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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: Another source has made the following comments:

Higher commodity prices and solid demand for a number of its more important chemical products should lead to improved operating results in the back half of this year and extend through next year. With a free cash flow (FCF) yield of 11% based on last year’s results, and a FCF yield that moves to around 14% based on this year’s projections, Chemtrade is selling at a very attractive valuation.

In addition, the 9.6% dividend yield should be well supported by cash flows with a payout ratio estimated to come in at around 70% this year. As operations improve, we expect the stock to react positively as its payout ratio declines further. This offers us a compelling valuation for a company with improving fundamentals.

I know you aren't happy with its past performance but it looks like it's getting very attractive for income?
Read Answer Asked by Myles on November 12, 2018
Q: Hello 5i,
I dont own any of the Brookfield group currently, but would like to at a discounted price. How would you rank all the bips, beps, bamas, bpys, etc, Which would you buy at current prices, for best 2- 3 year holding period, including growth and dividends ?
Read Answer Asked by Bernie on November 12, 2018
Q: Hi 5i,

What is BAM.A' s ownership of its publicly traded subsidiaries?

Thanks,
Read Answer Asked by Craig on November 12, 2018
Q: Hello 5i,
GS has a CFO of 46 million and pays 74 million in dividends giving a payout ratio of 161%. When using P/E we have 1.00 / 1.21 giving a payout ratio of 83%. This seems to be turning the 5i suggestion of using div / cfo upside down. Do we do just take the formula most expedient or is the dividend in real danger?
Thank you
Stanley
Read Answer Asked by STANLEY on November 12, 2018
Q: Hello 5i team: ALA was originally at a20% weight in my tfsa.now ALA is down 50%.considering no tax loss advantage would you suggest I dump it ? I have read other answers. I hold all the energy I want in my open account. Any Best case replacement to regain my loss?or hold? Time frame not an issue. Thanks Larry
Read Answer Asked by Larry on November 12, 2018
Q: I asked this question yesterday but it must have been lost in the ether since it wasn’t answered.
AltaGas issued an IPO in mid October at a price of $14.50 which was well before the stock price dropped fro $20 per share to about $16.50 after the 3rd quarter results were released. This makes no sense to me as I would believe the stock price should have immediately reacted to the announcement of a share offering.
In the 3rd quarter results, the company announced an increase in dividend to $0.1825 from $0.175 beginning on November 27. This again makes no sense to me since I was under the belief that the company needs to shore up its balance sheet. In addition, at current prices the dividend is already at about 13% of price.
Can you help explain both of these?
Thanks
Ed
Read Answer Asked by ED on November 12, 2018
Q: Hi there,

In the process of transitioning my US 401K from a balanced portfolio to an income portfolio as i get ready to transition to retirement. If you could recommend 5 US stocks or low cost ETFs for income what would they be.
Read Answer Asked by kelly on November 12, 2018
Q: Good morning,
In your response to Marilyn on Friday you replied that you "have no concens seeing it (CPD) as part of an income allocation" and "one needs to decide how it fits in"
My recent experience is that any so-called fixed income that I purchase loses money even including distributions. My current cash allocation is therefor 20% earning nothing, with another 20% in CBO, CPD, XBB, XHY, and a few preferred issues. I can look for a DIS account but could you expand on "how it fits in" and perhaps suggest the ETFs we should currently be using in this environment and a possible allocation range for each. Thank you for the ongoing excellent service in a difficult environment.
Ted
Read Answer Asked by Ted on November 12, 2018
Q: Greetings 5i team:

Once again, thanks for all your sage advice through the latest correction. I am really appreciative of having stocks/etfs like MFT that really held very steady through the latest correction - without you guys i would never have known about it. The value of having a diversified portfolio.
My question is about LIF -it has been on a tear lately with the special dividend etc but what is driving the underlying fundamentals. I didn't think Iron ore was in that much demand but would appreciate your comments. Its the only materials stock i own as i have had real difficultly making any money in the sector.
Read Answer Asked by kelly on November 09, 2018
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