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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: I need your advice on the fixed income portion of my portfolio, currently 17%. The equity portion is a well diversified mix of dividend payers, mostly 5i companies. Current fixed income holdings are:

CBO (2%)
XHY (2%)
CVD (2%)
CPD (2%)
CF.PR.A (1%)
5 year GIC Ladder (3%)
HISA/Cash (5%)

The first rung of the GIC ladder recently matured, but I have been reluctant to purchase another 5 year GIC with rates being so low (~ 2.05%). Would I be better off with a floating rate ETF like HFR or FLOT, or should I just continue with the laddering strategy knowing that eventually it will adjust to rising rates? I am also aware that I lack any government bond exposure. I am considering CLF, but with a YTM of .75% I wonder if I would just be better of with a HISA at 1%. I am 40 years old with a 10-15 year time horizon. Your input is most appreciated.

Read Answer Asked by Stephen on February 05, 2015
Q: BMO has a Floating Rate High Yield ETF (ZFH) that somehow combines T-Bills with Credit Default Swaps (whatever they are) to create a product that is midway between T-Bills and High Yield Corporate Bond ETF's in yield, risk, and volatility, which seems like a worthwhile result. The description of what they are doing might as well have been written in Sanskrit for all that I got out of it. ZFH has attracted $400M worth of investment in its year or so of existence. Would it be a reasonable addition to the bond portion of a balanced portfolio?
Read Answer Asked by Bryan on February 05, 2015
Q: Hi. I have owned this stock for many years. Did quite well with it at first and sold off enough to cover my initial investment. I still hold 500 shares and could use the money that selling them would generate to buy stocks in other sectors that I am lacking. (I seem to be over invested in the healthcare sector). My question is .... should I just sell it now and use the cash to re-balance, or wait to see what happens with the pullout from the US.
Read Answer Asked by Susan on February 04, 2015
Q: For dividend income with some growth, which of these two, ALA, AFN, would you prefer, and why? Also, I note that in your growth portfolio you list WCP, Whitecap as having 0 dividend. I checked with TMX stock quotes and they indicate that it has about 6% dividend.
Read Answer Asked by Edward on February 03, 2015
Q: Thank you very much for the excellent webinar yesterday. It was very informative. If 5i had to pick just one dividend payer based on yesterday's webinar which one would it be & why.

Thank you.
Being a 5i member these past years and learning so much from you has saved my financial future.
Read Answer Asked by Craig on February 03, 2015
Q: Hey guys,

I was looking for monthly paying dividend stock, can you suggest 5ish? Sorry, I should have been clearer!

Thanks,

Richard

Question: Hi guys, My dad is 62 years old and would like to build a small portfolio of monthly paying dividend stock for income. 30% of the portfolio in XSP for US exposure, 10% in CBO & XHY. Can you please suggest 5 possible CND stocks? We already selected WCP for energy and CHS for financials. Thanks!
Answer:
We owuld look at the income portfolio for some good options. Names such as Evertz (ET), BCE and/or Telus, BNS, Brookfield Renewable (BEP.UN), A&W (AW.UN) and WSP Global (WSP).

Read Answer Asked by Richard on February 03, 2015
Q: I would appreciate your thoughts on MDI. It has been just over six months since it did a major takeover. As a bit of a contrarian I am always leaning towards positions when others are heading the other way. Thanks in advance, Mike
Read Answer Asked by Mike on February 03, 2015
Q: In following your recent dividend info webinar, I'm trying to find the financial ratios you suggested to track the stock's performance -ie payout ratio, for starters. When I look on Qtrade to get the 2014 financials, I see the free cash flow is $132 Million, the dividend is $1.28 X 81 million shares = $104 Million, that makes the payout ratio $104million/$132 million = 78%, which is high according to your webinar comments. Am I performing this calculation correctly? Is there a better place to go to get stock financials than Qtrade?
Thanks for your reply....Jim
Read Answer Asked by James on February 03, 2015
Q: With a dividend yield of 2.21 %, and an MER of 0.23%
this appears as a good choice for fixed income. May I have your thoughts. With thanks, Bill
Read Answer Asked by William J on February 03, 2015
Q: Hello Peter and Team, I am considering PSI, Pason Systems and /or LIF Labrador Iron Ore as a contrarian move (5%)within an otherwise diversified folder, with a focus on income while riding the potential rebound of both. Could I get your assesment of the risk to dividend payout and metrics of each?
Thank you kndly, Rick.
Read Answer Asked by Rick on February 02, 2015
Q: Gamehost's share price seems to be moving down with the price of oil because they are tied to the Alberta economy. Assuming the worst, a prolonged recession of several years, would GH survive? would they maintain their divvy? GH seems like a great contraian pick with a good div. I already own a small position and would like to add. My portfolio is diversified in both geography and sector. Your advice please. Thank You
Read Answer Asked by Ronald on February 02, 2015
Q: Hi 5i,
Do you believe McDonald's current woes are reflective of the fast food industry as a whole or do you think it's more specific to that company? I've been eyeing a&w for a while but am not sure about the whole fast food industry with more health conscious consumers.

Thanks in advance!
Wayne
Read Answer Asked by Wayne on February 02, 2015
Q: Thinking of picking up some Pembina Pipeline and Brookfield Infrastructure Fund for income. What do you think of these companies? Also I know we are a ways away from a rate hike here in Canada but when rates start to rise, will the stock prices of these companies get hit hard?
Read Answer Asked by John on February 02, 2015
Q: As a Canadian investors having US funds available am I better off to invest on the New York side or the Toronto side for companies like this that list in both markets? Are there negatives to purchasing LP (I'm assuming Limited Partnerships) equities for RRSPs? You have a great service and I look at my membership as a real bargain! Thanks for all your sage advice.
Read Answer Asked by Harvey on January 30, 2015
Q: Peter, your help please. I am selling some of my weaker names in gas and oil. I am looking for good solid companies that pay a good dividend. I already own the Davis and Henderson ect. of the world. Your opinion please on Evertz,Sirus xm.Alaris and Liesure world for long term holds. Thank you Ken
Read Answer Asked by Ken on January 30, 2015
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