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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 Team

Could you please provide an update on the mortgage investment corporation.
Are they a reasonable source of higher yield interest income?
The four MIC and First National have suffered the declines similar to the market.
These investments would be held in my RRSP for long term interest income and not for capital gains. These would be a small portion of my high yield fixed income portfolio which includes corporate bonds and convertible debentures.
How did MIC fare in the low interest rate environment after the 2008 crash / recession as most stock charts only go back 10 years.
Thanks for the excellent advice in the last four weeks with all the market changes.
Read Answer Asked by Stephen on March 26, 2020
Q: Ignoring taxes, cash requirements, and sector allocation, on a straight-up basis, for a minimum of a one year hold, which of these companies would it be prudent to currently sell, buy, or hold? Thank You.
Read Answer Asked by Harold on January 27, 2020
Q: Hello 5i Team
I am reviewing alternative high yield C$ investments for my RRSP for a small portion of my fixed income (< 5% of total portfolio ).
Looking at the publicly traded mortgage investment corporations (MIC) on the TSX - of the four listed, which would be your preferred choice and/or ranked in order.
Are there any other MIC listed on the TSX?
Could you also confirm that "dividends" for MICs are considered as "interest" if held in a non-taxable account.
Thanks in advance for the great service.
Read Answer Asked by Stephen on July 03, 2019
Q: Hi – what is your general view of the MIC’s now, for TFSA or RSP.? Which MIC do you prefer if any? Can you please rank the three listed and indicate if there’s a different one that you prefer. Thanks.
Read Answer Asked by Kirk on December 17, 2018
Q: Greetings. CBL, MKP, FC all pay a great dividend, but have lost Cap value over the past year or so. Forward trending does not indicate much value appreciation. Should I be concerned with this sector of altrenative lenders to the major banks. Sell or hold ? Other options to consider. ie some growth expectation and a reasonable div or say +4%
Thanks
Read Answer Asked by Ed on November 24, 2017
Q: On the company website for FC, I see a note that "dividends are treated as interest income for income tax purposes under the Canadian Income Tax Act."
I own some shares in FC and I acquired them expecting that the dividends paid would be taxed as dividends (Oops! Now I know differently). How then is it that a dividend can be treated as anything other than a dividend and what is the reasoning for a firm paying a dividend that gets taxed as interest? Why not call it what it is...interest? Thanks.
Read Answer Asked by Rob on October 20, 2017
Q: I hold substantially less than 5% of each of the above securities in my diversified portfolio.The sector is not over-represented in my portfolio. I would appreciate your opinion as to which, if any, should be sold because of duplication; and/or to reduce the # of stocks held; and/or because of other specific concerns; and which, if any, should be added to. I do not require the cash from any disposition, am not averse to risk, and, subject to your comments, would reinvest it in this or any other sector which you recommend.Thank you in advance for your usual reasoned response.

Read Answer Asked by Harold on July 10, 2017
Q: First, a quick comment on Patient Home Monitoring regarding your response to Robbie's inquiry this morning. I agree the board members need to go but it's the present management that has turned around the debt, margins, revenues and general focus of this company and should they not be credited with doing a very difficult job in the face of such negativity as this stock has seen over the past two years.
I am building an income portion of my RRSP and currently hold KWH.UN, FC, HOT.UN and ECN.PR.C and would like an opinion on adding BCE and HR.UN. Canada is "possibly" ready to raise rates so are my present holdings and additions facing headwinds for that reason. I want to hold them for years and would be happy with just the dividends.
Thank you.
Read Answer Asked by Steven on June 20, 2017
Q: I understand that you guys don't like this space. I'm warming up to it and would like to take advantage of HCG's collateral damage. Pls rank the above and describe how they fund their deposits. Thanks!
Read Answer Asked by Eric on May 02, 2017
Q: I would like to use GRT.UN, CM,ENF,PZA,TD,SMU.UN,T,AX,BCE,AND FC in a retirement income portfolios what do you think. Are there any I should not use.

Jim
Read Answer Asked by Jim on May 01, 2017
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