Investment Q&A

Q: I am retired and rely on dividend income. I understand that LIF is quite different from the other 2 companies but would would be your thoughts on these stocks with a 2 to 3 year investment timeframe?

Q: Could you comment on STN.TO vs WSP.TO

Also wondering if ZUH.TO is still a hold. I am up nicely, but it has not done much in the last year and wonder if there is more up potential here or maybe somewhere else?

Thank you

Q: I am very interested in BCE. Considering my investing history, this is not a good sign.

Would you tell me the intrinsic value of BCE?

Surely, $30 is undervaluing the company by a lot?

I know 5i looks for growth stocks, but I would like to know if BCE would serve
as solid dividend paying business, with a good chance for share price increase.

Basically, if 5i were to issue a report on BCE, what would be the letter grade you would give it?

Q: Some ETF's collect dividends from their underlying assets, but also employ yield-enhancement strategies. We might expect that such ETF's would account their distributions as some combination of 'pass through' dividends plus (for example) return-of-capital, but it is apparent that some ETF's retain essentially all dividends, and account distributions as (for example) return-of-capital alone. I can see how this policy might be attractive in the short- to medium-term - or even in the long-term, depending on the rate of inflation, and capital gains rules - but a notably cost of this policy is to deprive the investor of the considerable benefits of the dividend tax credit.

Is there a rule-of-thumb one can apply, here, to evaluate the implied trade-off, or is this the sort of thing the determination of which needs an accounting degree? Further (and without implying any judgment), can the ETF itself benefit from the dividend tax credit, or is the credit only available to individual taxpayers?

Q: Do you have any opinion on this company latest result ?

Q: Good info from 5i on recent lackluster BEP.UN stock performance.

I've noticed that historic trends for this company's Revenues and Operating Cash Flow seem to be fairly positive / consistent. However, Operating Margin took a hit last year, and Free Cash Flow has been negative the last three years. Is this a concern to you? Is the projected annual 5%-ish dividend increase in jeopardy (next increase is coming up shortly ! ).

Acknowledging the negatives you mentioned in your recent Q&A responses, would the current yield not soon theoretically help stabilize the stock price - especially considering this is a Brookfield....despite as "complicated" as the company is?

Q: You have previously stated the current price is good entry point for SJ. Given the political climate in the US and the threat of tariffs, would you consider this a buy right now or would you hold off?

Q: Given Acadian Timber's forest lands are situated on both sides of the New Brunswick/Maine border, do you see this putting the company in an advantageous position in the event of a tariff dispute between Canada and the US? Does the company have processing operations on both sides of the border?

Q: HI, I own several CDN Utilities, AQN, SOBO, PPL, BEPC, BIPC, EMA, ENB, FTS, TRP. Trying to reduce # of CDN Utilities I own. I am thinking of selling AQN, SOBO, BEPC, and BIPC. What is your opinion of selling these and adding PPL, and EMA. What is your opinion on CDN Utility ETF instead. Can you suggest CDN Util ETF for a reasonable return and potential for growth. Welcome if you have any other suggestion. Thanks

Q: Dear 5i team.

Since my Q on SPB 6/24, a few key things have changed.

1) can you discuss the key Corp.changes (cut to divi being the most significant) and possible impact to their balance sheet?

2) Has anything changed with regards to Brookfield ownership?

3) What is your ouotlook for the SP given answers above. Looking at the 1 yr chart, it's gone from 10 to 6 so a 50% fib. retracement implies a move back to 8. (That's my back of the napkin assesment.)

I'd like to bring this to a full position, but wanted your commentry first.

Many thanks for your help.

Q: this stock drops 4% only today ( jan. 14 th)... plus a constant downtrend since the Cie change.Is it time to sell with a10% loss on paper ,or is it still considered as a safe and interesting dividend stock ?

Q: Hi Peter and the 5i Team,

PBH continues to be a very frustrating stock which we bought for a RRIF and a TFSA. Even though 5i rates it as a “B” and most analysts rate it highly, for those of us who purchased it when it was trading at much loftier levels, what is it going to take for at least a break-even position?

In the case of the RRIF, PBH was purchased for 96.24 per share. It closed on January 9 with a price of $79.26. When dividends are included, our loss is still $3900.

National Bank rates PBH as “sector perform” with a target price of $99.00. On the 5i website, the stock is trading in a range of $75.67 (year low) and $97.10 (year high). Even with all the positive news surrounding PBH (acquisitions, etc.), the stock is retreating to only $3.59 above its year low.

I read recently that beef prices are at an all-time high. The CBC had a story called “Beef prices hit record high at the grocery store — and on the ranch, too”. Is this somehow holding back PBH?

Is PBH a stock worth holding? Are there any tailwinds on the horizon that could lift PBH out of the doldrums?

Thanks as always for helping me to make informed decisions.

Q: Can you explain what a MIC is? what are the benefits and risks? How do you buy them? Any you would recommend?

Q: Good Morning
Is there an unhedged version of VGH ?
Can you recommend any other unhedged ETF similar to VIG but listed in the Toronto Stock Exchange ?
Thank you

Q: These 9 stocks were approximately equally weighted in unregistered dividend account before NPI and BCE took a big dive. The overall yield of the account is around 4.8% which I have been happy with, but the loss of capital in the 2 mentioned is troubling.

Objective of the account is to generate retirement dividend income for the next 5 to 10 years.
Other accounts provide pretty decent diversification by sector / geography / growth etc.


Question 1. Should I take the loss on these two and redeploy into the other holdings?

Question 2. Any glaring omissions in this account which you think I should add in here?

Q: I note that dividends from this firm may be subject to withholding tax.
Can you name any Canadian companies who pay dividends/distributions in US dollars, and who might NOT be subject to holding tax?
I would prefer it if you knew firms who pay in excess of 5% dividends.
Thanks!
Paul

Q: I would like to sell SPB. I have a small position in SOBO so wondered if this is a good replacement for SPB ? This is for a RRSP account .
Thanks

Q: How low would this need to go to become attractive. Is the market already suggesting a dividend cut may be on the way?

Q: Would you please rank the 3 stocks in order of total return going forward. IFC has the best 10year return, but not so more recently. I currently own IFC and I am concerned about the effects of global warming on future performance. I am leaning toward MFC because of its recovered mojo. I sense that MFC is the most conservative play in the group. Thank you

Q: I hold Boralex and would appreciate your analysis of this company for its growth prospects in 2025.