Investment Q&A

Q: This was my question and the answer I promptly received yesterday. The answer was spot on but I have full positions in both SIS and GSY. I have sold my KPT today. Do you have a third name that might be suitable to replace it?

Thanks Heaps
Question:
I am trying to break my need to hold on to my losers. I have held KPT for 4 years with nothing to show other than the dividend. I like the dividends but I don't have need of them at this time and I want something with some growth too. Should I give it up? If so any suggestions for a replacement? Thank you

Answer:
KPT really has not created much value, and the stock was higher in 2013 than it is today. For income we would consider it 'so so' and certainly think there are better options out there. We prefer dividend growth, and the dividend has not changed in five years.

We would consider SIS and/or GSY for a nice combination of growth and dividend growth.

Q: For a 40 year old, starting to save for retirement. Currently have in an RRSP these stocks: TOY, ATD.B SIS and TD. Now have room for two more holdings. Can you suggest 2 or 3 please?

Q: Hi Peter and team
I need cash from our LIF/RIF accounts and need to decide which stocks to pare. Considering future growth, should I sell equal amounts from ENGH / GIB'A or sell only one , and MG / PBH for another account? Appreciate your help.
Gary

Q: I currently own half positions in the above companies I am considering selling cxi and taking a full position in toy Would you agree with this strategy or would you recommend an alternate strategy these holdings are in my TFSA

Thks
Marcel

Q: Hello 5i. I have a sizeable gain in this company and wondering if I should take some profits or keep accumulating it. (as you say averaging up is a good thing!)The investment thesis still seems sound but can I get your assessment on pbh. What is it's projected annual growth rate for the next few yrs? debt load? What valuation do you give it? Are there any red flags?
thanks!

Q: Have held both KEY & PPL for 5+ years & enjoyed substantial gains & excellent dividends from both. However, major changes have taken place in this sector and I have decided to move on. In our principal Cash acct we hold KWH.UN, DRG.UN, WSP, PKI, LNR, RY, WPK, SIS, & CHW - all dividend paying. Would appreciate your suggestions for 2 or 3 CDN. replacements. My RIFF investments cover USA, Asia & Europe. Thank you.

Q: Sector Rec Now
Csmr Staples 10 8.4 (LIQ ECI PBH)
Csmr Discret 10 17.8 (GSY NFI ZZZ TOY FRII)
REITs 05 2.8 (BAM.A)
Technology 15 15.3
Financial 15 11.8 (TD NA AGF.B TSU)
Utilities 10 7.1 (FTS KWH.UN)
Industrial 10 12.0
Health 05 5.0
Energy 10 6.8 (PKI ZCL)
Basic Mtrl 05 6.7
Telco 05 0.0
--------
ETFs (VE VEE VGG) 6.0

Examined my portfolio in relation to recommended Sector weightings. Need to trim back Consumer Discretionary. I like them all; they have done well, except for FRII. I’d like to increase the holdings for Staples, REITs, Util, Energy and Telco. Could you please suggest an equity I might add for each of these five categories? Many thanks.

Q: Hi. I have a overweight position in BCE which I have a 3% profit plus dividends over the last year. I'm looking to sell half the position to try to get a bit more growth in the next year, while still maintaining a good dividend. Can you suggest a couple names in a sector with a bit more momentum. I already have a lot of financials. Was thinking Chartwell?

Q: I currently own all 3. Would you be comfortable adding to all 3 at this time? each position would be at 4%.

Thanks Valter

Q: PBH has consistently been one of your top 3 growth stock recommendations lately. Based on your recommendation, I am keen to initiate a position. However, every time I look at the stock chart it seems like it may be over-valued. When PBH Revenue and gross profit increase 25% year over year, but the stock price increase 55%, doesn't this indicate that PBH is over-valued? If PBH P/E is currently 36, isn't this trading at a premium to it's average P/E and there's more downside risk that it will return to trading fair value?
How do you calculate PBH as being one of the best valued stocks today?

Q: My partner has $25k to invest in a new TFSA. Was thinking that 5 stocks of $5k each might be a good initial starting point. Do you agree? And could you make suggestions of stocks to add based on a moderately to aggressive approach. Her other investments inside a RRSP are primarily mutual funds or ETF based. Thanks!

Q: I am in my late 30's, and I have a long-term time horizon. However, I find myself gravitating towards stocks with stable businesses that pay dividends. I currently own BEP.un, NWH.un, CSH.un, and SLF.
For a long-term, yet somewhat conservative investor, what are some companies that I should consider adding to my portfolio? Thanks in advance!

Q: I have some cash to deploy in my TFSA. I am looking for two or three growth companies with medium risk. What would you suggest?
Thanks so much for your very wise and thoughtful advice. You provide a wonderful service for which I am very grateful.

Q: Hi Peter,

Could you please choose and rank the top 5 in the list of stocks below based on value today for a 3-5 year hold;
PBL, FTS, ET, KXS, SLF, PKI, GC, PBH, WSP, ATD.B, AEM
The stocks would be purchased for RRSP's

Q: I bought Kraft Heinz a couple of years ago when it was just Kraft and the merger with Heinz has resulted in a good price increase. The dividend is OK at 3.23%, (but not stellar) and I am up 32%, but the chart for the last year doesn't look promising.

What are your thoughts on KHC going forward? Any other recommendations in the same sector in the US or internationally with better chance of growth and/or higher dividend?

Q: I am a retired, conservative dividend-income investor with a company pension, CPP, annuities, Fisgard Capital and the following equities:
1. 17% Mutual funds (RBC Cdn Equity Income, Sentry Cdn Income, Sentry REIT)
2. 10% ETFs (ZLB, XIT, ZWE)
3. 41% stocks (listed above)
4. 32% fixed income (annuities, Fisgard, but not including my pension nor CPP).

I plan to reduce my Sentry Cdn Income holding from 9% to 5% and purchase ZWC. The benefits would be a) saving $1k in hidden MER fees, b) receiving an extra $1k in dividends and c) a better asset allocation. I like the covered call strategy that ZWC provides, as well as the 30 companies inside the ETF.

Question = is this the right ETF product? Are there other Canadian Covered Call ETF choices that offer this diversified asset mix that I should consider? Are their other ETFs that have slightly less financials, less utilities, and more industrials that would result in a better asset allocation for me?

Thanks for your help...Steve

Q: I know it is psychological and makes no difference but for some reason investors prefer to buy shares when it is perceived to be a low price. So Premium Brands at $100 a share would you see a company like this thinking of splitting their shares to make them seem more affordable to investors?

Q: My son is returning to studies and investing what he earned as buy and hold for 4-5 years. He put two-thirds in balanced mutual funds with Canada, US and International exposure and now wants to invest the remaining one-third in individual Canadian stocks. He has enough for 4-5 names and already invested in Enbridge. What would you suggest as solid names for the remaining four given his time frame? Thanks.

Q: In your recent answer regarding 3 growth stocks in a TFSA you chose KXS,PBH,SIS. I wonder if you could elaborate on your thoughts about how you chose these. PKI, as an example seems, to have a good growth profile over the next 2 years and pays a nice dividend. Why not choose it.
I used the numbers provided by RBC Direct Investing below.
Thanks Mike

kxs Crnt P/e 1Yr Ern Gwth 2nd Yr Divi
KXS 121 37% 18% 0
PBH 35 42% 31% 1.61%
SIS 40 22% 50% 2.62%
PKI 65 37% 66% 4.5%

Q: Hello – what would be your top three growth stocks for a TFSA at this time? Thanks much.