Investment Q&A

Q: Could you please give your thoughts on SPB.

Q: Which will have a bigger impact on the price and prospects of this company ? Interest rate hikes in Canada, or the general economic health of the Canadian economy ?

Q: Peter and Ryan

Great work
Keep reminding people to stop looking at their bond returns.
Everything equity is going up but people email you about a small loss on their bonds. Smooth seas only last so long and those bonds are there when the storm hits.

Q: I have recently sold my cottage and wanted to know where to invest the money to get the best safe return. I already have reached my comfort level in stock investments so in today's low rate environment where would I find the highest rate of bond gic etc as I plan to retire in 3 years and this money is my safety net thanks.

Q: CPX took a hit following their last quarter, but they did raise their dividend and still have around a 50% payout (correct?). With the lower price, I am considering buying some, mainly for the dividend as opposed to capital gains (I'm retired and always looking for income). Some questions:
- has their coal-plant issue been satisfactorily resolved
- is their debt level in line with other power producers
- what do you think of their movement towards renewables
- do you consider the dividend sustainable (yeah, I know . . . )
- how successful have they been in meeting estimates
- would you buy today for income (I already hold AQN and NPI)

Thank-you

Q: Hello 5i,
Which preferred do to you prefer? Pardon the pun.
I'm seeking USD dividend income from Canadian companies to take advantage of the div tax credit. Can you suggest other vehicles or strategies to achieve this?
Are these perpetual or rate reset? With rates increasing, why aren't these going down in value? The yield seems to be north of 5%. Any obvious risks I may be overlooking?
Thank you.

Q: Hello,

I am down by 16% on this but earning a good dividend...Wondering if this is a good candidate for year end tax loss selling. Anything wrong with Crius or is this sector related. Thanks. Shyam

Q: Do you feel this is a good entry point for long term positions in KWH and AAR?

Q: From your answer to Milan :
A diversifed portfolio of bond issuers (corps, gov, prefs, high yield) will earn a better yield and is more appropriate from a higher income need aspect. Bonds can actually see capital appreciation if rates were to decline, or even hold steady. Cash/GICs would not benefit in this case. Overall, we remain on the side of diversification. Hold a bond portfolio with various issuer types and add in some GICs and/or cash. How you weight these reflects your views and tolerance.
Could you suggest a diversified bond portfolio with various issuer types that should produce more than the 2.75% offered by Tangerine?

Q: Rogers is up some 37% in a year, 54% since I bought it in 2015, not including the dividend, blowing await Telus and BCE. Clearly the addiction to cell phones and data is growing and NHL Gamecentre has to be a real positive for them in getting subscribers. Just expanded LTE wireless in Manitoba. Do you think there's still legs or has it ahead of itself. Sell and pay the cap gain taxes or hang on for more good things?

Q: I have read that the Fed dot plots are showing a 3% Fed Funds Rate within three years. That should imply a 10 year bond rate of 4% to 5% at that time. If so, would that be negative for bond proxies such as utilities, pipelines. telcos and reits? What about high yield corporate bonds? Should we stay away from rate sensitive investments and concentrate of growth stocks? I am a retiree with a need for income.

Thanks

Q: the company appears to have superior metrics to BCE, Telus and Rogers - P/E, EV/EBITDA, P/Free Cashflow and a 7.5% dividend. it also has dealt with some accounting issues. what do you think of the stock? do you think Brexit will affect the company?

Thanks Ken

Q: I want to add to the Income Portfolio and I am wondering what the best addition would be. Over the past 3months SPB WSP and AGU have been the stronger performers while KWH has under performed. Am I better to add to the weaker one and maintain the percentage share of the portfolio or go with strength. If you were adding to the portfolio today which would you choose?
Thanks
Mike

Q: Is there any reason to think this improves in the next six months or is it time to move on? I would be selling for tax loss but do enjoy the dividend and will keep if you see this improving. THANKYOU

Q: Should I trade AQN for RNW?
I am a senior dividend investor, and would ask for your opinion about this trade, along with whatever positive or negative comments come to mind.
As background, I have a ¾ position in RNW and ¼ in AQN. RNW pays 6.81% and AQN pays 4.22%. AQN is forecasting 10% growth per annum till 2021. RNW has nothing on the horizon, now that South Hedland is up and running, with nothing seen to be coming from ‘daddy’ (Transalta), so perhaps no growth in the short term.
However – even at 10% growth the dividend at AQN will only be 6.76% in 5 years, still less than RNW today even if their dividend remains the same. I surmise that both dividends are safe (would you agree?), and am really thinking “bird-in-hand” makes more sense than future promises. I do realize that if prospects remain the same, AQN may experience more growth, and I may be forfeiting some capital gain (this is in an unregistered account), but a 2.6% differential is a lot to give up for future ‘possibilities’. Since the companies are in the same business – more or less – I also have difficulty seeing any differential in risk one versus the other.
Of note, RNW has earnings on Tuesday. Would you wait until after the earnings release to make this trade, or would you make it now?
I look forward to your comments.
Also, thanks for the 2 year renewal option. I will be taking advantage of that to keep enjoying your very superb service!Thanks! ... enjoy your day!
Paul

Q: Any thoughts on why Enbridge has been so beaten up this year? I hold ENF for the dividend. Should I be concerned about the dividend being reduced?

Q: I have trimmed profitable stocks and a couple of losers and am now sitting on some cash I would like to place into some income generating stocks for the coming 3 years. Should I wait patiently for a correction or are there some current well priced options with decent dividends you would suggest?

Q: I'm pushing 85 yrs and invest for dividend income. Since the first of the month we have seen steady drops in the pipelines, with ENB being far the worst, and both TRP and PPL also big losers. Time to change, or hold on and wait it out? - Thanks, Ted

Q: What do you think of this company for income and some growth.

Q: One of the Risks this company mentions in it's recent filings is "Contingency Risk" which they state is an estimate of the liability expense for claims NOT covered by their Liability Insurance. However I do not see any amounts set aside for Contingency Risk on any of their statements. 1st) which statement would I look on for this item - Income Statement, Balance Statement etc and 2nd) If there is no amount recorded on the statement which should carry it, does that mean they have no uninsured liability claims or perhaps that any such claims are in fact handled by the primary medical centers majority owners?