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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 a retired conservative dividend income investor. I've held Sentry Global REIT for years (love the 6% distribution) and have been monitoring its performance as compared to ZRE and XRE. I didn't mind paying the 2.4% MER as long as it was outperforming. However, on a total return basis, Sentry has lagged significantly and I have sold it today.

With interest rates appearing to be on the decline and, more importantly, for portfolio asset allocation, I still want to have REIT exposure. I am leaning towards ZRE, due to the equal weight nature (as opposed to XRE).

I am normally a long term buy-and-hold investor. ZRE has had a good run recently, but I think the future still looks good, due to the macro environment. Your thoughts?

My target REIT allocation is 7.5%. I also have a position in CSH.

Thanks for your help...Steve
Read Answer Asked by Stephen on August 30, 2019
Q: I'm looking at adding a blue chip company and I'm down to either TRI or FTS. My main emphasis is growth in the next three years and view dividend yield as a "fringe benefit". Since TRI have a major run up in the last year or so, can that momentum be sustained, hence FTS may be a better choice at this juncture? What's your view? Are there other names I should consider as well? Thanks.
Read Answer Asked by Victor on August 29, 2019
Q: Eric Nutall at Ninepoint keeps on saying he is buying heavy into energy space companies that are trading around 2.5 EV to Cashflow. Just wondering what some of the better names he’d be buying into may be. Any idea or suggestions?
Read Answer Asked by Ryan on August 29, 2019
Q: PLC and KXS - two stocks that you promote have fallen quite rapidly over the last while. This rally we have had over the last few days - they have not participated in. I am thinking of replacing them with stocks which have more upside potential - PIF is one of them with a 7% dividend. What are your thoughts on that? On another note - I was logging into one of the model portfolios and it asked me for a user ID and password which I have not come across before and I wasn't able to get in -- even though I put a user ID and password in, it didn't seem to allow me to go in. Thank you Dennis
Read Answer Asked by Dennis on August 29, 2019
Q: If you are focusing on yield (which I need to more, not getting any younger), approximately how much of an upward target would you have to adjust for a non Canadian yield player?

So to simplify, if I was targeting 4% yield canadian stocks what would I need to target yield on a non Canada equity roughly?

Thanks
Mark
Read Answer Asked by Mark on August 29, 2019
Q: Good morning 5i,
I am tempted by cpd, as its price is pretty low and its dividend pretty high. As of yet, I don"t own any preferred shares and wondering whether they are really necessary for diversification. I notice, for instance, that you recommend a certain portion in my portfolio analytics. My dilemma, though, is that we are fairly close to the clawback point and I am a little afraid that more dividends would be detrimental. In fact, I have been putting non dividend US stocks in our non registered accounts for that reason. But, if I really needed the diversification ( and this might be a good time to buy preferred shares) I could probably re arrange things. So, the question is how necessary are they in an already well diversified portfolio
thanks
Read Answer Asked by joseph on August 29, 2019
Q: Hi Peter and Team:
I hold 7% of my overall total portfolio in individual Preferred shares. 82% of that 7% is minimum rate resets. I am looking to make that 100% to ensure that I know the minimum dividend rate going forward upon reset. You have recommended PPL.PF.A in another question recently.
Couple questions:
1. Do you see anything wrong with this strategy overall?
2. Minimum rate resets tend to be in the oil and gas storage or utility. PPL, TRP, CPX, CU. My largest holding is PPL. They are rated P2 to P3L (if this means anything by the rating agencies). This means that I am basically ignoring the financial sector with regards to Preferred shares. Do you see any undue risk associated with the above mentioned companies and being weighted towards one industry classification within the context of preferred shares?
Thank you for your continued advice and knowledge.
Read Answer Asked by Dennis on August 29, 2019
Q: Hi team,
Your thoughts pls. on: AnywhereCommerce Files Patent Infringement Lawsuit Against Square

The lawsuit, filed in the California federal court (case number 3:19-cv-04311) on July 26, 2019, asserts the unauthorized use of patented technologies, which is prohibited by law, and is intended to protect AnywhereCommerce's significant investment in its innovative mPOS technology which is regarded and recognized as the de facto patent family relating to a variety of payment card reading apparatuses tethered to a smartphone or tablet.

The complaint asserts that Square has knowingly infringed these patents for years despite previously acknowledging the priority of these patents in various filings before the United States Patent Office and continues to willfully infringe these patents today. Among the patents at issue is U.S. Patent No. 8,281,998, issued on October 9, 2012, which is ironically cited as prior art in a patent later issued to Square founder Jack Dorsey.

Per Oliver Griffin, lead counsel for Kutak Rock representing AnywhereCommerce, "Square simply took that same technology for itself, becoming one of the largest and most famous companies in the world by falsely holding itself out as the originator of technology allowing the use of smartphones and tablets to accept credit card payments."

AnywhereCommerce approached Square in January in the hope that Square, "given all of its market share and business success, it might find it appropriate to compensate AnywhereCommerce for the use of AnywhereCommerce's technology on which Square's business was largely built."

Knowing about this lawsuit, do you think prudent to add to a position?
Thx!


Read Answer Asked by Silvia on August 29, 2019
Q: Greetings 5i

I continue to focus in on dividend producers that offer security as I enter retirement. At the present time in my TFSA I already have a 20% weighting in VBAL and 5% in XRE. I have another 5% to allocate which will be coming from my sale of BAD as I slowly transition to more security. Which do you suggest as the best alternative? Any other suggestions?

I know VBAL and XRE are very different in context and dividend payout so I need your insight. What I do know is that I’m having a great long ride with Shopify. For that I’m happy not to receive a dividend. Thanks 5i!

Peter
Read Answer Asked by Peter on August 29, 2019
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