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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: Good Morning
I hold 4 Canadian banks CM, TD, RY and BNS in an unregistered account. The bank stocks comprise just under 20% of my portfolio and each has approximately a 50% capital gain. My only other financial stock is a 2.5% position in PWF. Capital gains in my account this year will likely be taxed at 15%. I am considering selling one of the bank stocks (perhaps CM) and investing the proceeds in SLF. I have chosen SLF for it's relatively low valuation and secure dividend.
Is reducing the allocation to Canadian banks appropriate, or does the tax which has to be paid cancel the benefit?
Which bank would you sell?
Is SLF a suitable alternative or is there another company that you would prefer. I already have full positions in CNR and BAM.A.
Thanks
David
Read Answer Asked by David on April 25, 2016
Q: We have 2 Rrsp accounts. The first one contains mostly 5i recommendations with a focus on dividend income and some growth. We would like to structure the second account to be more conservative and withdraw the dividend income. We like the Canadian banks ie RY and BNS as the dividend is safe and pays well and even when there is a sell off in the banks (including 2009) they eventually bounce back thus preserving capital but in the meantime one just collects the dividend. i know you would say that we should diversify so my question to you is what other stocks would you suggest that pay a 4percent dividend and have the security of the banks over the mid to long term or until Interest rates increase to make GICs/bonds an option.
Thank you.
M
Read Answer Asked by Maggie on April 25, 2016
Q: There's talk today that investors are starting to switch from growth investing to value investing. Can you give 5 names of small to mid cap Canadian companies that you would consider a value company to start my research.

Thanks for the great service.
Read Answer Asked by Rob on April 25, 2016
Q: Hi, 5i.

For pure utilities, I have BEP (2.0%) and RNW (1.5%). I also have ENB (2.0%) and IPL (1.0%) if you consider those utilities.

I'm looking to increase my utilities allocation and wondering if I should add to what I have or take a position in Fortis (or another name you recommend).

Thank you,
Robert
Read Answer Asked by Robert on April 25, 2016
Q: Because of my age and possible future need for income, amount and security, I am pondering the addition of the following ETF’s. I am indicating the present and after purchase weighting in my portfolio. ZWU ( 3% - 5%), XHY (1% - 3%), XTR (0% - 5%). My portfolio is reasonably well
diversified with about 95% blue chip (28) common shares. Can you please comment on the appropriateness of my proposed purchases, given your limited knowledge of my portfolio.

The composition of XTR i shares includes other I share ETF’s so if I were to purchase this security I would be effectively duplicating management fees and further increase my exposure to XHY, which is held in XTR.

Thank you for considering this questions

Read Answer Asked by Gail on April 25, 2016
Q: I'm keen to watch top managed companies in totally out of favor sectors, to buy when business conditions improve. I'm not looking for a relief rally on overlevered stocks for a short-term profit, but rather for stocks I can hold for a signifiant time as business conditions improve. BDI is one of the companies I'm interested in.
What would be the signs that BDI is a good "risk-return" story? What do I look for?
Read Answer Asked by John on April 22, 2016
Q: I have managed my own registered portfolio for the past few years(with valuable input from 5i). I have sold my GTA house and will have this house money during a 2 year relocation period and then will likely be buying real estate again. Any advice for managing registered vs. non-registered investments during that time. Also, any allocation ideas related to type of stocks, fixed income or other investments keeping in mind the two-three year time frame with the new money. I currently have a registered portfolio with a number of dividend payers. Am i better to switch the registered funds too a more growth oriented approach and buy some utilities/banks/telcos in the non-registered.
Also, are Canadian based ETF's that hold non-Canadian stocks eligible for the dividend tax credit?
Thanks team
Read Answer Asked by Robert on April 22, 2016
Q: I own these shares in my portfolio for some growth and income. FTS has dropped sharply in the past couple days, instead gaining because of the deals they have done. I like to have your opinion as to how safe they are? Would I be better of trading them for ETFs like ZUT and ZWU as they seem less volatile. Perhaps you can suggest alternatives. I would also like your view weather to buy ENB or ENF or another pipeline stock. I like the new format, my apologies for my previous comment of finding confusing.
Many thanks, J.A.P, Burlington


Read Answer Asked by Joseph on April 21, 2016
Q: I sold all my energy and pipeline positions in early 2015 and currently have no such holdings. I am considering slowly re-entering this space. Do you think it is a good entry point for Ala, ppl and ipl? Any addition, deletions and modification would be appreciated. I am not adverse to risk. Thanks for all the good advice past, present and future.
Read Answer Asked by Ford on April 21, 2016
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