Investment Q&A

Q: I have owned RY inside my RRIF for over 20 years and it has done very well. However it now seems to be trading at a premium to the other Canadian Banks. I hold it primarily to generate income, so I am wondering if I should sell it around the $180 level and invest the proceeds into another Canadian bank. I already hold TD, BMO and BNS and wonder which of NA and CM would you prefer? Or would you stick with RY despite its premium pricing and lower yield?

Q: These 9 stocks were approximately equally weighted in unregistered dividend account before NPI and BCE took a big dive. The overall yield of the account is around 4.8% which I have been happy with, but the loss of capital in the 2 mentioned is troubling.

Objective of the account is to generate retirement dividend income for the next 5 to 10 years.
Other accounts provide pretty decent diversification by sector / geography / growth etc.


Question 1. Should I take the loss on these two and redeploy into the other holdings?

Question 2. Any glaring omissions in this account which you think I should add in here?

Q: BNS has been trending down since the new year and more so recently since their announcement of divestitures of more Latin American holdings to Colombian bank Davivienda for a 20 percent equity position in the bank. They are also booking impairments of 1.7 billion on this deal. All that being said, would you consider this recent drop a buying opportunity? Also, BNS did not raise its dividend in 2024. Do you see the bank raising its dividend in 2025 and going forward on regular basis like all other Canadian banks. Thanks.

Q: Hi 5i

Please as many questions as needed.

I am heavily invested in stocks and want to raise cash, putting more money into bonds. I have about 10% in Canadian oil and gas, 5% gold stocks, and about 13% in uranium stocks. I am going to hold my gold and uranium.

What allocation would you suggest for a retiree in terms of portfolio holdings of gas and oil?

I am concerned about the possible coming tarriffs and the effect on the Canadian ecomomy. Most of my holdings are Canadian. A lot of these are in dividend stocks. I have held them through the past few years but I do need to increase the allocation to conservative investments. I plan to reduce most by about 20% or consider outright sells. I currently prefer to reduce downside risk than worry about the upside.

Can you help me decide from the viewpoint of possible tarriffs and effect on the Canadian economy which are at risk the most. Could you class these as hold, reduce or sell. I will hold all my U.S. stocks which are about 15% of my portfolio and haven't listed those here.

Thank you for your very helpful advice.

Q: I'm over allocated in Financials at 23%. Recognizing BN represents a diversified holding and Visa could be considered Consumer. What changes would you make if this was your account. Most of the 1% holdings are in my unregistered accounts with BN, Visa, JPM, BAM are split RRSP/TSFA. Long term investments +10 years with a tilt to risk/growth. Retirement in 2035.

BN 11%
BAM 2%
Visa 3.6%
JPM 2%
GSY 1.6%
PRL 1%
TD .8%
BNS .8%

Happy New Year and thanks for all the help in 2024!

Don

Q: Hi Peter and all at 5i. Wishing you the best of the season!

Peter, first of all, I really enjoyed your last article in the National Post. Your financial stories were highly entertaining.

I manage a RRSP for my daughter-in-law. She has approximately 24K in cash due to a GIC that recently matured. (She got 5.16% interest).

She has these commission-free ETFs: CEW, QQC.F, XHC, XIT, and XST. She would have to pay a $10 commission on the following stocks and ETFs: BCE, BNS, FTS, PBH, SLF, WSP, ZIN, and ZRE.

Question 1. In what order would you suggest she uses the cash to purchase more of the commission-free ETFs?

Question 2. If there are compelling reasons to do so, in what order would you suggest she uses the cash to purchase more of the stocks and ETFs where there is a $10 commission?

I’m hoping that this question can be answered before Christmas if possible. Please use as many question credits as you see fit to provide a comprehensive reply.

Thanks as always for your valuable insight.

Q: Comments on keeping existing holdings in Td versus other banks? Would you rate as a buy, hold or sell?

Q: I currently hold the above investments in my non-registered account and will invest some additional funds before the end of the year. My plan is to top up my investments in approximately 8 stocks and 1 ETF. The investments will be a 5 to 10 year hold. Please provide a ranking for the top 10 stocks in my non-registered account. Which ETF fund do you suggest topping up for a 5 to 10 year hold? Thank you 5i

Q: Could you please rank the banks after the latest earnings. CM and BMO looks to be the best over the last year.

Thx

Q: Hell 5i I am considering selling BMO shares holdings and RY holdings as they in their higher price range. Sell high buy low! My plan is to reap the profit to buy ZEB. I would appreciate your thoughts on this. Thank you

Q: What are your current thoughts regarding plaza reit as an addition to the income side of my portfolio? If negative, do you have any suggestions for stable high-dividend Canadian stocks that I can investigate? thanks, J

Q: I have these stocks in my TFSA. How would you rate them for growth and dividend.

Q: I do have a sizeable chunk of TD and am just wondering if y'all think a different bank is better suited for upside over the next 4 years or so....

Q: Your thoughts please on the quarter?

Thx

Q: I hold BNS and will continue to do so; just wondering which other of the big 6 would be be the best to pair up with BNS.

Q: Good Morning

With the banks reporting next week, I have read it may not be so much about actual results but more about future guidance.

Do you have thoughts on which banks(s) will have results that you and/or the market view positively and which ones will be viewed negatively.

Thank you

Ian

Q: BNS seems to be getting some upgrades before its next quarter. What do you think of it currently?

Thx

Q: Good afternoon. I'm wondering what your top five picks would be for both industrial and financial stocks. I'm looking for 10-15 year growth with medium risk.

Q: I am needing to raise some cash and decided to trim my financials. I hold GSY (4.2%), V (5.6%), BNS (3.66%) , TD (3.65%), PRL(3.57%) and RY (2.51%) Total 23.19% My first thought is to eliminate BNS or TD. Alternatively I could eliminate both as I sense I am overweight financials with this basket. Given this mix which Bank would you lean towards eliminating, BNS or TD? Would you be comfortable letting them both go?

Q: I have a 40% return on RY and am considering a switch to BNS.The risk seems reasonable and more rewarding.Would you agree?