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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: Taking into account AD as an income trust, I presume distribution would be taxed as income and would be best in RRSP whereas TCL dividend would receive dividend tax credit and best in nonregistered accounts. To me that seems at highest marginal rate that these would provide similar incomes in above situations. Is this correct?
Secondly, do you recommend one above the other?
Income, safety of dividend and capital are the most important considerations. I prefer a long term hold and can tolerate a moderate amount of volatility.
Thank you for this great service.
Read Answer Asked by Tulio on October 19, 2020
Q: Just a question about the conversion, and the cost basis of my units. At the end of August, the value shown on my statements agreed to my records. Say it was $100. When I checked today, the cost value is shown at $50. Can you easily answer why the cost would be impacted? Perhaps a problem with my broker? I don't know much (read nothing) about Income Trusts. Thanks.
Read Answer Asked by Brad on October 01, 2020
Q: Do you see any reasonable prospect that any of the above will rebound or should I just sell and move on?

Thanks for your great service, Paul.
Read Answer Asked by Paul on August 28, 2020
Q: I have several beat up stocks that are now small holdings so looking to clean up the mess a bit and reduce my holdings to a more reasonable number. These are all in my unregistered accounts so will generate a tax loss although that wont do me much good this year with no likely gains to harvest.... So my general plan was to sell some and consolidate in other holdings I already have: ( use as many credits as required)

Sell HSE ( 1/4 position ) and add to my 1/2 SU . I get the tax loss to carry forward and move from HSE that is mostly heavy oil to SU with less downside.

Sell CHW ( 1/4 position) and add to my 1/2 SJ. These 2 don't really match up well like HSE and SU but the CHW is such a small position, unlikely to move until late in the recovery and with the div suspended I think I am going to take my lumps on it. I am a bit lite on SJ anyways.

Sell my MX ( 1/2 position) and add to my MAL ( 1/2 position). Once again not good matches but these 2 are small position in the same account. MAL hasn't done much in terms of stock movement but has generated a good yield over the many years I have owned it. I am not feeling the love in the energy sector for the next few years and I have a felling that the good old days in oil and gas might be at an end with the cost of solar improving and the steady growth in electrifying transportation....

And last sell 1/2 position of AD and buy ALA ( 1/2 position). Once again not a great fit in terms of sector but yields are comparable and ALA is essentially a utility ( and not a oil and gas) so should be a somewhat stable yield.

I wish I had a few big winner I wanted to sell to harvest the tax losses now but will just need to put them in my pocket for the big recovery in a hopefully not to distant future... These moves reduce my small holdings, Get rid of some holding you don't have in your portfolios, de-risk my portfolio somewhat and finally move that money into companies a bit better placed to maintain their dividends during covid/post covid
Read Answer Asked by Tom on July 22, 2020
Q: Please rate the above for the following criteria (best first):
Safety, valuation, dividend sustainability,long term strength,
thanks
Read Answer Asked by JOSEPH on July 17, 2020
Q: Thank you for your answer; between those companies, which one are your favorite for holding in the long run and would it be relatively safe to invest in them ? I only know personally fiera and keyera.
Read Answer Asked by jean on July 13, 2020
Q: Granted that these companies differ in dividend (only with AD), size (DOO largest, AD smallest) and type of business (sports equipment, fashion products, and equity financing to private companies), how would you rank these four stocks for future growth runway today (highest to lowest) if sector was not a consideration? Thanks for your valued input!
Read Answer Asked by David C. on July 07, 2020
Q: Have held 1000 units of NWH.UN in non-RSP account since 2015 and the ROC is now about 1/3 of what I paid for it. Confused about ROC and how it helps me but I do understand the lowering of the cost base when units are disposed of. Faithfully track all ROC’s for all units held including SPB. I don’t depend on the income from the portfolio but I am in a 43 % marginal tax bracket as a retiree. So when do I dispose of NWH.UN?
Your Q&A database says that NWH.UN is small, has wide geo distribution and not much growth, the distribution is safe but amount is only so so. However, there is a lot of ROC. In this down market, my 2 other similar amount of REs are down also (CSH.UN and SIA, 35 and 44% respectively). Also, have similar amount of AD that is down 52%. I am about “even” on my gains and tax loss sales so far for 2020 taken early in January but could use some carry-back for last year’s gains. Thinking of a trade of selling NWH and AD and perhaps CSH and SIA, waiting the 30 days before buying AD back unless you could suggest a suitable alternative proxy for the interim (or just buy CAR.UN instead all in non-RSP). Or would best option be to let it simmer and revisit during tax loss season to see if any of these have sufficiently rebounded? Have I missed something? Maybe the best decisions taken are those decisions that did not have to be taken.
Read Answer Asked by William Ross on May 26, 2020
Q: I currently own AD and I'm down about 50%. Would you recommend selling AD and switch to BPY.UN?

If BPY.UN keeps its dividend rate, my total dividend yield would improve slightly. So I have a slight advantage on yield (if BPY.UN does not cut it yield).

Yet BPY.UN has more potential to bounce back up from the $12 level than AD from the $9+ level. The growth part is seemingly more in favour of BPY.UN. Would you recommend such a switch? Your opinion is much appreciated. Thanks.
Read Answer Asked by Victor on May 25, 2020
Q: I am coming up on the 30 day mark where I can repurchase shares that I sold to harvest some tax loses. Granted the market has been strong of late but I purchased some proxies on your recommendation and they have performed well. Which would you refer at this point AD or EIF and similarly PPL vs ENB?
Thank you for your continued support and guidance
Read Answer Asked by Marty on May 11, 2020
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