Investment Q&A

Q: I'm hoping to take profit from ATD and maybe CSU. My weight in CSU is out of hand but I find it hard to sell that juggernaut. I also have TOI and LMN. I'm happy with my weighting of TOI and i plan to add a small weighting in LMN. I'm underweight in the following: SIS, PBH, SHOP, TD, BEP.UN, ENB, T, SLF, AW.UN. How would you rank these names going forward? Would you recommend swapping any of these for better opportunities that 5i covers or are in the balanced portfolio?

Q: Why is TD dropping today?
How long do you expect the Canadian banks to be in the penalty box?

JR

Q: Happily I do not hold either BNS or TD.

What I find very shareholder unfriendly is the bank setting aside $2 billion and $4 billion respectively for emplyee bonuses.

That is billion.

YTD BNS stock is down 8% and TD stock is down 6%.

Not sure why shareholders accept this type of expenditure.

If my math is right thats a $44,444 bonus for every one of TD's 90k employees and a $22,222 bonus for everyone of BNS worldwide employees.

Pretty excessive if you ask me, given their stock performance.


Sheldon

Q: I seem to recall one of the "Market Masters" saying the time to load up on Financials is after they have been crushed. I know you don't necessarily like the expression "load up" but if you wanted to increase your Cdn bank exposure are there one or two you think stand out as having the biggest bounce potential from here, or would you forget about trying to be right on one or two securities and just buy the ETF if you believe the whole sector might recover from these levels? Thanks for your thoughts.

Q: Hello,
Over the years I have fallen into the trap of buying BNS as many analysts have promoted as the most international bank, as as a result I have 7.5% position. However, I have now come to the realization that the countries that they do business ( mainly South and Latin America) are in most cases very poor countries with little or no growth and unstable Governments.. As well, the bank's CEO's poor performance. Therefore, As soon as I hear what the new CEO has to say in a couple of weeks, I will slowly exit the position . What are you thoughts in moving the funds to TD or NA or BMO?
Thanks
Carlo
Thanks
Carlo Rea

Q: Curious about yields. It feels like the yield on ETF XHY remains around the level it was several years ago (~6%) despite other stocks yielding much higher returns. Shouldn't those ETF holdings (high yield corporate bonds) be ticking upwards too which should drive the ETF yield higher? Maybe there is a time-delay as they have to reset?

So with various stock yields as high as they are I would like to try to benefit from the yields AND set up for capital gains on the same stocks that *should* pop as interest rates normalize and fall a bit. What are 3 CAD and 3 USD stocks that fit the bill? (High current yield AND good likelihood to strong share price increase in 1-3 years.) And where would ENS fit relative to those suggestions?

Q: Please identify your 5 top equity CDN bond proxies that pay north of a 5% dividend where you believe the dividend is safe plus there is room for growth in the stock price.

Q: Hi Folks,

My RRSP portfolio consists of the above stocks all with relatively the same weighing. Can you suggest 5 names or so, (CDN and U.S) that I take a look at that would complement the above? I am looking for a company that would be a good buy today for both income and capital appreciation - total return.
Thanks

Q: My question is about Banks. Now that the Bank of Canada has paused interest rate but do you think that it will not change the profitability of banks for at least on or two quarters (Net Interest Margins)? Now banks are paying 4.5% plus on GICs so their borrowing cost is not cheap. Your view on banks earnings what will be in this quarter (Net Interest Margin)?

Q: Hi I am thinking it's time to sell BNS, would it be better to choose another bank or deploy funds to another sector to gain some growth & dividends for a long term holding? Suggestions on other stocks please.

Q: I own the above high dividend yield Canadian stocks, just under 4% yield and up. I am looking to add maybe 10 to 20 % to 4 or 5 positions. The yield on these is enough for us now so no hurry to sell anything.
Retired, but still looking at safety of capital. I have left out O&G plays and other potentially riskier plays. (except Enbridge)

Which of these, or other stocks do you believe have the greatest potential for price appreciation over the next couple of years if/when interest rates drop.

I am looking for your top 5, here but feel free to add other picks.

Thank you. Take as many credits as needed.

Q: Good Day,

I hold TD and RY in my RRIF and was thinking of switching one for BNS for a higher yield and the "buy the poorest

performing bank" theory. Is this a logical approach and which would you switch.

Thanks Tom

Q: I know you like all of the above for a TFSA - so do I - but need to raise some cash and am struggling with what to sell - is there one you would sell first? or maybe trim 2?
Thanks,
Terry

put as private but make public if you wish

Q: I'm looking to invest $60,000 for a minimum of 5 years. This money will be used towards a downpayment for a house. Can you please comment on a split of 50% SPY and 50% quality stocks, such as GOOG, MSFT, SLF, ATD, BN. Also can you please suggest some additional stock ideas that are fairly conservative for a 5 year hold. Thanks!

Q: These stocks all have a dividend yield of 5% or greater and have market capitalization greater than 3 billion. When I see BNS with a dividend yield of 7.5% I have to think that the market is near a bottom realizing that the prices can always go lower. Please rate these stocks in two ways: safety of dividend and estimated 5-year total return. Do any of these stocks cause you any concern now or long term? Thanks.

Q: What would consider as a good entry point for each of these and also a price target please.

Q: Dear 5i
I currently own TD and RY for my financial positions . I was considering buying SLF as an alternative to banks but still considered within the financial sector . Is it worth the diversification or should i just add to my existing bank stocks that i own ?
Also i've recently added HISA and PSA to my portfolio which would probably not be for a long term hold but until interest rates decline considerably from where they are today . My question is, is it possible to have too much cash parked in these type of accounts that should interest rates decline noticeably and quickly , that there would be a liquidity problem ie getting my cash out , should a lot of investors decide at the same time to liquidate their holdings in these type of accounts ?
Thanks
Bill C

Q: What would consider as a good entry point for each of these and also a price target please.
Thank you

Q: Hi Folks,
I have a fairly well diversified and conservative RRSP portfolio but I am a little overweight TD and the financial sector in total. I am thinking selling some TD and buying a 3% position in LIF. I have nothing in the Materials sector. Can I have your opinion on LIF and on whether or not this is a wise trade at this time.
Thanks

Q: I own both and looking to add only to one at this time. Which to add for total return over 3-5 years? Yield on BNS is enticing currently, but exposure to Central America economies leaves me feeling it's riskier than TD with US exposure. What say you guys?