Investment Q&A

Q: Hi folks
I am looking to park some US cash in a high dividend or interest US ETF that pays monthly. May I have a few ideas
Much thanks

Q: I have owned this fund for a number of years for the dividend - now over 13% paid monthly. But I am down over 40% on it. Not good math! It is in a registered account so no benefit of tax loss selling. Do you have a sense of whether it will recover as interest rates stabilize? Is there a risk of a dividend cut? I am not familiar with the companies in it. Now regret buying something I don't understand but it was a recommend on BNN.

Q: Relating to your answer to my question nswered this morning …..
Could you please explain “reverse split 1:3”
It doesn’t sound like a good thing.

Q: SDIV has gone through some type of split in the last couple of days, as well as lowering its dividend to .08.
No dividend at all was paid into my LIF account.
PDBC seems to be under the radar as far as the dividend payment is concerned. I cannot locate the amount.
Kindly advise what is going on with these and please offer your position on them.
Thank you!

Q: Hi
With reference to Brian’s question on October 11th regarding high dividend stocks like these 3 & their safety 5i was OK with these 3.
I accept that nothing is invincible….. But is the risk/ reward on these positive enough to anchor an income on?

I m not greedy and don’t hunger after really big capital gains These would keep me
quite happy.

My plan would be to add other dividend etfs ( XLF etc) and some individual stocks like an ENB, BNS, CM, ABBV….

Thanks for your helpfulness. I

Q: Could you please comment on the safety of this etf. Would investment in this at this time be ok for income and some future growth?
Thank you.

Q: I’d like to start a position in one or more income funds that offer a very high yield, but I’m not sure which ones to choose. As of Wednesday Oct 5th, these are the indicated yields I’ve found:

CLM 23.92%
PDBC 20.65%
SDIV 15.31%
QYLD 14.19%
RYLD 14.05%
XYLD 13.05%
BIGZ 11.01%
JEPI 10.94%
PDO 10.90%
PDI 10.79%
BXMT 10.38%
MPW 10.17%
STWD 9.84%
EIT.UN 9.42%
IDV 8.15%

Would you recommend any of these or do you have other suggestions? Are any of them too risky if the bear market deteriorates from here, or can they all be held long term? Are some of these yields too good to be true, like CLM and PDBC? Thanks for your thoughts.

Q: What would be your top 3 Intl ETF's be for income and long term holding.

Q: Hello 5i,
Thank you for your excekkent service and advice.It appears that 5i does not have concerns about holding SDIV for revenue. As a 76 year value investor with emphasis on dividends, some growth (LSPD, LNF) for the next ten years are there any caveats to buying this at about $12.62? I realize that there is little growth with a history of returns much less than peers but with much higher dividends.
Stanley

Q: I presently hold this in a RRIF although not much income is generated . I would like to switch to a global or international dividend ETF. What would be your top 3 choices for income, stability and hopefully some growth

Q: I presently have QQQ and VIG in a USD TFSA, in roughly equal weightings. I'm looking to add one or possibly two more USD ETFs to this TFSA account to diversify a bit more, resulting in rougly 33% or 25% equal weightings depending on whether I end up with three or four in total. If adding just one I would be willing to sacrifice some growth opportunity in favour of some stability and yield in the roughly 3-4% (+/-) range, if possible. If adding two I would prefer something just as described, plus something growth oriented with little or no yield. I'm hoping to minimize duplication or overlap with the existing QQQ and VIG combination, to the extent possible. These would all be securities purchased in USD for long term term holds, and I am not too concerned about the withholding tax on US dividends in a USD TFSA. Can you offer some suggestions? Thanks.

Q: Few of my international holdings pay dividends and in trying to correct that, I thought of adding SDIV as a new holding. I have the following questions or concern:
1. Many companies held in the ETF are on not that large (for the type of internatinal business a Canadian might want to risk); and
2. SDIV also underweights quality and momentum.

Notwithstanding the above concerns, would you say the ETF is worth adding as part of one's holdings outside North America? Please comment on SDIV, but if you have other ETFs you prefer, kindly advise). Thanks

Q: HI Peter and Ryan.

I'm looking for some ETF suggestions listed in the United States for the USD portion of my TFSA. 1. A good diversified "portfolio" style ETF similar to Vanguard Conservative ETF Portfolio (VCNS) with a tilt toward income but also some equity exposure - this can be just US-centric or US + international. 2. a good dividend ETF, either US-centric or US + international, particularly one that is a "dividend growth" focused ETF. Can you offer a few suggestions for each question, and take as many question credits as required - thanks.

Q: I have made a nice profit on DFP and enjoy the monthly cheque, but wonder if the vehicle has run out of gas.
From a previous question, I see you like SDIV.
Is this a good or bad switch?

Q: Good afternoon 5i. At the moment I am invested only in Canada and need some international exposure. Could you suggest a couple of ETF's with a decent dividend, around 5%.
Thank you

Q: Could you comment in general on this ETF please. It has not recovered in the same way other international ETF's have and yet prior to March it seems like it's been pretty stable for the last 5 years, declining somewhat in 2018. I bought a bit a few months ago and am thinking of purchasing more. Do you feel it has upside potential in the recovery and do you feel it's a buy, sell or hold at current levels? Do you think the dividend is fairly safe?
Thanks so much, your input in invaluable!

Q: Hello 5i,

I am looking to create a sector diversified portfolio, that will provide dividend income
each month throughout the year? Preferably yields over 4%, reits, and etfs are acceptable. Even better would be payouts at the beginning of each month?

Thanks for your help
Stephen

Q: I bought SDIV about 3 years ago and am down significantly (about 50%). Dividend income has been consistent but not enough to offset the loss in capital. Do you have a better recommendation in this space? Or do i continue to hold for the long term? thanks again! John C

Q: What are some high yield ETFs that sell in US dollars?

Q: Currently hold VYM in my US$ RRIF. I note that SDIV has a much higher dividend yield, is that because of it's global exposure? Is the tax treatment the same for both inside the RRIF?