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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: Hello,
I have been holding Laurentien Bank for a few years thinking it was 'cheap' as it was trading below book value. It's done terribly should I hold/sell any recommendations on an alternative holding for the long term.
Read Answer Asked by sundeep on September 14, 2020
Q: Hello,
Just joined and have a question about Alaris conversion to an income trust. I have had shares for several years in a non-registered account that have now been converted to an income trust. These shares were purchased at a much higher price than they now trade at. I'm not happy with the conversion of the shares to an income trust as I know I will be paying more income tax on the distributions in a non-registered account. Additionally, Alaris has somehow taken the original cost of my AD shares and substituted a much lower cost for an equal number of AD.UN shares. I called TD Brokerage and they said they have to go by the value supplied by Alaris. This leaves me unable to claim a large capital loss on my income tax when I sell these shares. This seems to be a very poor business practice and unfair to shareholders. Is this a common practice in these types of conversions and is there any recourse available that you are aware of in getting my original cost base reinstated? Thank you.
Read Answer Asked by Bill on September 10, 2020
Q: I hold BIPC:US in my TFSA (TD-Waterhouse; US$ brokerage account). I am confused as to what dividend I can expect on Sep 30; the company website appears to indicate it will be US$0.485/share; however, the BIPC "profile"—as per the 5i website—indicates upcoming dividend of CA$0.6325. I’m not sure what to expect (of course, I am hoping dividend is paid in US$, otherwise I’ll need to later move the shares to the Canadian dollar side of the brokerage account, to avoid unnecessary currency exchange costs).
Ted
Read Answer Asked by Ted on September 10, 2020
Q: We have 300K which we want to use to build a portfolio of Canadian dividend payers in an open account.
This forms a significant chunk of our semi retirement portfolio. We have growth stocks in registered accounts and also some cash in a HISA.

1. Would you think that 10 companies offers sufficient diversification?
2. Which companies would you recommend? (we are thinking 2 x financials, 2 x telecoms, 2 x utilities, 1 or 2 materials, 1 or 2 energy)
3. Over what time frame would you recommend purchasing these companies? (TD charges me $10 a trade)

Thank-you,
Jim and Sharon

Read Answer Asked by Jim on September 09, 2020
Q: Hello 5i Team
I own several Brookfield entities (BAM.A, BEP/BEPC, BIP/BIPC, BPY/BPYU and BPO preferred) in various accounts based on tax effectiveness/reporting (based on my own interpretation).
1 - What would be a reasonable percentage of an entire portfolio (non-registered, RRSP and TFSA) that should be allocated to the "Brookfield Empire"? My thoughts are an investor should have no more 10 % of an entire portfolio invested in the various Brookfield entities as an optimum amount.
2 - What would be the absolute maximum of an entire portfolio (non-registered, RRSP and TFSA) that should be allocated to the "Brookfield Empire"? My thoughts are an investor should have no more than 15 % of an entire portfolio invested in the various Brookfield entities as an absolute amount.
3 - What would be the allocation of the amount invested to each of the Brookfield entities in the portfolio amount allocated to the Brookfield entities (i.e. BAM.A 25%; BEP/BEPC 25 %; BIP/BIPC 25 %; BPY/BPYU 20 %; BPO Preferred 5 %).
I have not included BBU as part of the question as I don't see the need to invest in it.
Thanks
Read Answer Asked by Stephen on September 08, 2020
Q: One is an ETF while the other used covered calls to enhance dividends. Can you tell me what real difference there is between them aside from the 5% vs 10%+ div. I was thinking of buying XDIV but several of its holdings are the same as DFN which I own. Any point in also owning XDIV?
Thanks very much.
Read Answer Asked by Mark on September 08, 2020
Q: I am overweight BAM.A, and investors seem to love this company. BAM invests in utility like companies which are rate sensitive. So the thesis for investing heavily in this company has to be low rate/free money environment for considerable period (at least a decade for the long term holders). What are your thoughts? Thanks.
Read Answer Asked by Rajendra on September 04, 2020
Q: Retired dividend-income investor. Looking to add to my Consumer sector. I already own PBH, NWC, PLC. I am looking to add one more name, preferably with a dividend > 3%, although dividend security and dividend growth are more important than todays yield.

I have looked at CTC.A, LNF, MG, PRMW and QSR. I have researched each using both fundamentals (beta, P/E, P/BV, P/CF, P/S, ROE) and technicals (higher highs and higher lows, above 200mda), as well as current analyst estimates.

CTC.A comes across as just "ok". LNF has already had an incredible jump recently, so I am hesitant to buy at current prices. MG is not bad, but shows a ROE = -1%. PRMW looks good except for the ROE = -9%. QSR also looks good, showing a ROE = +29% (I can't find P/BV and P/CF anywhere). The bottom line is there doesn't appear to be a stand out obvious buy. I am leaning toward one of MG, PRMW or QSR.

Would you please rank all 5 companies from best to worst for the following (assuming a 3-5 year hold):
a) Dividend security
b) Capital gain potential
c) Total return potential

Thanks for your help. Much appreciated....Steve
Read Answer Asked by Stephen on September 04, 2020
Q: What five income stocks do you see as undervalued at this time. How much upside potential in each do you calculate. What is the time frame involved before you believe each reaches its price expectation. Thank you
Read Answer Asked by Ric on September 03, 2020
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