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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: Given that my Margin account has the 5 big banks and 2 Telecoms paying dividends on a periodic basis and that I'm not "too" concerned that these will cut their dividends, would it be wise to implement trailing stop loss orders for these in case there is another retest of the lows of March. Had I done that at the beginning of the year, I could have picked up the above at much reduce prices with resulting greater dividend yields. And would using the same procedure for my RIF account (which has mainly REITs) be beneficial to capture the current values to avoid further losses there.
Your comments. Thank you
Read Answer Asked by Brian on May 04, 2020
Q: Hi 5i
Looking over your dividend update page I find I've been affected by some cuts and suspensions (and happily some increases). These cuts would not have been necessary but considering the current circumstances it is understandable.
When things turn around would you expect dividends to be reinstated to where they were previously ? I know what this question sounds like but I can't use the word "normally" in it - ie. normally a company cuts a dividends and goes forward from there but for example and picking one at random CAE suspends dividends - when they reinstate the dividend one day would you think they will start from scratch at some new dividend amount or go back to "where it was" ?

Opinions?

Thanks
Mike
Read Answer Asked by mike on May 04, 2020
Q: Greetings 5i Team,
on 24 Mar, I SOLD these 4 companies for tax loss capture and am considering buying them back now. I note that FSZ and EIF have recovered more quickly than AD and NFI. Also, they are all still selling below what I had originally paid.
In what order would you buy these back? Is there a company(s) among them that you would not buy back at this time?

Thank you for this excellent service.
Steve
Read Answer Asked by Steve on May 04, 2020
Q: Given the dividend cut today - does your view regarding the odds of cuts for Canadian Bank stocks as well as other blue chip Canadian dividend payers change. I realize that RDS is in a very tough industry right now but I would say the severity of the cut was pretty surprising and I wonder if there will be similar surprises in Canada for "undoubted" dividend payers in the past.
Read Answer Asked by Gary on May 01, 2020
Q: Do you have a list of companies that have cut their dividends/distributions?
Read Answer Asked by Graham on April 30, 2020
Q: 5i guys!
Taxation clarity.
TFSA; Mostly hold Canadian dividend paying stocks and ETF's on the TSX.
Hold a Canadian ETF with US stocks. Withholding tax applies I believe.

RRSP; US Exchange American dividend stocks and ETFs.
My fuzziness.
TSX listed companies that pay dividends in USD.
Ex. AQN. OTEX.
As a canadian company purchased on the tsx is this tax exempt under TFSA?
Or does it fall under the withholding rules as an American stock unlike RRSP's exemption.
*take another question credit*

If in fact exempt. Does Questrade convert for free. I am curious if I should allow the conversion since I purchase with canadian in my TFSA. Or save up the USD and perform Norberts Gambit once in awhile.

Really enjoying everything you have to offer.
Fantastic and many thanks for all the investing improvements.

Read Answer Asked by Adam on April 29, 2020
Q: I currently have full positions in BEP.UN, AQN and NPI in a non-reg account. I'm thinking of selling one to buy either BCE or BIPC.

This is a portfolio move. I don't currently own BCE or T so this might be a good time to add. I actually prefer BIPC for the more global exposure. I'm retired and looking for reliable dividends with a side of growth. I think owning all three utilities may be too much (I also own ALA in my RRSP) but selling any of the three would result in a taxable event.
forgot to mention that selling any of AQN, NPI or BEP.UN would result in a taxable gain. I also intended to ask which of the three would you sell?

Do think this would be a worthwhile move? If so, which would to buy, BCE or BIPC?

Thanks as always.
Peter
Read Answer Asked by Peter on April 28, 2020
Q: Hello 5i,
Thank you for providing a clear and modulated message through the past 2 months.
For a 5-10 year hold could you rank the top 10 highest (TSX) yielding stocks with the safest dividends. ( strongest balance sheet, lowest payout ratio, historical dividend growth, etc).
Could you also rank them separately in terms of bounceback / growth potential over the next 2 to 3 years?
There may be redundancy in this question vs others asked and the 5i portfolios - so please take as many credits as necessary.
Thank you
Read Answer Asked by Delbert on April 28, 2020
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