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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: Hello 5i,
So, retired, dividend-oriented investor looking to add to Healthcare in Canada for a RRIF. Our primary healthcare holding is a full position in HHL, for the yield. P.A. indicates that we are overweight U.S. and need to increase our Canadian holding while healthcare is underweight.
We were considering CSH.UN, but it seems to be classed as a REIT (real estate is also overweight), so that doesn't seem to be an option. The 2 remaining choices seem to be either SIA or EXE, both seeming somewhat problematic.
Since the latest questions I could find on either SIA or EXE date back to last fall, could you update your analysis on these two equities with a view to whether either would be a suitable investment for us and whether the dividends appear safe for the foreseeable future?
And, finally, are there any other suitable Canadian healthcare options that pay a dividend?
Where there is nothing suitable in Canada, my thought was to return to ABBV and suck up the geographical imbalance. Thoughts?

As always, many thanks for your awesome service!!! It is very much appreciated!
Thanks,
Cheers,
Mike
Read Answer Asked by Mike on April 03, 2024
Q: Recently an analyst specializing on REITs said "We believe the ability for select names to maintain current distribution levels is ‘below average’, including Dream Office REIT, European Residential REIT, Extendicare Inc.,, Melcor REIT, Northwest Healthcare Properties REIT, etc. "
Does this mean there is a strong possibility that the distributions will be cut for the above noted REITs ?
Thank you as always for your insight.
Read Answer Asked by Terry on October 24, 2023
Q: hi, these equities are overvalued, over-leveraged, with shrinking earnings, according to Morningstar Canadian Dangerous strategy. do you think any are compelling sells now, and which would you Hold?
thanks, Chris
Read Answer Asked by chris on March 31, 2022
Q: Extendicare is government funded? Do you believe that the government is going to increase patient funding and also aid in funding for construction of new facilities going forward? Would you recommend buying any of these three now? What is your ranking of these three?
Read Answer Asked by David on May 26, 2021
Q: Hello 5i, I am looking at the senior care companies and would appreciate your opinion as to senior care investments as these companies have had a rough ride but with the vaccine coming out I think these companies may have a sunnier future for growth and income. Your thoughts would be appreciated also could you list these 3 companies in order from best first. Thanks
Read Answer Asked by Michael on March 11, 2021
Q: Greetings,

1) What are the latest Dividend payout ratios? My sources are giving numbers that seem all over the place.

2) If a dividend cut was on the cards, how would you rank which company is most likely to reduce or cut?

Many thanks!
Read Answer Asked by Arzoo on February 01, 2021
Q: Hello and thanks for your insights. I'm looking at these three as long-term (~5years) paid-to-wait plays on demographics/pandemics/energy respectively. Collectively, 10% of my portfolio. I'm retired and 55 and could manage nicely if all three went to $0.

Question: Do you consider this move to be on the lower end of the risk meter?
Read Answer Asked by William on July 28, 2020
Q: I currently hold 2,000 exe.a and 1,000 csh.un in one of my RRSP accounts and am down considerably on both.

1/ Do you feel the dividends are relatively safe?

2/ Do you think think they will rebound?

3/ Or - should I just trim them both and move on?

Thanks for your insights.



Read Answer Asked by Dave on July 15, 2020
Q: There are apparently class-action suits being launched against Revera and Sienna relating to covid deaths in their homes. Before long this may well involve Extendicare and Chartwell at a guess. How meaningful to a company's future would you expect these suits could be? Are there any legal precedents (re: alleged lack of proper patient/resident care) involving senior homes in Canada? I have held both Chartwell and Sienna for years, and done well with them up until all this. I have reduced both by about half, but do you think it is just better to exit this sector for now?
Thank-you
Read Answer Asked by grant on May 19, 2020
Q: I have had CHE and EXE in my RIF for quite awhile.
Cost $74,526 total and currently worth $35,010 for a loss of $39,516 (Ouch!!)
Being in my RIF, there is no tax write off but selling either or both will free up $35,010 of cash for other more (hopefully) rewarding items.
The same with VET in my TFSA but even with VET's dividend cut its still paying me about 10%+ dividend on my cost of VET.
Given all the issues with Long Term Care Facilities and Corona-19, is EXE still a good long term bet?
I'm inclined to sell CHE and stay the course with the other two.
Your thoughts?
Brian
Read Answer Asked by Brian on April 22, 2020
Q: I am retired and have both a cash and RIF account. In my cash account are the big 5 Banks, T & BCE, FRU & IPL. I see that IPL has cut the dividend & FRU has a "1,437% Pay out Ratio (PoR)!! I have mostly REITs in my RIF & EXE & CHE.
I'm not concerned re the banks or telecoms but the PoR of FRU, CHE & EXE are of concern to me. I also feel that in the longer term, the REITs will survive especially with interest rates so low. Also, to replace IPL would you consider PPL
Your thoughts please.

Read Answer Asked by Brian on April 09, 2020
Q: Hello,

I note that each of these has sold off with the market and are now yielding between 7.14% and 9.4%. Unless people are moving out of these homes in fear, I think whatever vacancies are caused by Covid-19 will be filled by the aging population. Being on sale to the extent that they are seems overdone given that they continue to function and receive their revenues. Do you agree and would you be a buyer of 1 or all of these at these levels for growth and income? Please indicate a favourite if you have one and the reason why.
Read Answer Asked by Tim on April 07, 2020
Q: My wife and I are seniors drawing from our RRIF's and we are 'buy and hold' type of investors and need income. Your recommendations to 'harvest' capital losses is something that we have not really done previously but this suggestion is resonating with us now. If we were to do this I think we would look for 'proxy' purchases for at least the 30 day waiting period before we could repurchase the same equities if we wished.
Could you suggest some appropriate 'proxy holdings' we should be aware of for the following equities?
1. The REITs HR.UN, BPY.UN......would ZRE be a good holder?
2. EXE
3. POW
4. FM
5. MTY
6. TFII
Please use my question credits as appropriate. With thanks
Read Answer Asked by Gary on April 02, 2020
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