Investment Q&A

Q: It just occurred to me, and I thought your members might be interested, that BNRE is a better choice than BN for those of us subject to clawback of benefits such as OAS. BNRE pays the same distribution as BN but it is a return of capital instead of a dividend. So there is no tax to pay in the year received and there is no gross-up of the distribution. In addition, BNRE is convertible at anytime into BN shares. Seems to me that many people should be switching to BNRE instead of BN.

Q: Trisura pre-announced Q2 results and markets don't appear to like results....your thoughts on EPS announcement...in-line? with analysts, and why would they pre-announce???,,,,do you still like company...or should I settle down and wait for actual Q results on 10 August, thanks, jb

Q: Do You prefer BN or BAM at this time?

Q: XTD is a split share corp that invests in shares of TD bank. TD has had some issues but is now seen as somewhat undervalued, with good potential upside. XTD, currently at $4.00, pays a 15% dividend, monthly, as long at the net asset value is above $12.50. It is currently at 12.95. The risk would seem to be the risk that the TD stock underperforms. Would appreciate your thoughts.
GUY

Q: I’m a buy and hold investor. Fundamentals need to change to sell. I have both Manulife and Sun Life in different accounts. Looking at both holdings over 10 year hold. Sun life stock performance outweighs Manulife performance. Question? Should I swap Manulife for SunLife or keep positions in both? Manulife is in my non registered, RRSP and TFSA accounts.

As always appreciate your platform

Q: I tried to see the long term chart of BAM, but the chart will not go back further than Dec 2022, why ?, there was a change in symbol ?
thanks, is BAM the only way to invest in BAM conglomerate or there are other options ?

Q: Hi, Could you please comment on SOFI earnings. Thank you

Q: GWO is approaching a new all time high. Is this a good thing or is the valuation getting stretched and is it a time to sell?

Q: Good Morning,

Retired income investor. Large position in BN with very low yield but growth potential.. Wondering if you thought it would be a good move to sell BN and buy BIPC, BEPC and BAM or any other suggestions. Have some of each already. Don’t need the money but this would improve cash flow which could be used to purchase more equities.

Q: After many years of holding a full position in Laurentian Bank, I am just now breaking even if I sell at the current price. But with BNS and TD not interested in acquiring LB and the other major banks tied up in their own acquisitions, who does that leave as a potential buyer? Is it too risky to hold onto my shares lest the price plummets if there is no sale?

Q: Do you have any information on when the HCG takeover deal is expected to close?

Thank you,

Stephen

Q: I want to buy both of these stocks. Should they go in my Registered or Non Registered accoun and why.

Thank you. Ian

Q: Is the potential capital gain on ZBK workable with a 3 year hold. How long would you suggest to build a position with dollar cost averaging? Thank you

Q: I see some analysts anticipating LB still has 25-40% upside from here. What do you anticipate the outcome of the strategic review to be? Do you see any regulatory hurdles from Quebec or elsewhere in an acquisition.

Q: Hello 5i Team

I am reviewing US listed Property and Casualty Insurance companies for the US dollar portion of my RRSP account (in order to receive dividends without US withholding tax).

I understand Brookfield Reinsurance Ltd (BNRE) is a Bermuda based corporation and is not subject to withholding taxes in an RRSP.

Questions:

1 – Is BNRE a suitable candidate?

2 – Please list other US listed P&C insurance companies for consideration in order of preference.

Thank you

Q: With a potential recession and also interest rate uncertainty, is RY still a good bank to hold if I'm buying for the longer term? Also it's already such a big company, how will the returns be and where would growth actually come from?

Q: Thoughts on FITB quarter. Do you like this stock for income and growth for a 3 year hold? Is it a possible takeover candidate for the bigger banks?
Thanks

Q: Hello 5i Team

From previous answers, you have stated portfolio / sector allocations are a personal decision.

Currently I have approximately 20 % of my Canadian Equity Dividend (i.e. TSX dividend stocks) portfolio in the financial sector.

The financial sector holdings are divided into the following sub-category (industries) with representative stocks in each sub-category:

Asset Management – (BAM / BN)

Banks – (BMO / BMO / CM / RBC / TD)

Insurance (Life) – (GWO / MFC / SLF)

Insurance (P&C) – (DFY / FFH / IFC)

Questions:

1 – What would be appropriate percentages for each subcategory? An example would be should Banks be 50 % of the financial sector holdings (or 10 % of total equity holdings)?

2 – Is there any other sub-sector of the financial sector that I should be looking at along with associated companies?

Thank you

Q: Given recent bank earnings, have your thoughts on this one changed ? I am a retiree seeking income ... so is the dividend safe-ish ??

Q: BNS is the only big bank that I hold a full position in. I keep watching it underperform all the other big banks and it has also been the laggard over a 3, 5, 10, and 20 year time frame(dividends included) compared to the other big banks. Is it time to move on from this stock. TY

Derek.