Investment Q&A

Q: Hi with interest rates beginning to edge lower what would be the sectors most likely to benefit? Could you give me a couple of your favourite picks for each of those sectors. Would you be edging in, fully buying in, or hold off for a possible October correction? With the likely chaotic return of Trump to the Presidency would the Renewable stocks such as BEPC be at risk of correcting under this scenario? He does not like windmills much... Thank you for your service and deduct credits as you see fit.

Q: I am contemplating to sell the LSPD (1.1%, -63%), MG (1.2%, -43%), TD (0.3%, -15%) and BCE (0.2%, -57%) from my portfolio and deploying the proceeds elsewhere. Please rate and recommend the selling preference order. Thank you very much. Bill.

Q: We have held BCE for many years in a RRIF account, generally for income (position size about 2%). Yes the dividend is great and likely to continue, but our position is now showing an unrealized loss close to 25%. I am thinking of selling and moving on to another opportunity that will provide better growth and returns. Comments please. Maybe the money is better placed in GOOGL, also in the communications sector? Or possibly into another USA dividend position? In our two RRIF's we hold ABBV, MSFT, PAGP, BTI. Rio Tinto, along with Canadian companies: MFC, WCP, BNS, TD, LIF, BIP.UN, AD.UN and USCL (for income). Growth may be a higher priority than income. Overall portfolio weightings for all six accounts combined is approximately 50% Canadian and 50% USA plus International. RRIF accounts are relatively small in value compared with non registered accounts

Q: Morning Team,

How would you rank the above 3 telcos from high to low and why?

As alway, thanks for your invaluable help.

H.

Q: My wife and I hold a blend of mainly dividend paying blue chip Canadian stocks (examples shown) in a diversified equity/fixed income portfolio. PE ratios on some of our dividend payers seem enticing to add to. As retirees with a reasonably conservative approach, what sectors does 5i feel have the best opportunity for P/E margin expansion over the next several years, assuming no 'abnormal' (whatever that is) market volatility and some moderation of interest rates? Consistent with the margin expansion theme, would 5i suggest we add to our existing dividend payers, or to more growth-oriented names like BN group?

Q: Why has the stock price of this blue chip company been beaten down so low.
Is the dividend secure? Such a high dividend yield is a red flag, no?

Q: Could you shed light on the change in BCE EPS since 2022 when it was a little above $2.50. EPS is currently below $1.50. It seems this is not due to an increased share count. What's the story?

Many thanks!

Q: In many of your recent answers as well as your report, you mention "interest rate decreases" and that they could help stocks like Telus and BCE, TD and BNS. I am wondering how much of a decrease this would have to be, as I am reading many articles that suggest we are in an aura of higher for longer, and interest rates will not be going back to the ultra low rates we have seen in prior years. So my question is, in your opinion, what percentage decrease would we have to see before there would be some sustainable upside movement to these stocks? Thanks.

Q: how low do you think the two telcos can keep going. at over a 10 year low now and even the unbelievable dividend [if it is not cut] does not stop bloodbath from going on and on day after day.

Q: I presently have these underwater stocks in a RESP. BCE, BEP.UN, ENB, FTS, LMN, XIC, ZEB, ZRE. The RESP will not be need for the next 10 years. I would like to sell some of these underwater stocks. Which stocks would you recommend keeping & which stocks would you recommend selling. Thanks … Cal

Q: No-one who ever bought BCE (including me) expected a >9% yield. If the fear is due to potential dividend cut and/or lack of growth, wouldn’t it be better for the company to just cut the dividend by 50% now and move on?

A 4.6% yield is still decent and maybe investors will actually make more in growth than they would have in income.

Q: We own Emera, BCE and Telus in a dividend portfolio and notes these three stocks were down today by around 3 percent. Should we be concerned holding any of these three over the next three years primarily for dividend income? Are their dividends safe and valuations reasonable to hold and/or accumulate?

Q: I have heard many times not to buy a falling knife. I currently own BCE and after many years I am now at an overall loss position. I am a senior and dividends are very important. What should I do, Buy more, or put a bag over my head and hold my breath, or sell?
thanks

Q: Given that these two companies control apx. 65% of phone and internet use, what change would reverse the course of their stock price? Does the concentration of ownership and reliance on their services not bode well into the future? Thanks

Q: Thinking on getting a position in BCE A bit for growth but mostly long term dividends
Is it a buy,hold or sell ?
Do you like it for the long time

Thank you 😊

Q: Your thoughts please on the offer from TRC capital for BCE shares. Offer is above current trading price. Thx

Q: Both BCE and Telus are down significantly today on high volume and both have broken support levels. Is there any recent news to explain today's drops. Are their dividends safe

Q: I'm certain that our family's cellphone experiences are not unique. Even though we own BCE in our combined portfolios, and our rationale for continuing to hold it was that the dividends would pay for the monthly bill, but enough is enough! Without warning, Bell Mobility increased the monthly fee by $4.00 for a very basic plan. (We are seniors who rarely need data since we rely on WiFi.) Our other cellphone had been on Virgin (owned by Bell) who did the same thing, although they did 'warn' us about the impending $4.00 per month increase. After researching options, we opted to switch to Freedom Mobile, since the price was a lot less, and the basic plans were much better than we had with Bell Mobility and Virgin. My point is this: BCE will, in my opinion, continue to languish due to their predatory price gouging. Yes, it's an oligopoly, but Freedom is rapidly increasing their customer base, while I suspect that Bell/Virgin will continue to lose customers.

Thanks for all you're doing for the retail investors, and Happy Canada Day to everyone at 5i and our fellow members.

Q: So, Canadian Telcos are hurting……

The three control the Canadian market. Canadians pay some of the highest prices for their services. Their networks are vital infrastructure for businesses, government, and everything else.

I understand that capital investment is large and that interest rates have risen, however….. rates aren’t that high and look to be on the way down. Also, would it not take some time for increased borrowing costs to catch up with these companies?

Income….could it be any higher?

Is the problem excessive expenses? Forays into non-core businesses? Aren’t their problems easily solvable?

I’m having trouble seeing how the current low prices are not an incredible long term buying opportunity.

Comments?

Q: In a recent question from Michael, regarding the Communication Services sector, 5i responded by stating “we think investors are better off without having too much capital invested in these fields”. I agree that owning BCE and T lately, especially for long-term holders, has been very frustrating to say the least.

For our combined portfolio, Portfolio Analytics indicates that our holdings in this sector have dropped to 5.9% (understandably) but PA still suggests a weight of 7% in this sector.

Two questions: (1) In light of sector weakness, which will probably continue for some time, what would be your suggested Communication Services sector weight? (2) Would you endorse some tax-loss selling of BCE and/or T but put the proceeds into another more promising sector?

Thanks as always for your insight.