Investment Q&A

Q: Which company do you think has better long term growth potential?
Thanks

Q: Hello 5i team,
I wanted to add to my EIF stock since it is doing relatively well. I have held this for a long time in my TFSA for income. The last dividend raise was in Nov 2023. Do you think they will raise their dividend in the coming November?

What is the payout ratio today for EIF?

Andrew

Q: Looking for a few suggestions for a new position in the Utility space (Cdn) that you think is at at a favourable valuation based on a mix of reasonable growth potential and history of dividend increases together with healthy balance sheet? Please omit Fortis, Hydro, Enbridge and Brookfield companies even if they would be your first picks. Thanks so much.

Q: 5I team: Have owned this name for several years in a TFSAwith a current yield of 3.5%.Would you double down or more to get a better yield or swap for something with more yield and growth potential.Any suggestions please and thanks Larry

Q: I've held these for several years, except for BEP.UN which is little over a year, I've accumulated dividends in LRSP, RRSP and TFSA, and want to add to these and keep over long term, wondering if you would be comfortable doing so generally speaking.

Q: Little DIV has been one of my best performing stocks this year,up 40% since I bought it and pays a great dividend.Any reason you can see for such an upward move.

Q: In your opinion, are Cdn. bank stocks overvalued and is it time to trim. Along with two Cdn insurance companies they currently represent approximately 26% of our portfolio

Q: I am a little concerned about MDA due to Trump, even though it has US operations. Would you rather GE or MDA?
Thanks for your thoughts.
Ian

Q: Hello 5i Team

Further to the reader’s question about US$ denominated dividend deposited into US$ denominated accounts at RBC Direct Investing.

I experienced the same issue with RBC Direct Investing and they explained as follows. I will use Brookfield Infrastructure
Partners (BIP) which I hold in a US$ denominated account.

BIP transfers the total dividend to Canadian Depositary for Securities (CDS) for all the BIP shares held by CDS (in excess of 100 million shares) on behalf of Canadian Brokers. This dividend payment (in US $) is converted to C$ (unclear whether its BIP or CDS) at “wholesale” rates.

CDS then transfers to each Canadian Broker (i.e. RBCDI) the Canadian dollar equivalent of BIP dividends held by the individual brokers (i.e. RBCDI). RBCDI then buys US dollars for dividends deposited into US$ denominated accounts. There is a difference in the exchange rate between the dividends received from CDS and the transfer to individual accounts. This results in the small discrepancy between dividends declared and dividends received.

The result is for 1,000 shares of BIP

BIP declared dividend = US$0.43 x 1,000 shares = US$430.00

RBCDI deposited $0.429544 x 1,000 shares = US$429.54 a difference of $0.46

Sometimes it works the other way and RBCDI deposits a slightly greater amount of US$ than the equivalent original dividend amount.

Other US $ stocks do not seem to have this issue, as I mostly hold US domiciled companies in my US $ accounts. It may also be a result of how the dividend issuing company transfers funds to CDS.

It is annoying as I originally purchased BIP on the NYSE and expected to receive the declared dividend amount.

I hope this explains the matter to the reader.

Q: What are your current recommendations for US$ dividend ETFs? (US, not CDN) Thanks

Q: Hello 5i,
In a US $ account, I hold AEM, TRI FSV WCN and BIPC. I just checked my RBC direct investing account and the dividends for BIPC and WCN are off (a bit). As far as you are aware, should i be receiving the full dividend without conversion nicks?

Also, on the 5i site I used to be able find the USD beside the dividend listed for the companies I track that pay divies in USD. That is currently not the case for the full set. Has your data source changed? Or perhaps the policies at the companies changed?

TIA!

Q: I will be simplifying my RRSP portfolio whereby it will be mainly comprised of ETF's that can give growth as well as income that i can use to draw on when RRSP are converted to RRIF.

Can you provide me ETF's / Index funds suggestions for:
S& P 500 index
Global large cap index ex USA
Dividend appreciation index ( large cap) for Canada and US

Thank you

Q: Please comment on TRP valuation and outlook in the $71’s. The stock is doing well despite many negatives including: a PE near 20x (historically high?), a forecasted decline in EPS over the next 2yrs, a massive debt load which keeps rising, and uncertainty in Analyst estimates (evidenced by a wide target price range). I’m looking at lightening any riskier positions heading into fall and I expect at best TRP is a Hold.

Q: High-Dividend yield ETFs.

Could you list 2 in Canada & 2 in the USA?

Are there any European High-Dividend yield ETFs.?

Thank you.

Q: Looking to add one of the above for a 2 to 3 year hold and would like your analysis,outlook , recommendation and entry price for each. Thanx.

Q: ISC catching a bid today after announcing a strategic review, based on it still appearing relatively cheap and a theoretical exercise only, what would be a reasonable potential takeout price?

Q: Of these two which has a safer dividend and better growth going forward for a retired senior? THANK YOU

Q: Any good news on this stock - I think it reported. I have been under water for some time. Is it worth holding? TCL

Q: Please explain the economics / accounting of how a utility co like Enbridge can have a payout ratio above 100% for years and still raise its dividend each year without stock price crashing

Q: Good morning!
I am a dividend investor, almost totally in higher paying blue chips and sector specific equities. I rely on those payments for my income. However, I am considering an etf as a possibility to lower risk , but am not very familiar with the offerings. A brief look about wasn't encouraging, as it seems that often the dividends paid may decrease over time, and not necessarily in sync with govt interest rates as you might expect. As an example, I thought XRE would be a good one, paying over 5%. Their distribution 10 years ago was 8 cents. The most recent was 6 cents. This does not keep up with inflation, a key part of my requirement.
All that being said, can you suggest Canadian etfs that pay a high dividend, one that increases with inflation? Thanks for your ideas! ... Paul K