Investment Q&A

Q: 5i team :
I have some cash available (10% of portfolio) with the intention to have it ready if the market (TSX or S&P 500) go on a sharp downturn. Assuming that this does not happen what would be your recommendation for the safest of all stocks (or 2 or 3 of them) in case of a downturn in the markets. (I am asking for a yield of 2.5%) Most of the safe stocks tend to have high P/E ratios , which makes me think they will drop anyways. Thanks

Q: Any news/reason for BCE to decline from $63.40 high @ end of April.Is this a entry point, or you have other preference Thanks for u usual great views & services,

Q: I am a 46 y/o retired investor living on dividend income. I notice that your BE portfolio has a 3.5% holding of Telus (4.40% yield) and your Income portfolio has a 5.37% holding of BCE (4.92% yield).
While Telus currently has a lower current yield, it has a higher Dividend Growth Rate (DGR).
As a younger income investor, should my telecom holdings be more weighted to Telus over BCE as the Yield on Cost (YOC) should be higher for Telus in a few years because of its higher DGR?
Do you think that Telus has more company growth and therefore more stock price appreciation than BCE in the next 3-5 years?

Q: I currently hold BCE and am looking at Corus as well for the dividend more than growth. Any ideas on this?

Q: My 36 yr old daughter has a current portfolio of $150k in RSPs and her TFSA. She is interested in enrolling in 6 true company DRIPs that she would start with approximately $5,000 each and contribute to over time. Her intent would be to keep these shares to ultimately use the dividends for retirement income in 20-30 years. In the meantime, the dividend tax credit would be useful offsetting the income earned. Is this a good strategy and if so can you suggest 6-8 companies that she might consider for this purpose? Thank you for your help. Jim

Q: I am interested in investing in dividend growers that 5-6 years from now would be yielding in the 4 to 5% range. At that time I would change from DRIP to cash payments. Therefore I would accept a lower yield now but would grow to that range. What would you suggest?

Thank you

Paul

Q: Which of these companies will be the best very-long-term dividend grower?

Q: Good morning 5i team,
Richard Croft has mentionned a kind of bond alternative by writing covered calls on a company like BCE. He says BCE works something like bonds in a rising rate environment and so, I suppose, would tend downwards. In writing the covered call for say next January you get the healthy dividend and you have also protection from the downside. Wondering what you thought of this strategy and whether you know of some other Canadian companies with which it would work?

thanks

Q: Good Evening 5i,
I need to add a "communications" company to my dividend fund. I would appreciate it if you could rank T, BCE, RCI.B and SJR.B for me. I'm planning on a 5 year hold and hoping for reasonable/modest annual increases in both the dividend and share price. Would you recommend 1 full position or 2 half positions?
Thanks for your great work as usual.
Dennis

Q: I have BCE and RCI.B. I had thought of dropping Rogers and buying Telus, now Rogers is moving somewhat. Would you recommend I replace one of the two with Telus? Keep the two I have? or invest in all three as I am underweight Telcos?

Thank you for this and all your answers to others

Q: Hi
In my RRSP telecom sector I have Telus and BCE. This sector is currently only 4% of my portfolio. I'm wondering if it is a good time to top up one or both of these to increase this sector?

Thanks!

Q: are there any Canadian companies that are dividend payers and well established, that are not over valued and would be considered a bargain currently? thanks.

Q: I need to convert my RRSP to a RRIF by Dec 31. The portfolio is all GIC and bond ETF's. I want to add an equity factor to increase the total return that will cover the early minimum withdrawal requirements. For each sector I want to pick one larger stock that is stable and fairly valued vs an equity etf. I picked BNS.NFI,MG,ATD.B,OTC,BCE,BEP.UN,ENB,GUD and CCL.b.

What do you think of the selections and any other thoughts you may have? Thanks

Q: sorry if this is a long winded question. after yesterday's pull back and looking like some more today this might be the pullback everyone has called for since the beginning of the year. i've put together a list of companies i'd like to add to if prices got cheap enough. most are are utility/telecom/pipeline names that have done so well for me over the past few years. seeing as these names have benefitted from the low rate environment and possibly people looking for yield (bond alternatives) is this the right strategy going forward? i'm in love with the dividends but don't want to let that skew my investment so i'm looking for your advice. should i be looking at allocating cash to other sectors that might not be impacted negatively by rising rates? i have room to add to my financial, tech, and industrial holdings based on current weighting in my portfolio.

Q: Can you give me a few names with the safest dividends and yielding over 3.5%? In evaluating dividend safety do you prefer to calculate the payout ratio vs earnings, operating cash flow or free cash flow? If FCF do you average CapEx over a few years or use depreciation as a proxy for stay in business CapEx?

Q: My belief is that you earn more with quiet, boring, steadily growing stocks than ones with a lot of fast rises and fast drops. I like a certain degree of stability which does not include dropping 10% or so when the stock misses earnings slightly, such as Enercare has done today, for example (a stock I considered boring). Which Canadian stocks do you think best fit this category? Or do any?

Q: Based on available historical data, the above have compounded earnings > 10%. I intend to put these good companies into a RRIF to boost the return of a mostly bond/gic content.

In your opinion would you regard each of the above as a good company that should be able to provide a relatively stable future annual return of 8% to 10% with the exception of a market meltdown. Looking for some reassurance regarding the picks. Thank you.

Q: Hi 5i,

I'm looking for some help picking my next 2 or 3 stocks or ETF to add to the income portfolio listed above.I started building this portfolio 5 month ago hoping not to buy at the top. I'm trying to buy 1 or 2 positions every month to average in to the market.
Planned retirement date December 2018.

Thanks in advance.

Q: After 6 1/2 years I finally sold Verizon as its share price and prospects have been trending downwards.

I hold BCE and T, together worth 7.2% of my portfolio. I usually keep Telcos at around 10% so I am debating whether to add to BCE and T or to consider Rogers or Cogeco to replace V.

- BCE and T have both been on a tear and sporting rich RSI's, but have a notably higher yield than RCI.

- Rogers is up 50% in the last 21 months.

- Cogeco has caught fire after years of treading water.

What's a guy to do?

Thanks!

Kim

Q: What would your suggestion(s) be if one wanted to have the safest portfolio possible which generated a 4%-5% return? Would the 5i income portfolio be considered the lowest risk, lowest volatility option to get the desired return?