Investment Q&A

Q: This has gotten increasingly confusing.

Can you please confirm how the due bill works?

If shareholders were to sell when would be the last day they could and not receive the dividend?

If shareholders were to sell and want to be still paid the dividend what is the earliest date one could sell?

Q: I'm in the process of rebuilding my portfolio for 2022. It would be helpful if you could share with me a list of both Canadian and American companies that meet the following criteria:
1. They are some of your favourite companies from a fundamental perspective
2. They are currently buying back their own shares.
3. They offer a decent dividend.
4. They run businesses that offer good growth prospects for next year.
5. They currently offer good value.
6. These companies are so solid they would classify as 'core ' holdings.
At least six companies in each list would be appreciated.

Finally, I would like to express my gratitude for the support and ideas you have shared this past year. Definitely one of the best advisory services available to Canadians,

Q: I have some ecn in my riff and need to get some cash available for my year end withdrawal and need to know if the dividend payment is in fact to be paid before year end to cover my government obligation so I will not have to sell other stocks to meet the cash requirement. Please advise.
Cheers Doug

Q: Well, count me confused.

“The Distribution is scheduled to be paid on December 22, 2021 (the “Payment Date”) to holders of Common Shares of record as of the close of business on December 15, 2021 (the “Record Date”). Subject to confirmation from the Toronto Stock Exchange, ECN Capital expects the Common Shares to commence trading on a “due bill” basis at the opening of trading on December 14, 2021 and to commence trading “ex-distribution” on December 23, 2021. The due bill redemption date will be December 24, 2021.”

This seems to indicate that you must be in ownership of ECN on December 14 to receive the dividend/distribution on the 22nd.

Is this some sort of financespeak? Are they aspiring politicians?

Q: Please clarify the ex dividend date for ECN’s special dividend. You have now given different answers ‘to this question, probably due to the company’ s confusing press release.

Q: Looks like the ex-dividend date is now Dec 23; what is due bill?

Q: Hi 5I
I have $180,000 split evenly amongst above companies in RRSP. I was going to begin withdrawing $10,000 every year and am looking for strategy to draw down to maximize growth of account. Is there a ranking of companies to sell first, or take a bit from each? I like them all so tough call for me. Appreciate all your advice since my initial membership in 5I.

Q: As we all scratch our heads on yesterday's announcement I see CIBC gives us a post payout price. I live in hope!

• ECN Capital Corp: CIBC cuts price target to C$6 from C$11.50, reflecting expectations for the company's
market value to decline when the stock goes ex-dividend.

Q: Looking past the ECN special dividend, how would you compare ECN and FSZ for the longer term for safety of capital and dividends, and growth? Aside from the big six banks, are there other names that trade on Canadian markets in the broader financial services area that you might consider to be superior to these two for safety and growth? Please take whatever credits needed. Thanks.

Q: I'm in ECN at $3.75 & it has become 10% of my portfolio so my question is should I sell now or wait for the dividend & keep the shares? Thanks ,as always, for your thoughtful advice
Dave

Q: If I have a synthetic drip established with my broker for ECN, will I be buying an bunch of ECN shares instead of receiving cash from the dividend? If yes, is it worth keeping this in place?

Q: Hi 5i Team - My apologies if this question on ECN overlaps some of the others. I hold shares in both a TFSA and non-registered account and am considering moving the non-registered shares into the TFSA. I have capital losses to declare against the capital gains. First of all what do you think of this strategy. Secondly by what date would I need to do this in order not to lose the dividend since the move will trigger a sale in the non-registered account and a purchase in the TFSA both on the same day.
Thanks.

Q: Not a Q. As I recall with Hudson's interview on BNN he said that the interest rate would be adjusted after the transaction.

Q: You are probably going to be bombarded with questions re ECN in the next few days. Here is mine. According to the information circular , of the $7.50 payout, $4.15 is a return of capital and $3.35 a special dividend. In my non-registered account, if I paid $3.00 per share does that translate that my cost per share is zero?
Thanks

Q: Hi,

Follow up to Earls question (Thanks Earl), but for a non-registered account.

If I buy ECN now at $11. Once I get the $7.50 dividend, say the stock drops by $7.50. Wouldn't it result in a capital loss of $7.50 a share (if I sell it) that I can offset against capital gains? Sounds like it would be smart thing to do. Is this correct or am I missing something?

Thanks

Q: Further to my question re continuing to hold the stock after the $7.50 transaction is done. Is there any way of knowing what the current dividend of $1.08 will do. Will it possibly go up or stay the same after the dust settles.

Q: With regards the question asked by EARL on ECN stock, what would be the result if you own the stock in a TFSA (like I do)with no taxes payable. I am thinking of keeping the stock no matter what and purchasing more stock with the dividend issued. Is this a good idea?

Q: I have done some calculations for me re selling or holding ECN that others may be interested in doing. My ACB for ECN is $3.75/sh and a sale at $11 would result in a $7.25 capital gain/$3.63 taxable and about $1.81/share taxes to be paid.
If I hold, the $7.50 dividend would result in my ACB going to zero (3.75-4.15) and a $0.40 capital gain and a 0.10/share tax liability plus the $3.35 special dividend would likely require about 32% tax payable (AB) or $1.07. So total tax payable by keeping the shares for me is about $1.17/share. Since I want to own the ECN shares after this, it is cheaper for me to hold the shares than to sell and rebuy. Interesting to me that my ACB will be zero after this. I hope this helps others do the math.

Q: I currently own ECN in a TSFA. If part of the special dividend will be ROC ,it appears that will not be a positive result for me, and the loss in stock value after the dividend is paid will possibly take years to recover. Would I just be better off selling today and foregoing the dividend? Thoughts?
Philip

Q: Once we receive the dividend from ECN would you recommend using the funds to purchase the shares of ECN, why or why not?

Thanks for your service!