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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: Hi 5i team,Happy holidays: I need to add 5% for a total of 40% fixed income portfolio (retired). Choice between CPD & XHY. Am I wrong to believe that CPD will do badly whereas XHY will do okay in a rising interest world? The balance is CBO & GIC...ladder 1/2/3yrs
Read Answer Asked by Karl on December 12, 2013
Q: Good morning.

I own shares in Brookfield Asset Management (rated Pdf2 low) and Brookfield Renewable Energy (rated Pdf3 high) perpetual preferred shares (BAM.PF.C & BRF.PR.F). These shares are trading at deeper discounts than other company preferred shares with the same ratings.

May I have your opinion regarding the Brookfield and the Brookfield Renewable credit ratings and can you think of any reason why the subject shares trade at a deeper discount to the others?

Many thanks in advance for your consideration and time.
Read Answer Asked by John on December 12, 2013
Q: I had an order in today for Fortis shares, but missed on my offer. I don't know whether to be happy or sad! As we now know, trading was haulted at the end of the day due to their announcement of purchasing UNS Energy of Arizona. Is 1.8B rather massive for Fortis? If the price moves downward tomorrow does one buy now, or wait until the dust settles? I was buying for the long term. I'm not too keen on purchasing companies heavily in debt. Your opinion of this deal would be very much appreciated. Many thanks, and Merry Christmas 5i staff.\
John.
Read Answer Asked by John on December 11, 2013
Q: I have a question about Brookfield Renewable Energy LP.
I have owned BEP.UN long enough to have done fairly well with it. However, Vectorvest shows BEP.UN's earnings as fairly flat and low, give it a lower safety rating, and a '0' dividend rating.
Any thoughts as to why they are bearish and you are still bullish on the firm?
Thanks
Read Answer Asked by Rory on December 11, 2013
Q: Hi Peter & 5i: I have held a number of REITs in an account where maintaining the level of income is a significant purpose. With the potential for rising interest rates in the next few years, I’d like to raise the growth potential in the portfolio and reduce the rate sensitivity. With that in mind, and assuming no overweight positions result, what would you think of moving some money from the REITs into a pairing of Canexus (CUS) and Chemtrade (CHE.UN)? I realize that the level of yield implies risk and that a move like this could be viewed as exchanging one kind of risk for another. But I think that both CUS and CHE.UN are currently making efforts to grow, have more of an industrial orientation, and provide yields that can help maintain the portfolio income. I realize that both are somewhat cyclical businesses but my sense is that cyclical potential is part of the attraction at the current stage of their cycles. Does another company/stock come to mind that might be a better candidate for the kind of shift I am trying to make? The portfolio is already about market weight in lower yielding financials. Thanks for any ideas!
Read Answer Asked by Lance on December 10, 2013
Q: My "DOGS" for 2013 include the following stocks. AET.un, BA, COS, PME, JE.

They were bought in part for the dividend and all still yield over 5% (10.6% in the case of AET.un).
My question is this: are these worth holding, adding to, or simply selling now?
Thanks for the info and your guidance.
Read Answer Asked by Donald on December 09, 2013
Q: With the net asset value of Aberdeen Asia's shares [FAP] approaching the current share price, would this be a good time to add to my portfolio? I'm a little nervous given the decline thein share value over the past year
Thanks as always for your good service
Read Answer Asked by steve on December 09, 2013
Q: Morning ... I have 71K in my TFSA and am looking for monthly (tax free) income. I presently have 6 stocks AD,BPF,EIF,IPL,MG and SYZ. Are you comfortable with this positioning and strategy. Thanks as always.
Read Answer Asked by Alan on December 05, 2013
Q: Hi team:
On Berman's call, he mentioned a BMO EFT called the tactical dividend ETF, relatively low risks in terms of dividends portfolio and is well diversified

The BMO tactical dividend ETF is fairly small in size (of assets under management); just started in Oct
I am looking for abit of diversification outside Canadian Banks
and Life co, for dividends and yield and some safety
Please let me know what you think, no hurry

Also, is it true that starting in Jan, each member is only allowed to ask so many questions a year ? I always keep my questions to one or 2 stocks per time, it would be frustrating to stack the questions, thanks!
Read Answer Asked by Michael on December 05, 2013
Q: I've held BEP.UN since 2009 when it was Great Lakes Power. It has been a near double since purchase at $15 and the dividends have been excellent too, but I see in your response to an earlier question that you feel it is a purchase for income only, not gains; do you not feel it has a potential to near double once again over a number of years, even, say ten years, which would still be a first class return for a, hopefully, low risk equity? Thanks, J.
Read Answer Asked by Jeff on December 04, 2013
Q: Pardon me! The symbol was CHW - Chesswood Group -not CHN.
Thank you.I own shares in CHW. So far, it's been a pleasant ride. My concern, of course, is both their relative small size as well as the inherent risks that must be accepted when almost all their individual entities operate in a very leveraged & high risk market. As a retired US Attorney, I am familiar with legal & case funding as well as Plaintiff financial support. These areas along with their start-up financing loan business is my primary concern. Would much appreciate your opinion.
Read Answer Asked by Robert on December 03, 2013
Q: re ATP...At these new prices is there any value in taking the contrary view and picking up a little. What would be a steal price? I might like to try to go bottom hunting. Also, if a company like ATP does cut or eliminate divvies could this be actually to best thing for shareholders?
Read Answer Asked by Glen on December 03, 2013
Q: I took a flyer on XSR this spring at $6.50 and have been rewarded with a 32% rise plus the div. But the valuation looks crazy stretched and the payout ratio is high. I know it's priced for growth but my gut says to take the money and run. Would you dissuade me?

Thanks!
Read Answer Asked by Kim on December 03, 2013
Q: Hey Folks,
I have sold all but one of my American LP stock in my portfolio which is ETP, the 35% off the div. is just too much... I am considering WMB, could you give me another choice.
Thanks
Read Answer Asked by Mark on December 03, 2013