Investment Q&A

Q: Good webinar today. Lots of great tips and information. Much appreciated.

One of many points I picked up was the comment on dividend ETFs, which included CDZ, iShares Canadian dividend growers. I've owned it for a few months on 5i's recommendation and it's up 8% in that time not including dividends, which seems fine to me. But I noted the comment today about dividend ETFs needing to own high dividend payers. CDZ was mentioned, specifically it including AGF Management in the fund. When I checked the current top fund holdings, the top 3 are AGF, EIF and BDT.

CDZ's profile states:

"The investment seeks to replicate the performance, net of expenses, of the S&P/TSX Canadian Dividend Aristocrats index. The index consists of common stocks or income trusts listed on the Toronto Stock Exchange which are constituents of the S&P Canada Broad Market index (BMI). The security must have increased ordinary cash dividends every year for at least five consecutive years, and the float-adjusted market capitalization of the security, at the time of the review, must be at least C$ 300 million."

Do AGF, EIF and BDT fit the profile? Or are they in the ETF solely for their high dividends? Thanks.

p.s. Would a webinar on ETFs some time in the future be useful for 5i and CMS members????

Q: Hi Peter
This is in responce to Bill's question re: odd lot order on CSU not filled even though the closing price is lower than his bid.
I had this happen to me last week, oddly enough, same stock, same broker. I was told the only thing you can do is to do a market order instead of a limit order. This may help, however, this stock has a wider bid/ask spread than most other stocks.

Gerry

Q: Hello 5i, Could you comment on Veresen as a company as well do you think it is a buy, sell or hold. Also they just announced there 1st quarter could you comment on that also.
Thanks

Q: Hi Peter and Team, regarding SunLife, SLF, your thoughts on their results and how you feel the stock will react tomorrow morning at open? Thanks!

Q: That was a great presentation on Tuesday. Well done. While I have you could I have an update on TZZ. I see it has broken to new lows, however I can not find a reason. Thanks in advance.

Q: I own 2500 shares of S. I'm really underwater right now. Should I hold on and hope for the best or look for another alternative.

Q: To Peter and good crew. I am interested in purchasing MTG. Could you tell me please how the dividend is treated please? interest taxable or dividend taxable? I would appreciate additional new advice if possible since last one March 2014.Thank you,Phyl.

Q: Hello.
I have a general question for you.
Why is it that most public companies get funding and distribute warrants through private placements?
Thanks
Kevin

Q: Hi 5i team,

Could you please comment on Rifco? Would you see it as a buy as it approaches it's 52 week low? Although, I would agree it's better to buy into strength, it's still a solid company with consistent execution and growth. It seems like it's being hit by the fear of interest rates rising (eventually), loan charges and a general shift away from growth stocks.

Also, if you had to choose between Rifco and Carfinco, which one would you buy? Or would you recommend waiting until there's momentum in these stocks before buying?

Look forward to hearing your thoughts as always.

Jon

Q: A question about minimum size of a position.

I manage a $5000 LIRA for my daughter (from pension contributions when she changed jobs)

I normally like to invest $5000 in any position. One reason is the trading costs--even at $10 a trade and another is wanting to get some reward for being right--with smaller amounts I find that even if I am right and it goes up smartly, I don't get much of a dollar return for less than $5000 invested.

As a result, I have the LIRA all in fie.a and on a drip.

Would you recommend several positions for something this small--how many?

Bryon in Elmira

Q: please advise your current take on descartes, thanks.

Q: Hi Peter and colegues,
Thank you for the webinar on dividend investing - we enjoyed the informative presentation(wife and I)from you and Avrom. Would you recommend that dividend paying stocks be a larger part of a portfolio and more important for younger investors, since it could grow to a considerable yield on initial investment later on or should growth be more important initially since there is a longer investing time frame? (asking for our children) Thanks again! Keith

Q: Magna's executive compensation has always been a controversial subject and the company spills about one third the ink in its 90 page Proxy Circular justifying it, though judging by share performance, perhaps they're worth it, particularly Don Walker. I don't see the Stronach names anywhere in this document; are they still involved in any way with the company and how many shares do they still own? Also would it be reasonable to look for a share split in future? Thanks, J.

Q: I placed an order to purchase 50 shares of CSU at $240.00 which was not filled and closed at $239.61. On contacting TD Waterhouse they said the reason for not being filled was that my order was for an odd lot, rather than 100 shares. Does this sound reasonable?

Q: If Target were to close its Canadian operations, which REIT(s) would be impacted most?

Q: I'm looking into Constellation Software Inc. In your report you state that "Priced at 18 times earnings" But when I look at google finance or yahoo finance the p/e ratio is around 50.

Thanks

Q: Why has WIN.TO gone up so much the last few days? I can't find any info why. Time to sell a half position and invest in something better like SJ.TO or should I get rid of all of it? My average is $3.97 and with the dividend I don't lose to much.

Q: I have owned Citigroup for a year and as a growth stock it's been stuck in the mud. I was about to sell it and I see Citigroup made a large acquisition yesterday. Should I hold or sell this stock.

Q: Hi,
I currently only have cash and Canadian stocks in my portfolio, the cash accounts for roughly 40% of my portfolio, but I am looking to invest into some EFT's, mutual funds and US stocks as well. can you please advise me roughly what weightings i should be giving to EFT's, mutual funds and US stocks under the assumption that my Canadian stocks are relatively diversified. And also which EFTs, mutual funds and US stocks would you recommend as of today? I am in my mid 20's and have a relatively long term horizon. Thanks in advance.

Q: Peter and Team, This is a fabulous service. Thank you. I watched your most asked questions video (great idea)and it raised a question in my mind regarding superficial losses/30 day rule re the CRA. If I own a Cdn stock that is listed on both the NY AND Toronto exchanges and I want to change holding it in Cdn. $ and switch to holding it in US$ - will the CRA count this switch as a sale of the CDN holding and a purchase of the US stock and then apply the 30 day rule. Thank you again, Nancy