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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: I bought AX.UN for income and growth, and while the 8% dividend remains attractive I am concerned about growth in this space. I'm thinking of trading for KWH.UN for same payout but possible greater growth potential. I would appreciate your thoughts on this action.
Thanks as always fro the great service
GUY R
Read Answer Asked by Guy R. on September 14, 2017
Q: hello 5i:
could you detail the differences between HFP and HPR, please, and what type of interest rate environment would be optimum for each? Would holding BOTH be a strategy and is it necessary?
And, could you include backtest results as to what could be expected in the case of an extreme drawdown?
thanks
Paul L
Read Answer Asked by Paul on September 14, 2017
Q: 12:32 PM 9/11/2017
Hello 5i
Thank you for your answer to my question this morning about selecting companies with the highest probability of reliable long term income and dividend growth.

Just to follow up, if I am reading between the lines correctly I infer you would clearly choose banks if we didn't already own some. But since we do your suggestion is to buy CSH.UN and NWC.

I am fine with your suggestion but did you make it basically just to provide "diversification" at the cost of buying much much smaller and possibly less stable companies or would it be just as safe to simply overweight on Canadian banks.

Do you really think CSH.UN and NWC are as "safe" as RY and TD? After all if banks go down, so goes everything else. Just how "dangerous" is it to have a 20+% position in the big 5 banks?

Thank you............. Paul K
Read Answer Asked by Paul on September 11, 2017
Q: 9:57 AM 9/10/2017
Hello Peter :
My wife and I are in our 70's and require additional steady dividend income to complement our pensions and bond income. We wish to choose companies that we never need to consider selling and that have reliable dividend growth and little chance of dividend cuts.
We have a 4.5% cash position we want to invest.
We need to decide between two options:
1. Invest the whole 4.5% in RY or TD, [we already own 10% split between BNS and CM], or
2. Add to 2 or more of these existing positions : CSH.UN [3.2%], SIA [3.9%], NWC [2.2%], CSW.A [3.1%], RPI.UN [1.0%], or invest part in new positions in one or more of ET, ZCL, ABT, or ADN.
What choice or choices would you advise us to make for the highest probability of reliable long term income and dividend growth?
Thank you............. Paul K

Read Answer Asked by Paul on September 11, 2017
Q: Hi team, what is an income investor to do in a rising rate environment? What are the sectors and equities that will be most impacted and what are the best sectors to invest in? Do you have any specific stock recommendations for income? I currently have many of the canadian banks, utilities and telcoms which have all taken a hit.
As always thanks for you advice.
Nancy
Read Answer Asked by Nancy on September 07, 2017
Q: I have a half position in both A&W and BPF. Have had long term holding on both. Thinking of selling BPF and taking full position in A&W. Or replacing the BPF with HR.UN. Your thoughts
Read Answer Asked by David on September 07, 2017