Investment Q&A

Q: My broker has recommended to sell BHY.un The fund allows an Annual Redemption Privledge at Nav.once a year In May NAV was $ 7.67 It is currently trading at $ 7.33

He said it was also loosing dividend tax credit status next year and all payouts will be classed as income

I bought this fund at $ 8.83 Could you give me your opinion on whether it is better to sell this fund

Thanks for the great service
Paul

Q: In your write on NPI you said "there are other 5% yielders with less leverage". Can you tell me who they are.

Thank you as always
Craig

Q: In May you gave an opinion on this fund and mentioned currency could be an issue. I assume that means they invest outside of Canada. Do you know how exposed they are to UK and Europe? Given Brexit is this considered a risky stock? I like the yield but reasonable safety of capital is important too. Thank you for your opinion.
M

Q: I did my Brexit Wed. and plan on staying about 50% cash untill after the US election. Would like some ETF's that pay a relatively safe div. Thanks Al

Q: I bought a little Magna on Friday. It got me thinking the tire companies should have steady sales no matter if people buy Ford, GM, Tesla, etc. or even just maintain old cars but they dropped on Friday as well. What are your thoughts. Is there a company you like?

Q: With this financial storm coming from UK, what do you think of TD? Take the opportunity to buy more or is just a hold?

Q: I currently own Gibson Energy in a locked in RRSP at an average price of $25.00.

My time frame is 10+ years to hold before I convert to a Life Income Fund (similar to a RRIF).

Is it better to:

1 - do nothing and collect the current yield (5.28 %) and wait for recovery in share price.
2 - slowly buy new units at current prices and bring my average price down and increase yield.
3 - sell and reinvest in other companies in the energy infrastructure field (KEY, PPL, IPL, ALA)

Thank you for excellent service.

Q: With a time horizon of 10+ years, i'm looking to start a smith-maneuver portfolio to write off some mortgage interest. Could you please recommend 5-10 top picks that would be suitable for this strategy? Or would you recommend possibly an etf like CPD for something like this.

Thanks!

ps, i tried searching for previous questions in the q&a regarding this topic but couldn't find any, do you know which section they would be filed under?

Q: Manulife is down more than the market and SLF. Is there a company specific reason for this? With a yield over 4% would you consider this a good buy for a long term hold.

Q: Any insight you could give on OCS.UN would be great. I inherited some and was wondering if it is worth keeping.
Thank you

Q: Could you comment on bonds etc affect of UK's Brexit move ?

Q: The fixed income portion of my portfolio has been suffering for the last few years, what do you think of the above and what recommendations would you have, thanks, Jean

Q: Your thoughts on the following tentative plan will be appreciated:

Looking to tweak our equities some over the next year or two to provide for a bit more US exposure and sector diversity and less in mutual funds. We looked at about 10% of our equity holdings in yesterday's review with our IA and tentatively landed on this:

1. Cdn $ - Sell Dynamic Dividend Income Fund and (some of our) RBC Cdn Equity Income Fund tentatively in favour of iShares Core S&P 500 Index ETF CAD-Hedged (XSP).

2. US $ - Sell CI American Value Corporate Class Fun and TD US Mid-Cap Growth Fund tentatively in favour of SPRD S&P 500 ETF.

PS. Our IA seemed to hesitate about us selling any of our RBC equity fund as he feels it well-managed and performing well again this year (11% ytd).

(Context: Retired. No pension. Conservative. 35% GIC, 30% preferred, 5% alternative, 30% equity, preferring blue-chip safe dividends.)

Thank you.

Q: It seems to me that the trading pattern of ZCL was very unusual yesterday and today. Yesterday over 200,000 shares traded (about 4X the daily average), yet the price was “contained” within a 1 cent range from 8.99 to 9.00 the whole day. So far today it is the same thing with the price range contained from 8.99 to 9.00. Does this look out of the ordinary to you?

I searched all top picks on BNN’s Market Call, and Market Call Tonight shows for the last 3 years to see how often ZCL was a top pick. It was a top pick three times, but only within the last 3 months (April 8 @ $8.05; May 31 @ $8.69, and June 20 at $9.00). It was not a top pick when it was under $5, $6, $7, and now that it has gone up 40% in a year it suddenly becomes a top pick of several BNN guests. Hmmm. When several BNN guests suddenly make a small company that is not well known a top pick it makes me a little suspicious (could they be unloading after the nice run up).

Reading previous questions about ZCL I see that 5i has liked this stock for a few years. What would you consider a good entry point?

Paul

Q: Hello, is their a US ETF which focuses on dividend growth like CDZ does? Either in CAD or which can be bought in USD accounts.
Thank you!

Q: BDJ: Blackrock Enhanced Equity Dividend Trust
What is your opinion of this fund for retirement income? What are the risks? The yield is 7.25% and pays monthly. I read an article that said it's currently selling at a discount.

Q: Hello Peter, I am looking for some bonds to add to my portfolio, I would appreciate your ranking the above for me. Also, your opinion of how would they react to upcoming interest rate increases. Perhaps can suggest a better choice. Many thanks, J.A.P. Burlington

Q: Hi Ryan and Peter,
My question is of a general nature and concerns a problem many seniors are having with portfolio construction. I'm 70 years old, have a defined benefit pension which, along with my wife's defined plan, covers our monthly commitments. We are underinvested in the fixed income part of our portfolio but because of the lack of returns on bonds and GIC'S, are hesitant to commit a large portion of our savings to this sector.
As with many seniors who have their monthly expenses covered by pensions, we need guidance as to what percentage of our funds should be in fixed income. What percentage do you think is appropriate and could you suggest a few specific investments.
If you believe, as I do, we would be better off investing in Canadian Blue Chip companies that offer relatively safe growing dividends, could you suggest several such companies.

Thank you in advance for your much appreciated guidance.

Q: What do you think about replacing a combination of VGH and ZQQ with a single holding in ZUQ--you gotta love the sound of "high quality". thanks Gary

Q: Could you comment on the latest earnings, and how the value compares to say Vail Resorts in the US. Would this be a good entry point with the stock down from it's high. Thanks.