Investment Q&A

Q: According to Portfolio Analytics, my current allocation to Health Care sector is too low. Here are the names of 12 major US pharmaceutical companies. How would you rank them? If possible, please provide a short comment on each of them: Pfizer, Johnson and Johnson, AbbVie, Amgen, Gilead Sciences, Eli Lilly, Merck, Vertex Pharmaceuticals, Regeneron Pharmaceuticals, Abbott, Biogen, Bristol Myers Squibbs. Thank you

Q: Why it keeps falling?
Would you buy it?

Thanks,
Milan

Q: BMY:

1 What is your current assessment of BMY?

2. Its share price has dropped in the last year. Does it have reasonable prospects to increase from here?

3. It has a somewhat attractive dividend, around 4.75%. Is that sustainable? Does it have any history of dividend increases?

4. Can you describe its pipeline potential?

Many thanks for your excellent service.

Q: I know pharma stocks like LLY and NVO are hot (and expensive) now due to the success of their GLP-1 drugs but what about the other big pharma stocks like PFE and BMY that have been hammered post-covid and now yield up to 6%? PFE has bounced from $26 to about $28 today but is it too soon? Value traps? Dead money? What is your opinion of when to get in (if ever)? Thanks.

Q: Would you buy these stocks now and in what order?

Thanks,
Milan

Q: These two healthcare stocks have had their troubles lately and are down considerably. You have recommended them in the past, and I'm wondering if you still recommend them as long term dividend stocks? Do you think this is a good entry point or would you wait? Do they have potential to eventually gain momentum and do better?

Q: This question concerns Healthcare in a well-diversified Canadian portfolio (~30 holdings), focused slightly toward growth. Our target is for a 5% weight in this sector.

Currently, we only hold CSH.UN at a loss. We are open to selling it outright and replacing it with 1 or more of your favourites or topping it up and adding at least 1 growth-oriented suggestion. I understand from a previous question that CSH.UN has performed in a close range with REITs, which have adequate representation in our portfolio.

What would be your top picks in Healthcare for long term holds (5+ years)? How would you rate them (1-10, 10 being best) for new money today?

How would you proceed? Would you suggest going with 1 or 2 names? Would you suggest topping up CSH.UN and adding a 2nd name, selling CSH.UN and adding 1 or 2 new names, etc?

Thanks.

Q: I'm looking to add a US dividend company into my portfolio with some growth.
Can you rank the best, in your view, of these 5 companies VNO, BMY, ABBV, BAC and T? Any suggestions to add to the list?

Thank you,

Q: what would you suggest for a solid health care position in Canada or the USA? I have UNH. I was looking at HHL but I would like your thoughts on a stock or two. I hope you and the team are enjoying the summer. Thanks Dan.

Q: Hi,

Can you please list your 5 best health care stocks (USD or CDN) for a 3-5 year hold. In order of preference. Thanks

Q: Good morning 5i,
I have a loss in Gild and have been waiting for a time to claim it and buy a replacement. It seems to me that the recent drop in Abbivie might provide that opportunity, unless there is something I don't see. Would you think that this would be the best opportunity in this field at the moment?
thanks as always for your great work

Q: Hello Team 5i,

I recently sold GUD, my only CDN. or US. Health Care holding. Could you recommend one or more replacements for me? Not sure what your current suggested health Care portfolio weighting should be but that might figure into your response.

I read something recently that indicated that the S&P/TSX Health Care index is down 58% between March 2021 and 2022, might that be correct? If so, would you say this would be a good time to be buying?

Thanks for your wisdom

Q: Hi Folks,
I've held GILD in my TFSA now for a couple of years and I'm down 27%, time to let it go. I also hold ABBV, PFE and MDT all performing well - can you suggest a replacement for GILD - looking for a company paying a dividend with some growth. Appreciate your suggestion.
Thanks

Q: Good morning 5i

I am wavering between these two. I already own some abbivie. But I hesitate because it has shot up recently. I know you favour it. But I have seen several people lately, today Brian Acre, leaning towards bmy. Here is the reasoning of one such person:

The company has a strong pipeline of new drugs, but also a lot of patent expirations for its big existing drugs coming up, which means the company has to effectively rotate its portfolio of revenue-producing drugs in the coming years. To offset that risk, it is priced very cheaply, with a single-digit price/earnings ratio and a solid dividend yield. I think the current price offers a good accumulation zone.

I am wondering about your different approaches. Would it be that you favour growth more and they are looking for safe income?
Thanks as always

Q: I own both BMY and GILD, both of which have not done much the past few years except provide a stable dividend. I have enough health and death care ( - PLC:) ) stocks currently and would be OK to sell or raise some cash.
Do you think one or both of these have an upgraded outlook and are worth holding for the next year or two?
Thank you for the great service.

Q: As a new subscriber, I’m thoroughly impressed with your advice and 5i Research services overall - thank you for all that you do.

I currently hold ABBV, BMY, CVS, and GSK in a long-term hold, diversified RRSP portfolio. I’m not necessarily looking to add further healthcare exposure, but am very interested in the long term prospects for MRK +/- ISRG and would appreciate your opinion on them. And compared to my existing companies, would there be a suggested ranking of these six in terms of potential for long term compounding growth?

Q: I own Abbvie already and would like to add another company from the health care sector. What would be your next choice for a long term hold in a dividend focused portfolio? Considering maybe JNJ, PFE, BMY, AMGN, ABT, MRK.

Q: I am planning to reduce my health care listings and sell one of these. Was thinking about letting BMY go. What is your opinion about BMY? In order, which ones have the best prospects for the future in terms of dividends and growth?

Q: i have held this for about 5 years and it has basically done nothing despite all the promises from management for change/consolidation etc. Would you support continuing to hold or am i better switching to a better growth name. i am retired so i like a bit of income in addition to share price appreciation. i already own ABBV and MDT and do not want to add to these positions. i am better off in Merck or PFE?

Q: Hello, I am thinking about swapping BMY for Nucor. Any red flags or reasons not to do so?