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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: The 5iR income portfolio has a 9.47% cash position. And in my income portfolio, cash is about 4.5% and my portfolio has 21 positions. Now I am wondering how I go about investing the available cash. This cash is the accumulation of income which is not need in the foreseeable future as the income portfolio is segment to the balanced portfolio. My intent is to reinvest this income back into the income portfolio. I could add another position but that would be adding to the overall positions which is already above 21....so I prefer not to do that. The other option is to invest in the existing positions. These positions are well balanced, aka no rebalancing required, other than a 20 decline in EIF-T. With your cash position being double mine, what are you expecting to do after July 12th? Or should I just "keep the powder dry" at this time in a savings account?......What I am really wondering is - What approach should be taken?.....Thanks....Tom
Read Answer Asked by Tom on July 10, 2017
Q: I am retired, living on dividend income and have the following REITS in my portfolio in equal amounts and making up 10% of my portfolio. I am invested for the average yield of 6.6% the REITS generate.
Do any of the REITS have a dividend payout ratio near or over 100% or negative growth that I should be worried about?
Can you rate the REITS from best to worst?
I noted that you just sold the REIT ETF in the income portfolio and purchased CSH.UN. Based on your response, I may sell a couple REITS and replace with CRH.UN and NWH.UN for company growth that 5i is forecasting in the healthcare REIT space.
Read Answer Asked by Curtis on July 10, 2017
Q: I am starting an RESP fund for my new son (initial investment maxed at $5000). I would like to begin with a somewhat aggressive growth-seeking small portfolio, and to then gradually add one or two stocks each year for diversification up to about 8 or 10 stocks in total. For my opening purchase, I am considering three stocks -- Kinaxis (KXS), Constellation (CSU), and Knight Therapeutics (GUD). Two questions: This seems to be a decent time to buy these particular stocks, would you agree? And would you replace any these stocks with any others? (I'm open to anything growthy, but have been considering Shopify (SHOP), Photon Control (PHO), Enghouse (ENGH).) Thanks, and great job.
PS: Should I wait to buy until a few days after the BoC rate decision, or has the market reaction more or less already played out?
Read Answer Asked by Christopher on July 10, 2017
Q: I am retired living off my income from dividends.
I am down approx. 30% in each of these energy stocks. I am considering averaging down in WCP, TOG and CPG. I am aware that I am betting on O&G recovering somewhat, but the prices look attractive. Can you rate from best to worst? Are there any red flags on the balance sheets of the three?
I am considering selling HSE as they cut the dividend. Would you recommend I put the proceeds into the best of the other 3? Or invest in a more stable integrated such as SU?
Read Answer Asked by Curtis on July 10, 2017
Q: Hello Peter, Like most of us, are concern about the effect of the coming rate increases. How safe will the above preferred shares be, would you consider them as good choices for income and safety? Also, can you suggest equivalents in the Canadian market? Many thanks for your valued advise, J.A. P. Burlington
Read Answer Asked by Joseph on July 10, 2017
Q: A number of posters list off several holdings in a given sector. If you hold several stocks in each sector, don't you end up with an unwieldy number of stocks? Are there sectors where diversification is more important than others? How does one determine how many stocks in each? Am I missing something in thinking you'd end up with insignificant amounts of a large number of stocks? i know: a lot of questions. Dock whatever seems appropriate.
Read Answer Asked by M.S. on July 10, 2017
Q: Hello 5i team,
I’m 74 years old; with due diligence and with the contribution of people like you, my RRIF portfolio is behaving very well. My plan is to deplete the RRIF portfolio at age 90. The revenue from this portfolio will continue at the same level if I get a 7% compound annual total return in the next 16 years.
Unfortunately, we expect a recession sometime during those years. If I were to ride the recession, the value of the portfolio would stand still for (let’s say) 5 years and if the portfolio were to grow by 7% in each of the remaining years, my revenue would drop by a whopping one third. In order to maintain the expected level of revenue, my excel projection model indicates that I should obtain a 20% growth per annum instead. That is unrealistic.
Alternatively, I could do what I did in 2008. I sold my holdings after incurring a 15% decline and re-entered the market a few months after it bottomed and started on its recovery path. If I did that and planned for a 7% growth per annum, the revenue would drop by 13% only. That is quite acceptable because there is a 10-15% safety margin in my revenue forecast…a cushion of sorts.
If, however, I knew when the recession will occur, I would exit the market ahead of time and re-enter after the bottom…”but that is another story”.
I would greatly appreciate your collective opinion.
Best regards,
Antoine

Read Answer Asked by Antoine on July 10, 2017
Q: Hi Guys and gals

No that the insults, personal attacks and counter attacks have settled and there is a new board in place, How do you feel about the new management? Personally I like to see a shake up in the boards, not for sake ups sake's, but I think that long time management and directors get a little to complacent, especially ones tat have been in place since the IPO. Having said that, how do you feel about the new board and their history with other companies that they have been involved in, is it an upgrade in your opinion? I like the fact that they may exit the states and and look more to Canada to expand, and refresh some of the stores up here, anyways what do you think?

Thanks

Auftar
Read Answer Asked by auftar on July 10, 2017
Q: I have a loss in my account holding AYA,KWH.UN,DBO,HEO,ITC,PHO,ROXG,TV.Long list but need help which stokes to sell and what to buy?.
Read Answer Asked by Nizar on July 10, 2017
Q: Am thinking of adding 1/2 a position of NWH.UN to a tax advantaged account. Already have a half position in SIA. Would be interested to know degree of insider ownership and significance of institutional interest in NWH.UN and, if possible, short term debt (say, 18 to 24 month -- because of possible rate increases). Thanks for all you do. Deduct as many question 'points' as appropriate.

Alternatively, could add to SIA. Thanks, Bill
Read Answer Asked by Bill on July 10, 2017
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