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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: I am the owner of SJR,B shares. The news release essentially says Rogers will pay $40.50/share for BOTH the A class shares and the B class shares, which represents a 70% premium for the B shares.

At the time of typing this question Monday morning, the market has the A shares at $40.35 and the B shares at $32.00.

Shouldn't the B shares be at $40 as well, or am I missing something or is the market confused?

Thanks for your help...Steve
Read Answer Asked by Stephen on March 15, 2021
Q: In a well diversified portfolio, I am considering selling BMO, CU, PHO, REAL, and SJR.B and buying AT, BYD, DOO, DSG and VII. Would you agree with this approach? What would be order to sell and order to buy?
Read Answer Asked by David on February 16, 2021
Q: Hello:

Doing a little cleanup and wondering if NA, BCE, SJR.B or HPQ are worth holding. For sure I have plenty of Canadian financial exposure without NA. I also hold Telus but wondering about dropping Shaw and/or BCE. HP seems to be on the upswing with COVID but is it a long-term keeper?

And then, if you think some can go, what might I substitute? NVDA for HPQ? Would US telcom companies be attractive?

These are held in RRSP, 20 year horizon.

Thanks for your excellent service.
Read Answer Asked by Marilou on February 09, 2021
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!
Read Answer Asked by Alex on January 21, 2021
Q: No rush to answer. Retired, dividend-income investor. I am a position "light" in the Communications sector. I already have a full position in BCE....looking to add one of Telus, Shaw, Cogeco, Rogers or another name you might suggest.

When I look at the various metrics (P/E, P/BV, P/CF, P/S, ROE) I filtered out Telus, leaving SJR and CCA and RCI. Reading past questions, some quite dated, I am wondering if time has changed your opinions on these three.

Shaw has a nice (5.4%) but slow-growing dividend. ROE 10%. It's chart looks good from a value point of view, but is it a value trap? Very poor momentum.

Cogeco has a lower (2.6%) but faster growing dividend. ROE 16%. It's chart shows better momentum. I also wonder whether a new takeover offer might be in the future?

Rogers is just ok across the board.

I'm leaning towards Cogeco, but wanted your advice first. What odds would you place on a take-over happening? Please rank all three in order of your preference to buy.

Thanks...Steve

Rogers
Read Answer Asked by Stephen on December 30, 2020
Q: I currently hold SJR.B and thinking of switching to Telus..
Would Telus be a better buy at the current price from total return perspective?
Any better recommendation in this sector - Canadian or US ?
Thank you very much for providing excellent independent views and recommendations to the investment community.
Merry Christmas and Seasons Greetings
- Raj
Read Answer Asked by dhiraj on December 24, 2020
Q: Hello 5i Team
Comparing Rogers Communications vs Shaw Communications - which is the better company for further growth and increased dividends? RCI-B increased its dividend slightly in 2018 and no previous increases since 2015. SJR-B last increased its dividend in 2016.
I already have equal weight positions in BCE, Shaw and Telus - I am looking for which company I should invest in to reach my desired portfolio percentage in the Communications Sector?
Should I look at the Cogeco family of companies instead of Rogers/Shaw?
Thanks
Read Answer Asked by Stephen on July 08, 2020
Q: I have some extra room in my existing telecom allocation and am looking at adding TMUS and dropping SJR.B. Or should I just add further to VZ or FIVG to continuing increasing my US exposure and currency diversification? I am retired but do not depend on the income from this portfolio which is intended to be widely diversified and focused on dividend growing solid companies.
Read Answer Asked by William Ross on February 20, 2020
Q: Hi, could you please rank the preferred shares of the above companies best to worst in order of dividend sustainability only going forward. Are there any you would avoid. Thanks.
Read Answer Asked by Gary on November 12, 2019
Q: Hello 5i Team
I currently own Shaw Communications (SJR-B), which I have owned for several years.
The purpose to owning shares of SJR-B is to match the payments I make monthly to Shaw for my cable and internet.
Shaw has not raised it dividends ($0.09875 per month) since March 2015 and has declared the same monthly dividend to December 2019. Yet their cable/internet charges increase every year!!!!
My yield on cost is 5.46 % and the current yield (based on Friday close of $26.15) is 4.53 %. Essentially the stock has become similar to a "preferred share" where the dividends don't increase and the share price fluctuates with the rise/fall of interest rates.
The questions I have are:
1 - What are your thoughts on Shaw going forward and should I keep it and accept the reasonable yield on my book cost (the do nothing option).
2 - Sell the shares of Shaw and invest in BCE/Telus where the current yield is similar with the high probability of increased dividend growth and limited capital gains. I currently own approximately the same dollar amount in each of BCE/SJR-B/T
3 - Sell the shares of Shaw and invest in Rogers where the yield is lower with the probability of increased dividend growth (Rogers recently raised the dividend after no increases since 2015) and possible capital gains.
4 - Sell the shares of Shaw and invest in a preferred share ETF (CPD/ZPR) with a similar yield, since I the likelihood of a dividend increase from Shaw appears low and the probability of capital gains with the preferred shares ETF is higher with increased interest rates in the future (?).
Thanks for the excellent service.
Read Answer Asked by Stephen on September 10, 2019
Q: Hello Peter, any ideas about recent sell-off in RCI.B? I read some news about the back to school promotion intensify between RCI and Shaw's Freedom. Considering overall rate dropping backdrop, do you think Telecom sector is at bargain compared to other "safe" sectors (e.g., Utilities, REITs). THANKS!
Read Answer Asked by yun on August 29, 2019
Q: I currently have zero exposure to the Communications sector. Do you recommend having at least one company from this sector in one's portfolio, even it it already has other dividend-paying companies (BEP.un, SLF, CSH.un, etc)? What is your favourite Canadian company in this sector, and why? Do you suggest staying with a Canadian company to address this sector in one's portfolio, or would a US Communications company be a better option? Thanks in advance.
Read Answer Asked by Jonathan on January 14, 2019