Investment Q&A

Q: I recently upgraded my subscription and received the Canadian Money Saver magazine subscription, which I'm really enjoying. In the most recent issue there is a page of top US dividends within a certain criteria. I was surprised at the number of funds paying 10% plus divs. I realize that this isn't always a safe investment, but in light of rates falling, I wonder if you have a few suggestions for high dividend paying etf's (US and or Cdn) or REITs that would have capital preservation (generally maintain share price, or increase) as the rates come down, but realize income through the div.

Q: Is commercial real estate at a sufficiently low valuation to make Lument (LFT:US) and its ilk desirable? Which of LFT's competitors look good in this space?
Thanks!
David

Q: A recent question/answer mentioned AGNC,NLY, BXMT. All have high yields 13-14%
Are these rates sustainable over a 3-5 year period. Would AGNC likely be the safest with only a 10.3 PE?

Thanks

Q: Hello 5i Team

Are US "mortgage reits" similar to Canadian Mortgage Investment Corporations?

Could you please provide a few ideas of US mortgage reits for me to research?

These would be held in an US$ RRSP, to minimize any tax considerations.

Would the distributions be similar to US corporate dividends and not US MLP distributions (K-1 tax form) which are problematic to hold in RRSP accounts?

Thank you

Q: Just curious on your take on nly. The dividend is attractive and US housing seems less perilous than Canada.

Q: In response to previous questions on your site, you've discouraged owning stocks such as Annaly and AGNC Inv. Corp.

Does this view change-- for better or worse -- now that interest rates are likely to rise and the Fed stimulus is reduced? Why?

Q: Investing in high yield securities involves assuming the accompanying risks of course ... One can own an individual stock like ENB, a covered call ETF like QYLD or even a mortgage backed security company like NLY . Looking on RA's website it appears the major holdings are 40% global infrastructure and 38% real estate with a mixture of investments to make up the balance . I recently read an article on Seeking Alpha which called it a " Widows and orphans " security which kind of shocked me for such a high yielding stock ..... Could you give me a comparison of RA's price movement in comparison to the S&P 500 since inception ? An assessment of the risks in comparison to the three securities I have mentioned ? As well as a breakdown of how 5I views their investment strategy ? ...... { in the normal font size if possible }

Q: I have a few shares of NLY in my RIF.
Will be selling BPY, and thinking of buying more NLY, holding of which will increase to 3% of my total. Would this make sense? Am basically looking for relatively "safe' income.
thanks jerry

Q: Would NLY be a good buy for its dividend?
Phil

Q: I've been reading questions lately with the idea of receiving advice on how to deploy the 25% cash position I had pre virus....But thinking about this the world has changed. What looked fine pre virus doesn't look so appetizing during and post virus.... Specifically the mortgage business like my NLY shares don't look that good now...... Though I would be taking a loss would you advise selling and buying something like MSFT ? I could deploy new cash for that but wonder if I should re balance to a certain degree anyway .......

Q: Annaly seems to have produced some good results, based on market reaction, but I have difficulty understanding their financial statements. For me it's rather like peering through mud.
I've owned varying amounts of NLY for over 10 years and have recovered most of my capital as well as continuing to receive a fairly high yield.
Are you able to shine some light on it or would you need a team of accountants?

Q: What’s your opinion of NLY please ?
I’m thinking long term.
Thanks

Q: I've been a long time (over 10 years) owner of NLY and have added to the position several times. I'm considering adding to it again. The dividend is very high but they seem able to handle it. I had thought they would benefit from rising interest rates in the states but they seemed unaffected as the rates rose. My adviser says that it likely doesn't appreciate in price due to the fact that many investors just don't understand their business. I would be happy if all I ever made on this was the current dividend.
Do you have any insight here?

Q: Do you think an investment in Annaly Capital Management has a good chance of success at this point in time ? It would be an addition to financial stocks which I presently hold : TD Bank and Manulife.

Thanks,

Tim

Tim

Q: Please comment on New Residential, Annaly and US mortgage lenders in general. The yields are big and tempting. Are they sustainable? Thx Frank