Investment Q&A

Q: From reading your recent answers, you like these 4 companies (CNR, CP, TFII and TIH). Would you please rank these 4 companies for growth and rank them again for dividend growth. Which two companies would be your favorite for a combination of growth and dividends for a 5+ year hold? If you can give a brief explanation for the reason(s) over the other 2 companies? Thank you.

Q: I have just updated my portfolio analytics and am delighted with the results and the advice from it. 5i has been a big part of that, giving me the insight, information and confidence to make mostly good decisions.

I originally put a 30% allocation for bonds when I started 4 years ago, mostly because that's what was usually advised for those in my position (about 10 years out from retirement).

However, I have put no new money into bonds over that time because the ones I own have been the worst part of my portfolio. They did not act as ballast when the market went down - they seemed more volatile than most of my conservative equities. They also did not go up appreciatively when interest rates rose, and overall, even with the payouts, I'm in the red on these bonds over the past 4 years.

I heard you mention bonds in asset allocation on the recent podcast but I didn't sense any great endorsement of them. Other than the traditionally recommended 60-40 or 70-30 split, can you offer reasons not to sell them off and buy conservative stocks like CN, CSU, BN, etc or else broad-based index funds like XIC, XUU etc.?

Q: How would you value above companies for a long term industrial hold.? Are there other companies in the North American industry you would prefer? Thank you.

Q: Can you compare the dividend growth at CN and CP over time? It looks to me that CP hasn’t increased the dividend since Oct. 2020. The longest previous period with no increase in the recent past seems to be July 2012 to July 2016. In contrast, CN seems to increase their dividend every year. But has the rate of increase for both been similar over the long run despite the choppiness at CP? Also, the rate of increase seems to be slowing more recently at CN, it was often double digit increases prior to 2020. Any insights appreciated, thanks.

Q: I recently retired and looking to place some of my savings into the market with a 5 year horizon at which time I will re-evaluate. Will tolerate a moderate to light risk. Could you please recommend 3 or 4 stocks or etf’s for my TFSA and 5-6 stocks for growth. Appreciate all your efforts. Thank you. Brian

Q: Making a large spousal RRSP contribution soon and am looking for guidance as to the best 3 or 4 stocks with a tilt toward growth that would compliment this group with a brief explanation as to thier merits and why they compliment the existing holdings. Initially had my sights set on DOL, ATS, CNR and IFC but not sure these would be the right choice to maximize compounding for someone with a very long investment horizon.

Wife’s portfolios currently include: ITOT, IEMG, XEF, AVGO, COST, SBUX, RY, FTS, BCE, ATD, DIR.UN, SHOP, GSY, BN, TOI, ATZ, NVEI
Most Mag 7 are owned in my own accounts with adequate exposure when considering combined portfolios so not looking for any of those.

Q: I have the above stocks in my TSFA account. All about equal weighted. Which stock would you add the $7000 2024 contribution to?

Or do you not favour any of the above and have another suggestion?

Thanks for everything and happy Holidays to everyone.

Dave.

Q: Hi, What are your thoughts on the CN Rail's deal to acquire Iowa Northern Railway ? Is it material? Financial terms were not disclosed. The deal is still subject to US STB review. How does this deal position CN Rail against its competitors ? Does it make CNR stock more appealing to buy? Thank You

Q: I already own CNR and ATD and am considering adding CSU and FSV as a couple more "solid additions". Can you please recommend 3 other large cap Canadian growth stocks ? (not including financials, energy, materials, nor Brookfields).

Could you please rank all 7 according to overall long term quality?

Q: Good Morning 5i group. What are your thoughts for a recently retired person who has a large gain on CNR in an RRSP to sell the position tax free and buy an ETF say XEI and essentially triple the income and also diversify the portfolio further ?
Thanks for the great service, a different ETF or investment idea for consideration would be welcomed.

Q: I am wondering about cnr or cp.
Are there any other transportation companies that you find interesting these days?

Q: Thoughts on buying these here in an RRSP or RESP and forgetting about them for a few years ? Any you would change ? Thank you.

Q: Hi Peter and 5i Team,

From this list of 9 stocks to own in a RRSP for 10+ years, how would you rank them in terms of starting a position today?

Thanks again for the great work that you do.

Q: Hi 5i,
I want to add a rail position. What’s your thesis on CNR vs CP?

Thank you!

Q: As a dividend growth investor I'm looking for one more (non-financial) growth company to add to my group that already includes ATD and CNR. I've done a side-by-side comparison of the following three outlining concerns for each:

FSV - Reasonable debt levels. In a recession, perhaps the strongest of the three (?), but always expensive.

SJ - Arguably a bit of a moat, reasonable debt. But by already owning CNR, does it make sense to own a company whose business includes railway ties?

DOO - Great growth, nice dividend growth, and very attractive moat. But what about that debt ?...and in a recession who is going to buy those "toys" ?

Not looking for personal advice, but I would welcome any comments on the concerns I've mentioned. Thanks.

Q: I am trying to construct a barbell style Canadian portfolio.Can you name 5-6 growth names you favour and 5-6 defensive names that I might be able to build this with ?

Q: Please give me your view on Norfolk Southern Corp.

Thank You in advance.

Q: I own CP, CNR, ENB, BCE, in my Rif account and was thinking about selling these to buy UMAX to increase income and keep me in these sectors. They are about 17% of that portfolio and I don't think I am adding risk by doing this but I will be increasing income significantly. Does this move make sense? Thanks, James

Q: Do you consider either railway a good new investment right now? I used your interactive chart to compare the two, and if you bought CNR 10 years ago you are probably pretty happy, but over the last 5 years CP outperformed, and ytd CP has ground up a bit while CN has drifted down. In the current interest rate environment I don’t think anyone is buying either for the dividend? Is there an investment thesis here somewhere or are there just plain better ideas? Thanks for your thoughts.

Q: If you had $20,000 to invest today for and Income with some growth investor in an otherwise well diversified portfolio, what would you pick or just add to?