Investment Q&A

Q: Hi 5i. FI = Fixed Income

My (6) FI holdings with rough total returns (including MER & dividends) for period held (average ~ 1.5 years): CBO -1.3%, CPD +15.0%, HFR +1.7%, XBB -2.2%, XHY+5.5%, LQD -0.6%.

NOTE: LQD not selectable, so picked HYG for question above.

Question: I understand the reasoning behind having the above FI holdings in my portfolio, but holding CBO & XBB seems like a sure way to lose money. So why not move CBO & XBB holdings to HFR (and possibly also XHY) which at least returns me ~ +1.7% pretty reliably? Your opinion on my FI mix would also be appreciated.

Thank you for continued solid wise advice.

Q: KP Tissue has been on a steady decline, despite a very attractive dividend. It seems more than a plain vanilla reaction to rising interest rates, as the dividend should be providing support. Is there anything "lurking" in the background that might be spooking investors?

Q: why do you think XHY is holding up so nicely given recent US market volatility...thanks.

Q: I've decided to begin building an income portfolio and have chosen the companies listed above. (Mostly from your Income Portfolio). I am retired but my pension income covers my monthly expenses. I'm looking for companies that you believe are strong enough to maintain, and hopefully increase), dividends in the long run. I understand we are in a climate of interest rate increases and income stocks could suffer as a result so I'm wondering if I should wait to begin building this portfolio. My intention is to round out the portfolio by adding companies from your balanced portfolio. My questions are:
1. Can you suggest a strategy that you consider to be wiser as I begin to develop my new portfolio?
2. Do you consider the companies I have chosen to be the best choices for a new portfolio considering all current investment metrics? Could you suggest any I have missed?
Thank-you for your continued support.

Q: With your answer to a Q on ENB as time being on the buyers side I put a low ball bid in for some shares. Could you give me a list of 'safe' stocks (i.e. like ENB and not KWH.UN for example) with great yields that one could put stink bids on? I will assume in your answer that putting ENB over ENF(e.g.) indicates preference of the safer investment vehicle.

TIA

Q: We have a lot of STB, our favorite dividend payer, and are loosing it to the buy out. When is the last xdiv date and the last div payment date? We have held DR for a long time as well and thinking of adding to it with the proceeds. Your thoughts? Any other suggestions? Thanks for your excellent advice. It is much appreciated.
Dick

Q: Hi - I have gains on WFT within a TFSA. I am thinking about selling WFT and buying WEF as WFT has outperformed WEF over the past year. Thoughts?

thanks
Mike

Q: Hi,

My portfolio is a bit light (5.8%) on Industrials than I would like (10%). I currently hold CAE (1.25%), XYL (2.5%) and SIS (2%). For a relatively conservative investor, what would be your top 3 recommendations?

Q: is the yield too good to be true ?

Q: Can you comment on TWM's lastest quarter at the end of March and your outlook.

Q: Do you feel this REIT is undervalued currently. Is it a decent purchase? Thanks

Q: Hi Peter
I currently own both railways. CP does not produce much in the way of a dividend while CN does.
I depend on Dividends for my retirement, and am looking for for cash flow. I notice ALTA Gas pays 9% and has done so for some time. Would it be advisable to sell my CP and buy into ALTA. I currently hold 400 shares of CP and 800 of CN
Thank you
John

Q: Good Morning!

Could you please give me your opinion on above Company.
Thank you.
Albert

Q: At this stage, with the WGL acquisition likely to go through, is it better to switch from the subscription receipts to the common shares? Specially since the common is trading at a discount to the receipts. Thx

Q: Good day,
Should I be concerned by the decline in AW ? Its been going down $10 last year. While I am still in positive territory, I used to have a really great return on this one and I don't recall any particular bad news. What has changed and what the future looks like in your opinion. Please recommend 2-3 safe income stocks with upside potential and tell me if you recommend to swap. Its in a RESP. Thanks!!

Q: Going forward, which would you pick as an income stock with preservation of capital as paramount and why. Thank You Ron

Q: I’m worried about ECI. The price trend has been down for three months, but my bigger worry is about criticism of its core business model in the media recently. It seems some of ECI’s clients are complaining they were locked into high-priced long-term (14+ year) water heater rental contracts unknowingly, and without the ability to opt out, when they bought their new homes. Apparently if they want to get out of these contracts now they must pay huge sums of money that make doing so very uneconomic. There are demands for government action to regulate such predatory contracts. Some water heater rental companies are doing this for sure, though I am unsure about the specific terms of ECI’s contracts compared to other companies. Can you shed any light on this? In your view, how much is this raising the risk profile of ECI?

Q: Corus earnings were almost double estimates. Do you see more improvement in the future or was this the result of one-offs?

Q: I understand that the key criterion for evaluating a company’s ability to continue to pay a dividend is “ free cash flow”.

1. What is ENB’s free cash flow?
2. What is the dividend payout ratio?
3. Is free cash flow projected to grow over the next 3 years?
4. I looked for this information on your “profile “ page for ENB.
I did find 5 yr dividend growth 17.48 ... is that a percentage number for that time period?
I did find price to cash flow but not the information I was looking for.

Can you help me both with the information requested and provide some guidance in how best to interpret and use the profile information.

Thanks for all your help here.

Q: Do you know what is driving BBU.UN? It has made quite a significant move but no news that I can find. Thank you.