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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: Good Evening
NWC
It is my understanding that NWC is providing food like the supermarkets to the public. Therefore, is it a safe bet during this coronavirus environment? Have they ever cut their dividend ? Is their dividend safe?
As well, some analysts saw their acquisition of an airline as negative. What is your opinion?
Is it advisable to average down at this level?

REI.UN
I own both the stock and a couple of their bonds. What is your opinion with respect Rio Can surviving the coronavirus crisis?
Please deduct one credit for each company.
Thanks again for your insight.
Read Answer Asked by Terry on March 26, 2020
Q: Hi, I'm a retired, dividend-income investor. I took some profits and losses (to wipe out potential capital gains) over the last 5 weeks and am now planning on reinvesting the cash to top up some of my existing equities, up to my desired asset allocation. I want to leg in, in probably 3 waves over the next couple (?) of months, to top up ZWC, AD, AQN, AW, BNS, BCE, LNF, NWC, RY, TRP, WSP.

Can you please indicate which of the above equities you would allocate into which wave (in other words, does it look like the equity is "ready" for an investment OR should I continue to wait for a while)...or not at all (not worth any further investment).

Thanks for your help...Steve
Read Answer Asked by Stephen on March 18, 2020
Q: What is your take on NWC selling some of it's Giant Tiger Stores back to GT. I know they had some operational issues with these stores. Appears to be a good deal and a clean exit for the exception of the 6 stores they are keeping which I presume are profitable. What impacts do you see from this deal.

Thanks
Read Answer Asked by roland on March 17, 2020
Q: Retired, conservative dividend-income investor with a "buy-and-hold & trim-add around a core position" strategy. At times like these, I take a fresh look at my holdings and ask two key questions. #1 = are there any of my equity holdings that have alarm bells going off? #2 = how safe are the dividends (knowing that no dividend is 100% secure)? The portfolio capital may rise or fall, but it is the continuation of the dividend that is more important.

For asset allocation purposes related to individual stocks (as opposed to sector allocations), I use the following:
5% targets = AQN, BCE, BNS, PBH, RY, TRP, WSP
4% targets = AD, AW, CSH, NWC
2% targets = LNF, MG, NTR
ETF targets = roughly 3-7%

Q#1 = are there any of these equities that you hear alarm bells?
Q#2 = are there any of these equities where you foresee dividend risk?
Q#3 = any thoughts on how I have my asset allocations set up (knowing it is a very personal decision?

Take a bunch of credits. Thanks for your help...Steve
Read Answer Asked by Stephen on March 06, 2020
Q: Hi...just read your March 1 email....very timely. I have been evaluating some of my current equity holdings from the point of view of topping up some or all of them over time...to reach my asset allocation targets. I do a monthly review of all of my holdings using metrics like P/E, P/BV, P/CF, ROE, Beta, Analyst targets, charting vs 200 mda and higher highs-lows. Mid-Feb I raised roughly 5% cash (basically trimming oversized positions that also appeared to be stretched) and could direct it to the above list. I am a retired, dividend income investor.

The 4 BNN Market Call guests on Thursday-Friday indicated that legging in to this buying opportunity should be considered, as, in their opinion, the market is extremely oversold. In your past life as a Fund Manager, what metrics did you use to guide your process on whether to buy or sit on your hands? For example, "when the VIX is high, it is time to buy"...the VIX is now at 40.

If this is a fair question, could you rank the above 9 equities for topping up to existing positions? My process, for example, has identified LNF as one of the priorities.

Take as many credits as you think appropriate. Thanks...Steve
Read Answer Asked by Stephen on March 03, 2020
Q: I am a retired, conservative, dividend-income investor. I just sold CGX and need to replace it with something else in the Consumer sector. I currently own AW, NWC, PBH and love dividends.

Can you please give me 3 replacement options in the Consumer Cyclical space as well as 3 options in the Consumer Staples space? If it is possible to filter a dividend over 3%, that would be ideal...if not 3%, then try for > 2%.

Thanks...Steve
Read Answer Asked by Stephen on December 16, 2019
Q: Looking for 2 Canadian companies in each of the following sectors which pay an attractive secure dividend to balance out a taxable account.
real estate,healthcare, consumer discretionary and consumer defensive.
Thanks
Jeff
Read Answer Asked by JEFF on November 21, 2019
Q: I have a 5% position in BCE and a 4% position in NWC, which I consider both to be "full", relative to their "blue chip status". I have a little bit of cash available to top up either or both. With the recent weakness in both BCE and NWC, would you add to either at this time? From an asset allocation perspective it doesn't really matter which, although I could use a bit more in the consumer space.

BCE = Now that the election is behind us, does the threat of cell phone fee reductions seem more likely? What does the future look like?

NWC = At last reporting, I understand the airline expansion was possibly holding back results...any new news?

Thanks...Steve
Read Answer Asked by Stephen on October 25, 2019
Q: I am a retired, conservative dividend-income investor. I have read your recent comments on each of these companies. Key question = if you had an existing partial position, would you top up either of these?

Thanks...Steve
Read Answer Asked by Stephen on September 13, 2019
Q: The above funds are presently held in my TFSA - managed account with 1% fees. Unhappy with the overall performance of this account. Are any of these growth funds? Which would you sell. Please recommend funds for a TFSA? Thank you.
Read Answer Asked by Lorraine on June 26, 2019
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