Investment Q&A

Q: I have owned these stocks for over 13 yrs incl. T, JNJ & IGM - added quite a while ago. The last 4 added last 2 years. Sitting on cash build up wondering what to do - ie. buy? Add to; ENB, GRT.UN, , GSY or ? I am 74 YY. I own in my RIF: ALA, FTS, RNW, RY, SLF, TD, RYNWH.UN and ETF ZHY. My Non- Registered account portfolio- first listed stocks represent, by far the largest portion of my investments.

Q: I sold TRP today at basically a break even price because I do not want to wait out the final outcome of their recent split up plan and to see how their debt is allocated etc. I was in the stock for long term income given I am recently retired. It will be hard to find an equivalent yield, given capital preservation is a prime objective along with the income. TRP was held in a non registered account for tax advantaged dividend income.

With long term capital preservation a goal along with income generation, and that I hold all of the above listed companies already in appropriate proportions and don't wish to add to them or their sectors (no more utilities, financials or telecoms) what other Canadian blue chip dividend companies would you consider for long term hold with decent dividends for income? I also already have enough allocated to bonds, GIC's and cash accounts so I'm not considering these assets either.

Manageable debt levels and ability to maintain dividend growth, hopefully at the rate of inflation or higher is the main criteria I would hope to have in replacing TRP for the long haul. Thank you for your valued insight in giving me suggestions to look at.

Q: Hello Peter & Team: I am trying to trim down my financial holdings as I am spreading too thin, I'm currently retired and would like income with growth potential with 3 -5 years holdings time frame . Which of the above is most prefer to least prefer, and why.
Thank you for your great service , as always.

Q: I am looking to add exposure to Canadian Banks. Given current pricing it seems like a good time to add exposure. Can you rank your favourite banks at this time. Do you have a preferred Bank ETF that could also provide good Canadain Banking exposure.

Thanks
Tim

Q: Do you recommend purchasing any of these banks right now, especially with those with foreign investments?

Q: WHICH IS THE BETTER BUY AT THIS TIME,TODAY BNS OR BMO?

Q: Good Afternoon,
I have owned Killam for a while. There has been no appreciable growth or dividend increase. What is the likelihood of either happening. Would I be better off selling Killam and purchasing another stock? If so, what stock would you suggest that would offer some growth and a good dividend. There is no tax implications as I hold Killam in my TFSA.
Thanks in advance for your opinion.
|Jane

Q: I am about a 1.5 years away from retirement. Across all my my registered portfolios I have all 5 major banks, pretty well in equal %. An independent financial advisor suggested cutting this back to 2 banks.

My question to you is can to rank these 5 banks in order of what you would consider selling?

Thank you.

Q: If I were to buy two bank stocks, which two are better. Thanks a lot.

Q: I am an income investor and hold equal weighting in all 5 big banks. I’m looking at the quite larger than normal yield spread between RY and BMO and TD and am thinking of either halving or even fully selling my RY position to add to BMO and TD. Someday when the spreads go back to being much closer, I would likely repurchase RY. Do you see anything wrong with this logic? Would you prefer one of TD or BMO for such a move? Half or full position? I’ve held RY for a long time, thus my little bit of doubt!

Q: I was wondering if you would indicate which US banks have been acquired by the above mentioned banks and how risky these acquisitions might be considering the differences in the banking regulations between the two countries.
Thank you very much. Any information you provide will be greatly appreciated.

Q: Hi team
like to add to an existing position
for dividends and long term hold for some capital appreciation
could you give me a
good entry point? (price wise); all banks have pulled back
thanks

Michael

Q: Hi Peter, Ryan, and Team

In your answers to other members, I’ve observed that National Bank isn’t one of your recommendation, and I’m wondering why.

Their 5 year CAGR is 9.4%. For the 3, 5, and 10 year periods, the beat their peers (BMO, CM, RY, BNS, and TD) by 6%, 6%, and 3% respectively.

Watching the negative news involving GSY, I’m considering switching it to NA. Since we’ve held GSY for some time, we’re still up quite substantially.

In our combined accounts, we also own TD, which we’ll keep.

I’d appreciate your thoughts on this proposed switch. Thanks in advance for your insight.

Q: Hi 5i, my question is on all financials impacted new taxes.

"Dividend tax change: Ottawa is planning to raise billions of dollars from banks and insurers through a change in tax rules on dividends that financial institutions receive from Canadian companies."

Can you put a guess on how this will impact investors?

Thx

Q: Hello,
I already have a large position in TD and a small position in BMO, and would like to add to one or two more banks that won't keep me awake at night. Its quite clear that banks have trillion of dollars in loans . Last report that I read $4.12 trillion. And $1.5T of loans come due in Canada by January 2024. So even if 2% default, we have $30B in losses. And that's just Canada. Therefore, of the Canadian banks, which ones have the least exposure to the US. ? Today which ones are your recommendations?
Finally, in terms of deposit insurance, is it $100K per bank account or per individual taxpayer.? Brokerage account like RBC - Direct investing, the $1M is it for the total portfolio or just the cash? Again, per account or per investor?

Thank you
CR

Q: I wonder if any of the big six own any US or CAN MBS or CMBS ? Thanks a lot .

Q: I have bought stock in these Canadian banks, TD, Royal and BMO. How badly can these Canadian banks be hurt by their purchases of US assets? I was going to layer into these positions, would it be prudent to hold off?

Thanks
Brian

Q: Please rank the above companies for level of risk and do you think that our Canadian banks could ever be subject to the issues at SVB? Is BN risky? I read one person writing how his advisor won't let him buy it. Feeling like I don't have much trust in anything right now. How is an investor to handle this uncertainty? I definitely see the benefits of diversity as you had always pushed. I'm also somewhat confused as most advisors have been pushing financials due to the benefits associated with rising rates. Your calm advise would be appreciated.
Thank you!

Q: Hi
In looking at the big 5 Cdn banks, it is easy to think they are all being somewhat affected by the SVB shut down, or pressure on US regional banks...or is that jumping to a far fetched conclusion? I see that the Cdn banks have been marching steadily lower lately and have started to wonder whether this is sector related or a fundamental change occurring. Although this may be a bit early in the game, at what point would you feel the Cdn banks are excellent bargains, or is that too optimistic a view of the Cdn banking system, vs the US's regional banking system? As always, I greatly appreciate your thoughts on this!
Dawn

Q: In layman's English, could you explain why SVB went under and whether it will cause any lasting damage to Cdn Banks...and are there any Cdn banks you would add to today? Thanks, great service.