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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 am looking for some interest bearing stocks.

I do not have any REITs and with the state of office space these days, I am always a little concerned.

However, I just read about this company “SmartCentres” that pays an 8.2% dividend (pretty amazing – but it is sometimes a warning sign). Based on company information, it states that it has “98.5% in place and committed occupancy” which I believe is positive.

According to its profile (in 5i), the stock appears to be close to its low for the past year. In fact, the stock is lower than the “Low Target price”. The liquidity ratios appear to (very) good. I don’t know how it compares to its peers but the P/E ratio also appears low compared to its historical trend.

I understand this is not a growth stock but my need is to find some balance and dividends are always good (especially at 8.2%). I also own other dividend paying stocks, such as Enbridge which I’ve acquired slowly over the past number of years. The stock price today is a little lower than when I bought it as the stock price has not changed very much during the last 10 years (but the dividend is very good and the volatility has been reasonable). It has been a very good paying GIC.

Any thoughts on the above. If you have better ideas for dividend paying stocks (or ETFs), please list your top 2 or 3, with a short explanation. As a secondary question, for dividends to rise to 8.2% for SRU and 7.8% for Enbridge, is it also possible that these stocks are out of favor and may also have some potential capital appreciate over the years? Thanks.

(As an aside, I compared the 10 year chart provided by 5i in the “Enbridge profile” section with 2 other charting tools and the one in 5i did not match. I did a comparison because I felt that the return I got with Enbridge did not align with the 5i profile chart.)
Read Answer Asked by Walter on March 20, 2024
Q: Can you please provide proxies for tax loss selling for the above noted stocks/ETFs
Please deduct as many credits as necessary.
Thanks for your insight.
Read Answer Asked by Terry on November 08, 2023
Q: In a world where indebted dividend-payers are being stressed by higher rates, how would you rank the following Canadian companies in terms of the sustainability of their dividend?

Read Answer Asked by Brian on October 03, 2023
Q: Trying to reduce my number of stock holdings. Have identified these 11 as small positions that can be eliminated. Intending to use the cash to add to stronger holdings. I try not to think of a stock as a "hold". There are lots of high quality names you can invest in that look better than a "hold". If you were doing a portfolio clean up, and held these as roughly 1% positions, are there any that you would be reluctant to sell?
Read Answer Asked by Dan on August 15, 2023
Q: If the scenario plays out of higher interest rates for longer; is it logical to presume Reits, and Preferreds, -both sensitive to interest rates, may continue to soften. I have been buying them as they are going down but wondering if this is a good strategy. Could you comment. Thank you.
Read Answer Asked by Pat on June 20, 2023
Q: Hello Peter & Team:
How do u compare the income and growth for the above mentioned Co, as we come across the FSZ 8.25% ,3 yr. term offer recently. offers 13% dividend, and the others name above were over7%. How would u rank them from the most prefer to least prefer if i have to placed $50k - 100k into it with a 3- 5 yrs. time horizon. Thank you,
Read Answer Asked by DAVID on June 20, 2023
Q: Hello,
Has the REIT issued shares in the last few years to fund their residential redevelopments?
What’s the current valuation against peers (price / ffo).
Can you comment to their level of debt vs other REITs. It seems acceptable and supported by a strong leasing profile, although retail.

I am planning on starting a position ant these levels and was looking for your general comments. Thank you!
Read Answer Asked by Pierre on June 19, 2023
Q: Saw Andrew Moffs on BNN Monday discussing REITs and Real Estate companies. Looking for a 2nd opinion on these 8. Maybe just a ranking from 1 to 8 in order of preference for a long term hold. Yield doesn't matter, looking for best total return. Which ones look buyable at this time?
Read Answer Asked by Dan on January 31, 2023
Q: Can you provide a 'buy' list for a person wanting to deploy $200,000 (inside RRSP) with the goal of creating 5% or more sustained cash flow - as well as growing the original capital to keep up with inflatiion? We do not have company pensions - this would serve to supplement our government pensions.
Thinking, 20 stocks across all sectors @ $10,000 each (or 5%)
Also could you include 10 growth stocks (inside TFSA) for a total of $250,000 - gotta have some fun ;)
Many Thanks
Read Answer Asked by Jan on October 07, 2022
Q: Hi Guys

I have owned Smart Centres for a while and done prety good by it but thinking I might sell that and add to my 1% position in Tricon. Where do you see them in terms of current pricing and future potential? Looking ahead over next 5 years which do you think will be the better position to hold?

Much thanks

Read Answer Asked by Stuart on September 13, 2022
Q: I am looking at your answer to evaluating investment quality of REITS in which you note three important ratios to consider - Interest coverage ratio (EBITDA/interest of 3X or higher)), debt to equity - below 1.0x) and NOI or net operating income. I see you give EBIT margin and Net Profit margin in your company profiles but I was wondering if it was possible to calculate NOI from these tables. Are there any other important ratios one could use to compare various REITS. Finally, how would you rank the three REITS I have noted here. Thanks.
Read Answer Asked by Ken on September 08, 2022
Q: For income and some safety, do you see anything not to like about these four REITs?

Thanks as always.
Read Answer Asked by Dan on July 20, 2022
Q: Would like your suggestions of 7 value stocks that also have a history of increasing dividends for both a balance portfolio and an income portfolio ....primarily Canadian stocks or secondary US traded stocks.
and please take the number of credits necessary to complete this "task". ........thanks.....Tom
Read Answer Asked by Tom on June 21, 2022
Q: Would you please rank these 12 REITs for future growth prospects, where 10 is the best prospects & 1 the worst. Also would please indicate what REIT assets contribute to future growth & those REIT assets that have very little future growth. Thanks ... Cal
Read Answer Asked by cal on March 23, 2022