Investment Q&A

Q: my question regards our holding 2.5% in enb and 2.5% in ala both pay wonderful dividends but both are down about 6% in our portfolio...would you keep these both these stocks or remove one of them ...we also own a 1% weighting in wcp in energy but a 4% weighting in kwh.un and vnr...this is not a burning question but one that we feel possibly needs to be addressed and you are the people that know best so thank you for your advise...

Q: Hi Peter and Gang,

IPL is currently trading at a much lower P/E ratio (18X, 6.3% dividend yield) than PPL (35X, 4.8%) and ENB (50x, 4.9%). Would you please comment on what may have contributed to this.

Cheers,
Harry

Q: What is your current opinion on KML since its price drop from its IPO price and its current yield of 4.2%? I note that TD Waterhouse are now recommending it on their Action Buy list.

Geoff

Q: Hi I want to increase my position in Consumer Stocks by about $40,000 to be balanced and defensive plus receive some dividend income, currently hold Conagra ($20K); Lamb Weston ($8K);Magna ($18K); Mondelez $18K);Rogers Sugar ($21K); and Saputo ($25K).
Are there some better choices out there I can buy, your ideas appreciated, thanks!

Q: Good aft,
What do you think the prospects are on this one. Can they sustain the payout, any development with the problem accounts ? I can use the tax loss if it's going to be a slow recovery I would rather move the money in something else that pays a good dividend.
Thanks for your insight
Denis.

Q: Do you have a preference between these funds as a income generator and can you rank them from best to worst? Thank you!

Q: Hi 5i Team:
A couple of thanks first before getting to my question.
1. Thanks for the fantastic job you did on my portfolio review and the suggested transactions.
2. Thanks for your opinion and feedback on annuities.
I have some money to add to my fixed income. Are you still liking CLF for government bonds and CBO for investment grade corporate bonds. Time horizon is very long term. Or do you have some other suggestions.
Thanks so much.

Q: Is Cargojet a possible beneficiary in the expansion/growth of Amazon ?
Are there other Canadian companies in the transportation / logistical /distribution sectors that might also benefit from Amazon's success?

Q: My broker has approached me to purchase the convertible debentures of Automotive Finco Corp He thinks that it close to another Carfinco

The yield is very tempting

What are your thoughts They have just increased the dividend Do they have the cash flow to support the dividend Would the common stock be less risky

Would Autocanada be a better buy

I would appreciate your insight

Paul

Q: Are either of these a buy and hold? If you had to choose one, which would it be?
Thank you.

Q: I am thinking of taking a position in this REIT. Any cautions or flags?

Thanks for the advice

Q: Is tomorrow the day the subscriptions for KWH.UN will be filled ? If not what is the date ? I have a half a position I would like to increase. Can we expect immediate profit taking ? Should I wait a few days to see what happens to complete my position ?

Q: First, a quick comment on Patient Home Monitoring regarding your response to Robbie's inquiry this morning. I agree the board members need to go but it's the present management that has turned around the debt, margins, revenues and general focus of this company and should they not be credited with doing a very difficult job in the face of such negativity as this stock has seen over the past two years.
I am building an income portion of my RRSP and currently hold KWH.UN, FC, HOT.UN and ECN.PR.C and would like an opinion on adding BCE and HR.UN. Canada is "possibly" ready to raise rates so are my present holdings and additions facing headwinds for that reason. I want to hold them for years and would be happy with just the dividends.
Thank you.

Q: Is there a way to determine whether the dividends paid out by a company will be taxed as income or will receive the dividend tax credit, in an unregistered account? for example: enb.to, enf.to, bep/un.to, bip/un.to, bns.to, ala.to, bce.to, eci.to, etc. I am looking for solid companies with growing dividends where these dividends will be taxed more favourably as dividends and not income. Would you have a list of suitable companies? Thank you.

Q: I already own both, what are your thoughts of further purchases at these levels ? Enbridge as a buy and hold and Teck as a trade. Thanks Steve

Q: Are there any disadvantages these days buying stocks in less than 100 share chunks?

Q: I bought RBA at 30, rode it to 52 and now it is 39 and change as of Friday. I thought it would be a steady stock for a good or poor economy. Last quarter was bad, but was compared to a record quarter from the previous year. What is your opinion of this stock: hold or sell? Thanks

Q: I manage an income portfolio for my wife who is 69 years old. The sole purpose of this portfolio is to provide income for life. Therefore the dividends are important and the actually ups and downs of the price of the stock less so. Some of these stocks pay quite high dividends. My question is are any of these company dividends at high risk of being cut due to raising interest rates or a downturn in the market and should be replaced with stocks that have lower yield but with safer dividends. The stocks are:

A&W Revenue Royalties

Artis REIT

BCE Inc.

Bank of Nova Scotia

Brookfield Renewable Partners

Chartwell Retirement Residence

Chorus Aviation Inc.

Cineplex Inc.

Dream Global REIT

Enbridge Income Fund Holdings

Extendicare Inc.

Pure Industrial Real Estate

Richards Packaging Income Fund

Royal Bank of Canada

Sun Life Financial Inc.

TransCanada Corp.


Apple

Whirlpool Corp.

Q: Preference shares
How does the market value preference shares? Disregarding variables such as credit quality and characteristics of different issues, these shares strike me fundamentally as a series of cash flows discounted to a present value. I suspect that the market is driven by institutional traders who are guided by a particular benchmark to establish a discount rate to determine the value of the cash flows If I am correct, what benchmark rate do the market makers use and does it vary? For example, do traders always use a benchmark of x bps over Canada bond yield for equivalent terms and is there an established amount for x which doesn't change over time? Without predictability in this regard, there would be no way to assess whether reset shares will trade at par on their reset date.

Q: I have large positions in both companies and would like your medium term analysis,opinion and expectations on upcoming earnings.
Thanks again
Gary