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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 5i Team
I currently own Shaw Communications (SJR-B), which I have owned for several years.
The purpose to owning shares of SJR-B is to match the payments I make monthly to Shaw for my cable and internet.
Shaw has not raised it dividends ($0.09875 per month) since March 2015 and has declared the same monthly dividend to December 2019. Yet their cable/internet charges increase every year!!!!
My yield on cost is 5.46 % and the current yield (based on Friday close of $26.15) is 4.53 %. Essentially the stock has become similar to a "preferred share" where the dividends don't increase and the share price fluctuates with the rise/fall of interest rates.
The questions I have are:
1 - What are your thoughts on Shaw going forward and should I keep it and accept the reasonable yield on my book cost (the do nothing option).
2 - Sell the shares of Shaw and invest in BCE/Telus where the current yield is similar with the high probability of increased dividend growth and limited capital gains. I currently own approximately the same dollar amount in each of BCE/SJR-B/T
3 - Sell the shares of Shaw and invest in Rogers where the yield is lower with the probability of increased dividend growth (Rogers recently raised the dividend after no increases since 2015) and possible capital gains.
4 - Sell the shares of Shaw and invest in a preferred share ETF (CPD/ZPR) with a similar yield, since I the likelihood of a dividend increase from Shaw appears low and the probability of capital gains with the preferred shares ETF is higher with increased interest rates in the future (?).
Thanks for the excellent service.
Read Answer Asked by Stephen on September 10, 2019
Q: I am looking for a revenue opportunity in $US and AQN:US pops up as a possibility. There are no Q/A on the US dividend providing version of AQN and I would appreciate your views on this aspect if possible. Thank you. In follow up to my question on Algonquin/$US, from the list of Canadian companies paying $US dividends, which stand out for 3-5 year revenue? Thank you.
Read Answer Asked by Gregory on September 10, 2019
Q: A follow up to my previous question. When I receive the stock dividend for this security the cash value of the shares show as $0.00. Only the CIL has a value which varies from payment to payment. This value is deducted from the total book value of the security and there is no adjustment made for the additional shares purchased. I questioned my broker (TD) regarding this and was told that this is the correct way of calculating the book value of the security. This means they are treating the CIL as a return of capital but I’m still not clear if what they are doing is correct. Do you have an opinion?
Read Answer Asked by Richard on September 09, 2019
Q: the other day, you mentioned PPL is a favourite in the mid-stream pipeline category, I understand PPL recently made an acquisition and most likely doing an equity issue as part of the finance. I'm think of taking a position in PPL as part on my income portfolio but am wondering if should just go ahead, or take a partial position or on the other hand, wait to see if there is such an equity issuance and then buy in the open market as there is generally a pull back in the stock price at that time......thanks for your insight.....tom
Read Answer Asked by Tom on September 09, 2019
Q: I am aiming for a 20-stock (or slightly less) portfolio of dividend payers. So each position will be 5% or slightly more.

In the pipeline / utility sectors I currently have ENB, TRP and BEP.UN. I am hoping to add one of the stocks below. I have a preference for good dividend growth and good management, but would prefer not to have too much overlap with BEP.UN if possible. Mind you, I suppose BEP.UN is quite diversified geographically which might make a case for being different anyway (your opinion ?). Which one would be the best fit, or is BEP.UN enough ?......

Canadian Utilities (CU)
Fortis (FTS)
Emera (EMA)
Algonquin Power (AQN)

Thanks.
Jim
Read Answer Asked by James on September 09, 2019
Q: Based on current evaluations, would you swap FTS for ENB? Currently, also own BEP. I have owned FTS for a few years and have no concerns but wondering if ENB might provide a bit more upside (and larger dividend) at this point with a minimal change in risk. Owned in RRSP so no tax issues and doing this for a long term hold.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on September 06, 2019
Q: I am a long term Buy and hold investor with more focus on dividend paying stocks. I have roughly 19% of my total portfolio in Financial sector. 16% of that is from financial stocks and 3% from ETFs (market ETFs financial portion). 8.2% in five (TD, RY, CM, BNS, BMO) banks, 2.5% in two Insurance(SLF and MFC), and 4.2% in financials preferred (IGM.PR.B, GWO.PR.M, PWF.PRF, BIP.PR.E). I think am Ok with my Insurance and preferred weighing. Two questions:
• Considering the current conditions, is 8.2% in five banks OK or should I trim some and invest in some other sectors?
• TD and RY have higher weighing with TD at 3.3% and RY at 1.9%, the rest three roughly 1% each, Should I sell some of TD and RY and buy other banks or something else?

In case you need my overall asset allocation:
Equity: 63%, Fixed income (including cash): 22%, Real estate: 6.5%, Preferred: 8.5%
CDN: 73% (Equity: 48%, Fixed Income: 21% and Real estate: 4%), US: 18% and Global: 9%
Four highest weighing (59%) sectors are: Multi sectors (Market ETFS): 25%, Financials: 16%, Utilities: 11%, telecom: 7%, the rest in various other sectors.
Read Answer Asked by Naren on September 04, 2019
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