skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: Hello Peter, Should have sold DH Corp sooner but will take a loss and deploy the cash to these three companies also some to TIO networks. Do these choices sound suitable to you? Herb
Read Answer Asked by Herbert on January 20, 2017
Q: 5i Team:
thanks for all the help in 2016 !!.
The idea is to capture the electrification process of our society. It is a slow, but secure process/trend, in particular if use of electric cars increases, and robots and so on. This means more elect power will be required. Are Fortis (despite increase in interes rates) and Stella Jones good candidates ??. If not, are there other safe companies to capture the trend.
Also, if interest rates go up, would not ECI benefit more ?, as more people would preffer to rent than buy due to increase cost of capital.
thanks again ! Should I start buying now ?

Read Answer Asked by Alejandro (Alex) on January 06, 2017
Q: WORKING ON GETTING THE SECTORS BALANCED--HAVE 3 UTILITIES AND ONLY ONE TEL COM--WANT TO ADD SEVERAL THOUSAND TO EACH SECTOR---WHAT DO YOU SUGGEST?
THANKS AND HAPPY NEW YEAR
Read Answer Asked by peter on January 04, 2017
Q: With interest rates rising (in the US) the ongoing babble from so many 'experts' has been to stay away from 'bond proxies', namely utilities, telcos, pipelines, etc. However, those stocks have been performing quite well since the fed raised rates. Today Desjardins came out with top picks for 2017 (in the G&M which suggested Algonquin's forecasted returns would grow by 39% next year and Fortis by 17%. Do you think they're being too optimistic? And are these forecasted results already baked into the stock prices?
Read Answer Asked by John on December 23, 2016
Q: Hi Peter and Team,

I find that we need to buy some more in the Utilities sector, to keep to a 10% weighting. We presently have about a three-quarter position in each of AQN, BEP.UN, and FTS. Do you think that INE would be a good addition to this mix or is it too similar to AQN and BEP.UN? We can buy and sell XUT commission-free, but I notice that ZUT (not commission-free) has a better chart. Should I increase our positions in each of the three we already have, buy a new one, or top up with XUT/ZUT? Or is there a US ETF in this sector that looks compelling? Or perhaps in the present "climate", could the utilities sector weighting be reduced below 10%? What sector should take up the slack?

Thanks for all your great advice which has been and continues to be very valuable. A Merry Christmas and Happy New Year to all of you at 5i and the members as well.
Read Answer Asked by Jerry on December 21, 2016
Q: Your response to Brian on Dec 15 included the following comment: "if you own 85% of your portfolio in high dividend stocks, then this is more of a concern".

I am a retired, conservative, dividend-income investor, with a pension, CPP, annuities, the above listed stocks and 3 income producing MFs (RBC Cdn Equity Income, Sentry Cdn Income, Sentry Global REIT).

I fit the 85% easily. I believe my portfolio is diversified by sector and by security. I also believe the securities have, for the most part, sustainable and growing dividends. I am a "buy-and-hold investor with reasonable tolerance for volatility.

Your comments and concerns please, along with any recommended improvements. Thanks...Steve
Read Answer Asked by Stephen on December 16, 2016
Q: In terms of valuation,which of the aforementioned 4 companies is the best buy.Please list your preference in order of 1 to 4 with 1 being the best.Appreciate your normal great services & views
Read Answer Asked by Peter on December 01, 2016
Q: Hello,

The current theme is that REITS and utilities will be drifting lower now with Trump spending announcements and higher interest rates on the horizon. Yet, yesterday (some) REITS had a good jump up. My questions are:
1. Would you hold buying REITS and utilities until there is clear direction of the market?
2. If you wanting to deploy 50K for each (REITS and utilities) what would be your preferred names?

Thank you
M
Read Answer Asked by Marios on November 30, 2016
Q: Hi,

I have 1/2 positions in FTS & AQN now. I'm considering adding another 1/2 position to utilities. I could get a 1/2 position in BEP.un or add to FTS and/or AQN.

Your thoughts?

Thanks,

Gord
Read Answer Asked by Gordon on November 25, 2016
Q: I am a retired, conservative dividend-income buy-and-hold investor, with a pension, CPP, and annuities. I am looking to top up a half position in Fortis. Even though I am not a "market timer", I am looking at different options:

1. Just top up now
2. Wait for the Fed to raise USA interest rates in December. Theoretically, this would cause FTS to sell off, so I could buy it cheaper. However, roughly 45% of FTS is non-Canadian. So in this scenario, wouldn't the USA dollar increase relative to the CDN $, effectively making it more expensive to buy FTS (I am buying it on the TSX)?

What are the interest rate and exchange rate impacts and are they significant enough to cause me to avoid option #1, above?

The FTS metrics look really good right now (P/BV = 1.3, P/E = 16.2, P/S = 1.7, P/CF = 6.4). I'm tempted to ignore the interest and exchange rate issues and just top it up.

Your thoughts?

Thanks, Steve
Read Answer Asked by Stephen on November 17, 2016
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!