Investment Q&A

Q: Hello 5i team,

What do you guys think are the "worst" companies currently in the TSX60 index that you think will under-perform in the coming years? Why?

Are there any fundamental/financial metrics that you think are the most predictive of poor future performance that investors should look out for?

Thanks!

Q: I'm aware of your opinion ("agnostic") on Power Corp. Over the last 5 years POW has raised the dividend at a CAGR of 11-12%. Assuming the dividend continues to rise AND assuming no significant increase in fixed income rates for a few years, would not POW stock price rise similarly as investors look to safe, stable equities for income? Result could be combination of rising income and appreciating stock value.

Thanks - IslandJohn

Q: Could you please provide information how this would effect the above stocks in regard to investment in LION Electric, regarding the investment possibility of Amazon a portion of the company15.8 % they could purchase and when would they have to close the deal and was it mentioned. I own some POW for dividend income and very slow growth. What is 5i
's opinion.Should I buy more POW or buy NGA or just stay neutral for now

Q: Could you tell me if because of these two mergers, were the original shares, ie, AD and POW sold to purchase units/shares in the new trust/company and thereby realizing a capital gain or loss? I cant seem to find this information from the DIY broker.
Thanks
Merry Xmas

Q: Do you ever see activists coming in to deconglomerate power corporation? After they rolled power financial into Power Corp I would have thought the stock would have done better.
Or is it too tightly controlled by the Desmarais family?
I think spinning off their companies would see a massive pop in the stock.
Any thoughts on the above?

Q: Good day,
I hold BEP.UN;BEPC;BBU;CCL.B;ENB;EMA;H;FTS;CTC; and BAM in a non registered account and thanks to you I have done very well following your Q & A and portfolios. I am down 43% in SU; down 23% in CPD; down 16% in IPL and 6% in POW. Would you add to the winners? Add to the temporary losers or ADD new ones. After today, am tempted to add to SU for sure. Have RRIF and TFSA with pretty balanced sectors. Overall, Overweight in Utilities, Financials and okay with that. Many thanks, Paul

Q: Hello Peter, I understand that Power Corp has made nothing for investors for the past decade (apart from decent dividends). And Great-West Lifeco not much better. Recognizing that Power owns a good share of GWO, which would you prefer as an income investor going forward: POW, with an extra bit of yield and some interests other than GWO, or just GWO as a pure play on the lifeco? Thanks!

Q: Hello Peter, I am intrigued after reading that a Canadian can earn about $50,000 per year of dividend income without paying any income tax. I know about your income portfolio of course, but with a view to maximizing just Canadian eligible dividend income, what would you think of the following portfolio of 14 stocks. Equal weighted, the stocks would yield 5.3%. (Disregard lack of market diversification; this can be achieved in one’s registered accounts.) Also, if one wanted to pare down the list to 10, which 4 would you delete?
BCE, CM, ENB, FTS, CNQ, AQN, CPD, FSZ, MG, KBL, POW, ALA, BIPC and NTR. Thanks!

Q: Are you following Power Corporation, today trading at $25.84 with a 6.9% dividend, and a good Q2 report (In my opinion)? What opinions would you have? What do you see?

Q: Would you buy this company at these levels for growth and income ?
Please rank POW, MFC and SLF.
Generally, would you prefer the lifecos over the banks ?
Thank-you.

Q: I would like your thoughts on this company. Looking forward 1-5 years in regards to the safety of the security's dividend (current yield close to 7%). Debt rating agencies giving positive comments seem to support a solid status. Also any comments you might have comparing POW versus Power Financial in a non-registered account.

Tx Dave

Q: Power Corporation is reporting today. 7% yield but no growth. How did they do?

Q: Would you please rank these companies in descending order of dividend security.
Thanks; also BRF.PR.C:CA

Q: Pow never seems to get much traction-pays a good dividend-why so not liked

Q: plus 5 % dividend ok debt,,,,,,, what stocks looks puzzling to you why its still far down a stock with value and when the virus goes away from everyday attention that should have good upside .

Q: Which of these insurance companies would you buy today? Five year hold.
Thanks

Q: How tied to interest rates are the fortunes of POW? Trying to decide between POW and rate reset ENB.PR.T as an income pick. Which would you choose? Thanks Ron

Q: Hi. Can you comment on Power Corporation's Q1 results? I am thinking of reducing my weighting on banks by 2% by taking a small tax loss on CM and investing in POW for the dividend and hopefully some decent growth.

I understand that weightings are a personal decision, and refer to the following for context for my position in Financials. I currently have a 9% weighting in CDN banks (TD, BNS,CM); 6% with CDN insurers (SLF, MFC); 2.5% with FSZ, and 4% with GSY. I am up significantly on GSY and am looking to trim it back in the future.

Q: In the financial sector, which is more likely to cut a dividend, the big 5 banks or the insurance companies SLF, MFC, POW ?

I am assuming it is ok to count POW as an insurance company or should it be viewed separately all together.

Kindly rate the likelihood on a scale of 0 to 10 for banks versus insurance and any differences you might see amongst the insurance companies.

Zero being less likely to cut a dividend.

I am asking this as a dividend investor who doesn't like buying a company that cuts dividends.

Q: Hello 5i Team

I have an equal number of shares in both Great-West Lifeco (GWO) and Power Corporation (POW).
My average cost for GWO is $22.00 per share and for POW is $21.90.
Since POW owns 70 % of GWO, should I purchase more shares in POW and sell my GWO position? This would result in a slightly higher yield going forward on the POW shares. Or should I consolidate my position in GWO and sell POW?
I have matching dollar positions in MFC and SLF, so I want to stick with GWO/POW.

Do POW and GWO share price move in tandem (i.e. same percentages) because POW holds 70 % of GWO or is POW restrained by its holding of IGM Financial?

My last purchases of POW/GWO was on April 13 and 15 respectively. Do I have to wait until May 13/15, before I sell either one, if I want to claim the small capital loss?

Thank you for the great service.