Investment Q&A

Q: Given the news today and the share drop, would you be a buyer of Bell today?

Q: Would you buy sell or hold McCormick & Co?

Q: what do you make of bce stating that it will not raise its dividend in 2025 but goes and buys a company for 5 billion dollars instead of working on debt repayment.
do you think this is a good idea?

Q: Could you please comment on the results for Q3?

Q: I own both of these and have a similar loss in each. Want to reduce amount of telcos. Which would you sell for a loss, or would you reduce both by half. Which would you keep for the longer term or some of both. Retired. Like the income but want some growth. I'm OK to hold for longer term.
Thank you.

Q: Question:
When analyzing Total return performance of VDY, RCD, XDIV over the long term. What % is due to price appreciation and what % is due to dividends?
These are ETF's focused on Canadian Dividend Income.

Previous Answer for XIU:

Over the last ten years, XIU’s total return CAGR is around 8.9%, with price appreciation and dividends accounting for 5.8% and 3.1%, respectively.

Over the last five years, XIU’s total return CAGR is around 11.7%, with price appreciation and dividends accounting for 8.3% and 3.4%, respectively.

Q: With the drop in share price last month or so of 20 percent would you invest in it or is it a value trap?

Q: Thought on recent results? Looking to add to my position.

Q: Good morning. This isn't so much a question as it is to follow up on my question yesterday relating to the tax treatment of 1:1 exchange of share of units of AW.UN to AW.TO for the benefit of other 5i members. My original question, 5i's answer and the answer I received subsequently from AW Investor relations appears below.

Question: My AW.UN shares were exchanged 1:1 for AW Newco. As this was an "exchange" should my broker be showing a capital gain? If there is indeed a capital gain what is the share price that should be used?

5i Answer: The transaction is tax-free, providing unitholders make a Section 85 Election. If new shares were received on a fully 1-for-1 basis (no cash received other than the distribution), the ACB should be the same as it was before. Brokers are inherently bad at these things. One can contact them to change it, but it is better to keep one's own records for CRA purposes.

Following 5i's Answer I reached out to both my broker who referred me to AW Investor Relations.

AW Investor Relations Answer:
"The conversion from units to shares is considered a deemed disposition at a value based on the date of settlement, which varied broker to broker. We have been advised that in the context of the acquisition and disposition of listed securities, the CRA has traditionally taken the position that the acquisition/disposition date for tax purposes is the date of settlement since it is only at that time that taxpayers have the use of the property received (i.e. A&W shares) in consideration for the property they disposed of (i.e., the Fund's units). We are recommending that shareholders with concerns that the delay in settlement caused them to realize a capital gain (on the disposition of their units) that was larger than it would have been had the transaction settled more quickly should consult with their tax advisors as to whether they can reasonably take a different position."

Following AW's response, I sold out of our position in AW "Newco" today for a tax loss at $37.36 to reduce our Capital Gain on AW.UN which had reflected a settlement value of $43.08. We will either reinter in 30 days or move on.

AW's structuring of the sale was, in my opinion, very poorly executed.

Q: Income model portfolio: The list of selected stocks seems quite stable with time, are they considered among the safest choices within TSX , or some other reason ? how to interpret the ratings ? I appreciate the choices but I wish to better understand the guidelines..

Q: 1) Which has the highest & lowest 10-yr total return potential according to 5i’s research & data?

2) What other defensive names in the US & Canada might provide similar (or better) risk-adjusted returns over 10 years, given current valuations?
Thank you.

Q: I have positions in both CP and CNR and need to lessen my position in one of these railways. Which one would you choose to lighten up on and your reasoning. Thank You.

Q: I see that Gibson Energy (GEI) missed estimates. Q3 Revenue of $2,900 million in the third quarter, a $325 million or 10% decrease relative to the third quarter of 2023, What are your thoughts on GEI going forward. Would KEY be a better alternative? Thanks for all that 5i does. Steve

Q: with the amalgamation is it worth keeping?

Q: Shipping companies. I was just doing some research on SBLK and came across a question from Jacques going back to Jan 30/2024. It looks like share prices of all those companies have dropped significantly over the course of this year. Some have low P/E ratios , look oversold and have nice yields. I would appreciate your assessment of the situation and whether or not this is a buying opportunity. My primary interest currently is SBLK but I am open to 5i’s suggestions. Thanks

Q: Wow, what a big bounce on capital Corp after their qtrly release! But, why? I read it and unless I misread, financial metrics were down over prior compare..other than a big growth in actual power generation. But earnings, revenue, all down, affo a bit up (still down over 9 months)..... What has got everyone so excited?

Q: Hi 5i Team,
Pls comment on Parkland Corp. earning report.
Buy , hold or sell?

Q: Both PPL and KEY are recieving positive recommendations form analysts. PPl looks cheaper on valuation. Both have similar dividends. If investing new money, which would you choose?

Q: Could I get your current view of BPF.UN. Your report in late 2023 indicated some caution.

Q: Portfolio analytics is not allowing me to enter the new AW into the edit portfolio section since the changeover from AW.UN. Am I missing something?
Thanks.
Debrah