Investment Q&A

Q: Greetings 5i ....I hold RY and BNS in a registered account and I am considering a switch to JPM. Aside from the lower dividend do you think this might be a viable longer term capital appreciation story. Best Regards...Gary

Q: Can you give me the perpetual preferred share symbols for these companies.

Q: Hi. I see in many responses related to Canadian banks that when you reply that you prefer bank a, b, c over bank X, is the a, b, c in order of preference? Sometimes the order changes from different responses.
Would you be able to list the Canadian banks in order of preference for a 5-10 year hold. I understand that in 6 or 12 months the order may change, but I'm looking today what it would be. Thanks

Q: How do you rank these stocks for an investor starting a position in Canadian banks (minimum 5 year horizon)? Thanks.

Q: Retired dividend-income investor. I'm sitting on 15% cash that I created by taking profits and harvesting some losses. I have mapped out how to redeploy this cash to hit my asset allocation targets, both by sector as well as by individual holding. I had originally designed the re-entry on spreading the purchases over 6 months. Given that we now have information on different countries indicating that they MIGHT be showing signs of COVID slowly recovering and that the stock market is forward looking, would you adjust the 6 months time frame to 4 months? What's your crystal ball tell you...redeploy a little faster?

Also, the above equities are those that are candidates for topping up. Which would you hit up first?

Thanks for your help...Steve

Q: How would you rank the banks? Strongest to weakest in this environment.
I'm considering selling some far "out of the money" puts to get some income. And if I get assigned, so be it. I'll suffer with a few bank positions yielding close to 8%. Geez, we're talking about bank stocks! I figure if they get into trouble we're ALL in really really BIG trouble.
For example, TD at $40 would yield me 7.9% in dividends. That's like 10.2% in interest. Or RBC at $58 would yield me 7.4% in dividends.
So which Canadian banks would "crack" under pressure and which wouldn't.
Thanks and take care!

Q: I plan to retire in 3 years and want to set up a portfolio of dividend paying stocks for my retirement in a non- registered account. Can you please give me your thoughts if I buy the following in 20% amounts at each S&P drop of 3-5% over the next 1-3 months. CM RY, NA, CWB, BCE, T, H, BIP, BEP, BAM.
Are there any others you would recommend today?

Q: I am aiming to have a portfolio with 2 solid companies in each of the 11 sectors. Do you feel SLF and X would be sufficient for allocation to the financial sector? Or would you suggest adding a bank (RY) to provide better diversification? Thanks in advance.

Q: If you were to invest in only 2 Specific Big Canadian Banks at this time, which are the most solvent to weather the storm. Which would you avoid?

Q: I have just read that the European Banks are going to stop paying dividends and that the US banks are under a lot of pressure to follow suit. Do you think that The Canadian Banks will also suspend dividends?

Q: hi, dear team
i just got some money for longterm investment. how about this list ?
can you tell me at which price i can buy?appreciate!
best regard
Jacky

Q: At what point do the banks become a screaming buy? If TD Waterhouse has correct numbers, several are now trading below book value. I have only seen this a couple of ties in my life and it has always worked out okay in the long run. Have I missed anything?

Q: I tried my bank chart system and they do not show 15 year charts.
can you tell me what was the low back the great recession 2008/2009 period, for these 2 stocks. It should give some perspective on where we were during a severe recession.

Q: Retired dividend-income investor. I currently own BNS and RY. I was planning on topping up BNS, then read an answer about harvesting capital losses. I had already take enough losses to cover my gains to look after 2020 income tax implications.
I selected BNS for its international diversification and RY for its USA diversification.

I am now considering harvesting my new BNS capital loss and was considering either CM or BMO for immediate replacement, wait a bit then do my original top-up later. Which bank to you consider the better replacement?

Thanks...Steve

Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian financials in the order of their weights in our portfolio. Financials makeup roughly 7.5% of the total portfolio including cash positions and we like their dividend. TD, RY, BNS, BMO, SLF, CM, and MFC. I like to reduce exposure to financials and also like to reduce number of different shares. Two questions:
1. Is 7.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce financial weight and to reduce the number of shares in financials?

Q: Hello 5i,
As a pensioner who requires dividends for my income, I have been looking at the above names to potentially add over the next year or so. It is my belief (uneducated guess) that it might take that long before we see any solid bottom and subsequent recovery begin.
In that vein, out of the above, how would you rank these based on the following:
1. Safety of company through a one year to 16 month recession.
2. Safety of the dividend through this same period.
3. Confidence in management team
4. Sector vulnerability
5. Value at current levels
6. Any other considerations, warnings or caveats for any of these ??
i.e. some of these have a decent 5i rating (B or higher), but the rating dates back to 2019, some as early as the summer.
And, finally, are there any suggestions you might have that are not on this list that deserve serious consideration in place of any of the above?
I am in no rush for an answer so take as long as you need to consider this question and deduct as many credits as you see fit - I should have enough to cover it. I hope that this question might also prove beneficial to other 5i members who rely on dividends for income.
All the best to everyone in this very trying and uncertain time!!! Be safe above all!!
Thanks to all at 5i!!
Cheers,
Mike

Q: Dear 5i team,
Would you have concerns to buy a really small number of any of these, say 50 shares, none are in my portfolio. The prices seem very attractive and I have not sourced key info that would say ‘no’ but I’d like to check in with you in in case I’ve overlooked something.
Which would you say is best, and no worries if you consider them all a ‘no’ right now.

In the energy arena, in light of several posts about bankruptcies, could you enlighten further please:
- are there any that stand out as being at greatest risk of that happening
- for big/medium names like ENB, CNQ, SU, KEY for example, would you consider them solid enough to be ‘immune’ to bankruptcy (assuming they are not in your group of ‘greatest risk’)

As a dividend investor, do you as a team ever produce a list of stocks most at risk/greatest likelihood of cutting dividends? Are most investors surprised by dividend cuts or is there a set of clear indicators that a cut is coming?

Thank you!

Q: Hello,

When I look at Canadian stocks traded on the US exchanges, why is there a yield and p/e discrepancy? Even after factoring the exchange, the Canadian stocks on US exchanges look much cheaper. Why is this? And should we be choosing the US exchange due to higher yield and lower pe?

Q: Hi, I'm a retired, dividend-income investor. I took some profits and losses (to wipe out potential capital gains) over the last 5 weeks and am now planning on reinvesting the cash to top up some of my existing equities, up to my desired asset allocation. I want to leg in, in probably 3 waves over the next couple (?) of months, to top up ZWC, AD, AQN, AW, BNS, BCE, LNF, NWC, RY, TRP, WSP.

Can you please indicate which of the above equities you would allocate into which wave (in other words, does it look like the equity is "ready" for an investment OR should I continue to wait for a while)...or not at all (not worth any further investment).

Thanks for your help...Steve

Q: Which Canadian bank looks most attractive right now?