Investment Q&A

Q: Hi, Telco stocks have been weak for past few months , with new 52 weeks lows. perhaps due to pressure from increased competition ( Rogers/Shaw) and rising interest rates. Many analysts have also revised their price targets lower, in anticipation of weak results and soft outlook, at least in the near term.

My question is more specific to Telus, which was hit hard today, due to lower guidance announced by TIXT. Although, TIXT accounts for only 10% of Telus revenues/earnings, but it appears to be a continuous drag for the parent co. I know, 5i hold TIXT in its portfolio and has been supporting to own the stock, despite its downward trajectory for a long time. Telus now faces not just industry challenge from its peers, but also additional impact with negative and uncertain outlook for TIXT.

In light of this, if we wish to own only one Telco, would it be safer and

Q: Looking for income from bond etfs and dividend paying stocks that will appreciate in value if interest rates have peaked and gradually fall towards 3% (i.e. those that have been hit unduly hard due to inflationary fears). Suggestions?

Q: Hi

Sold both BCE and T prior to them dropping.

I am now under weight in communications by 3.79%.

Do I buy them back or would I be better off with VOX as my US holdings are doing better than my Canadian holdings over all.

Thank you

Mike

Q: In the answer provided today to Peter:

We would rank: BAM, BEPC, EIF, FTS, SIA, SLF, BNS, ENB, NPI, TVE, RY, CTC.A, T, TRP, ADN

You missed BCE. where would you place it?

Q: Retired, dividend-income investor. I am looking at topping up existing positions in BCE, BNS, TRP over the next 1-3 months, as funds become available.

Please rank them in order of :
a) Value (based on where their P/E (or whatever the appropriate metric) is currently vs over time),
b) Potential capital upside.
Any thoughts on technicals and seasonality would be appreciated.
My own thoughts are to add to TRP first, then BNS, then lastly BCE.

Thanks for your help....Steve

Q: Hi Peter and all,

I own BCE in my TSFA. and am interested if you would recommend holding longer term, given the recent news of station closures and layoffs. I assume those are good business decisions for the longer term viability of the company. Still a hold ?

Q: Hi 5i Team,

I am looking to create a dividend portfolio of 15 positions yielding around 6%. My plan is to weigh these positions equally in a non-registered account. A good number of these equities are in your income portfolio but I just wanted to get your opinion if you would swap any of these out or add anything else?

Telus
Enbridge
CNQ
TRP
MFC
BCE
TD
SLF
A&W
BEP.UN
BNS
Acadian Timber
Fiera Capital
CPD
CVD

Thanks in advance for your help!
David

Q: I currently have a portfolio with these six holdings. What would be your current top 5-10 Cdn and/or US buys to diversify the portfolio and put a large cash balance to work for a 5-10 year time horizon with total return as the primary objective

Q: Good evening 5i.

The Marketbeat site indicates dividend increases for these companies (amongst others) during the month of May. I do not see the same increases on the 5i Dividend Updates page. Is Marketbeat correct?

Thanks

Q: PLC has gone sideways this ytd compared to most of my holdings that have moved back up. It is one of my smaller holdings so wondering if it is a good time to top it up to a full position or move on to other names in the income portfolio with higher yields, likely split in BCE, TMX and SLF.

Q: Hi Peter, Ryan, and Team,

Lately, Telus is under-performing Bell by quite a lot. On days when both stock prices are increasing, BCE goes up by a greater percentage than T, and conversely, when there's a decline, BCE declines less. We own both in our combined accounts, and Portfolio Analytics indicates that our Communication Services sector should be increased. If we wish to do this, is BCE the safer stock?

Also, is there something going on here that is causing this under-performance of Telus?

Thanks as always for your sage advice.

Q: I am looking to initiate a position in Canadian Telecoms and noticed that only BCE is present in your Income portfolio (4.5 %). Nothing in Balance or Growth. No Telsus either. Could you elaborate your reasoning please.

Q: With EPS of $2.96 and a forward dividend of $3.87, is there any danger BCE could cut its dividend or do they have sufficient free cash flow to cover it indefinitely?

Q: I am looking at reconfiguring my newly established RRIF into the above equities with the 3 etf’s being 25% each with the remaining 5 stocks being the remaining 25%. What is your opinion of these stocks and portfolio composition? Am I being too cute ? Thanks. Derek.

Q: Many companies have become addicted to low interest rates over the last decade. Assuming that interest rates stay where they are for years to come (a rate once considered somewhat "normal"), do you see any problem with any of these blue chip stocks maintaining their dividend ? I'm sure over the course of the next 5 years or so some of these companies will need to renew debt at higher rates.

Q: I have owned these stocks in my non-registered account for 12 years except ETF IGM, T, CTC.A (bought 2 yr ago - up a fair bit). T bought 5 years or so ago. GSY, MFC & GRT.UN a year ago - all 3 up nicely. I buy dividend growers for the most part. I have been retired for quite a while - so, more interested in dividend growth. Large portfolio with banks 40% of total. Do not worry about market downturns: add to positions when they go on sale -08/09 and 2020. Sitting on cash and looking to add to these positions . Do not own ENF.CA - typo. Suggestions?? IFC 5-6 years up 220% including dividends.

Q: In which order would you initiate buys on these stocks? Do you like all three? I’m looking for a little growth and good dividend yield.

Q: I've dithered and let my position in Shaw run. To get prepared for the takeover, I'm thinking of moving in Bell, Telus and Sunlife in equal weightings. Looking for safety and dividends, any better ideas?

thanks in advance for the help,
Andrew

Q: I AM TECH HEAVY AND WANT TO REBALANCE MY PORTFOLIO. WOULD YOU PLEASE SUGGEST TWO CANADIAN AND TWO US STOCKS IN EACH OF THE FOLLOWING SECTORS. CONSUMER DISCRETIONARY, CONSUMER STAPLES, MATERIALS AND COMMUNICATIONS. I HAVE BEEN A MEMBER SINCE DAY ONE OF 5I AND RATE YOU THE BEST OF THE SIX NEWSLETTERS I SUBSCRIBE TOO. THANKS FOR THE GREAT WORK AND TAKE AS MANY CREDITS AS NEEDED.

Q: Retired, dividend-income investor. I have monies dedicated to top up reasonably full positions held in BCE, FTS, LIFE, NWC, PLC, TRP. Ignore asset allocation. In what order would you deploy monies, based on total return over the next few years?

Thanks...Steve