Investment Q&A

Q: Good day!

With the recent misstep by McDonald's in allowing nuts in their restaurants and no longer claiming nut free space, do you think this may have a positive impact on A&W which is nut free? Could the impact be significant in store sales? McDonald's seems to be receiving a lot of backlash from this.

Q: Canadian restaurant income trusts were marvelous investments last year. A&W was up over 40% in the last year in addition to a healthy dividend. The others were up between 26%-33%. Do you expect this kind of growth to continue in 2017? If not, what would be more reasonable to expect?

Q: Please could you rate these 3 similar companies for:-
-Dividend sustainability
-Dividend growth expectations
-Insider ownership
-Debt Levels
-Current outlook for growth

Are any suitable for a full position in a RIF account?

Are any buyable at current prices, and if so which would you favour?

Q: I am currently up 30 to 60% on these companies, all are held in an RSP or RIF account. Would you add, take profits, or sell full position in any of these funds. I have about $20,000 to invest currently in my RRSP and am wondering if it is to late to start a new US position. I am considering facebook or google? Thanks for your input!

Q: I’m looking to add the equivalent of about 1 full position to consumer cyclicals.

I currently hold DHX.B (2.9%), AW.UN(3.4%), QSR(2%), CGX(2.4%). Right now I care about total returns and I lean towards profitable companies which pay, and regularly increase, dividends. I am not opposed to swapping out companies or adding in new ones though I do tend towards the buy & hold philosophy.

Your thoughts on this list, other options in the sector and where to introduce the new cash would be appreciated.

Thanks,

Gord

Q: Hi Peter, Ryan, and Team, I need to top up my consumer discretionary holdings and already have close to full positions in the above stocks. Please recommend several possible purchases, or are there any of the stocks I already hold that could be overweight by a bit (excluding XTC)? Alternatively, since I don't have much US exposure, might there be a suitable ETF with decent growth? Thanks in advance.

Q: Peter and team:
I hold all equities in your balanced portfolio and a couple from your growth in a portfolio worth about 450K (Thank you). I currently have about 35K to invest and would like to choose one stock from your growth and two from your income to "round things out".
At current valuations and looking at a 10 year plus time frame could you please rank each of the four equities per group. Sector allocation is not a consideration.
Please deduct 2 credits and Thank you as always for a fantastic service.

Phil

Q: is this category and these stocks good picks and or are there better ones in this field.
also how will rising interest rates 1 2 percent effect these stocks and dividend stocks in particular

Q: Hi 5i,

I am retired and have a 5-10 year investment horizon. I love your Q&A database and find it provides almost all the answers I need.

My question is a general one around interest rates, but I have provided A&W as an example.

I have heard for, it seems like more than a decade, that when interest rates rise, then the price of dividend producing equities will suffer as folks move to bonds and other more growth orientated companies or funds. I have always thought that, say A&W with a 4.4% dividend (and a visible healthier food strategy driving higher sales) would retain its value unless interest rates rise "a lot". The dividend is likely very stable and tax beneficial, so very attractive.

Now, with conditions forming out there that may lead to rising interest rates, and maybe "a lot", how concerned should I be with, say, holding my A&W.

General comment. I notice that some of us who ask questions like to define our status (retired) and time horizon (5-10 years) as we pose a question. I would be supportive in providing a general profile that is maintained at your end so you can "look me up" when answering questions. Optional for us, as some might not want to share. Just a thought.

Love your service.

Q: Hello I5, my cash position is over 25% and would like to reinvest some of it. I would like to have your help to choose the ones with the least downside effect in case of interest rate increases, safest with some growth. Also, would appreciate your assessment of the Manulife (MFR and MBK)ones. Many thanks, J.A. P., Burlington

Q: What would be your outlook for A&w royalties going forward, In terms of total return ( understanding that this years 30% gain is unlikely to be reproduced). And would you consider these types of royalty stocks to be bond proxies sensitive to interest rate increases?

Thx

KR

Q: This stock has had a great run but its latest results, which seemed to be pretty solid, didn't move the stock. Do you think most of the growth is pretty much wrung out of it now and that it should be viewed as largely an income stock? The main reason for my question is that I am currently more interested in a stock that combines both growth and income such as FEZ or BEP.(sector not important)

Appreciate your insight.

Paul F.

Q: Thoughts on the results?
Thanks very much. David

Q: Hi guys, I have had a good run in A&W, seems like the momentum is slowing, anything to be concerned about here? When is the next qtr beig annouced what are the expectations? Also bonus question, how does the A&W root beer fit into this company? do they make money off the soft drinK, is the soft drikl revenue material?

thanks

Kuldar

Q: Hi Peter there appears to be a run on aw no news that I am aware of .just profit taking?
Kind regards
Stan

Q: The Target Price Data Report of July 29 has AW.UN at minus 46% and all the restaurant trusts with minus targets by analysts, AW being the worst, and the best at minus 11%. All except one has a Buy rating. Can you suggest a reason for this anomaly?

Q: I own these 2 stocks in equal amounts in my TFSA which equate to 6% of my total portfolio-the rest in RSP which comprises of mainly banks, utilities ,REITs and infrastructure stocks along with AD,SPB,VSN,WEF and PKI. Am looking for a dividend paying small cap stock with 4% yield with growth prospects to add to TFSA. Any ideas? Thanks
Derek

Q: In a recent member's question regarding a conservative portfolio construction you said that there are good consumer discretionary companies that are growing income and dividends. Which ones in Canada and the US would you recommend other than the auto related ones? Many thanks for the great service.

Q: I am up nearly 40% with A&W and it still pays over 4%! Should I consider trimming some of it or stay fully invested? If I should trim it, any recommendations on what I could do with the proceeds?

Thanks

Q: Any idea whats going on with AW.UN? For a steady Eddie it seems to be on quite a roll. Does its corporate structure make it more difficult for it to be acquired?

Do you still prefer A&W to the other restaurant royalty names?