Investment Q&A

Q: I'm considering shareholder yield as a factor for investing. Can I have your opinion of such a strategy and is there a favourable/preferred % when looking at companies? Finally, would you have 5 US and 5 TSX companies that you would choose when considering this approach? Dock me as many questions as you like and thanks!

Q: Today's guest on BNN mentioned that MLF has exposure to China and posable head winds and prefers PWO with a higher div. your view please.

Q: What’s the best way to play the US and Canadian financials in this market? Stocks or funds are fine.

Q: Planning on setting up an income portfolio of dividend growing equities. Would the above stocks meet this objective. Already own BAM, BNS, CNQ, DIR.UN, ENB, FRU, FTS, IFC, PEY, POW, SLFm TRP and WCP. Are there other equities other than the above list that you would recommend substituting for one or more of them? Thanks for your thoughts.

Q: How would you rank for purchase of ALA, BEPC, EFX, EIF, EQB, MFC, NA, NPI, NTR, PSI, SOBI, SOB, SU, WSP for a income focused portfolio?

Q: Any idea why MFC is taking such a hit today? I don't expect insurance companies to be down 5% in a day unless it's a broad market thing. I realize the market is down due to orange man but insurance shouldn't be impacted by tariffs and my GWO is up.

Q: Can you please rate the above 5 companies on a 1-10 scale; 10 being the highest rating. I am want to hold long-term, mostly for income and some growth. Is the debt level of any of these companies a concern?
Thanks!

Q: Read u latest comments on SLF.How did it do in Asia?Do u think that MFC will continue its strong performance in Asia in the forthcominq Q on Feb 19. Is it buyable and a good entry price?.Thanks for u usual great services & views

Q: Could u rank these co. from most prefer (10) - in terms of dividend + growth - to least prefer (1) in the next 12-24 months ? Would an ETF in this sector do just as good?

Q: At 62, I purchased MFC as a fairly stable income stock with some growth. Its growth over the past year has surprised me and I have substantial unrealized gains in an unregistered account. Which is all to the good, but the stock has been trending fairly steadily down the last three months. Did it get too expensive or is this sector-related? I note SLF has also done nothing good the last three months. Do you see further downward momentum (especially if inflation worries come back) or a return to stability for MFC? If the former, would you advise a trade to a more stable company/sector and if so which?

Q: Hi Peter and Team,

Across all accounts, our holdings in the Financial Sector include BN, FFH, GSY, MFC, SLF, and the CEW ETF. I feel that this is a fairly good representation but realize that the Canadian banking sector is quite low, and the US banking sector is non-existent in our portfolio. Portfolio Analytics indicates that we need more exposure in this sector.

Several questions; please deduct question credits accordingly.

1. TipRanks shows that BN has a P/E ratio of 125.13. Can this be true?

2. A recent question from a 5i member asked about Sagicor SFC, which prompted me to investigate it further. I realize that it’s a small-cap stock, but noticed that for the 3 month, 6 month, and year-to-date periods, it has excellent momentum (which I know you like) and has a really low P/E ratio of 1.51, which I assume to be correct.

3. Because I feel that Trump tariffs are more of a possibility than not, I’m in the process of adjusting some sectors but not all, in case the tariffs don’t happen.

4. Would you endorse a small holding in SFC, (say a half-position) using proceeds from the sale of more tariff-vulnerable stocks?

5. Finally, could you suggest some Canadian-domiciled ETFs that would give us needed exposure to both the Canadian and US banking sector?

As always, thanks for your assistance that helps us to make informed decisions.

Q: Hi 5i Team,

I invested in MFC and GWO roughly 2.5 years ago amongst a fairly diverse portfolio. I originally purchased both as a dividend play with potential for modest appreciation, but they have far exceeded my market value appreciation expectations over this time frame. I since purchased a smaller position in Sun Life roughly 3 months ago. For the first two, I likely need to trim for rebalancing / concentration sake.

My question(s) is as follows (and please deduct how many points as necessary):

- At a high level, what is your outlook for the Insurance space over the next 1-3 years and what indicators do you look at when making this assessment?
- Amongst the three companies listed, how would you rank them in terms of expected growth over the next 3 years?

Thanks and really appreciate the advice from 5i.
Erick

Q: Would you please rank the 3 stocks in order of total return going forward. IFC has the best 10year return, but not so more recently. I currently own IFC and I am concerned about the effects of global warming on future performance. I am leaning toward MFC because of its recovered mojo. I sense that MFC is the most conservative play in the group. Thank you

Q: MFC has just recently surpassed its previous peak in 2007 around $44. This was a long time coming, but it is struggling to stay above this value. Normally I feel that it is a good sign when a company that breaks through a previous high. Can I have your thoughts on MFC at this time, and why it may be a different company than it was 15 years ago.

Q: In my RRif I own Key & PPl, high yielding stocks to help cover forced withdrawals.
They declined on Friday despite a drop in bond yields.
So you think the decline was due to a drop in Wti?
Trump intends to increase tariffs which could result in higher interest rates due to inflation and his energy policy could lead to lower oil prices.
As a result of the above should I reduce key & Ppl & invest the proceeds into companies that will benefit from higher interest rates such as Mfc & Slf

Q: I am thinking of adding/increasing my position in an insurance company and have found that the combined ratio for both MFC and SLF are more than 100 while CB and TSU’s combined ratio is in the low 80. Does that mean MFC and SLF are not as profitable as CB and TSU? Which is a good buy currently? Thanks,

Q: Ignoring portfolio weightings, Can you give some advice on when to sell your winners? For example MFC has had a nice run. It seems fully valued. I am an income investor and am consider shifting to SLF for no other reason than the pick up in yield. There are other ‘winners’ I have that appear to be fully valued and I could shift elsewhere to boost income. What are the right things to consider re timing on when to sell?

Q: Greetings 5i Team - Your thoughts on its latest Q. Do you prefer it over SLF? or could the two be owned? Thank you.

Q: Good day everyone. My holding in the following companies represent 25.11% of my investment portfolio across 3 registered and 1 cash account:
BN 5.00 %
BAM 2.36 %
BIPC 2.22 %
BIP.UN 1.35 %
BEPC 1.25%
For a total of 12.18 % amongst the Brookfield group of companies

CSU 5.49 %
TOI 1.81 %
LMN 1.40 %
For 8.7 % in CSU and associated companies

MLF 4.23 %

Collectively these holdings represent about 25.11 % of my holdings at the end of the 3Q.

I understand that your services are not to give personal advice but would value and appreciate your opinion on the weighing of these investments, specifically in the Brookfield group. The portfolio has done reasonably well (thanks fot 5i) but don't want to get complacent.

Much appreciated.

Q: Could you compare MFC and Power Co?