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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: Dear 5i,
I have a half position in CCL.B and have been waiting for a pull back to buy more. I see the Winpak has had an excessive sell off. Do you think there may be more opportunity with Winpak vs CCL at this time for my other half position?
Thank you,
Kerri
Read Answer Asked by KERRI on April 27, 2016
Q: I bought Home Capital before it ran into trouble with some of the lenders. I hung on and then I got a notice about a Dutch auction. How is that different from a company just buying it's own shares on the open market? Do you see a benefit to this auction? I read that Home Capital will soon have insured lending. Could these two events move the stock out of the dump?
Read Answer Asked by Deborah on April 27, 2016
Q: DH just released its 2016 Q1 results. It looks good to me but nowadays companies are evaluated on a quarter by quarter basis against the mysterious "expectations" by the market, which seldom care about anything long term. Good results are not necessarily rewarded with pops in share price, but bad results will definitely be punished.

With that said, how do you interpret the DH first quarter? I'm somewhat disappointed that there is no dividend increase since it's been set at $0.32 for a long time. Thanks.
Read Answer Asked by Victor on April 27, 2016
Q: To clarify an answer to an earlier question re: tax treatment of the distribution. You mentioned that distributions are not eligible for the dividend tax credit - which is not entirely correct. I have held a large position in BEP.UN for a few years. In 2015 58% of the distribution were eligible for the dividend tax credit. Another 28% of the distribution was a return of capital and only 14% of the distribution will be subject to the full tax rate. In 2014 29% of the distribution was taxed at the full rate. This of course will change from year to year. For historical taxation - have a look at their website which has a good breakdown of the tax treatment of all distributions. Hope this is helpful.
Read Answer Asked by Gary on April 26, 2016
Q: Followup to recent Q. on BEP.UN. Distributions can be taken in US or C$, default is US, so if held in a C$ account broker will convert at their exchange rate. To receive in C$ you must instruct broker you want this option, I estimate it's worth at least 1% of the distributions received, not much, but better in my pocket than broker's.

The above comment was posted and I am confused by it. What exactly would I tell my discount broker? Would it be better to get the distribution in US$? Would I need to move my shares to the US listing in order to get the distribution in $US or can I just request to be paid in $US even though the stock holding is on the TSX? Would this be a good way to increase US$ over time?

Thanks
Dolores
Read Answer Asked on April 26, 2016
Q: Hi, 5i.

What are your top picks for consumer staples at this time?

Thank you,
Robert
Read Answer Asked by Robert on April 25, 2016
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