Investment Q&A

Q: Hello 5i team

Could you give me your opinion on the BMO ultra short bond ETF, ZST. The bonds held all mature in less than a year and yet its distribution yield is 3.96 % It has been distributing at about this rate since it was formed in 2011. I looked at the holdings and I couldn't imagine that these companies would run into trouble in the short period they hold the bonds. ( Of course they will have to be constantly changing their holdings because if the short term nature) It seemed very safe to me but am I missing something? I am 76 years old with a portfolio of about 2.5 M and I am trying to hold enough cash to cover 3+ years of the rent for my wife who has gone into longterm care. I would like to get a little interest for this money and I wonder whether this would be a good candidate for some of these funds.

Ross

Q: Hi,

Why is it that BEP is rising despite another down turn in oil? And why is it that in a previous question you preferred ENB to BEP? They are such different companies. Finally, would you recommend either of these companies now for a two year hold?

Q: Thought I was cute buying some at $42 once the dividend rose above 4%. Pretty much brought my telecom weighting up to 5% of my portfolio (I also hold BCE with a fairly small amount of VOD and VZ). Kicking myself for not holding off on my original purchase of Telus. One of my best investments was buying BCE when it got pummeled due to the income trust changes a few years ago. Wondering if this is a similar opportunity to add more Telus?

Q: I hold ENB in my non-registered account (much larger than my RRSP in terms of total dollars). What is the precise difference between ENB & ENF in terms of operation and assets: both have said they are going to incr. dividends by up to 10% until 2020. You say that ENF is much risker than ENB - why? And, secondly does it make any sense to have ENF in my RRSP at it's current depressed price?

Q: Hi, "Reuters - December 16, 2015 - Canadian cable-TV operator Shaw Communications Inc said it has agreed to buy Mid-Bowline Group Corp and its subsidiary Wind Mobile Corp for about C$1.6 billion ($1.2 billion).
Wind is Canada's largest non-incumbent wireless services provider with about 940,000 subscribers across Ontario, British Columbia and Alberta, Shaw Communications said. "

So Shaw will become the 4th major Wireless Services provider in Canada, if the deal is approved by regulators. How would it impact the business of BCE, Telus and Rogers in terms of possible competition? Which one of the three is expected to be affected most, based on Wireless Revenue/Profits as % of their total business and the geographical base of Wind Mobile ? Do you see this development causing a reaction to share prices of these companies? Thanks for your insight.

Q: What do you think about Foot Locker (FL.US)? Buying opportunity or value trap?

Q: Western Canada Properties - almost as unloved as oil and gas. PE is 4.4 trailing, 7.7 forward. 4.71% yield with 27% payout ratio and yet stock has fallen from $19.90 in March to $12.74 today. Seems like a great buy, get paid to wait until the the oil pendulum starts swinging the other way. Whats you're thoughts

Q: What Canadian Companies have a great deal of their sales in USA and will benefit from low Canadian Dollar. I can think od atd.b, mal, lnr, mg, . Which ones would you recommend.

Q: With the US going to allow oil exports for the 1st time in 40 years what will the effect be on oil prices ?

Q: I am looking for solid Canadian dividend payers with a large proportion of their income/cashflow (40%+) from US and International operations.I already own BNS,PWF,SLF,GWO,TRP,EB,ENF,VET
BIP.UN,BEP.UN,BPY.UN and DH. I believe all of these fit the bill - do you agree and can you suggest some others. Many thanks

Q: The stock has dropped steadily,would you comment is the dividend at risk and where you see it forward ?

Q: Any reason you know of why TRP is rising ( up 10% last few days) while ENB is dropping. I own TRP, is now a time to sell TRP and buy another pipeline such as ENB?

Q: Greetings, Could not find report on DR (Medical facilities. Buy now at 52 week lows or wait for further capitulation? Is this company good for a long term relationship ?

Q: Hi Peter and Team!! What are your thoughts of starting a small position in IBM at its present value? Cheers, Tamara

Q: I've been considering adding a pipeline to my portfolio and have been humming and hawing between ENB and TRP. TRP has made a significant upward move lately and ENB continues to fall. Could you comment on this Motley Fool article and which of the two you consider the better investment at current valuations ? Or another pipeline if you feel it is a better choice ?
Thankyou
http://www.fool.ca/2015/12/10/kinder-morgan-inc-just-cut-its-dividend-could-enbridge-inc-be-next/

Q: Another stock that you recomended and I am down substantially.
why is this stock down so much?
And can you tell me again why I shouls hold?

Q: Wondering whether a Kinder Morgan type dividend cut could happen to Cdn pipeline cos in a sustained low price environment. With negative sentiment in the sector and depressed share prices companies will be hard pressed to raise capital to fund significant cap ex programs. If they cannot fund growth organically they may need to cut dividends to free up capital. I realize Kinder's situation was exacerbated by an untimely large acquisition but the need to fund large cap ex programs remains in a depressed share price environment. Your thoughts please. Thanks..

Q: If you were to buy a couple or rate-reset preferreds, what might they be and why.
Is it a good time to get into them, considering "negative interest rates" have come up as a possible option to deal with economic issues?

As always, thanks.

Q: hello 5i:
I currently hold small amounts of TRP, ENB AND BIP. I also hold a full position in BEP.UN, and a smaller position in FTS. Dividend Growth is important, as are present dividends. I am considering taking a full position in BIP.UN. To do this, I'd have to sell the TRP and ENB holdings. Can you compare the stocks, and does this seem like a sound move for a portfolio that has too many holdings?

Q: TA has been a destroyer of asset value for many years. How will buying assets from TA benefit RNW? How can an investor know that assets are being sold at fair market value?How much overlap is there on the boards of the two companies. If there is a high degree of overlap, I see little reason to expect RNW to be a better managed company. TD has a price target of $14.50, which seems very aggressive to me. Your comments please.