skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Further to your earlier answer yesterday, you referred to the payout ratio as still being high. My impression is that they have been lowering it over the last 2 or 3 years. I seem to recall it is in the 70's percent-wise, having been in the 90's. If my memory is correct (no guarantees here!), this shows very positive improvement, in line with the targets espoused by their CEO in previous calls.
Would you be able to tell me what the payout ratio is currently (based on cash flow, I assume), and also indicate how you are calculating it from the numbers off of the statements? I am particularly interested in knowing the adjustments you make, and your reasoning.
(This, I hope, falls into the category of not just giving me fish, but teaching me HOW to fish!)
Also, at least one other analyst doesn't get the seasonality of their quarterly statements (they have a slow period - the summer - when the kids aren't on the bus)and keeps referring to the falling profitability without due consideration. Do you refer to yearly stats when calculating payout ratios and such, or if not, what adjustments do you make to the statements regarding seasonality?
Thanks!
paul
Read Answer Asked by Paul on July 26, 2016
Q: Now that the Brexit vote uncertainty has diminished a bit, would it be a good time to add to European market exposure? Presently hold ZWE for income. Would you add to ZWE or open a position in another etf? If so, which etfs would you recommend for income? Which for growth? Possible ZDI ?Looking at 2-3 year time frame. Many thanks for the terrific service.
Read Answer Asked by Don on July 25, 2016
Q: Hello 5I,

This is a question about Student Transportation (STB). I have read your comments that 'it is not one of your favourites'. However a new report out by National Bank (July 6) highlights the growth opportunity for STB as it moves into asset management (school boards & other 3rd party) part of the bus fleet business. They suggest that fleet management could represent 25% of STB total revenue by 2021. They see payout ratios falling and free cash flows potentially doubling in this 5 year timeframe. Finally National suggests that STB could become a dividend growth story 'in the not to distant future'.

Would this information be a cause for you too rethink your views on STB, take a wait and see stance or are you still not inclined to view the company favourably.

As always. take your opinion very seriously.

Cheers,
Bob Ahearn
Read Answer Asked by Robert on July 25, 2016
Q: I would be curious to see if there is any "scuttle-butte" on Enercare. It seems to be moving up quite nicely in the last 3-6 months. In a recent reply to a member you said you would be comfortable purchasing it up to
$17.25, now that it has reached $17.75 (at time of writing) are you still
comfortable? Seems to have good momentum!

Thanks in advance
Scot
Read Answer Asked by Scot on July 21, 2016
Q: I intend to take some money out of a savings account and put it into 3 or 4 rock solid (what a concept) TSX stocks earning divis
in the 3 - 5% range and looking at a 2 - 3 yr horizon. Would really like to see a list of stocks (with ratings) that you think would meet my requirement. Thanks again.
Read Answer Asked by Arthur on July 21, 2016
Q: Hi 5i I notice members are asking about renewable energy companies. I would like to add 2 renewable energy companies to my portfolio, at present I have none. I'm a very long term investor, something like till the day I die. Thx for your wise advise, I was starting to believe in the " sell in May and go away " but this year staying with the market has been very good for me thanks to the 5i group. Thx again Gerry
Read Answer Asked by Gerry on July 20, 2016
Q: Peter; I read a Globe article by the Avenue Group regarding the massive amounts of money flow into bond ETF's. Their main point was, if the bond market goes to a " no bid" situation, then the resulting problems with accurately pricing the Etf's could cause havoc if investors tried to exit. Today Larry Berman suggested buying his ZCS short term corp.bond
as a place to sit and wait for a pullback he thinks is coming. I realize that trying to time the market is pointless but first could you comment on the " no bid" scenario and second do you think buying some ZCS would be like a hedge if anything did develop?
Thanks.

Rod
Read Answer Asked by Rodney on July 20, 2016
Q: Hi 5I team. Can you please tell me if companies in general have been increasing their dividend payout ratios? Where might a little guy like me find this information? Benjamin Graham had written something like "Never buy a companies stock only for its dividend." Probably pertaining to value traps but in this environment many people are being forced to do this. This makes me worry about some of the higher debt levels and earnings decreases perhaps many companies that are increasing their dividends are chasing investors in hopes of higher stock prices. I realize every company has a different story but market sentiment pushes everything in the same direction irrelevant of what is happening individually. Thank you
J
Read Answer Asked by Jeremy on July 20, 2016
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!