Investment Q&A

Q: Would appreciate your analysis of MO in regards to dividend safety and do you view them as a good contrarian buy over the next 12 months?
Are they worthy of a small 1% buy.
Thx Gary

Q: Hi,

I am down ABBV (21%) and Altria (7%). I am thinking of holding them for long term. Do you see any further downside considering the economic fundamentals and future product lineup for these two companies.

Thanks
Ninad

Q: HI 5i - Your insight on three questions please:
1. MO - Way down --- is it safe? Buy - Sell or Hold?
2. What is your best recco for a S&P 500 ETF?
3. What are your top 3 Dividend payers going forward?
Thankyou!

Q: I have held MO for over 10 years. It's done very well for me - tripled in value plus dividends. But it's probably time to move on. Traditional tobacco product sales are declining rapidly (not a bad thing to be honest) and investments in JUUL and Cannibis are probably years away from potentially paying off. I'm comfortable with my portfolio make up except for healthcare, which i have no exposure to. I've been looking at ISRG, TMO, BSX and BDK. I'm leaning towards ISRG based on their balance sheet (lots of cash, very little debt),market position, and potential growth but it seems to be in the doghouse after an earnings miss last quarter and it looks expensive on a fwd P/E basis. That said I don't mind paying up for quality. Your thoughts on ISRG or maybe one of the other stocks I listed? Deduct as many credits as you see fit. Thanks in advance.

Q: Why it keeps falling?
Is it worth holding?

Thanks,
Milan

Q: The tobacco sector is down again, with these stocks at or near 52-week lows. Could you provide your current views about investing in these stocks today?

Q: Both Altria (MO) and BTI generate great cash flows, have high dividends and have had a significant share price reduction lately. How sustainable are the dividends and what’s your opinion on me taking a half position (2% of my portfolio) in each for both income and as a potential play on the cannabis sector? I have a very well diversified portfolio and very long-term philosophy. Thx.

Q: Hello Team,

Is their an American tobaco ETF that covers these 3 stocks that are mentioned in your
5i Research report on the Marijuana Industry? ( Fantastic read).
Plus, all things considered between the 3, which individual stock is the most likely in your opinion to get involved in the Industry?

Thanks,
Stephen

Q: just wondering which 2 out of the group would you suggest for tax loss selling?

Q: i've held MO for quite a while, over 10 years, and it's been a good investment. however i have some concerns abound the company going forward. as the number of smokers in the US decline the company seems to be falling behind the e-cig/vaping market and also not prominent at all in the pot market - which, IMO, a tobacco company would be perfectly suited for. i doubt the board is asleep at the wheel but i've seen it before. ethical concerns of owning a tobacco company aside, what are your thoughts on continuing to hold? i hold in my RSP so no capital gains tax to worry about. thanks in advance

Q: Can tou please share your opinion on MO, PM and BTI? Is this a good time to initiate a position? Which one do you prefer and why? What do you expect from thr names going forward, both mid and long term?

Q: Hello, since the beginning of the year Altria (MO) stock has decreased by more than 20% in value. Has the time come to let it go? Do you believe there is a possibility that Altria could get into the Marijuana / Cannabis business? In your opinion, what would be the best 3 or 4 alternatives to (MO) in the US non cyclical sector (consumer defensive sector) right now? Thanks, Gervais

Q: Could you please suggest 2-3 undervalued US stocks with dividend 4% or more.

Thanks,
Milan

Q: Hi 5i Team -
The article today in the TOStar about putting pressure on tobacco has me wondering about the future prospects and dividends for MO. What do you think? p.s nice job on the website !

Q: Hi Peter and Team,

This is a follow up on your answer to Gervais re: PM and MO. I was just wondering if you can comment on the huge difference in P/E between the two companies. PM is trading at 25.7X while MO's ratio is 8X. Wouldn't MO be a better buy at such a low PE ratio even though about a quarter of its business is in the US?
Great work guys, as usual.

Q: Hello, If you had to select one company between MO and PM which one would it be today? This is for long term hold. My focus is growth and income. By the way, why is there so much price difference movement between the two stocks througout the last year? Regards, Gervais

Q: Further to Eddie's question, would any US based companies have issues getting into the marijuana industry (even outside of the US) if the industry wasn't legal at a Federal level in the US? I have heard of US individuals avoiding investments in this area just to be cautious.

Q: Hi 5i,
My tobacco stocks are getting hit due to upcoming government regulation. In your opinion is it time to lighten up on these stocks? What are the long term implications.

Q: Hi. I'm curious about your thoughts on big tobacco becoming big pharma as far as medical cannabis goes. I am surprised that they haven't yet entered this space. Do you think this will eventually happen? With the big drop on tobacco stocks today I'm wondering if I should start a position.

Q: Hello Peter and Company,

Just wondering if you can comment on MO's latest earnings and what's your outlook on MO going forward? Would you please also shed some lights on the precipitous drop in its stock price today. Much appreciated.

Harry