Investment Q&A

Q: Retired, dividend-income investor. I currently own ZLB (RRSP, max'd out), XIT (RRSP-TFSA, max'd out), ZRE (Cash, 3/4 position, will add to over time), ZWC (Cash, close to max'd out). I also have some legacy positions in RBF1018 (RBC Cdn Equity Income-D...MER of 1.0) and CIG50217 (Sentry Cdn Income...high MER), both of which I have averaged roughly 7-8% return over the last many years, prior to this crisis. On top of the above I own AD, AQN, AW, BCE, CSH, CM, FTS, NTR, NWC, RY, TRP, WSP in various amounts to achieve my overall asset allocation targets (not to mention my fixed income portion of my portfolio.

I normally like to run a concentrated portfolio of around 20 positions, composed of +/- 6 ETF-MF and +/- 14 stocks. I have mapped out the use of my current cash (15%) into monthly repurchases over the next 6 months. My question relates to the combination of ETFs, but focusing on ZWC. I own ZWC for its high CC dividend, but recognize that the upside is potentially limited in a recovery. Also, when mapping out spending my cash, I reach an uncomfortable level of too high an allocation per individual stock. That led me to consider adding another ETF. I looked at several, and filtered them down to CDZ, XEI and XDV. I have chosen CDZ as my candidate to add. Looking under the hood at the ETF holdings, they appear to not overlap too much with my own individual stocks.

Do you like this strategy? Does it result in a significant overlap in stocks, held either individually or within the existing ETFs?

Thanks for your help...Steve

Q: Thoughts on this one
Thanks Terry

Q: Hi folks, I would like you to reco some good dividend ETFs in the Candian space that you think are potentially a good buy for now. By 'good', I meant the company should have solid fundamentals, and the price should be low so the yield is high. I do not expect the US tech to boom forever, I would rather reap my 7 to 8% percent and hope it last forever. Thanks :) Tony

Q: Good Evening
NWC
It is my understanding that NWC is providing food like the supermarkets to the public. Therefore, is it a safe bet during this coronavirus environment? Have they ever cut their dividend ? Is their dividend safe?
As well, some analysts saw their acquisition of an airline as negative. What is your opinion?
Is it advisable to average down at this level?

REI.UN
I own both the stock and a couple of their bonds. What is your opinion with respect Rio Can surviving the coronavirus crisis?
Please deduct one credit for each company.
Thanks again for your insight.

Q: DFN, the high-dividend split share fund that people sometimes ask about, has missed its first dividend since its inception in 2004. It even paid the monthly dividend throughout 2008-09. I see the share price is up this morning. I don't think people realize they will not receive the dividend and that it could be many months or even years before the dividend returns.

Q: These 4 have been beaten badly , way more than the TSX drop. What do you think about their prospects to go bankrupt ? Can you rank them from the lowest to highest risk ?
which ones will have their cash affected more ?
Thanks

Q: Hi- it seems everyone is walking around with alcohol these days. Groceries, toilet paper and booz. Any idea on how to play that? Does consumption at liquor stores make up for the lack of consumption at restaurants. There;s really nothing else to do but drink. Even my girlfriend has gone to the liquor store more often than usual last few weeks.
Can you give me your thoughts, and perhaps a few ways to play this? Thanks.

Q: Now that Brookfield has 10.1% of the common stock do you expect any changes at TA going forward?

Thanks
Bob Rose

Q: What will be your Top 10 stocks in the TXS 60 index to get the highest dividend with the lowest risk reward?
The 10 stocks suggested in BEAT TSX 2020 seem a bit risky.

Q: If we have yet to reach the worst of the virus threat and if the current question mark regarding the direction the price of oil will take in the future poses a problem, I think we have yet to see the lowest prices for these companies. The question is how much further down their prices can go. If my theory is correct, at what price would you take an initial position in these companies?

Q: Would you recommend a particular company as a proxy for WSP?

Thank you.

Q: Hi gang, looking in buying between H or aqn? Are both dividends safe? Any thoughts? Thanks
Alnoor.

Q: BIP.UN and BAM.A are down 47-48% over the last month (BEP.UN down 41%), and have been quite volatile intraday. The whole market is getting hit, but would have expected these to be a "little" more defensive. Why would that be? Are there any particular COVID related concerns for these stocks/business models?
Any concern for the dividend? Or is this a good time to add to these positions? Time horizon is long term

Thanks for the great service

Q: I'm looking for two comparable candidates to buy for tax loss selling particularly in same sector and low debt. Thanks for all your help in these crazy times

Q: I have a loss in VZ and was thinking of selling it and buying AT&T. Is AT&T buyable at it's current price?

Thanks

Q: Hi guys, I am looking for small and mid-cap companies with a great balance sheet and high likelihood of sustaining their dividends. Would Evertz and Corby fit the bill? Also, any others that you like for that criteria? Thanks Rob

Q: Gordon Pape suggesting selling marginal companies in this environment and claim the loss. Which of the above if any would you consider marginal?
Thanks
Jeff

Q: I have always believed in the long term value of lumber, hence my interest in this name that i have been in and out in past. I guess the question the market is now reflecting on is about the company's financial capacity to sustain debt payment, or stay afloat.
They are inherently designed to go through different cycles, and reduce operations, but would you think they can survive worst case scenario based on their debt ratios, and would you see value here even if dividend is probably going to be cut?

Q: Goodmorning 5l team,
Thank you very much for your response to my earlier question regarding selling cocered calls. You mention focusing on dividend paying stocks in your current strategy. Is it possible to have a list of which companies you may be looking at currently for this should strategy?
Thanks

Q: Good day team. Re Granite; watched it reach a premium not long ago, now looks attractive for starting a position. Thinking of selling "some" Telus (still up after approx a decade hold & now 25% in one of my reg accts) and starting with GRT. How will cashflow be impacted now? Attractive on valuation now? Approx 5-7 year hold