Investment Q&A

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.

Q: As a bank, there are some big name investors like Buffett, Munger and Li Lu all holding and/or buying Bank of America. What is so special about Bank of America versus other banks in North America?

Q: Good day,

Can I get your take on Blackrock’s earnings? Revenue growth seems to have slowed but do you see anything to worry about for a long term investor? I have a small position and am thinking of adding. Would you consider it an add or a hold for a long-term position and your reasoning, please?

Thank you,

Q: ALL hit another 52-wk low 14 July. It has done *miserably* compared to AFL. Yet , ALL remains a long-time member of the AAII Model Dividend portfolio. AFL is long-time favorite in the portfolio of “Crossing Wall St” ( the latter now has an ETF under the symbol CWS). Do you consider ALL oversold ? Is it a good value at around at USD 101 assuming two more Fed rate hikes of 25 basis points each? Or would you instead favor AFL?

If you are not impressed with EITHER of the above insurance companies, do you have a dividend payer you do favor? Your reasoning please, it always helps, thanks.

Q: Please list companies in your portfolios that have returned in excess of 100% over the last 5 years.
Please also show their % returns.
Thank you.

Q: In my quest to find the perfect ETF I'm looking at HMAX , 14.74% dividend paid monthly. Safe Canadian financials, I ask you what's wrong with it?

Q: Hello again your thoughts on Remitly Global
Thanks again.

Q: I believe shares of BNRE are still exchangeable into shares of BN after their re-org, I know you are positive on the prospects of BN.
BNRE is starting as a smaller player in their industry but looks to aggressively grow.
By buying BNRE , at minimum , would you not get the same potential returns as BN but have potential for higher upside if their insurance business grow successfully.

Thank you