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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Both GWO and PWF are offering to buy back shares, is it my understanding that agreeing to sell to them through my BMO investorline account (self directed) that I don't know what price I am getting?

That doesn't make any sense to me. Why would anyone agree to sell for an unknown price, dictated by the company?

How do you think share prices will behave in the next 1 to 2 weeks with this hanging in the air ?
Read Answer Asked by Ernest on March 29, 2019
Q: These companies are all now the subject of an active open Dutch Auction / share buyback offer to purchase for cash. I am interested in your thoughts on the merits of entering these auctions, and if entered at what price point (the offers are between $29 - $35 depending on the company). The shares have all risen with the release of the offer. Will they fall back after the offer closes? What is the longer term outlook for these companies?
Read Answer Asked by Ken on March 26, 2019
Q: My thoughts, further to Dale's inquiry on March 12. I also received notice of PWF's plan for a buyback of 8% of their total shares. I won't be tendering my shares for a few reasons. I like the 5% dividend. Back in May 2018 they announced a 6% div. increase, and there may be another announcement coming this spring. Also, PWF will only advise the actual share price given for this tender, after the deadline to tender has passed. The range given is anywhere from $29 to $34.
I will stay on the sidelines. A sound decision?
Read Answer Asked by Robert on March 18, 2019
Q: Hi Peter
the above stock hit bottom sometime in late or mid Dec
It has been on the rise since then

I had some money invested in it, happy to get the dividend but disappointed at the lack of capital appreciation
I am now at break even point
is SLF or the banks a better choice (I could use ZEB eft), goal is dividend plus some growth, thanks

Michael
Read Answer Asked by Michael on February 27, 2019
Q: Hello 5i,
I am down 11% in each Power Corp (POW.TO) and Power Financial (PWF.TO) I am holding each for the dividend as a value investor at 72 years with a 10 year outlook. You had suggested replacing them with BCE or something else in answer to someone else's question. Would that apply in my circumstance or should I just keep holding for dividend?
thank you
Stanley
Read Answer Asked by STANLEY on February 11, 2019
Q: I know that these 3 are intimately linked. I am wondering the advantages and disadvantages of each. As far as dividends and dividend growth, they rank PWF, POW, GWO (decreasing).

I am trying to chose one, but unsure which is better. Could you please outline the pros and cons of each?
Read Answer Asked by Federico on July 12, 2018
Q: Payout ratios

I am confused about payout ratios. I have read here several times that you prefer to stick with dividend income stocks that have payout ratios below 50%. You have also suggested recently that the following were good solid choices for dividend income stocks. Your website does not include payout ratios, but I suspect your calculation is different from those I have found elsewhere. Below are the payout ratios I found in other places. As you can see, they are mostly above 50%, and some are above 100%!

Could you please comment on your calculation of payout ratios, that have these below 50%, or why the high ratio is acceptable presently?

Thanks again.

PWF 72%
BCE 97%
CU 116%
TRP 78%
ENB 182%
TRI 169%
QSR 79%
AQN 130%
T 82%
Read Answer Asked by Federico on July 06, 2018
Q: I have recently taken over my parent’s investment account management because of health reasons. I found that my parent’s financial advisor had their money tied up and mutual funds with heavy fees, as well as GICs that were locked in for a long period of time. The money is now available for investing. They are retired and in their 80s. I will be keeping most of the money in HISA, GIC, and some short term bonds if the yields ever go above GICs. I would like to include a couple of stocks that are quite secure and pay decent dividends. And suggestions? I was thinking of RY, CM, BNS, PWF, BCE, CU, TRP, and ENB. Do these sound good, and do you have other suggestions?
Read Answer Asked by Federico on July 04, 2018
Q: Interested in a longer term (3-5 years), relatively safe stock (low Beta) with a good dividend and perhaps a little growth.
What is your opinion of POW and PWF at this time? Which would you prefer?
Or is there another similar stock you would recommend?
Read Answer Asked by Todd on June 19, 2018