Investment Q&A

Q: This is a comment on Jerry's question this morning. DFN holds a portfolio of 15 high quality large cap companies. Its net asset value now is about $ 19. The preferred shares can be surrendered at maturity on December 2019. If he is comfortable with holding these preferred shares until maturity and getting a 5% yield I think the dividends and the redemption price of $ 10 are reasonably safe. It will take a total market collapse to reduce the net asset value to below $ 10. There are many split preferred with different maturities, yields and risks. Considering their price stability and yield, with the right choice, I think these split preferred are better than holding GIC's or money market funds.

Q: Please don't answer this with the standard reply about split corporations. I know 5i is not crazy about split corporations. No one ever mentions the preferred share side of the split. Everyone talks about the ultra-high yielding Class A shares that pay over 10%. That's not what I'm asking about.

The preferred shares yield about 5%. DFN.PR.A was priced at about 10.50 in 2004 and today its price is 10.34. There was a 30% dip in 2008. Otherwise the graph is amazingly level, showing only a fraction of the losses "normal" preferred shares showed in 2015-16. Also, distributions have never been suspended. A graph of dfn.pr.a compared to the preferred share etfs CPD and HPR may be surprising. The question is, How dangerous are preferred shares of a split corporation? Certainly they have to be safer than the Class A, high yielding shares. Seems like a good place to park some cash, which is what I've been doing. Thank you for your thoughts.

Q: I've held this hybrid for the past few years and have enjoyed both income and significant capital appreciation. If the corp. is wound up in November, how would the end result ( ie price) look in your opinion? Thx

Q: Aside from the market cap, which is pretty obvious, could you explain the difference between these two funds. In particular why/how BGI pays almost twice the dividend. I have held BIP for quite a while and done really well with it, but can't help looking at BGI.
Thank-you

Q: What do you think of EIT.UN? Thanks.

Q: What do you think of taking a position in FAH.U as part of a global diversification plan? It would be part of a portfolio go along with India, Europe and US etf's.

Q: Hi Team,
As you mentioned Sprott made a bid for Central Fund of Canada yesterday and CEF.A stock went up 3.1% by the close. I understand this is a hostile bid. Do you think there will be a competing bid or any more upside to CEF.A? Coincidentally, I was planning to sell my CEF.A holdings next week and replace them with PHYS. Do you see any reason to hold off on that? Thank you, Michael

Q: Hi Team,
This question is about investing in a gold ETF. Sprott Physical Gold Trust (PHYS) I believe is a closed-end fund. I read this affects its ability to issue new shares so it cannot effectively track the price of gold. This means shares could trade at a premium to net asset value and not truly track the price of gold. Is that true and if so, is it a concern? Thank you. Michael

Q: US has started to show some upward movement. Do you consider it a 'buy'at this time and a secure income producer? Thank you, Bob

Q: I bought units in this fund at $10. when it was first offered but it is now trading in the $6.00 area with a very good yield. While I am an income investor, I wonder if I should continue holding or look at some other option like BIP.UN? Many thanks for your thoughts.

Q: What is your opinion on HHL

Q: Your thoughts on this company
Thank you

Q: There are two Dividend 15 Split Corp trading on the TSE. DF trades at 7.65 and pays 15.6%; the DFN is trading at $10.74 and pays 11%. They seem to hold the same securities. Why the difference in price? Is this a good stock for income? Thank you

Q: Do you have an opinion on this ETF? It has a yield of 8.8%, utilizing a coverd call strategy.

Q: Hello. Had an earlier question on gold bullion ETFs but think I may have timed out or something as didn't get a message saying you received it. So trying again.

Looking to buy some gold bullion ETF units as insurance for both my own portfolio and my wife's portfolio. Central Fund seems like the best bet for a Canadian ETF. Three questions:

1. Am considering splitting unit purchases between my RRSP and non-registered accounts. Any issues here?
2. Can you advise the Canadian tax treatment for capital gains in my taxable account?
3. Could you please help me understand the 'premium/discount to NAV'? Today it's -8.79% for CEF.A.

Thanks as always for your great service.

Q: can you tell me what is going on with gsbd

Q: How is CEF.A valued? Is it just the number of ounces of metals times the current price of gold or silver to arrive at a NAV? Today CEF.A trades at 7.2% discount to NAV and I'm trying to determine if this is a good buy....or not. How can it pay a divvy, as tiny as it is? Any chance of your expert advice in blog form? The root of these questions is that I would like to hold some physical gold, this fund seems a easy way to do that but I do not understand the "under the hood" part. Their website is vague also. Thanks for your insight. Ron

Q: Hello Gentlemen,

What is your opinion of MID.UN and XTR at this time !

Thank you

Q: Is this a company that might be of interest for a small position?

Thanks.

Q: Please could you see if symbol XTD would make for a good investment idea. is this a CEF or a mutual fund and how can we make sure about the valuations. Thanks