Investment Q&A

Q: As you can see by my holdings in my TFSA ,I have been following your advice. I am way up on KXS and am letting it run. Down on BNS, GUD, SIS and SLF. I have full position to add. I am looking at either REAL, LSPD , WELL or XIT.
Would you add to BNS or SLF or add one of the ones I am looking at? Long term view 20 years.
Thanks, Paul

Q: Hi 5i team,
I’ve recently sold some of my SHOP position in a taxable account (the share price has risen ~15-fold since purchase about 2-1/2 years ago, and even after this partial disposition, SHOP remains my biggest overall position—thank you for this excellent recommendation!). Now, I want to reduce the tax hit, and so I am planning to sell positions in BMO, BNS, and SU, with aim to rebuy after 31 days (to avoid superficial loss), as these 3 securities are core holdings in my portfolio. In general, when I do tax loss selling, I try to maintain an economic position in the types of companies I am selling, because I’m always anxious the shares will rise during the 30-day waiting period (indeed, frustrating increases in stock prices during the 30-day waiting period seem to happen quite often, at least in my experience). So, my question is: Can you recommend a security (or securities) to maintain economic exposure to BMO/BNS, as well as to SU, for the 30-day waiting period? (For perspective, I’m planning to sell ~$185,000 worth of BMO/BNS, as well as ~$72,000 worth of SU; when I rebuy BMO/BNS/SU, I would then sell the temporary holdings I bought to maintain the economic position.). Would you buy a Canadian bank ETF and Canadian oil sector ETF, to maintain these economic positions (and please recommend some appropriate securities), or rather other individual Canadian banks or individual oil companies (and please recommend some appropriate securities)? Also interested in your philosophical thoughts about how to handle the situation of tax loss selling, which arises every so often, especially now during pandemic, when there is wide variety of individual security performance (some big winners, but also some high-quality stocks that are—hopefully temporarily—depressed in price) as well as higher-than-usual volatility.
Ted

Q: Asking for a retiree in their early 70s -- Need some Canadian Dividend stocks mainly for income. If you an provide 3 that is safe that'll be great!

Q: Hello Peter,
Here is my list of stox that I chose from 5i Model portfolios and purchased back on March 6 & 9, 2020, with the exception of HMMJ that did not cut the mustard for you to put it in a portfolio. FYI, I was not stoned at the time I placed the order!
These stox are 25% of my portfolio in my TFSA account. Currently, I have another 25% sitting in cash in my wife's TFSA account. The other 50% is in ETF's with CIBC. My goal is to proceed with caution and get all the investments into Questrade.
A little background info for you. I am a retired, cranky, 66 year olde white hair. No debt, live within our means and 3 grandsons that come to our home to visit. We prefer the way that 5i and Keystone go about their business with your buy and hold quality philosophy. Your results over time have been stellar. My question is about tweaking the holdings I have. What are keepers? Which ones can be sold to improve the portfolio? I would like to have this done in September? Sell in May/June and go away?
Thank you for what you do.

Q: Hi,
BNS stock price dropped by almost 1.5% today while the other 5 major banks were up. Are you aware of anything that may have led to the decline? Thanks.
Keith

Q: Sir, I find myself down 25-60 % in ALL of the above companies. In keeping with your BUY MORE, HOLD, SELL SOME or all, I would appreciate your thoughts on the above companies. I have some capital gains to off set so all is not lost- yet. Thanks- JP

Q: What are your thoughts on selling these two bank stocks I am about 25% down on both going on three years , thinking of buying Td or Ry.
Larry

Q: My income portfolio consisting of the above equities has taken quite a beating in the recent market downturn. Except for LB, there has been some recovery in prices, and so far dividends have been maintained. I have some excess cash to deploy, and would like your advice on whether to double down on some on my current investments, or your suggestions for other beaten down income investments. Thank you.

Q: Hello -
Over the first decade this century emerging markets seemed to do relatively well. Over the last 10 years or so, it appears that relative performance has been much better in the U.S.

Do you believe Emerging Markets represent good value compared to the U.S.? For instance, VWO has a PE ratio of 13, ERUS is about 7, whereas I think the U.S. is somewhere around 18 - you can correct me if I'm wrong. How much affect does a strong USD play in this recent past 10-year performance? Assuming we see a weakening USD, would that be the trigger point for the two mentioned ETF's to outperform the U.S. indices? Obviously stronger oil prices would also likely help ERUS.

What affect would this also have on BNS with it's exposure to Latin America? It's been the weak sister among the big Canadian banks. Would a weaker USD then give the BNS stock price a boost as a result?

Q: What is your best guess as to the likelihood of a dividend cut by any of the above listed companies? Thanks.

Q: I’ve held BNS shares in a DRIP over the past 10 years. My ACB is about break even. I obviously chose the wrong bank as I would have done much better holding RY, TD, or NA over the same time period. Since I’m in a position to sell and not pay any tax, would you suggest switching over to one of the other big five or simply stay the course? I’m a long term investor and plan on leaving this money for my estate. Thanks for your insight.

Q: I am looking to add one financial stock to me RRSP portfolio. I currently have TD as the lone finance company. I also have BNS , TD, BAM.A and VISA in other portfolios. Can you give me some names - US and CDN - that I can take into consideration. Preferably those with a safe, good and growing dividend. Your comments are greatly appreciated.
Thanks

Q: Hello,

My partner and I heard about 5i from a friend whose been using you for many years. You came with the highest recommendation.

I feel like I should be copying one of your portfolios, especially due to my lack of knowledge, but it is very important for me that my investments to follow my ethics.

I would like to know which companies on your balanced and growth portfolios would be highest on positive environmental, social and corporate governance, which are low and should be switched and for which companies. I'm happy to do research, but I'm struggling to navigate the important statistics and feeling incompetent in finding good resources. I have seen your ESG scores (https://www.5iresearch.ca/blog/ESG-tsx-companies) and would be keen to know where to find information on how they are created. I would also appreciate other resources that you think would assist in building a portfolio, or simply which companies you would put on it.

Thank-you,
Ellen Perkins
Ucluelet BC

Q: Portfolio Analytics indicates I am over allocated and perhaps over diversified in Financials: BAM.A 2%, BNS 2%, TD 4%, X 2%, BRK.B 4%, MA 6% and Industrials: CCL.B 1%, CNR 4%, NFI 1%, FDX 3%, HON 3%, LMT 6%.
Which positions would you recommend trimming or eliminating?

Q: I own all of these (similar amounts) and bought LB to boost income. Now its yield is less than the other two do you think it makes sense to switch into the other two? Thanks.

Q: Why is BNS down more than the other big 5 banks?

Q: Hi-
Is the number of close to 90% payout ratio for BNS correct? Do loan loss provisions factor into that payout ratio? I would assume yes. If so, I would consider 90 percent not particularly alarming considering the current economic environment. This would cover delinquencies after the 6 month mark, correct?

Q: BNS is up AFTER they posted loss, increased reserve provisions etc., BUT it seems ALL the banks are up today even though news about their future is still pending!
Should we "read" that "birds of a feather" phenomenon is operating here and the market has decided to ignore the pending results of other bans and is into a full blown buy mode!
Do you think it is risky or reasonable response to the current situation and one can buy bank stocks now? I know your favorites are RY,BNS,TD.

Q: Based on quarterly results and statements from CEO Porter on BNS’s liquidity and loan losses, if I didn’t have any bank positions right now, would you start a position in BNS now or wait a bit or would you prefer a different bank?

Q: what is expected from earnings this quarter? Thx