Investment Q&A

Q: I'm exploring the possibility of a half position in GEI. Where does Gibson go from here? Is the company in a position to pick up quality assets during this time of consolidation because of low oil prices? Is there any reason why the dividend will be reduced in the short term?

Many thanks, and keep up the good work,
EOS

Q: Could you please advise what the payout ratio is based on free cash flow.

Q: Should I sell my MBT shares now or wait until the approval is received from the Federal Government for the BCE takeover of them and receive BCE shares?

Q: good morning:
just wondering if you would classify bep.un, bip.un , ala,
Enbridge in the same sector as emera.
I own all these stocks but am looking at emera.
the rest make up about 15% of my portfolio.
thanks

Q: I own shares of this company in my tfsa and looking at replacing it with another stock that has more growth potential.. What are your top three in this category. Thanks

Q: Hi 5i, Is Tricon Capital a good long term investment ?
I like to hold it in my TFSA. Thank you for your advice. Motoi

Q: What do you think of investing in the S&P 500 Dividend Aristocrat index, instead of (or in addition to) the S&P 500 index?

According to this web site (http://www.simplysafedividends.com/dividend-aristocrats/) that index has outperformed the S&P 500 index quite nicely over the last 5 year and 10 year period.

So far I have found only one ETF that tracks the S&P 500 Dividend Aristocrat Index. It is NOBL (Prdhares S&P 500 Dividend Aristocrats Index) and has a MER of 0.58%. Do you know of any other ETFs that track this dividend aristocrat index, and if so, which ETF would you recommend?

Paul

Q: What utility etf paying a dividend would you suggest for a long term hold

Q: Hi. I am interested in putting away 10% of the fixed income in High Yield Bonds. Below is a list of high yield bond offerings.

http://campaigns.questrade.com/Libraries/bonds/Questrade_Bonds_List.sflb.ashx

Page 10 of this link has a list of high yield bonds, of which I've listed a few that seem promising:

1) AIM 4.01% expired 2019

2) XRS 4.86% expired 2021

3) PKI 4.17% expired 2021

4) PKI 4.97% expired 2024

5) QBR.B 5.22% expired 2023

Are they ok or do you have any other suggestions? Please choose two for me. THANK YOU IN ADVANCE

Q: Hi 5i team,

About 18 months ago, I invested 20K in my girlfriend’s newly opened TFSA. I had asked a question where I was looking for stocks (medium to low risk) with dividends above 3% and still have potential for some growth for a 2-5 year hold. These were and still are her only investments.
Following your recommendations I bought equal weights of CDZ, WSP, BNS, AD and WIN. I have since sold WIN for ATD.B

If I were to start over today, what stocks would you suggest? Would you recommend that I adjust the current holdings to match any new suggestions? Or would you just stay the course? Thanks

Q: ENB. and TRP: I've owned both for 6 years now; so, my returns on a ACB is very high - however, both are carrying very high debt loads of $50 to $45B on their books. Should I be overly concerned with holding these stocks over the longer term?

Q: trans eastern power is this an ok stock ,good management? payout ratio?

Q: Long term for increasing dividend which of the above would you hold? They pay a similar dividend and have performed similarly over the past 5 years. The taxes are less for ENF compared to BIP.UN when held in a nonregistered account however like I do. Thanks.

Q: Good Morning: I would appreciate your advice in the following situation. I currently hold roughly 15% of my portfolio in a Hi-Yld savings acct. paying 1.5%. The benefit of course is total flexibility in case of a market correction where I see opportunities. The down side is the relatively low return on assets. I have been thinking about transferring some portion of those monies to CBO (or an equivalent if you know of a better option.) However, when I look at the fact sheet for CBO I see the following data: Weighted average yield to maturity is 1.72%; distribution yield is 2.84%, and the trailing 12 month yield is 3.23%. To my relatively novice eyes (esp. in regard to bonds and bond etfs) it doesn't seem that I would be getting that much of a premium, and I would be giving up some flexibility and there is always the risk of a continued decline in the share price (even though it is near its recent lows) thus erasing any gain in yield. There are a lot of issues here that I'm finding it hard to balance out and would appreciate any insight or suggestions you have to offer. Sorry for the length of the question. Don

Q: Hi,

I'm looking for an RRSP investment for my wife. What we have right now is a TD US INDEX fund. Chose this one because it has low MER and tracks the S&P 500. Can you give us other index funds that you can recommend be it US or Canadian with good performance?

Thanks,

Sunday

Q: Very useful. Do you have a suggestion for a ETF that uses both filters ( buyback and increased dividend ) to sort companys.
Great work.

Q: My portfolio consists of 6-7% Utilities. I would like to add AQN. With everyone targeting Utilities as a sector to suffer under higher rates, is this a good idea? If so would you suggest the common or the Investment receipts and how big a position.

Thanks to the Team


.

Q: I'm looking for an income component to my portfolio. i already have decent exposure to large dividend paying companies (cdn banks, BCE, Telus, ENB, TRP, BEP, BIP, CU, VZ, MO). i have a small amount in bonds but i am hesitant putting more money towards bonds at this point. where else would you go to for income for a total return of 4%-5%? Riets (XRE)? Preferred shares? This will probably be a 3%-5% weighting in my portfolio and a long term holding. Thanks

Q: I am holding TIP in the US as inflation protection, however I am having doubts regarding this strategy. For real return type bond ETFs, an increase in the relevant CPI increases income, yet rising inflation will be met with rising interest rates on nominal bonds that will drive the price of inflation-protected bonds down as well, negating the benefit of the increased income on a total return basis. It would seem to me that real return bonds are only protection from a central bank that has lost control over inflation; orderly inflation not so much. Is this an accurate assessment?

Q: Good Morning: A two part question about CBO. First, what is the difference between CBO and CBO.A, and is one preferable to the other for retail investors? Second, and more importantly, I notice that the stated yield (on my BMO Investorline fact sheet) for CBO is currently 3.3%. In your opinion, would an increase in interest rates in the US be likely to affect this rate in a significantly negative fashion?