks !

Read Answer Asked by Gordon on September 28, 2021

Q: Hi 5i,

Portfolio analytics is recommending that I reduce my utility holdings 12%. I have held AQN (3.4% weight), FTS (4.3%), BEP (5.2%) and BIP (5%) for four years and do like the dividends and renewable energy aspect. Today's TD analyst comments also gave me pause about being overweight utilities: "As WTI oil and energy prices have recovered over the past year on rising interest rates, alternative energy and utilities in general have underperformed. We believe that a potential rise in interest rates on improving COVID-19 trends and impending
tapering, along with the renewed relative strength in the energy sector, will
further pressure the utilities sector." My questions for you:. 1. where and how would you trim from the above holdings? and 2. your thoughts on the analysis outlined above. Thanks for your guidance.

Read Answer Asked by Martha on September 27, 2021

Q: Hi, I have read that several U.K. utilities have recently collapsed given soaring wholesale natural gas prices and the inability to pass costs on to customers. Could the same thing happen here and if so which companies might be the most susceptible? Could any of the above companies be impacted? Thanks.

Read Answer Asked by Gary on September 27, 2021

Q: Please advise 5 top defensive growth stocks - Canada, US or global.
Many thanks for your advice.

Read Answer Asked by sam on September 16, 2021

Q: Please rate your top 5 electric Canadian utilities
1. for long term growth potential
2. for safety in a correction.
Thanks

Read Answer Asked by Lawrence on September 16, 2021

Q: We are often reminded that one should not try to time the market, and that it is time in the market that counts. But would you be in favour of an investor re-weighting to more defensive positions if one is worried there is a "correction" on the horizon, for example if the Delta variant explodes Covid numbers, there is a gov't policy or interest rate change, an external shock with China, etc, ? If one was going to make that change, can you pls provide 10 names that currently would be more defensive? Thank you for your very excellent service.

Read Answer Asked by Leonard on September 10, 2021

Q: Over the next few months, I plan to buy the 5 stocks listed. Not sure if there is a preferred order of purchase. This will be in a non-registered investment account, where dividend accumulation and safety of principal are the main goals. Buy and hold forever. I keep all of my growth stocks in my TFSA, and I have most of those recommended by 5i. Could you please recommend an ordered sequence for purchase of these 5? (If you see one.) Thank you for continued great service.

Read Answer Asked by Gordon on September 03, 2021

Q: I need in increase my portfolio weightings in Consumer Cyclical and Utilities. I currently hold AQN, BIP.UN and FTS in Utilities in roughly equal amounts and hold QSR and LNF for Consumer Cyclical with QSR double the holding of LNF. Should I add to my current positions to increase my weighting in both sectors or consider adding new stocks?

Read Answer Asked by Sandy on August 30, 2021

Q: Hi 5iGang,

Would you please recommend 3 or 4 defensive stocks in each of the CDN and US markets.
Thanks for the nice work.
H

Read Answer Asked by Harry on August 24, 2021

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

Our intent is to increase our investments in the 30 companies over time. We have recently increased our positions in BIPC and MG. At this time we would like to increase our investments in 10 of the remaining 28 companies. The intent is to increase the remaining 18 in approximately 6 months. Which 10 would you add to today? Please rank them, include a small blurb explaining each choice and indicate an approximate buy price. Thanks!

Read Answer Asked by Peter on August 19, 2021

Q: My wife has full positions of BMO, ENB, LIF, POW and RSI in her RRIF. She has some cash to deploy, looking for quality income stocks with decent dividend yields. Would you have any suggestions?

Thank you!

Read Answer Asked by Chris on July 30, 2021

Q: Hello: I'm looking for several buy-and-hold "forever" companies. When I die, they will go to my children. Could you assess the above in those terms and rank order them, best first. I know you like all of these companies, but I"m not sure if you like them "forever." If you think I should drop any, please note. And if there are a couple not on the list that you think could be, also please note. Thank you for continued excellent service.

Read Answer Asked by Gordon on July 23, 2021

Q: I am drastically under invested in utilities. I presently hold the following - each is under a 1% weighting - AQN, ACO, BIPC, BEPC, BEP.UN, CU, and Fortis. Which would you sell? Which would you add to? All are in corporate non reg acct. Also want to increase my US and International exposure. Is there a reason not to do it in this sector?
Would appreciate US and International companies you favour. 5 year hold.
Thank you.

Read Answer Asked by lorraine on June 30, 2021