Investment Q&A

Q: Can you please give me your 8 top stock picks for someone retiring in 8 years. Thank you, I value your teams opinion.

Q: Somewhat unexpectedly, I will need to raise about $200,000 in the next few months. I'm trying to think through my options and would like your perspective. I can think of three approaches, perhaps there are more. I'm near retirement but employment is secure and there is no compelling reason to retire. I own a home in Toronto that has a small remaining mortgage (less than 10% of market value). No other debts.
1. sell stocks in a non-reg account to raise the funds. Assume a mix of stocks in the red and in the black so there would be little net tax consequence. Plan to replenish the account over 5 or 6 years.
2. borrow the funds and plan to pay off the loan over the same 5 or 6 years.
3. sell stocks as in #1, but then also borrow the same amount to replenish the sold stocks over a shorter period of time, say 6 to 12 months through calendar 2023, legging in to dollar cost average. Pay off the borrowed funds over 5 or 6 years. Interest expense on the borrowed funds in this case would be tax deductible.
Part of the decision relates to expected interest rates over the timeframe and the shape of the (expected) recovery. If we assume 4 to 6% average interest rate over the life of the loan but a more significant bounce in equity markets, then option 3 makes sense. But I am not sure I've considered everything, including risk.
If you think option 3 makes sense, could you suggest 5 - 10 lower-risk stocks (dividend growth / growth) with the noted timeframe in mind. Many thanks and take as many credits as needed.

Q: Which of the above would offer the best return over the next 3 to 5 years?

Q: Good Morning,

Thank you for the ongoing sage commentary.

Would you mind providing 3-4 dividend stocks with growth potential that are cheap at the moment?

Thank you

Q: Hello,
Could you please briefly list what you like and don’t like about these for income and preservation of capital? What’s your favourite utility? Thanks

Q: Hi, Higher yielding equities, like Utilities, Pipelines and Telcos seem to be hit more and more, everyday. Do you see these sectors to come under more pressure, as FED/BOC is not likely to relent and continue with the rate hiking cycle, may be even into 2023. We are sitting with 15-20% capital loss situation, for above two companies bought in Aug/Sep, this year. Would it make sense to sell/harvest the capital loss and buy back later with the assumption that there is more downside to come ? Thank You

Q: I am looking to retire in the next year, and positioning our portfolio more toward income.

Within the utilities sector we held AQN, BEP.UN, BIP.UN and CPX at close to equal weights 3.1-3.3% each (market value).

I recently sold AQN at a 20% tax loss and initiated a new position in FTS (yielding 4.25% after it's big drop). This will be a long term position.

I'm up approx 50% in CPX and even on BIP.UN.

I'm currently carrying a 16% loss on BEP.UN, and am thinking of selling it for a tax loss (I have significant realized capital gains to offset).

I'm considering either splitting the proceeds between BIP, CPX and FTS; or waiting to sell BEP after the 30 day period on AQN has passed, repurchasing it to regain the lost dividends and for diversification.

From recent questions I understand that AQN's dividend is likely safe, and is considered sufficiently different from FTS to support owning both. I like that it is at 2019 levels, and think there is a good possibility it may reward a patient investor. Is debt a concern?

Which course of action would 5i recommend, and why?
1. Sell BEP at a tax loss and split the funds between BIP, CPX and FTS; or
2. Sell BIP at a tax loss and repurchase AQN,
3. Or is there another course of action that you'd recommend?

Thanks!

Q: Can you provide a 'buy' list for a person wanting to deploy $200,000 (inside RRSP) with the goal of creating 5% or more sustained cash flow - as well as growing the original capital to keep up with inflatiion? We do not have company pensions - this would serve to supplement our government pensions.
Thinking, 20 stocks across all sectors @ $10,000 each (or 5%)
Also could you include 10 growth stocks (inside TFSA) for a total of $250,000 - gotta have some fun ;)
Many Thanks
Jan

Q: Capital Power has been solid and steady up until now. What has happened to cause this 6% slide today?

Q: Which of these companies do you consider to be a better buy at this time. Clearly I'm looking for sustainable dividends but also some growth over the next few years. Do you have better suggestions in the utility sector?

Q: Just switched 200 shares of FTS to CPX and then noticed a reply to a client question that stated BEPC a little better than CPX.
Your thoughts will be appreciated.
Thanks.

Q: Hi, Could you please confirm the Ex-Dividend Dates for these two companies. The company investor relations website says Ex-Dividend Date - Sep 29, 2022 and Record Date - Sep 30, 2022. But the TMX as well as our CIBC Brokerage shows Ex-Dividend Date as Sep 28, 2022. Could you please confirm. Thank You

Q: Are the risk profiles similar with CPX and BEPC? Which do you prefer to own or would you buy both for a combination of income and growth?

Thanks for your service?

Q: Clarification please on the Sept 19 question on "valuation" of these 3. It was stated "AQN's valuation at 12.4x (ACOX at 8.3x and CPX at 7.6x)"

What measure do these numbers refer to and are they forward or TTM?

Q: In my non-registered account, I have had small holdings in MRG.UN and NWH.UN for years, as well as larger holdings in ZRE and FIE. I was wondering if I should consider selling all four and splitting the proceeds between GRT.UN, CAR.UN, CPX, and SLF. I am looking for income but would also like some capital appreciation.
What do you think? Note that I also hold ZRE and FIE in my RRSP and plan to keep both in that account. Thank you.

Q: i would like to buy an etf (vanguard) with safety or stock with a high yield during these unsettled times
What would you advise ?.Can you please give me a few choices
GHB

Q: Hi, AQN stock has languished over past years and shares have been testing investors' patience. Even a recent large acquisition has failed to reignite the stock price. Based on your recent comments, you consider AQN fine for income but not much is expected in terms of capital appreciation. For a quick comparison of share price performance, I pulled the charts of these four utilities over 12 months and noted that while CPX and ACO.X outperformed by a wide margin, AQN was a complete laggard with FTS in the middle of the pack. We are retired investors and looking for ( In Non Regd account ) stability of income ( with increasing dividends) and some growth potential. We have owned FTS and AQN for many years, but are considering to switch out of AQN ( fully or partially ) to CPX or ACO.X. What are your thoughts about this plan and how are the current valuations of CPX and ACO.X for the switch ? How would you rate these four companies, in order of preference ? Thank You

Q: I have an account where income and safety of capital are the primary objectives, though a bit of growth is also helpful. I presently have Capital Power which has done well in recent months. Since it has been somewhat flat during the same period, I wonder if a switch to Algonquin offers a chance to have the same primary objectives but a bit more opportunity for some appreciation. If it were you, would you make that change, and why or why not? Thank you for your excellent service.

Q: Hello 5i, what is your order of recommendation of purchasing the three stocks, and why, please? Thank you. Ron

Q: Hi 5i, what is a good purchase price for CPX now, and what is your reasoning please? Tx