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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: Hello Peter and team, I know you like Endbridge (ENB)very much, you actually have it in two of your model portfolios. According to TMX Money, ENB has a yield of 4.2% and a P/E ratio of 28.0. On the other hand ENF has a yield of 6.2% and a P/E ratio of 15.2. If you had to invest in just one of them today, would you still select ENB rather than ENF? If yes, could you comment on the rationale for doing so. Regards, Gervais
Read Answer Asked by Gervais on April 05, 2017
Q: Hi
I just experienced the following with RBC DI which I would like your comments on.
I put in a sell order on Mar 31st for all of my shares of DH after verifying on the DH website that their DRIP program was suspended as of October 25th 2016 and that all future dividends would be paid in cash. So I assumed that I would receive cash for my March dividend. Then today, one share appears in my DH account as a DRIP.
I contacted RBC Direct Investing, ended up talking to a supervisor who agreed to sell my share with no fee. Then I asked how they could process a DRIP on a company who 6 months earlier suspended their DRIP program. It was explained to me that RBC DI has their own DRIP eligible list and it had not been updated as yet for DH change as there is only one person doing this.
I find this unacceptable as I depend on this brokerage to reflect what is happening in the market place. Is this ethical to issue drips, I assume from their inventory of DH shares?In your experience is this normal ?
Thanks
Kathy
Read Answer Asked by Kathy on April 05, 2017
Q: Further to a response to a question by Robert on Apr 3 concerning dividend stocks provided to a grandchild. Could you provide the payout ratio for PTG, CWX, AIM, DIV

Thanks
Stu
Read Answer Asked by Stu on April 04, 2017
Q: Hi 5i
I'm interested in adding Altagas to my portfolio. I curently have 15 stocks which range from 4 to 8%....(AGU-BEP.UN-CAR.UN-CGX-CSU-KWH.UN-ENF-FTS-IPL-STN-SLF-T-TD-VET-WSP). This is a registered dividend/income account (rrsp). I would appreciate your view on either replacing a weak stock in this account or just adding to it. If you can think of a better stock than ALA i'm open for suggestions. Thanks Gilles
Read Answer Asked by Gilles on April 04, 2017
Q: Since Canadian Reits have to distribute out their capital gains [and hence NOT reinvest in new properties] and with declining ROC components.....Is it time to re-invest in Canadian dividend stocks for those of us who depend on a rising stream of income.

Our reits face unfair competition from pension funds, which can reinvest capital gains tax free.

I have been in Cdn Reits since the late 1990's. Is it time to 'kiss then good bye'?

Thanks.

Paul
Read Answer Asked by PAUL on April 04, 2017
Q: Hi
I am looking for your top pic for Secure High Dividend ETF's - One Canadian Equity and One USA. I am also looking for High Dividend Growth ETF's (Like CDZ) - One More Canadian and One USA
Read Answer Asked by Ron on April 03, 2017
Q: Can you give me your opinion on RIT, XUT AND HWF. I am looking primarily for yield but also some growth potential.
Thank you
Read Answer Asked by Bruce on April 03, 2017
Q: A couple of years ago I hit upon the idea of giving each of my grandchildren $500 on their 16th birthday to establish a first investment and, I hoped, learn something about investing by direct experience. I gave them 250 shares (still in my name since one cannot open a brokerage account under the age of 18) of Surge Energy then trading at $2.00 and paying a dividend of $.0125 per month yielding $3.13 in the first month, enough to buy one more share in the DRIP brokerage account. Working beautifully until last May when SGY halved the dividend (also instructional, but disappointing)

I have another grandson turning 16 and would like to do the same for him but do not know of another security with the same feature of paying enough dividend (possibly quarterly) that provides enough to buy one more share with the dividend generated from a capital base of close to $500. If you have a way of mining for such opportunities, I would be most grateful to hear your suggestion(s). (I do not have any experience with ETFs but perhaps there is a possibility in this sphere?) If you have another suggestion for an intro investment, I would be glad to hear your thoughts.

Thanks very much, Bob.
Read Answer Asked by Lynn on April 03, 2017
Q: What are the your favorite High Income Bond Funds (Canadian, USA and International) - Best Management and volitility
Read Answer Asked by Ron on April 03, 2017
Q: Hi Guys!

I have a question about how to wait. I bought BIP in November 2016 and sold it after I made 4%. Looking at the chart now, I could have made much more than that (20% actually).

I've learned how to buy right and sell right. But how do you just "wait" right. What is a good waiting/monitoring strategy.

Thanks so much!

Dave
Read Answer Asked by David C. on April 03, 2017
Q: Hi Folks,

I am gradually building up a dividend producing portfolio. At this time I have positions in EIF, VET, BCE and AQN. I'm hoping to achieve a 4 - 5% dividend yield plus 4 - 5% appreciation. Do you think my return expectations are reasonable? What are your thoughts on my current holdings? Could you give me your 5 - 6 favorite dividend stocks for me to add at this time? Please deduct whatever number of credits my multi pronged question merits.

Thanks for the great service.

Dennis
Read Answer Asked by Dennis on April 03, 2017
Q: Hello all,
This is further to the question regarding BIP.UN and tax reporting. I have had this equity for several years and it is always, without exception, the last tax form I receive. As of yet, this year's (2016) has still not arrived.
Having said that, it is a very small problem. Annoying, yes, but nothing more.
So, some final points:
1. It is probably not tax-advantageous to keep in a taxable account in the first place. (That was the only room I had available when I chose to purchase it - my bad.)
2. Kept in a TFSA, RRSP or other tax-efficient entity I don't believe the tax issues apply so if you have, or can make room, put BIP.UN (this would apply to BEP.UN as well, I imagine) in one of those vehicles.
3. We are in the process of moving our BIP.UN into our TFSA's each year until it is all in TFSA's, thus our tax issues become smaller each year until they will finally go away.
4. BIP.UN has been a stellar performer in our portfolios both in terms of dividend cash flow and capital appreciation - it would take something really dramatic for us to part with it. I guess it would be one of our "core" holdings.
All the best!
Cheers,
Mike
Read Answer Asked by Mike on March 31, 2017
Q: Re: Ian's earlier question - I have held both for several years in taxable accounts and have never had any issues getting the tax forms (T5013) on time. Complexity comes from the fact that the Distributions are not "Dividends" but include elements of Foreign Income, Interest, Return of Capital as well as Eligible Divs.....so tax hit is different than a dividend that qualifies for the DTC. This changes each year and and the T5013 lays all this out quite clearly. If you would like to get a breakdown of the elements of each historical distribution - there is also good summary on each of the firms websites. I am a very happy shareholder of both!
Read Answer Asked by Gary on March 31, 2017
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