Investment Q&A

Q: For my financial sector I currently hold ZEB and while the monthly dividends are nice on a timely basis, the MER is relatively high. So I am looking at breaking in down into 3 or 4 individual stocks. Would please rank the financial companies listed above for performance. Please include others I may have missed.


Thank you


Steve

Q: Which Canadian bank do you think is the best one to buy?

Q: These Canadian banks and probably others seem to be strong proponents of ESG principles in running their companies. It seems clear that at least some aspects of ESG impacts profit negatively and therefor share price. A recent Financial Post column suggests the growth of this approach will erode the performance of companies and ultimately the Canadian economy. At the same time some investors see it as essential in choosing investments. Has 5i written about this trend and what weight do you place on it in making investment recommendations? Your opinion would be very helpful.

Q: I do not have any of the Canadian Banks but would like to add one. Kindly advise which you would choose.
Thank You!
Bryan

Q: Looking for the better bank; TD or BNS? Core holding, long term in a registered account

Q: good morning. with most of the banks reporting now for year end and most of the majors making a ton of money again this year can you see that dividends will be allowed to be raised again starting next year or do you see problems in the future.
i noticed bank of nova scotia did not raise at all this year and hoping that they can restart again next year.

Q: Hi, looking to adjust my financial sector exposure, currently holding SLF, V, JPM, GSY, and BAM. I hold ZBK, JPM and GSY at a low weighting in my portfolio and could top up any of these right now. Thinking of selling ZBK and buying more JPM for US financial exposure. Currently don't own any Cdn banks, except through broad Cdn ETF. Should I add more to my JPM position or buy one of the Cdn banks (was thinking of TD) or add to GSY? I see you added to BNS, quickly, why do you favor BNS over TD? Looking for growth 10+ yrs. Thanks!

Q: Canadian banks have had a strong run in the past month. Do you expect them to give some of this back in the near term?

Q: I invest in companies that have a track record of growing dividends. A chunk of my portfolio is invested in Canadian bank stocks which up to this year had a nice record of increasing dividends. In 2020 TD and RY did increase early in the year - but Covid brought a halt to increases from BMO and BNS. When do you think the banks will begin to think about increases - is 2021 too early and does OFSI (or whatever they are called) have a say and will they disallow.
Thanks

Q: Hi!
Stocks have increased a lot recently and most of the above are well off their lows with stocks like BEP and BIP almost reaching their high of the year. Would you feel comfortable entering new money into the above names for income/growth or wait for a pullback? I know timing the market is next to impossible but do you see this rising market as sustainable and if one waits will the opportunity to enter still at reasonable prices be missed? Also, what are your thoughts on RDVY. It was not listed as a choice on the drop down list.
Thank you!

Q: Hi Peter & 5i team,
Currently we hold seven stocks in our grandson’s (age 7) RESP. At this time, we are holding some cash and will be adding more cash in the new year. In your opinion what would be your top 3 ideas for a new addition or adding more to the current holdings.
Thank you for your suggestions in the past.

Q: I have owned TD and BNS for a number of years in my RRSP account - I am looking at either adding more to BNS or buying RY as a new addition. Can you suggest what would be best at this time ?
Thanks

Q: With the latest market dip I’m looking for some very solid, undervalued companies. I think BAM.A and TD would qualify. I have enough growth stocks, just want to deploy some cash to buy some clearly undervalued good companies. Thanks.

Q: Purely in terms of dividend sustainability could you please rank TD, RY, BNS, NA, CM and BMO and briefly why? Thanks.

Q: You have referred to some stocks and ETFs as CORE. What percentage of portfolio would you recommend as core (relative to satellite holdings) and what would be the number of core stocks and ETFs for diversification. What core stocks and ETFs across all sectors would you recommend?.

Q: I am not invested in the market right now with the exception of a couple of multi family REITs in my RRSP. I have a lump sum that I would like to start investing gradually. Looking for stable names with good dividends that will not reduce or cut their dividend. I am thinking of starting with ENB, TD and BCE. Do you like these three and can you recommend a couple others. I would like these names to be the foundation of the portfolio and then I will add more growth oriented names as opportunities arise.

Thanks,
Jason

Q: I am just getting started in DIY investing and have been introduced to 5i by family members who have had great success. I am looking for five-ten really solid Canadian dividend paying stocks to form the core of a balanced portfolio. In my TFSA, I have BCE, TD, ENB, BNS, SLF. Should I be looking elsewhere? Thank you!

Q: I have decided to go with your recommendation and move a small portion of my portfolio to a robo-advisor. Few questions:

1. I have losses on PPL(37%) and TD (15%), Would you sell now and transfer the cash to or hold on to these until they recover?
2. I have narrowed down to two robo-advisors. Questtrade and Wealthsimple. Which one would you pick?

Thanks again for quick and helpful responses,

Q: Dear 5i team,
NA, CM and RY have seen recovery to an encouraging extent.
BNS, TD and BMO much less so.

I do bear in mind that not all banks were/are uniformly exposed to risks precipitated by the virus; those that needed to increase reserves against losses have done so I believe. I’ve not sourced reports indicating any bank is not prudently shored up with loss provisions.

Would it be too soon to start a monthly purchase of BNS, TD, and/or BMO - small amounts, say $1k?
If it is too soon, what are you looking to hear, read about, or see happen that would tell you buying can begin?

Thank you so much!

Q: A respected analyst stated: DO NOT BUY THE BANKS!!!
Here are his reasons:
- Not only are they facing pressure from a flat yield curve but every aspect of their business is being disrupted by digital-first competitors.
- FinTech companies (both public and private) are disrupting every single one of the revenue channels at the banks.
- There isn't a single reason to own bank stocks other than the dividends however I’d argue if their businesses decline as much as I think they will those dividends might not be safe.
- There are better industries to find dividends where the companies are growing earnings and increasing their dividends. Personally I don’t see any of the banks increasing their earnings for a long time especially if these VC backed FinTech companies continue to crush them.
- If you want exposure to the financial industry I’d suggest going with the digital payment companies: $V $MA $PYPL $SQ

What are your thoughts re: only focus on fintech and digital payment companies in your portfolio?
I note that your top pick for banks in your income portfolio is BNS.TO, which you constantly recommend as it appears "undervalued", however BNS.TO has made 0% capital appreciation over 5 years. Is it time to switch to fintech?