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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Good day! Many thanks to 5i providing a rudder (and sometimes an anchor) on this rollicking journey.

I have been slowly accumulating CNR for the past couple of years and am now considering whether CP is better positioned over the next decade. I am currently down 8%.

Can I get 5i’s opinion on CN vs CP given each company’s
-past performance,
-quality of management,
-valuations,
-EPS growth projections
-CAN-US trade gyrations
-any other material factors

Thank you!
Read Answer Asked by Trevor on March 31, 2025
Q: I've held Canadian National Railway (CNR) for over eight years, achieving a modest return of about 8% per annum, which has lagged the broader Canadian market. As a retired investor seeking both income and growth, I’m considering swapping my entire CNR position for TFI International (TFII). CNR has provided stability and a reliable dividend—currently around 2.3%—but its growth has been underwhelming, and it trades at a relatively high valuation, around 19-20 times forward earnings. In contrast, TFII appears undervalued, trading at roughly 15-16 times forward earnings, with a stronger historical growth trajectory, driven by its trucking and logistics operations and savvy acquisitions. However, its dividend yield is lower, at about 1%, and it’s more cyclical than CNR’s rail business. Given my goals and the small capital gain I’d realize in my taxable account from selling CNR, does it make sense to trade all of my CNR for TFII? How do their risk profiles, income potential, and long-term growth prospects compare for someone in my position?

Read Answer Asked by Maury on March 24, 2025
Q: Hi Peter,

I would like to get your thoughts on CNR and ENGH. I am long CNR and would like to reduce it and add to my position in ENGH. My views are that I get more growth from ENGH and 4.5% dividend vs. CNR call it a 2.5% dividend. I know they are different businesses but comparing the two companies what provides more growth and income opportunity.

Thanks
Read Answer Asked by Frank on March 17, 2025
Q: I am looking to add to my TFSA for a long term hold.
Realising different sectors but considering their current valuations, please rank these companies for a buy.
Read Answer Asked by Don on March 11, 2025
Q: Major US and CDN railroad stocks seem to do quite well except csx ,being on a constant downtrend lately , any suggestion as hold or sell ( or buy!) for a conservative dividend stock objective?
Read Answer Asked by Jean-Yves on March 06, 2025
Q: I hold these large Canadian Companies.. I realize there will be continued volatility in the market but given that these companies have pulled back, some significantly, what order would you buy these names? Are there any you would not buy?

Please deduct appropriately…

Thank you
Tim
Read Answer Asked by Timothy on March 05, 2025
Q: Hi Peter and Team,

Our Industrial holdings are too high, considering their vulnerability to the “Trump tariffs”, as you suggested in a question today from Shirley.

In what order would you reduce or sell any of these stocks? This is a daunting task, as I like them all, and they are among the “cream of the crop” in this sector.

I’m planning to use the proceeds to buy some US small and mid-cap ETFs and would appreciate any Canadian domiciled ETFs that you could suggest.

Thanks for your insight.
Read Answer Asked by Jerry on February 13, 2025
Q: Recognizing that 5i Research does not perhaps put as much emphasis on technical analysis as opposed to fundamentals, perhaps you have an opinion anyway on log charting in particular.

I noticed that CNR - generally flat for the last 4-1/2 years, fell out of a long term log channel 2 years ago - a channel going back to its listing three decades ago. In fact, with this in mind, I've discovered that the present price is at a considerable distance from the bottom of that channel not seen since the GFC.

So do you see this as a great buying opportunity for CNR based on this observation? Or do you have an opinion in general on the future of railroads in the face of any potential long term disruption that I am unaware of (eg. AI-based) ?
Read Answer Asked by James on February 10, 2025
Q: Perhaps I wasn't crystal clear in my earlier question on these 3 - Canadian companies with US operations could be a target under the IRS section 891 to double taxes paid on their US operations. What Canadian companies might be affected by 891 in retaliation for our Digital Services Tax to pay more US tax?

https://financialpost.com/news/economy/canadian-business-pay-price-digital-services-tax
Read Answer Asked by Jeff on January 29, 2025
Q: Canadian companies with US operations could be a target under the IRS section 891 to double taxes paid on their US operations in retaliation for our DST and UTPR according to tax experts here. What Canadian companies are most at risk for this?

https://financialpost.com/news/economy/canadian-business-pay-price-digital-services-tax
Read Answer Asked by Jeff on January 28, 2025
Q: I was looking to add to some of my steady, stable investments - including these two. Would you agree that the valuations are reasonable to purchase additional shares currently, or maybe recommend holding off on purchasing more of either/both of these, until the US tariff concern is better outlined - could this really depreciate the value of these railways?
Read Answer Asked by Anthony on January 22, 2025
Q: I currently hold these is non-registered account and have had for more than 5 years, so there are gains. My question is: taking a longer term view, should any of these be sold and what options would you suggest in similar segments?
I feel that there could be other options that I am not seeing.
Thanks very much for all you do.
Read Answer Asked by George on December 17, 2024
Q: Hello, with the overall stock market reflecting a historically high valuation I would like to rotate some of my profits into a few safer names, ideally with relatively lower down-side risk and/or that pays a healthy dividend so I can receive some income in he interim. I appreciate that trying to time the market carries its own risks i.e. it could take a while. What names would you recommend?
Read Answer Asked by Al on December 06, 2024
Q: In your answer to Shirley on Nov. 22 you wrote, "We think investors can position a portfolio more conservatively by raising the allocation to defensive names that emphasize downside protection with good upside potential." Can you give a list of 5 CAD and 5 US stocks that you think would fall under that statement?
Thank you
Read Answer Asked by Neil on November 25, 2024
Q: What are your current top 5 US and Canadian growth and value stocks to purchase for long term?
Thanks
Read Answer Asked by Ben on November 20, 2024