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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 am a long term Buy and hold investor with more focus on dividend paying stocks. I have roughly 19% of my total portfolio in Financial sector. 16% of that is from financial stocks and 3% from ETFs (market ETFs financial portion). 8.2% in five (TD, RY, CM, BNS, BMO) banks, 2.5% in two Insurance(SLF and MFC), and 4.2% in financials preferred (IGM.PR.B, GWO.PR.M, PWF.PRF, BIP.PR.E). I think am Ok with my Insurance and preferred weighing. Two questions:
• Considering the current conditions, is 8.2% in five banks OK or should I trim some and invest in some other sectors?
• TD and RY have higher weighing with TD at 3.3% and RY at 1.9%, the rest three roughly 1% each, Should I sell some of TD and RY and buy other banks or something else?

In case you need my overall asset allocation:
Equity: 63%, Fixed income (including cash): 22%, Real estate: 6.5%, Preferred: 8.5%
CDN: 73% (Equity: 48%, Fixed Income: 21% and Real estate: 4%), US: 18% and Global: 9%
Four highest weighing (59%) sectors are: Multi sectors (Market ETFS): 25%, Financials: 16%, Utilities: 11%, telecom: 7%, the rest in various other sectors.
Read Answer Asked by Naren on September 04, 2019
Q: Would you please give me your current opinion of this stock. The price seems to have stayed in a trading range of $ 8.30 - 8.90 this year, much lower than previous years. However, it still continues to pay the high dividend & has done now for some 15 years or so.

Even with the decline in price it still has a good overall yield.

EIT is another high yield stock. What do you think of it.

Thanks
Read Answer Asked by Ross on September 02, 2019
Q: The only one I've owned and still do in this group is SLF - been a great investment over last 10 years +. I was thinking of buying MFC for my wife's portfolio since she does not have an insurance company. MFC's balance sheet looks great: very little debt., low pay-out ratio (lots of room to increase dividends). The stock seems to languish - low interest rate environment, I guess? Do you like this one for the long haul??
Read Answer Asked by James on August 26, 2019
Q: Good morning...I have searched the internet and found the payout ratio of fsz at 60.62% is that correct. I have a 3% weighting in this stock and love the dividend as I am a senior that uses that dividend for expenses. Do you view a 3% weighting in this company proper considering its valuation and payout ratio...thank you..gene
Read Answer Asked by gene on August 22, 2019
Q: Hello Gentlemen,
I was looking to invest into Canadian Banks; Would appreciate your opinion on which two or three banks would be your top picks over the next 6 months to a year. I am looking for something more secure and pays a dividend.
Thanks Hugh
Read Answer Asked by Hugh on August 22, 2019
Q: I am currently overweight the financial sector. I am concerned about the trend to negative interest and the risk of a recession. The odds of market declines are increasing in my opinion.
Protection of capital is more important than income.
We are not supposed to time the market.
Should I put this group in cash ?
The group will be hurt by negative interest rates or am I wrong on this.
Read Answer Asked by Doug on August 19, 2019
Q: 5 eyes - why is the bid 10% less than the ask on this US insurer? If I want to sell shares (I don't actually) then do I take a 10% haircut? David Fingold's fav insurer - which would you buy between PGR and Chubb and secondly would you recommend a buy at this time of a US insurer generally? Delighted as always - Ken
Read Answer Asked by Ken on August 16, 2019
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