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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: Hi,

I heard a term this morning, "accidental high yielders" which was used to describe companies whose stock price had come down so much that their yield (presumed very safe) was "accidentally" high. The example was British Petroleum who apparently yields 6%.

Gluskin Sheff now yields a whopping 9% which doesn't even include their special dividends. You've said before that they have a good cash position, and that their dividend is safely covered, thus I might argue they are an "accidental high yielder".

Do any others come to your mind that might yield 5%+ after the recent sell off and have very good balance sheets and cash flows?

Cam
Read Answer Asked by Cameron on October 31, 2018
Q: Based on insider reporting information provided by my broker approximately 17 million shares were sold by the insiders in March of this year.
Do you find this significant?
The stock in the meantime dropped by more than 30%.
Can you please verify that indeed there was a substantial reduction of shares owned by insiders early in 2018?
As well, would you still hold their bonds maturing in 2023?
Thank you for your insight.
Read Answer Asked by Terry on October 31, 2018
Q: Hello,
The ALA.PR.U preferred has fallen like all other ALA shares.
If they cut the dividend on the common, could they just as easily cut the dividend on the preferred?
My intentions are to generate USD income and still take advantage of the dividend tax credit.
Would you suggest I hold off from averaging down?
The yield (in USD) is appealing. Thanks
Read Answer Asked by Carlo on October 31, 2018
Q: G&M reporting that the Pres and CEO of Alta Gas sold 22,750 shares on Oct 9 @$21.01
This brought his total ownership down to under 3,000 shares. This should not be legal, given the forthcoming results. Can the OSC not do anything about this?
P.S. Not a case of sour grapes here. I was not a player of ALA. I just find the company's behavior, and this insider sell in particular, inexcusable. How can this sort of thing foster public confidence in our market?
Read Answer Asked by john on October 30, 2018
Q: Here's another question on Altagas. On the CC, management indicated that they are going to re-evaluate the proper dividend rate (payout ratio) for the company given the new mix of assets. I'm assuming this is code for "we're cutting the dividend". Your thoughts?

Thanks,
Peter
Read Answer Asked by Peter on October 30, 2018
Q: Do you see a risk to BCE's dividend? Could a company like BCE cut their dividend and go to the bond market to lower their cost of capital? Also, BCE has made extensive capital investment over the last 5 or six years. How long would BCE management expect to wait to get a return on the companies investment?
Read Answer Asked on October 30, 2018
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