Investment Q&A

Q: Magna, Parkland, and Premium Brands have seen significant declines, making them look like attractive dividend stocks with yields around 4%. What do you think about buying them for their dividends? Is there a risk that these stocks could fall further? Which one would be the best to buy for its dividend and potential recovery, and which one should I avoid? Please rank them.

Q: I have held a position of about 2.5% in MG (was higher, but its performance has lagged that of my overall portfolio, thus the decrease in relative exposure) for years now, and have maintained the investment due to a decent dividend (about 4.5% at today's price) and low P/E (trailing P/E listed as 11.59, current forward P/E quoted as 6.75 with Yahoo! Finance). I am concerned that the potential of the US exercising tariffs on goods imported to their country could profoundly impact MG's future performance. I believe that Magna does have some factories in the US: would this exclude them from having tariffs levied on US consumers of their goods?

If MG would be affected by tariffs, and a pivot to another investment would be prudent, I have been considering AXON and ISRG as potential replacements (my portfolio could tolerate a decrease in Consumer Cyclical exposure, and I feel I have room to increase exposure to Industrials and/or Health Care).

Ultimately, my questions are as follows:

1. Will MG be affected by the potential for tariffs to an extent strong enough that an exit from the investment should be seriously considered?

2. Of AXON and ISRG, which company do you feel is poised for greater growth in the next 36 months?

Q: Looking to move some money into the bond section of my portfolio. On the more risky side looking at XHY and USHY. How would you rate these for safety going forward on the the capital gain/loss side. Also I may sell some stocks like Magna that don't appear to be doing much.

I've been listening to Howard Marks and he thinks now is the time to be leaning towards bonds and Warren Buffet has been raising cash.

Q: Hello 5i team,
In following the balanced portfolio, I have wanted to enter back into a position with Magna (MG). It seems to have hit a bottom. I know you have put it as a hold in past questions, further to that, are you still relatively far away from removing it from the portfolio? Is there still confidence as a value stock?

If any gas powered vehicle bans are lifted, would that be a further boon for the stock(although they are far away)?

Thank You,
Andrew

Q: 3 Questions:
Why is Magna up on the Q results? I sold at $100. Do you think there is a reason to step in?
What would be your favorite industrial for growth?

Q: Thoughts please on the quarter please

Thx

Q: A member's question regarding CAD companies that would be most negatively affected by the effect of a Trump victory on Canadian co's with large exposure to the US highlighted the list I included above. I can possibly understand why LNR and MG would be negatively affected, but why should Canadian oil producers (and a pipeline co which doesn't compete with a US pipeline Co's route) also be affected by a commodity covered by NAFTA 2 which was approved under the previous Trump administration?

Q: I have small positions in these stocks and I'm also overweight in Canadian stocks, so considering raising some cash to invest in U.S. and/or international stocks.

Please rate these in terms of whether to hold (and, if so, how much patience might be
needed) or sell.

Q: If Trump wins election and he follows through with his promised 20% tariff on imported goods, which Canadian industries would be most adversely affected?

Q: Recently I transferred in kind shares of Bell. From my unregistered account to a TFSA.They were deemed to be sold at a loss.Can I claim the loss?.And also my shares of MG that are at a significant loss in my TFSA which I if needed to sell .If I transfer them to my nonregistered account will they be deemed to be sold in TFSA and I would not be able to claim the loss? As allways thanks Larry

Q: Hello 5i team,
I wanted to add to my WPM holding and was wondering if it is still ok to add at these levels?

For MG, it has taken a hit in the past year and wanted to initiate a position at this level, are you still comfortable with Magna or is there something more fundamental going on.

Thank You,
Anrew

Q: Good Day team 5i: Considering I am a long way away from my original purchase price of 94.50 and very unlikely to see that again , and considering my target date from before the pandemic needing these funds has shrunk to less than 2 years .. Funds are in a TFSA can I transfer to my unregistered account and have a loss of some value. If I chose to leave it in TFSA can you suggest a couple top replacement for MG? Tks and much appreciated Larry ( unless of course you feel I should hold )I do have other options for the funds needed.

Q: My losing stocks are LSPD (-65%), MG (-45%), CELH (-53%), and NXT (-40%) in my portfolio. I am contemplating an annual cleaning to weed out the poor performers before year end and invest the proceeds elsewhere.
Please recommend if any of the above mentioned stocks are still worth keeping for recovery in the recent interest rate cut environment ? if not, please rank the order of wipe out sequence. Thank you for your excellent service. Bill.

Q: Magna MG I am slowly getting tired of its performance. What do you suggest to replace it with? US and CA. Thanks and Greetings, Peter.

Q: Still holding MG as it approaches the Covid lows.


My question has to do with the financial health of the company, and is its dividend supported if we finally enter the long awaited slow down/recession. I've scanned past questions and would like to know if your 2025/2026 views of this company have changed. It would also be great to reflect its current valuation over past cyclical downturns.

Thx.

Q: Is MG a "safe" contrarian play yet? Thanks Ron

Q: I am considering selling Magna for the tax loss. Would you suggest buying it back in 30 days, or would you suggest an alternative in the consumer space. I already have a full position in ATD.

Q: you recently answered a question on august 13 about higher / better / safer quality dividend stocks with yields in the 3-5 % range (vs going after yields over 6 %).

What would you consider to be the top 10 of this 3-5 % yield higher quality dividend stock category?

Q: Have held for quiet some time at a price of 94.50. Today could possibly pick up for 54$. Would you consider MG a safe bet to average down on and increase my yield. Tks.Larry

Q: I currently hold NVDA in non-registered account and two registered accounts. In view of the poor performance and perhaps a low future growth in the automotive industry, I am thinking of selling my position in the non-registered account, harvest a capital loss and initiate a position in NVDA. I am trying to take advantage of the pullback in NVDA and increase the growth profile. Understanding your limitation in providing advice on this move, your opinion of the pros and cons of this switch would be appreciated.