Investment Q&A

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.

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.

Q: We have new contribution room in a small TFSA. Can you suggest 3 CDN stocks for buy and hold (even at these record levels) at this time ?

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?

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

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!

Q: Which do you prefer for a long term hold.

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!

Q: Have reviewed from report on BEP.UN.CA. Already have a large position in Fortis and AQN..T Reasonable to add BEP.UN,CA, or drop one of the others ? Await your comments ,

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.

Q: I currently own BEP.un as the only stock for Utilities and would like to buy either H or FTS to add to this sector. Which one would be the better choice with BEP.UN ?

Thanks

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.

Q: Hi

Presently have a 4.5% weight of FTS in my RRSP.
Thinking of selling half and buying BIP.UN for growth and the dividend
Your comments and any other suggestions are most welcome.

Thank you

Mike

Q: Good day - thank you for reading my email and all your information and prompt assistance It is very appreciated

Would you please suggest which stocks you would buy in healthcare and consumer defensive - Canadian and US if possible

Q: Can I get your opinion of CPX using FTS as a benchmark. I own FTS and would like to add to the sector or should I just add to FTS?

Carl

Q: After selling some growth stocks, I'm looking to add 3 income stocks to my Rif. Can you rate your preference on the 1st 4 and then the last 2. Thanks

Q: 11:05 AM 5/20/2021

On March 18, 2021 "Using safety and valuation as the primary metrics", you ranked these 4 utilities : We would rank: FTS, NPI, AQN, EMA.

You consistently rank EMA at the bottom of the list yet since 2008 the graphs of FTS and EMA are almost exactly the same, both raise their dividends annually and EMA has a higher dividend [4.5% as opposed to 3.7%].

You must see something I am missing. What is the problem with EMA making it so much less desirable than FTS. Please be specific if you can, as this problem has bothered me for a long time. I own 4%EMA and 5%FTS positions in the two and need to add a bit to one. I plan to own these "forever" strictly for income and enough growth to offset inflation.
Thanh you.......... Paul K.

Q: Hi

Do you think it is wise to exchange Fts for npi due to their recent trajectory. I have 2000 Fts thinking about selling500 and purchasing npi. What do you think about this strategy.

Thanks
Mike

Q: Non-registered account with goal of primarily dividend income has done quite well, with all of the noted holdings nicely in positive territory. In hind sight MG and SYZ would have been in a registered account. SYZ is up 63%, MG 24%.
Overall account yield is currently 3.8%. Would prefer it closer to 5%
Need some help with this "good problem". Take capital gain now and move into yieldier positions, or let running stocks run and deal with bigger gain in future?
If I move out of some of the growthier stocks, which div payers minimum 3% yield to move into?
Overall portfolio diversification is pretty decent, and diversification within this account does not have to be perfect - dividend security within this account is more important.

Thanks,
Jim

Q: Taking these 7 income oriented equities and looking to rank them for risk in a correction situation moving forward it seems that if we use the March 2020 correction as a guide FTS and BCE dropped the least (28%) followed by RY (33%) then TD,BNS, AQN (35-37%) with SLF trailing the pack at 46%. The reason behind any future correction could of course be different than a virus-induced shutdown of the economy. But still your ranking of safest to least safe is appreciated and if your answer would be different depending on the cause of the correction then your comment on that would be nice to have as well. Thank you for assisting me in trying to build the most secure portion of my income strategy. Any additional equities that fit in the lowest downside category that you might suggest would also be most welcome.