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Investment Q&A

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

Q: I believe you prefer to have growth equities in one's TFSA. For someone in retirement would it instead be a good plan for a dividend growth investor to use the TFSA to produce regular tax-free dividends for a retiree? If one already has an open account made up of dividend paying stocks, the grossing up of those dividends can potentially create a clawback on your OAS payments. In my opinion, moving as many of those stocks to the TFSA as possible would help reduce this issue. Would you agree?

Thanks.
Jim
Read Answer Asked by James on March 05, 2019
Q: Preferred Shares

Upon reviewing the holdings of the four (4) largest preferred share etf, I have noticed the majority of preferred shares are issued by the banks, insurance companies, electrical utilities and pipeline companies. I am a holder of the common shares of the same companies (as they are stable long term dividend payers).
The first question I have is am I increasing my "company" risk by holding both common and preferred shares of the same companies? Should I continue to buy the common shares, which are paying very close to the available preferred share yield and gain long term from dividend increases.
The second question is of the four etf listed, which is your preferred etf. Are there other Canadian Dividend eft I should look at?

Thanks in advance for your excellent service.

Stephen
Read Answer Asked by Stephen on March 05, 2019
Q: Any particular reason for the large sell off today, particularly with tech stocks? I thought things were looking fairly good in the morning and with the news with China.
Read Answer Asked by Mike on March 05, 2019
Q: Follow up to your reply from my last question. we will max out our TFSA as you suggest. In the past we used our RRSPs in to invest in our business, so we have zero RRSPs. would you suggest placing any in them? We will continue to have income from our business after "retirement age" we intend to live in and operate the business as long has health allows. My though was that RRSP will at to the income tax load when it becomes mandatory to start withdrawals.
Read Answer Asked by Lorne on March 05, 2019
Q: Hi, Transcontinental Inc was added to Income Portfolio in June, 2018 at $31.58 for 4% position and later beefed up by additional 1% in October. The thesis was a solid dividend yield of 2.50%, high growth expectations based on transformative Coveris acquisition and a low PE multiple. Stock, however, failed to perform as expected and price fell off the cliff within a short period and never recovered since then. Two subsequent quarters have been disappointing and Coveris integration ( acquisition closed May, 2018) is nowhere in sight. Management has also not been able to address the issues and market concerns, effectively. Company legacy business is already declining. Most analysts have cut their estimates and price targets drastically. One analyst also commented that due to these issues, compnay may even lose some contarct renewals and recurring revenues. Even if we are optimistic and Coveris acquisition issues are resolved by end of 2019, it could take another 2 years, before stock goes back to $31.58, in order to just recover our principal.
So, while the stock is trading at a low multiple and company just increased its dividend 4.6%, keeping its tradition, is it worth the wait (and take the risk) or there are better opportunities to use our capital ? We have gone through a similar scenario with TSGI, only worse and in that case even after almost a year and 55% loss, there seems to be little hope. Thank You
Read Answer Asked by rajeev on March 05, 2019
Q: Three stocks, one question. I purchased MedX long ago for pennies and have watched it climb a nickle. Recently purcased Mogo Finance & People Corp. Would sincerely appreciate your review of these stocks and thoughts going forward.... Thanks!

Bruce
Read Answer Asked by Bruce on March 05, 2019
Q: Dear 5i
When i look over the summary page for an ETF at Yahoo finance and Morningstar i see many stats on the ETF including but not limited to 12 month yield and expense ratio .
Firstly is the stated yield on that summary page generally net or gross of the expense ratio ?
Secondly whether its Yahoo finance , Morningstar or the free version of Bloomberg the yields and expense ratio numbers largely vary . Whats your recommendation for which site to use to more accurately reflect the real numbers ?
Thanks
Bill C
Read Answer Asked by Bill on March 05, 2019
Q: At the present time I have a full position in Kinaxis, Constellation Software, and Shopify.
All 3 are in a non registered account. CSU and SHOP have done very well but KXS has been falling over the past year and I was wondering about selling it and buying one of the other 4 that I have listed. I am looking only at growth over the next one to two year time period. My risk tolerance is moderate to high. Which one would you suggest and why. Or would you just stay with Kinasix. Please deduct as many credits as you see fit. Thank you, Ian
Did
Read Answer Asked by Ian on March 05, 2019
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