Investment Q&A

Q: I am the owner of SJR,B shares. The news release essentially says Rogers will pay $40.50/share for BOTH the A class shares and the B class shares, which represents a 70% premium for the B shares.

At the time of typing this question Monday morning, the market has the A shares at $40.35 and the B shares at $32.00.

Shouldn't the B shares be at $40 as well, or am I missing something or is the market confused?

Thanks for your help...Steve

Q: What are your thoughts on this deal?
Thanks

Q: Which of these two telco has the most growth over the next 5 years?

Q: In a well diversified portfolio, I am considering selling BMO, CU, PHO, REAL, and SJR.B and buying AT, BYD, DOO, DSG and VII. Would you agree with this approach? What would be order to sell and order to buy?

Q: Hello:

Doing a little cleanup and wondering if NA, BCE, SJR.B or HPQ are worth holding. For sure I have plenty of Canadian financial exposure without NA. I also hold Telus but wondering about dropping Shaw and/or BCE. HP seems to be on the upswing with COVID but is it a long-term keeper?

And then, if you think some can go, what might I substitute? NVDA for HPQ? Would US telcom companies be attractive?

These are held in RRSP, 20 year horizon.

Thanks for your excellent service.

Q: Hello 5i team,

What do you guys think are the "worst" companies currently in the TSX60 index that you think will under-perform in the coming years? Why?

Are there any fundamental/financial metrics that you think are the most predictive of poor future performance that investors should look out for?

Thanks!

Q: No rush to answer. Retired, dividend-income investor. I am a position "light" in the Communications sector. I already have a full position in BCE....looking to add one of Telus, Shaw, Cogeco, Rogers or another name you might suggest.

When I look at the various metrics (P/E, P/BV, P/CF, P/S, ROE) I filtered out Telus, leaving SJR and CCA and RCI. Reading past questions, some quite dated, I am wondering if time has changed your opinions on these three.

Shaw has a nice (5.4%) but slow-growing dividend. ROE 10%. It's chart looks good from a value point of view, but is it a value trap? Very poor momentum.

Cogeco has a lower (2.6%) but faster growing dividend. ROE 16%. It's chart shows better momentum. I also wonder whether a new takeover offer might be in the future?

Rogers is just ok across the board.

I'm leaning towards Cogeco, but wanted your advice first. What odds would you place on a take-over happening? Please rank all three in order of your preference to buy.

Thanks...Steve

Rogers

Q: I currently hold SJR.B and thinking of switching to Telus..
Would Telus be a better buy at the current price from total return perspective?
Any better recommendation in this sector - Canadian or US ?
Thank you very much for providing excellent independent views and recommendations to the investment community.
Merry Christmas and Seasons Greetings
- Raj

Q: Hello 5i Team
Comparing Rogers Communications vs Shaw Communications - which is the better company for further growth and increased dividends? RCI-B increased its dividend slightly in 2018 and no previous increases since 2015. SJR-B last increased its dividend in 2016.
I already have equal weight positions in BCE, Shaw and Telus - I am looking for which company I should invest in to reach my desired portfolio percentage in the Communications Sector?
Should I look at the Cogeco family of companies instead of Rogers/Shaw?
Thanks

Q: Of these two companies, which one do you prefer

Dave

Q: I have some extra room in my existing telecom allocation and am looking at adding TMUS and dropping SJR.B. Or should I just add further to VZ or FIVG to continuing increasing my US exposure and currency diversification? I am retired but do not depend on the income from this portfolio which is intended to be widely diversified and focused on dividend growing solid companies.

Q: Hi, could you please rank the preferred shares of the above companies best to worst in order of dividend sustainability only going forward. Are there any you would avoid. Thanks.

Q: Hello 5i Team
I currently own Shaw Communications (SJR-B), which I have owned for several years.
The purpose to owning shares of SJR-B is to match the payments I make monthly to Shaw for my cable and internet.
Shaw has not raised it dividends ($0.09875 per month) since March 2015 and has declared the same monthly dividend to December 2019. Yet their cable/internet charges increase every year!!!!
My yield on cost is 5.46 % and the current yield (based on Friday close of $26.15) is 4.53 %. Essentially the stock has become similar to a "preferred share" where the dividends don't increase and the share price fluctuates with the rise/fall of interest rates.
The questions I have are:
1 - What are your thoughts on Shaw going forward and should I keep it and accept the reasonable yield on my book cost (the do nothing option).
2 - Sell the shares of Shaw and invest in BCE/Telus where the current yield is similar with the high probability of increased dividend growth and limited capital gains. I currently own approximately the same dollar amount in each of BCE/SJR-B/T
3 - Sell the shares of Shaw and invest in Rogers where the yield is lower with the probability of increased dividend growth (Rogers recently raised the dividend after no increases since 2015) and possible capital gains.
4 - Sell the shares of Shaw and invest in a preferred share ETF (CPD/ZPR) with a similar yield, since I the likelihood of a dividend increase from Shaw appears low and the probability of capital gains with the preferred shares ETF is higher with increased interest rates in the future (?).
Thanks for the excellent service.

Q: Hello Peter, any ideas about recent sell-off in RCI.B? I read some news about the back to school promotion intensify between RCI and Shaw's Freedom. Considering overall rate dropping backdrop, do you think Telecom sector is at bargain compared to other "safe" sectors (e.g., Utilities, REITs). THANKS!

Q: I am contemplating switching from Rogers to Shaw in the pursuit of more growth within Telcom. Your opinion, please.

Carl

Q: Hi 5i, Please have your thoughts on recent quarterly report from Shaw. I bought a half position in January after their quarter looked great. Do you recommend I top the position up after today or better to wait or sell? Thanks Rob

Q: Some months ago 5i suggested SJR had challenges. What are those challenges, in as much detail as possible, and are they being addressed successfully? What are the pros and cons of owning a long-term position in SJR?

Q: In the event Huawei and its 5G network are banned in Canada, what affect would that have on the fortunes of the aforementioned telcos?

Thank you, Jim

Q: SJR.B is in most of the investor portfolios. TD Waterhouse has Action List rating on this along with RCI.B. Is there anything in SJR.B and RCI.B over Telus and BCE that other investors are liking? Thanks

Q: I currently have zero exposure to the Communications sector. Do you recommend having at least one company from this sector in one's portfolio, even it it already has other dividend-paying companies (BEP.un, SLF, CSH.un, etc)? What is your favourite Canadian company in this sector, and why? Do you suggest staying with a Canadian company to address this sector in one's portfolio, or would a US Communications company be a better option? Thanks in advance.