Investment Q&A

Q: Please provide your opinion on TD bank with reference to buying it on the TSX or NYSE. Since I have both a US and Canadian denominated accounts the buy can be made in either account. Is there any advantage to buying in one versus the other? Is the US listing subject to influences relative to all US banks, which currently are seen in a positive perspective with respect to the US Fed intending to raise interest rates? Although the rates are expected to rise in Canada as well, it does not seem to be as important a factor as compared to the US. At current exchange rates there is a difference in the relative value per share as well as a difference in the proximity to the 52 week high. Is there an explanation for this situation and is it significant to making in buy in US or Canada?

Q: First off I am 30yrs old slightly more growth investor and plan on holding for long term. I have a 25 CND stock portfolio of approx. 300k and Pension of 100k split between a Global Fund and CND Fund. In reviewing my personal portfolio I feel my financial exposure maybe needs some work (17% Weighting). I have a full position in GSY, TD,SLF and a half position in CXI. My question is because TD and SLF are probably already represented in my pension fund and they don't really fit the style of my portfolio would you look at switching them out? If so what suggestions would you have that would compliment GSY and CXI. Thanks

Q: 12:32 PM 9/11/2017
Hello 5i
Thank you for your answer to my question this morning about selecting companies with the highest probability of reliable long term income and dividend growth.

Just to follow up, if I am reading between the lines correctly I infer you would clearly choose banks if we didn't already own some. But since we do your suggestion is to buy CSH.UN and NWC.

I am fine with your suggestion but did you make it basically just to provide "diversification" at the cost of buying much much smaller and possibly less stable companies or would it be just as safe to simply overweight on Canadian banks.

Do you really think CSH.UN and NWC are as "safe" as RY and TD? After all if banks go down, so goes everything else. Just how "dangerous" is it to have a 20+% position in the big 5 banks?

Thank you............. Paul K

Q: 9:57 AM 9/10/2017
Hello Peter :
My wife and I are in our 70's and require additional steady dividend income to complement our pensions and bond income. We wish to choose companies that we never need to consider selling and that have reliable dividend growth and little chance of dividend cuts.
We have a 4.5% cash position we want to invest.
We need to decide between two options:
1. Invest the whole 4.5% in RY or TD, [we already own 10% split between BNS and CM], or
2. Add to 2 or more of these existing positions : CSH.UN [3.2%], SIA [3.9%], NWC [2.2%], CSW.A [3.1%], RPI.UN [1.0%], or invest part in new positions in one or more of ET, ZCL, ABT, or ADN.
What choice or choices would you advise us to make for the highest probability of reliable long term income and dividend growth?
Thank you............. Paul K

Q: Hi Peter, Would you advise on to buying more of BNS/TD ( recent strength) or pick up BMO instead to take advantage of its price as it lagged recently ( Yield @4%). I am more inclined towards BMO as they perform similarly over the longer term. Please advise.
Thanks.

Q: Greetings 5i,

I currently hold positions (slightly more than a half position each) in both TD and BNS (TD for their American exposure and BNS for their international exposure). In your opinion, is it necessary to own two Canadian banks? Do they complement each other well, or is there too much redundancy? If the latter, would you recommend one over the other?

I have a long term horizon (I am 35), am fairly conservative, and prefer long-term holds. In the Canadian financial sector, I also hold SLF and BAM.A.

Thank you.

Q: Hi 5i
I'm contemplating creating a Norberts Gambitt using TD in my TFSA and having my broker(TD) transfer it over to the US side of my TFSA. I'm hoping to make a bit off our higher dollar as the US dollar creeps back higher (as time goes by)? ...And that TD will do a bit better as well and then sell my US TD to buy another US holding (not sure which at this time). So the question is "Is this a good idea at this time?"

Thanks for holding my hand

Q: Good morning,

Would this pull back be a good time to pick away at Canadian banks particularly TD and BNS.

Thanks Carl

Q: Hi Peter and Company,

I currently have a position on RY, TD and BNS and I am thinking of moving some money from Canadian banks to US banks. So of the three aforementioned banks that I currently hold, which one would you take off the table and is there a U.S. bank that you can recommend?
Cheers,
Harry

Q: I am curious. As I write this TD is trading at 25.08 USD with an overbought RSI of 74.45 in NY and 65.45 with a much lower but nice RSI of 56 in the TSX. This equates to an exchange of 79.5 cents and the dirrerence in RSI is significant. I was always under the impression that these things track. I would appreciate your take on this.
Thanks
Don

Q: I'm looking to free up some cash and among other things own the 5 big banks. They comprise 20.5% of my total portfolio, as follows: BMO 6%, RY 4.4%, BNS 3.7%, CM 3.3% and TD 3.1%. Should I focus on reducing my BMO exposure?

Q: The article you shared about the Canadian banks was an interesting read. I'm curious if you would buy any of the banks today, and if so which one and why? Its interesting to hear your thought process around whether you would go for the higher dividend payer that is more undervalued but limited short term growth, or the more US exposed fair valued, or international fair valued, or other reasons.

Q: reviewing your reports i like to add CAE and CSU to my cash account and CGX to retirement account.
i dont like to add to the number of my holding or the margin.
So i would consider letting go of CJT (recent purchase ) reduce my TD (FROM 300 to 200 units ) ZZZ (reluctantly, t has done well in the short time ). IN MY RET A/C let go of DIV .
Appreciate your feedback

replace DIV with CGX in my retirement account (i am surprised at your A- rating for CJX

Q: Given the increasing speculation that the Bank of Canada will be hiking interest rates come July 12th, which bank or banks in Canada will benefit the best from it? Looking to put some cash into Canadian financials as I am just starting to develop my first portfolio. Thanks for the great service you provide!

Q: Hi 5i
I am heavily in financials 32% am working to diversify in my portfolio. I have listed a number of my invested companies. Investments are in Can. Cash, TFSA & RRSP heaviest in (RRSP)
I would like to re-invest in divided stocks and 2 ETFs. can you advise which would be best replaced and list a few that are in your top considerations.
Thanks,
Scott


Thanks, Scott

Q: Good afternoon,
I hold the following stocks in my business account that have a weight of between 6.2% and 8.3%. This account was started in DEC/16 and has increased by 6.7% YTD not including dividends. I want to add six more stocks to further diversify while reducing the percentage per equity down to between 4 and 5%.

My goal is to generate income equal to the amount of corporate tax payable annually. I looks like this can be achievable!

Let me know if I need to share dollar values to help access.


--

Thanks,
Raymond

Q: In a question asked by David on June 16th, the yield to maturity on TD.PR.G preferred shares was calculated to be approximately 3.1%. Could you please explain how the 3.1% was calculated. Thanks … Cal

Q: Good morning
I purchased TD preferred rate reset shares TD.PF.G at $25 par in the IPO just over a year ago. The shares now trade at about $27. The initial dividend was set at 5.5% until April 30 2021 at which date either the shares will be redeemed at par or the dividend reset at the 5 year Bank of Canada rate plus 4.66%. The renewal rate seems to be quite high so I suspect the shares will be redeemed in 2021. If that is the case, the yield to maturity is approximately 3.1%, so I am considering selling and moving on. Is this analysis flawed?
David

Q: I have opened an RESP for my 5month old with 3K in it (2500 plus 500 from govt). I know its small the first year, but I don't want to add a Canadian ETF as they are too oil and gas and financial focused.

I would like to own some good Canadian growth names that will hopefully be worth a lot when she heads off to school in 18 years and would like to keep it small since it is a small account to start. My idea was the following 7: GUD, SHOP, SIS, T, TD, AQN, PBH. I would like your opinion on them. Would you do anything differently?

Once I own all of the Canadian stocks my plan is to add XAW for world diversification.

What do you think of this idea? Which stocks would you add to the account first? I was thinking of starting with either 3 of 1K each or 4 of 750 each. I pay 7 dollars to buy them which isn't too bad.

What order would you add in?

With only 3K per year in the account it would take 3 years to get the stocks and ETF. I could just add another 2500 to the account now so that I can buy more of it now and be instantly diversified. I would not receive the grant on it but would I still receive future grants?

Q: Hello 5i Team, I would like to reduce my financial sector holdings from the current 19% to 15% or less, mostly as a defensive move against the potential of a sector "down-draft". Currently hold POW-2.0%, IFC-3.0%, MFC-2.5%, and BNS,TD,and RY at 3.5% each. I am leaning towards eliminating POW and trimming each of the banks to get to the target (income from POW is great but also the only one I am underwater on and I'm not a huge fan of income at the expense of loss of capital), but I also know you don't feel the need to necessarily hold 3 banks so could just sell RY and call it quits. Trading fees not a consideration. Would appreciate your thoughts as always,

Regards