Investment Q&A

Q: Good Afternoon - The resto royalties seem to have lagged this year. What are your thoughts in general and could you please rank the four listed here. Thanks.

Q: I am looking to add to either my Utilities or Industrial's.

My industrial weighting for Industrial is 11.8% which might be a bit light, and I can add to CAE or NFI.

Or,

Add to my Utilities is also quite low at 4%. I have BEP and ENB there. Should I add to ENB at this time?

As always thanks for the great advice

Lastly, the only REIT I have is a Small Position in Chartwell. Which i have put in Healthcare. I do have Financials at close to 15%, but should I look at my home as a big investment in real estate and not worry about it?

Q: We own approximately 4000 shares in ALC composing about 2% of our portfolio. We have held the shares for a number of years and have certainly experienced the ups and lately downs of any commodity based stock - even though the company is supposed to be in the industrial sector. We are currently negative on the stock but their fortunes seem to be improving as the price of iron ore seems to have stabilized. Of course it is hard to trade the stock when times are bad since they are such a thin trader. A "haircut" is a certainty if one really wanted out. Now ALC seems to be offering to buy back shares through a "Dutch Auction". Since the buy back will be prorated I suppose we won't be able to tender all our shares. I don't really mind that we are negative since I like the dividend and 2018 may bring better times. (The mantra of any "buy and hold" investor)! My guess is that management thinks that 2018 will also see improving revenue. I wouldn't characterize the offer as "low ball", I believe it to be fair but maybe 12 months too late to really be taken up. ALC doesn't have much float so they may have trouble taking up too much stock. Any float they do take up will make the stock even more of a thin trader than it was previously. If we were to tender I would tend to purchase SQM as a replacement even though the dividend is lower. Our material sector exposure is on the low side - just AEM having a 2.5% weighting. Our industrial sector weighting is 23% (NFI, WSP, SIS, MAXR, LGT.B and ALC).
Any suggestions on what to do? If you think we should consider taking up the offer what ask price should we go in at? The ask needs to be between $13.80 and $14.75. If we go in at $13.80 do you think there is a chance we could sell all our stock? I realize this is a complex question so please deduct as many credits as you think appropriate.
Thanks
Jim

Q: I have held ALA in the past(2 months ago) and sold it at a loss which I can use to offset some gains. I currently hold ENF but am considering selling ENF and buying back ALA. What are your thoughts on the dividend safety of the two stocks and their growth prospects?

Thanks Ken

Q: It just dawned on me that with the endless fighting over softwood lumber and US pulp tariffs and controls that maybe KP Tissue/Kruger is getting caught up in the turmoil. Maybe that's why it is down 12.7% from what I paid for it about a year ago. The current yield is 5.22%

On October 31, 2017 you said : "KPT really has not created much value, and the stock was higher in 2013 than it is today. For income we would consider it 'so so' and certainly think there are better options out there. We prefer dividend growth, and the dividend has not changed in five years."

I am currently overweight in Financials, Telcos. Utilities, and Pipelines, so would you advise selling KPT or just holding for income.

Since you think there are better options out there I would appreciate your suggestions of several other consumer sector companies with dividend growth and with a comparable dividend yield.

Thank you........... Paul K

Q: Hello, I would like to put some money into an ETF or mutual fund. Would be in for the long term +5 years.
Would these three be acceptable for dividend, stability and small growth? I’am retired and need income, but not interested in U.S. tax filing.
Would you invest in all three? Or do you have a better suggestion with one or two ETF’s ?
Thanks

Q: What are your thoughts of this bond fund
For the long term 5 to 10 year’s
Do you have another mutual fund you like better for my rrsp account
Thanks for the help
Sam

Q: Do you see ENB as a potential tax-loss selling candidate for the remainder of this year, despite it not being on your list in your recent blog entry on the topic?

I have a 3% portfolio weighting of ENB in a taxable account and still wish to hold it long term, however as I have a small (7%) loss I'm contemplating selling it and buying it back at the beginning of January or thereabouts to offset some of this year's capital gains. Would you advise such a move for ENB right now, or is this all a bit too fancy (and/or risky)?

Q: Peter I have 100'000inus funds I want to invest it in Canadian companies who pay dividens in us could you suggest say 8 to 10 stocks that you would consider for this I am retired and it is for income should we go south at any time
Thank you for your advice Pat

Q: May I have your input and opinion on CWX
This looks like a good investment with over 8% dividend paid quarterly
Thank you

Q: I see Pembina is offering preferred shares at $25.00 and yielding 4.9%. Would this be good for the fixed income part of a persons portfolio. How safe is it.



w

Q: This is a reset preferred that I bought in the $16 range. With increasing interest rates and collecting the interest, I have done quite well. As long as interest is predicted to rise it will increase in value.
I was thinking that about selling if there is a forecast that interest rate will rise again in Dec or Jan. Will use proceeds to buy ENB in The midst of tax loss selling giving me a better dividend and more opportunity for growth. What’s your view on interest rates and buying ENB ?

Q: What is your opinion of this company going forward. How would you rate it against Telus or Rogers?

Harold

Q: I am retired and my income needs are covered by pension and RRSP. My question is about my non sheltered investment account and the dividends. Since I don't require the income from that account, would it make sense to enroll the dividend securities in the DRIP/DPP plans available? Would this reduce my income for tax purposes because I would just be "buying" more of the security instead of gaining cash dividends?
Thanks for your help.

Q: Hi
Just read the question from another member regarding long term returns and longrundata with the response including a link to a Canadian Dividend Aristocrats site.
Are you aware of this site that has a monthly update of Canadian companies that increase their dividend ranked by the period of time the company has annually increased its dividend to shareholders? (CU is #1 at 45 years).

http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/

Q: I would appreciate your comments on the use of DRIPs in margin, RRIF, RRSP and TFSA portfolios. I am a conservative investor (age 75 with company pension plan) and favour banks, utilities and telecoms.

Q: IS telus a smart buy now. Also if I buy now am I eligible for this years dividend payment? If so when do they payout?

Q: Where can I find a source of long run stock analysis --- say 30 years --- to look at "what if" scenarios looking at the stock using DRIP and not using DRIP. I prefer Dividend Aristocrats. Is there a list of Canadian Dividend Aristocrats? I read that in thirty years Royal Bank went from $3 to $100 and their dividend grew to equal the $3 cost of the stock 30 years ago thereby realizing a 100% yield. This reinforces the "buy and hold" philosophy.

Q: I own ZWH at present in a registered account. Is there any advantage to adding XDU (hedged or unhedged) for diversification? I am also looking at ZWU as a possible addition. Thank you.

Q: 5i team,
I want to understand more about ENB's debt. Most company web-sites allow the user to easily drill down under "Investor Relations" to find what one wants. The ENB web-site seems different - their Search engine asks "What can we help you find?" I tried to use this, but found it ineffective in finding what I want, debt or other info. Are you able to help on this? Thank you. Edward