Investment Q&A

Q: What 4 dividend stocks or ETFs would you suggest for a long term hold to see the power of compounding

Q: Hello…do you think the Canadian banks and insurance companies will spike once the OSFI lifts the dividend/buyback restrictions? If so, which companies do you think have the most upside?

Thanks for your great service.

Q: Good day 5i Team, What's up with OSFI? The Canadian banks have been quite conservative during the pandemic but OSFI won't release them to give investors the dividend increase? They were heralded as the world's safest banks during the Great Financial Crisis, but somehow they will be last to increase dividends this time?. Even the banks in the EU and UK are released from holding additional funds. Do you have any good conspiracy theories? Keep up the great work and appreciate all you do for the little guys.

Q: With all the speculation about major dividend increases once restrictions are lifted, would investment in banks be a good short term strategy (hoping for a boost upon announcements), or has the expectation already been cooked into current prices? Any guesses as to who will announce the largest increase?

Q: I wd appreciate your ranking of the Canadian banks.
thank you

Q: Hi 5i,
I currently use my TFSA as my primary investment vehicle. As such, I've been trying to keep it as diversified as possible which has resulted in purchase of both growth stock and dividend stocks across various sectors. Examples of the dividend stocks include: TD, FTS, and T.

I am close to maxing out my contribution for the TFSA and now find myself in a bit of a pickle as I want to move out the dividend stocks in favor of growth names.

My plan now involves:
- selling the dividend positions in the TFSA
- opening a new RRSP account and re-buy these same dividend stocks
- redeploy the 'freed-up' cash within my TFSA into growth names

1.) Are there obvious pitfalls you can see with this strategy? I can't see any issues other than being a little clunky in execution.
2.) What are your current top-5 growth names (regardless of sector)

Thanks,
Kyle

Q: Canadian banks.

Is there ever a downside to deciding to place capital into Canadian Banks?

As a percentage of a total portfolio, to what maximum would you be comfortable in holding several Canadian Banks?

Q: Hello Peter,
For additional monies for a balanced approach, i was thinking of putting new monies into Nuvei (instead of Shopify), and rest into one of the banks. I already have Topicus. Does this make sense and if so, which bank would be best at current valuation? Fobi AI has had good news releases, yet stock tumbles. Any comments.. Thanks very much.

Q: I own full positions in TD ( instead of BNS), SLF and BAM.A as my CAD financial holdings. I am thinks of adding a new name. Which is the better buy right now between X and FSZ. Balanced follower shifting to income follower. 5+ year hold.

Q: I am consolidating some holdings in my RRSP. I am thinking of selling 2 holdings to buy the other that has the most potential growth in the next 5-10 years. Which one of these 3 do you think has the most potential growth in the next 5-10 years? I am 35 years old so I am in no rush to use the money.

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

As per an earlier question we posed, we then increased our positions in 12 of the 30 companies. At this time we would like to increase our investments in 6 of the remaining 18 companies. The intent is to increase the other 12 in approximately 4 months. Which 6 would you add to today? Please rank them, include a small blurb explaining each choice and suggest an entry point. Thanks!

Q: Hi team, Is there any hope of a price increase on CJR ? I own these shares at a loss in my TFSA, some of them when Shaw dumped theirs to the public 2 years ago. Dividend is good. I do not really need the money but is it dead money? I’m over 70 and am a bit worried about the market right now, so CJR might be safer than new or riskier purchases in the coming months? Thanks.

Q: Retired, dividend-income investor who normally holds for the long term. I own a half position in Manulife and am down roughly 7%, including dividends. My long term plan was to sell MFC and rebuy a second Canadian Bank (I already have a full position in Royal Bank).

I have compared the various metrics (P/BV, P/CF, P/S, ROE, technicals, analysts estimates, etc.) for the above mentioned banks as well as against MFC.

Looking at the banks in isolation and already with a full position in RY, I've narrowed it down to either BNS (International exposure and current laggard due to Covid) or TD (more US exposure and 1 year laggard). Of the banks that I do not own, please rank them in order of the best total return over a sufficient period of time for Covid to have subsided (1-2 more years for improved vaccination coverage?). Do you agree with my rationale?

If you include MFC into the bank comparisons, where would you place MFC in the rankings? I have read to buy the banks when their P/E is < 11.0 and buy the insurance companies when their P/BV < 1.0. This would lead me to buy TD (P/E of 9.7) or keep MFC (P/BV of 1.0).

So...keep MFC versus take the loss in MFC and then buy BNS or TD? Your thoughts?

MFC is held in a taxable account and I have no problem taking a loss.

Thanks for your help....Steve

Q: I know that ranking banks often is like picking shades of the same colour. At this point in time do you feel there is any "clear" division amongst any of the banks for investing purposes? Can you give your order of preference and the magnitude of the gap between each choice.
Thanks,
Terry

Q: Is TD a buy at this tine or a sell. & the reason. Where do you see TD going.

Q: I am going into retirement and below are the weightings of stocks held in my portfolio. Although the portfolio performed okay over the years, I wonder if there is too much concentration and would appreciate your ideas on diversification given the economic times we live in. My portfolio is about $2M with an investment loan of $150K for which I use the dividends to repay. Thanks. BNS 37%, TD 18%, CM 14%, BMO 14%, BCE 6%, SRN.UN 6%, RY 4%, POW 1%

Q: I hold the Canadian banks in my dividend portfolio and they have served me well over the years as a core hold.
Should I reconsider these holdings in light of new taxation rules being suggested?

Q: Which would you add to today for a longterm hold?

Q: Earlier this year we created an equal weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases in the portfolio are made with the intent to be long-term holds (10+ years).

Our intent is to increase our investments in the 30 companies over time. We have recently increased our positions in BIPC and MG. At this time we would like to increase our investments in 10 of the remaining 28 companies. The intent is to increase the remaining 18 in approximately 6 months. Which 10 would you add to today? Please rank them, include a small blurb explaining each choice and indicate an approximate buy price. Thanks!

Q: I would like to add a few (2-4) financial companies to my non-registered investment portfolio. Would appreciate 5i's help in ranking the above names based on total return potential for a 3-5 year hold. Please add any names you feel belong to the lineup, ranked appropriately, Thank you.