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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: Hi 5i
"Rock Bottom" and "staying lower for longer" are the phrases being assigned to interest rates.
I hold pref shares (min rate reset) that seem to be benefiting from income seeker buying.
I also hold Canadian dividend paying stocks that have not recovered due to fears of more dividend cuts and poor economic performance ahead. (ET, FSZ, BCE, BNS, PPL, IPL, ENB.......)

With increasing emphasis now being put on very low rates, are there advantageous investments today for income with growth as investors realize they need more income and gravitate to income producers? (and high interest accounts continue to pay less and less interest)

Does a diversified Canadian ETF like ZWC (Covered Call Canadian) or ZWH (Covered Call US) make sense going forward?

Thanks
Dave
Read Answer Asked by Dave on July 20, 2020
Q: Would you consider this company worthwhile for investing a initial small position?
Thank you
Read Answer Asked by Miroslaw on July 20, 2020
Q: Hello, What are your thoughts on Carlyle Commodities Corp? What caused the recent run up? Thanks
Read Answer Asked by Guylain on July 20, 2020
Q: Apologize for the newbie question. When I look at Suncor's price chart, in my head something is telling me that it will double in one year? Why is not everyone buying it right now? It looks like a steal price and I'm even thinking about putting half of all my money into it. Please stop me if it's a crazy idea. Or if you have better stocks to recommend it would be wonderful. Currently I have 15% AC, 9% BAM.A, 7% KXS, 3% LSPD, 3% WELL. Thank you!
Read Answer Asked by Yongwei on July 20, 2020
Q: Based on BIP.UN and BIPC performance i'm thinking of switching from BEP.UN to BEPC on the first day of trading. I think July 24th is the ex-date and that BEPC trades on a when issued basis starting the same date. Please confirm. I know there are tax pros and cons but as an investment can you comment on the short term and long term of doing this switch.
Read Answer Asked by Mike on July 20, 2020
Q: I notice that you both hold VZ and are generally positive about it, and conversely are generally negative in regard to AT&T.
I hold neither of these stocks at this time, but have been thinking about getting back into one of them.
Interestingly, Standard and Poore's rates VZ a sell and T a buy.
Beyond "that's what makes a market", any comments in defense of your position. Thanks.
Read Answer Asked by Donald on July 17, 2020
Q: Hi there,

I previously asked about DND and what a reasonable amount would be to pay over an IPO price of $7.50 (you said 25%). It's up quite a lot today $13.50-14 and I would like to ask whether 5i would view it as a buy, sell or hold at that price point? If it were in your growth portfolio would you take profit or let it roll? My take would be that KXS, DSG, SHOP etc would have all been terrible things to sell just because of a Day 1 pop after IPO which argues in favour of holding DND as well.
Read Answer Asked by Tim on July 17, 2020
Q: Good morning,
Not a question, but a note to offer another possible reason as to the recent “lift” in preferred share prices, especially in the banks sponsored shares. A new capital note structure proposed by RBC (Limited Recourse Capital Notes – LCRN’s) has been accepted by the OSC as qualifying as Additional Tier 1 capital. In short, the view is that these notes, primarily issued to institutions, will limit future issuances in the traditional retail preferred share market, while also potentially funding the redemption of existing shares, resulting in better market tone.

Best regards,
Brad
Read Answer Asked by Brad on July 17, 2020
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