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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: I need to add some weight to my industrial sector, and as an income investor, I'm wondering about TCL.A? I've read the commentary, and although it seems to have had some troubles prior to Covid, just wondering if you would consider it a buy on a dip or if you have other options you like better and would suggest. For a long term hold. Thanks again!
Read Answer Asked by Pat on November 12, 2020
Q: I am looking at the above companies highlighted in your recent comments. Could you please rank them in terms of a) highest growth to lowest over 5 year time frame b) least to most risk. If am missing another favourite please let me know. Thanks for all your great advice. Brian
Read Answer Asked by Brian on November 12, 2020
Q: I currently hold BCE, and I was wondering if it might be worthwhile to sell BCE to purchase Cogeco, as there was previously an offering by Rogers and Altice to buy the remaining shares at what sounded like roughly a 60% premium to current prices. I know the offer was explicitly rejected, but could this mean that either another offer is on its way, or perhaps that there is significant untapped potential in Cogeco? If this is a worthwhile trade, shares of CCA do more volume than CGO - would that be the more prudent purchase? As always, I appreciate your insight, and look forward to reading your comments. Thanks again!
Read Answer Asked by Domenic on November 12, 2020
Q: How would you set up an income investment for a single senior expecting to need the dividends/distributions for living expenses. for another 25 years. It could be individual stocks, funds or ETFs, or a combination of them. The amount to be invested is $80,000 to $100,000 CDN. Half in a TFSA and half in a cash account, self directed.
Thank you for the great advice.

ou suggest 10-12 stocks
Read Answer Asked by Elliott on November 11, 2020
Q: Hi, is this a material negative development for ALA? Thanks.

“The U.S. Fourth Circuit Court of Appeals issues an immediate stay of Mountain Valley Pipeline's stream and wetland crossing permits in southern West Virginia and Virginia. The order will block construction across waterways for months while the appeal plays out.”
Read Answer Asked by Gary on November 10, 2020
Q: With the sector rotation taking place I'm interested in buying or adding dividend paying companies that could benefit from the change taking place. With that in mind, and hoping for some growth and relatively secure dividends, could you please suggest what you consider to be your top 5 Canadian and 5 American companies that could benefit from this sector rotation.
Read Answer Asked by Les on November 09, 2020
Q: good morning - it is time for me to prune my BEPC position which I took eighteen months ago at your suggestion, thank you very much. I have plenty of utilities, financials and telecom and would like to add to my health care, consumer discretionary, materials and maybe even real estate. I currently own VEEV and WELL both thanks to 5i and also have Magna, Dream Industrial, Northwest Healthcare, Interrent and ATD.B. Can you suggest some solid dividend paying Canadian companies with promising futures, please. I have been considering Nutrien and NFI. I am also thinking of increasing my BCE or T, or Magna or ATD. Do either Empire or Loblaws make sense. I do need dividend income and would like a three per cent yield. Fussy, right? Thanks again. Most of the positions I hold have taken with your guidance. I am stuffed with Fortis and AQN along with the banks and SLF. You have been a great guide, thanks.
Read Answer Asked by alex on November 09, 2020
Q: Hi 5i team,

I am tempted to borrow up to $25K to buy dividend paying stocks in a non-registered account. That represents less than 3% of my portfolio, so I am comfortable taking the risk. The interest rate is 2.45%, and the interest would be tax deductible against my income, so my real cost would be < 1.5%. The question is what Canadian dividend paying stocks should I buy?

The dividend paying stocks I currently own are: AD.UN, AQN, ATD.B, BAM.A, BCE, BEP.UN, BEPC, BIP.UN, BNS, CCL.B, CSU, DOL, ENB, ENGH, FTS, MG, MX, OTEX, PKI, QSR, PPL, SLF, T, TD, WSP. I could add to these, or are there better suggestions out there? I have had dividend grower ENB since 2011 when I paid $39 for it, and now it closed under $36 on Friday. Not too thrilled that after 9 long years it is below what I paid for it. Same with BNS: had it since 2014 and I am down 17% on my original investment after 6 years. In the last 3 months I added to AQN, BAM.A, BEPC, FTS, and PKI.

Do you see anything wrong with my strategy?
What sectors would you recommend buying today for this strategy?
Similarly, are there any sectors that you would avoid today with this strategy?
What dividend paying stocks would you suggest to buy with borrowed funds?

My portfolio is already diversified by sector and geography, so you don’t need to take that into account in your answer. This is for a long term buy and hold strategy.

I could pounce if some opportunities arise during tax loss selling season, so I want to be prepared.

Paul
Read Answer Asked by Paul on November 09, 2020
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