Investment Q&A

Q: Its been a busy earnins seasons.
A few dividend increases you missed on your wonderful dividend change site
GRT.UN Nov 9th 3.20% increase
AD.UN Nov 9th 3.00% increase
CTC,A Nov 10th .6.25% increase
DIV Nov 14th 2.10% increase
Thanks a bunch

Q: Please advise of 10 companies (Canadian) I can buy in my new TFSA and add to and DIP for next 30 years , This will be my retirement.
Thank you
Cec

Q: CTC.A: I notice that you are not a fan of this company? Well, I looked at the 30 year graph this am., and, all I can say is: I wish I had bought it way back then. I did buy it in 2020 for $96.00. Always wanted to own, but always seemed expensive. I did this exercise for all my "dividend grower" stocks which make up the core of my investments (including all the banks which I own); and guess what? The graphs go up from left to right - so, my returns are huge without including all the dividends which I reinvested.
I'd love an analysis to support your negative view please. Look, will the internet and ordering on-line I can see why you might thing this way; however, CTC just keeps chugging along.

Q: Regarding my Dec.17 question on this company, when I asked earlier for the outlook I meant that of the fundamentals, please provide the 5i view. At a sub 10 P/E for the Non-Voting would this be a buy at $175 compared to competitors?

Q: Performance of these two has been vastly different this year with the common up 54% and the A shares 8%. There was an event in early Nov. that caused the common to leap, what was it? As far as I know the A's have a coattail provision, a rumoured takeover causing shares to surge some years ago also. What is your outlook for this pair going forward?

Q: I am trying to steer my and my husband's TFSA's more toward growth. The stocks listed are some of the stocks in our TFSA's that I am considering swapping out in favour of growth-oriented stocks on my watchlist. Can I get your opinion? Do you think that any of the listed stocks have enough growth potential to belong in a growth-oriented TFSA?
Thank you, Doris

Q: Hey Peter,

I am confounded. Ctc.a is down approx 10% in the past few months. HD and LOW are up approx 15% similarily

That's a disparity of approx 25% and they're all in the same business.

I know its not the B of C announcement today that caused this.

What is your thoughts on why and MOST IMPORTANTLY would you suggest I still hold?

Up only 6% on my position currently.

Thanks


Sheldon

Q: Looking to add exposure to consumer cyclical for an income portfolio, already hold NWC for consumer defensive in the retail space. Secure and growing dividend and low risk are key criteria, would you recommend one of these as a strong buy today and why? Or split the difference and buy both?

Q: Your current thoughts? Buy or not buy? Thank you!

Q: What are your thoughts about CTC's investment in Ashcroft Terminals? How material is this to CTC? Is it an investment in logistics/supply chain management similar to NWC's purchase of North Star Air a few years ago (which seemed to be a good strategic move?)

Q: What, if any, is the practical difference for investors between these two classes of shares in the same company?

Q: CTC is down about 10% since its earnings announcement. What is your outlook? Buy Hold or Sell?

Q: I am looking at putting together a portfolio of set-&-forget Canadian dividend-paying stocks, in what will be my only unregistered account, making up about 30% of our overall portfolio. The registered accounts (70% of portfolio) are now all in mixes of VGRO, VBAL and XAW.
My emphasis is on stable large cap companies, with a sprinkling of smaller cap, low beta, decent and growing dividends. I expect to draw down the capital at 6 - 7% per year (in addition to the dividends). Beyond the drawdown, capital preservation is secondary to the income.
What are your thoughts on the following mix? Additions/deletions?
Communication: BCE, T
Consumer Discretionary: CTC.A, LNF
Consumer Staples: NWC, PBH
Financials: BNS, TD, SLF
Industrials: SIS
Materials: SJ
Real Estate: CRT.UN
Energy & Utilities: ENB, AQN, FTS, ACO.X, BEP.UN (or BEPC)
My other thought is 100% CDZ but I'm not very impressed with the historical returns and the (relatively) high MER.
Thanks. Lotar.

Q: good evening, my portfolio analytics suggest that I invest more in industrials and consumer discretionary. I have holdings in Magna and Nutrien and can add to them both as well as find other dividend paying Canadian companies in these two sectors. I am a long term investor. Can you suggest candidates please.

thanks, as always
al

Q: Retired dividend-income investor. I am a little light in the Consumer sector. I already own PBH, NWC and PLC with "full" positions relative to their individual risk level, as well as consumer stocks held within various ETFs (ZLB, CDZ, ZWC). I save a full 5% position for blue-chip stocks, like RY, FTS, BCE.

I started looking into the above stocks (AW, CTC, LNF, MG, PRMW, QSR), but filtered it down to a choice of LNF vs PRMW, using both fundamentals and technicals as well as considering my current holdings.

Q#1 = Based on PBH, NWC and PLC being long term holds, do you agree that 2 food companies are enough => I should select a non-food consumer, right?

Q#2 = If I had to choose between LNF and PRMW today, I am leaning towards LNF (better P/B, P/CF, P/S, ROE...better dividend too). So, in my opinion, I think it shows better value. Do you agree? Which shows better upside (I only see 1 analyst on LNF with a target of $17.00)?

Q#3 = Are there other Consumer stocks I should consider? Or, in your opinion, are any of the 5 stocks mentioned above deserve consideration?

Bottom line = where would you put your money?
Thanks, I appreciate your help.....Steve

Q: What are your thoughts about these companies, aiming for dividend growth and capital apreciation. Do you suggests any alternatives with similar strategy and sector?

Q: Hi,
if you were putting a fund together comparable to VGG, but for Canadian equities, what might be your first 5 top picks assuming the same criteria for the ETF? Also, what would be your 3 honorable mentions?
When comparing CDZ and VGG what are the main differences in terms of the stocks that make up these two ETF's?
Many thanks,
Dan

Q: Hi, I was going to add to my consumer cyclicals by adding LNF based on your previous comments to others. However, I see this has a low volume of shares trading each day. This raises a red flag since if something should go wrong (e.g. bad quarter), the stock can drop considerably more as people scramble to get out. Do you see this as a valid concern? My other holdings in this sector are MG and CTC.A, both at full weightings. Can you suggest any others?

Q: This is actually a followup question to your answer to Steve's question from earlier this morning.

I also hold a core position in TRP. Dividend investor. Intended to hold 'forever'. I'm 43.

I couldn't tell from your answer to Steve's question whether you view TRP as a 'BUY', 'SELL', 'HOLD' or 'GRADUALLY TRIM UNTIL DIVESTED'. You had previously opined that oil will likely subsist as a fuel source in demand for 20+ years. That would take me to age 63. What do you think is the likelihood that TRP continues to pay and grow its dividend for say, 50 years? I know given the time frame, this is a very difficult, speculative, predictive question, but your guess is better than mine. I don't want to hang on to this position only to have to sell it at a massive loss 20 years from now, but that is the scenario that appears to be gradually unfolding now.

I hold a fairly concentrated portfolio of 20 companies, equally-weighted, and each is selected with the intention of holding for their sustained, rising dividend payments in perpetuity. When this is threatened, either imminently or in the medium to long-term, I sell. I sold SU when they cut their dividend and am glad I did.

Given this context, should I exit TRP? If so, should I use the proceeds to start a new position in AQN? I already own FTS and EMA, would this be too much overlap or too much utilities exposure? If so, I am relatively light on Consumer Discretionary (only hold CTC.A in this sector and have been eyeing QSR - do you think a switch from TRP to QSR would make more sense?

Please deduct as many credits as necessary, this was actually *many* questions in one.

Q: Retired dividend-income investor. Looking to add to my Consumer sector. I already own PBH, NWC, PLC. I am looking to add one more name, preferably with a dividend > 3%, although dividend security and dividend growth are more important than todays yield.

I have looked at CTC.A, LNF, MG, PRMW and QSR. I have researched each using both fundamentals (beta, P/E, P/BV, P/CF, P/S, ROE) and technicals (higher highs and higher lows, above 200mda), as well as current analyst estimates.

CTC.A comes across as just "ok". LNF has already had an incredible jump recently, so I am hesitant to buy at current prices. MG is not bad, but shows a ROE = -1%. PRMW looks good except for the ROE = -9%. QSR also looks good, showing a ROE = +29% (I can't find P/BV and P/CF anywhere). The bottom line is there doesn't appear to be a stand out obvious buy. I am leaning toward one of MG, PRMW or QSR.

Would you please rank all 5 companies from best to worst for the following (assuming a 3-5 year hold):
a) Dividend security
b) Capital gain potential
c) Total return potential

Thanks for your help. Much appreciated....Steve