Q: Would it make sense to move Brookfield to my USD account to avoid the exchange conversion fee when I receive quarterly dividends? I don't believe the timing is good with our dollar so weak? Thx
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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 don't think the most important reasons to hold bonds in a portfolio have been touched on yet, so here's my take. Dave, of the March 5 question to 5i on bonds, is probably a guy of working age. I, as a retired person, have a different perspective on holding bonds other than enhancing a portfolio's returns, but this is occasionally possible in a low to negative market return year if fully invested in stocks.
I am quite content to receive a 50% bonus to the inflation rate on my fixed
income part as it means I am holding my own after tax when it comes to the
spending power with inflation on that part of the portfolio and it is indeed
about asset allocation as I try to cover all asset classes in my portfolio
strategy including stocks, prefs, gold, cash and fixed income. (No crypto yet). For me, stocks provide the main boost in the overall return, long term. The dividend tax credit's a big help.
What I like about buying individual bonds which I usually hold to maturity is
controlling the issuer's credit quality (for me always investment grade), the
maturity date, and the guaranteed capital gain if buying discount. I've tried
bond ETFs for trading and better liquidity but since I have no control on
maturity or quality, I always seem to end up claiming a loss on the sale, and
any return is fully taxed as interest. I'll buy GICs also for a better interest
rate. The 3 reasons 5i gave for not liking bonds are, for me, minor reasons for having bonds, at my stage of life, if properly balanced in the portfolio.
As far as investment gurus like Buffet being fully invested in equities, this isn't quite accurate.The core of his Berkshire portfolio is insurance stocks which in and of themselves can be considered pension or bond-like. When they receive premium income, what do they buy - bonds because they need to be certain of future obligations and be liquid at the same time. Let's not forget the bond market is 40 times the size of the stock market, which is why Buffet laments there's nothing of size for him to buy and he ends up with holdings like Kraft Heinz. I'll wager the bond holders at KHC are sitting pretty while the stockholders cry in their soup.
If you've read this far, you're probably wondering how deep I'm into bonds and bond equivalents:
It's 29% compared to 14% cash 11% prefs 42% stocks & 4% gold currently, but this does change.
I am quite content to receive a 50% bonus to the inflation rate on my fixed
income part as it means I am holding my own after tax when it comes to the
spending power with inflation on that part of the portfolio and it is indeed
about asset allocation as I try to cover all asset classes in my portfolio
strategy including stocks, prefs, gold, cash and fixed income. (No crypto yet). For me, stocks provide the main boost in the overall return, long term. The dividend tax credit's a big help.
What I like about buying individual bonds which I usually hold to maturity is
controlling the issuer's credit quality (for me always investment grade), the
maturity date, and the guaranteed capital gain if buying discount. I've tried
bond ETFs for trading and better liquidity but since I have no control on
maturity or quality, I always seem to end up claiming a loss on the sale, and
any return is fully taxed as interest. I'll buy GICs also for a better interest
rate. The 3 reasons 5i gave for not liking bonds are, for me, minor reasons for having bonds, at my stage of life, if properly balanced in the portfolio.
As far as investment gurus like Buffet being fully invested in equities, this isn't quite accurate.The core of his Berkshire portfolio is insurance stocks which in and of themselves can be considered pension or bond-like. When they receive premium income, what do they buy - bonds because they need to be certain of future obligations and be liquid at the same time. Let's not forget the bond market is 40 times the size of the stock market, which is why Buffet laments there's nothing of size for him to buy and he ends up with holdings like Kraft Heinz. I'll wager the bond holders at KHC are sitting pretty while the stockholders cry in their soup.
If you've read this far, you're probably wondering how deep I'm into bonds and bond equivalents:
It's 29% compared to 14% cash 11% prefs 42% stocks & 4% gold currently, but this does change.
Q: Hi- can you comment on this new Conv Deb issue- the rate
seems high at 5.75%- when is the issue considered high
yield and/or junk? Any concerns on the solvency of this company
seems high at 5.75%- when is the issue considered high
yield and/or junk? Any concerns on the solvency of this company
Q: Have a bit of cash for some income to purchase one stock, which one would you prefer and why looking out 12-24 months.
Thanks
Anthony
Thanks
Anthony
Q: Hi Guys:
I'm thinking of taking a position in IPL in my RRIF for the dividend and the potential for growth when the Heartland Project comes on stream in 2021. The dividend yield is high which can be a cause for concern and construction costs can get out of hand which would delay any increased profits. I think the dividend is good while waiting for share price to grow, looking to build a position this year for a long term hold,is there risk to the dividend & do you think that IPL can deliver the Heartland on budget and would you have any comment of management financial projections for this project.
Regards,
Tom
I'm thinking of taking a position in IPL in my RRIF for the dividend and the potential for growth when the Heartland Project comes on stream in 2021. The dividend yield is high which can be a cause for concern and construction costs can get out of hand which would delay any increased profits. I think the dividend is good while waiting for share price to grow, looking to build a position this year for a long term hold,is there risk to the dividend & do you think that IPL can deliver the Heartland on budget and would you have any comment of management financial projections for this project.
Regards,
Tom
Q: Hi Team,
I know your focus is equities. I would appreciate any thoughts you may have about the risk of buying Morguard's 5 year corporate bonds on offer to retail investors? They would be part of a diversified 5 year bond ladder of corporates rated BBB or higher.
Many thanks. Michael
I know your focus is equities. I would appreciate any thoughts you may have about the risk of buying Morguard's 5 year corporate bonds on offer to retail investors? They would be part of a diversified 5 year bond ladder of corporates rated BBB or higher.
Many thanks. Michael
Q: Would AQN be a long term hold.
Q: What are your thoughts on yesterdays earnings? I have a 1.65 % percentage and wondering if I should add to my position
Jimmy
Jimmy
-
iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
-
iShares iBoxx USD High Yield Corporate Bond ETF (HYG)
Q: can you recommend an equivalent trading in the US.
Cheers
Cheers
Q: Income safety from a Reit or energy company or an alternative for low risk income in my RRSP. Thank you Jack.
Q: Hi team,
How do you feel about Alaris Royalty these days, specifically wrt their most recent Q4 and year end results?
Earnings certainly looked pretty good! Do you feel they are sustainable going forward?
How does their stated 'outlook' read to you?
Is the pain of the past 2-3 years behind them now?
They have an unusually high yield and I realize this does add some risk when the yield is above 5% but perhaps they have finally turned the corner.
As always, appreciate your insight!
Cheers,
Steve
How do you feel about Alaris Royalty these days, specifically wrt their most recent Q4 and year end results?
Earnings certainly looked pretty good! Do you feel they are sustainable going forward?
How does their stated 'outlook' read to you?
Is the pain of the past 2-3 years behind them now?
They have an unusually high yield and I realize this does add some risk when the yield is above 5% but perhaps they have finally turned the corner.
As always, appreciate your insight!
Cheers,
Steve
Q: Hello,
Could you please comments on AD earning result, outlook and its valuation at this price.
Thanks
Victor
Could you please comments on AD earning result, outlook and its valuation at this price.
Thanks
Victor
Q: Peter; Just a comment really on the weather and FTS. My gas bill last month was $169. - this month it’s $215. And this is BC! Has to bode well for FTS.
Rod
Rod
Q: Could you please comment on the latest earnings release on Gibson's and their comments on future growth/ guidance. Also on their payout ratio. Thanks
Q: What do you think of invesque( ivq.un )for income and some growth.
Q: Good afternoon: could you please rate those three Brookfield units for total returns over 5 years. dividend payout and growth.
Thank you.
Thank you.
Q: CSW seems to be out of favor. Can you comment/speculate as to why, please. With no debt, in demand products and nice dividend, I'm confused by its performance or lack thereof.
Carl
Carl
Q: Our 32 year old daughter has $30k for initial positions in her TFSA. She’s looking for balance + growth with a timeframe of 3-5 years. Could you suggest some of your preferred companies at the present time.
Q: Hi, Transcontinental Inc was added to Income Portfolio in June, 2018 at $31.58 for 4% position and later beefed up by additional 1% in October. The thesis was a solid dividend yield of 2.50%, high growth expectations based on transformative Coveris acquisition and a low PE multiple. Stock, however, failed to perform as expected and price fell off the cliff within a short period and never recovered since then. Two subsequent quarters have been disappointing and Coveris integration ( acquisition closed May, 2018) is nowhere in sight. Management has also not been able to address the issues and market concerns, effectively. Company legacy business is already declining. Most analysts have cut their estimates and price targets drastically. One analyst also commented that due to these issues, compnay may even lose some contarct renewals and recurring revenues. Even if we are optimistic and Coveris acquisition issues are resolved by end of 2019, it could take another 2 years, before stock goes back to $31.58, in order to just recover our principal.
So, while the stock is trading at a low multiple and company just increased its dividend 4.6%, keeping its tradition, is it worth the wait (and take the risk) or there are better opportunities to use our capital ? We have gone through a similar scenario with TSGI, only worse and in that case even after almost a year and 55% loss, there seems to be little hope. Thank You
So, while the stock is trading at a low multiple and company just increased its dividend 4.6%, keeping its tradition, is it worth the wait (and take the risk) or there are better opportunities to use our capital ? We have gone through a similar scenario with TSGI, only worse and in that case even after almost a year and 55% loss, there seems to be little hope. Thank You
Q: Hi 5i Team,
I'd like to pick an energy name from pipelines, what would be your choice today from above listed or others? to balance some growth stock in a tsfa.
Thanks
I'd like to pick an energy name from pipelines, what would be your choice today from above listed or others? to balance some growth stock in a tsfa.
Thanks