Investment Q&A

Q: Good morning Peter and the 5i Team,

Just a suggestion to Peter who recently asked a question about parking some cash for 6 months plus. He quoted an interest rate of 1.25% for "a high interest (LOL) investment account". Oaken Financial (a division of Home Capital (HCG) which is in 5i's Model Portfolio is offering 1.75% on their savings account. I have found dealing with Oaken to be very pleasant and they are certainly efficient.

Q: Thank you for today's updated report; and of course for drawing my attention to BEP in your original model portfolio.

I intend to add more BEP to my holdings now and would like to know if there is any benefit to buying the US version (BEP-N)? And if the dividend in the US would likely be return of capital, as you pointed out that it is here in Canada?

Thank you.

Q: For some cash to park for 6 months plus, would you stay with a high interest (LOL) investment account at 1.25% or would you have another suggestion for somewhere to park this cash?
Not necessarily low risk but better than 1.25%.

Q: As a clarification to my previous question concerning an investment in VSC would you please explain the difference between an indicated yield of 2.6% and the yield to maturity of 2% for this ETF. What actually ends up in my pocket?

Thanks Team

Q: Hello Peter,
I have read your responses to the questions relating to the two companies and appreciate the detailed responses. I have done very well with both and now am wondering if it is worth adding to my positions or should i wait. BAM represents 5 % of weight and BIP represents 3 %. I know it is in a different industry but I was thinking of reducing CGI group which has 6% weight to 4% and adding the proceeds to BAM or BIP. I have more in BAM as it is more diversified. Rather than adding more stocks, i just want let my winners run and add to them. Thanks again for your unbiased advice.

Q: I constantly keep approx. 150k in cash equal to 3-4 years of withdrawals (1.25% interest) to fund annual cash requirements in addition to gov't pensions. Would you recommend buying VSC to raise my interest received to (currently) 2%?
Thanks to All

Q: What is your opinion on this company for potential growth as well as maintaining it dividend?

Q: I am considering this stock for my Beat the TSX in 2015. What is your outlook for the company in the coming year as well as its ability to maintain the current dividend?

Q: I like the theme of seniors' care for the long term. I have a small position (<3%) of CSH.UN in my TFSA and it has done well over the last couple of years. Would you add to this or sell it and replace it with a different name in the same space. (I also have a bit of KMP and some D.Un in non-registered accounts, in case other REIT holdings might influence your comments.)

Thanks for your help - I've been with you since almost the beginning and I love your service!

Q: td has been slapped pretty hard in the last few days, is this an entry point? I am looking to generate long term income. I am very interested in any suggestions you might have for stable income generation....THANKS

Q: How will increasing rates affect the distribution of this fund? I recognize that the stock price will likely get hit further, but shouldn't the dividend be safe or even have potential to increase as they roll over loans at higher rates? I have held for about 18 months, and am just up slightly taking into account dividends. Would you continue to hold, if holding for income only? Do you view this stock as more equity or more fixed income?

Thanks

Q: Yesterday I asked a question about three sectors.You recommended Enbridge and Pembina for the utilities sector.Tmx show both companies as being in the energy sector which I am overweight already.Could you clarify this for me. Publish if you think it is necessary.

Q: Hi team:
I made a small profit by investing in the above thanks to your advice
With the drop in crude oil prices, will it decrease the value of Bep.un ? thinking of taking some of the money off the table
like to hear your opinion, thanks

Q: A&W Food Services of Canada Inc filed an "Early Warning Report" this morning wrt A&W Revenue Royalties Income Fund. The text is long; can you explain; what impact might this have on the current share price.

Q: Thank You for the great service. My question generally relates to dividend paying stocks. I own the following dividend payers, BCE, BIP, BNS, BPE,CGX,CU,EMA,ENb,FTS,IPl,PPL,RY,SLF,T,TRP,NA,TD,CNR, KBL and a few others. These dividend paying stocks make up approximately 45% of my portfolio. My question is: Is this too much of this type of security to own in one's portfolio? Thank you.

Q: I have been looking into this Corp, the dividend being attractive.I am retired and conserative. What do you think? Is it worth taking a small position in? With the cost of there operation going down with the price of fuel do you see an upside

Q: Happy New Year Peter and Staff.. I have basket of utilities but did not own Valener yet....seems to look like what you would hope for ......no drop in value though it did not rise as much as many in the sector in 2015. The recent drop in oil has reminded me that if I am getting a healthy dividend with tax credit, and I get my acb back some day I did alright. Having said all that ,what is your outlook for share value future growth and dividend maintenance/growth on VNR

Q: Peter
The following are a mix of “fixed” income ETFs listed in the Nat Post's article on Robo-investors from last November sorted by decreasing yield. I am trying to shore up the fixed income portion of my portfolio and unsure of the rationale and safety of these ETFs.

Just how safe are these instruments? If there was a meltdown, could their values collapse accordingly?

At the lower end, isn't just worthwhile to buy a GIC, it looks as if they net bigger returns than the lower return ETFs?

What distribution of these ETF's would you recommend for a retiree portfolio?

ETF Ticker Institution MER% Yield% Net Distribution %

ZHY BMO Corporate Bond 0.55 5.77 5.22
XHY I shares US Bond .66 5.46 4.8
PBD Purpose Total Bond .45 4.47 4.02
CBO I shares 1-5 Yr Corp Bond 0.27 4.1 3.83
XCB I shares Corp Bond .44 3.38 2.94
XBB I shares Univers Bond .33 3.16 2.83
XSB I shares Shrt Term Bd .27 2.91 2.64
VAB Vanguard Ca Bond 0.12 2.71 2.59
VBU Vanguard Us Ag Bond 0.2 2.6 2.4
XRB I shares Real return 0.39 2.4 2.01
VSB Vanguard Shrt Trm Bond 0.1 2.2 2.1
HFR Horizon Float Rate 0.4 2.17 1.77
PSA Purpose High Savings 0.12 1.34 1.22

1 year GIC 1.9%

Regards

Q: I am a dividend investor and use David Stanley's Beat the TSX system which I review each year at this time. TRP is now in the top dividend stocks of the TSX 60. Do you have any concerns about the company going forward in the short term over a year or two?

Q: I am looking to reduce exposure to the utility sector. Could you rank the following BEP.UN BIP.UN AQN CU EMA NPI BLX. Thanks.