Investment Q&A

Q: I submitted 2 questions yesterday, one during the day and one in the evening (from here is BC). I receive answers in my Inbox this morning...one time stamped around 1:30 am and the other around 3:30 am.

Just wanted to say thanks for the obvious long hours and/or split-shifting you and your team are putting in to assist us. Your efforts and guidance is greatly appreciated!

Stay healthy...Steve

Q: Hi 5i team,
Can you please provide your outlook on gold in next 6 month and price range? I am currently holding KL and in small profit. Will there be more downside on the stock?
Thank you,

Q: Retired, dividend-income investor. I currently own ZLB (RRSP, max'd out), XIT (RRSP-TFSA, max'd out), ZRE (Cash, 3/4 position, will add to over time), ZWC (Cash, close to max'd out). I also have some legacy positions in RBF1018 (RBC Cdn Equity Income-D...MER of 1.0) and CIG50217 (Sentry Cdn Income...high MER), both of which I have averaged roughly 7-8% return over the last many years, prior to this crisis. On top of the above I own AD, AQN, AW, BCE, CSH, CM, FTS, NTR, NWC, RY, TRP, WSP in various amounts to achieve my overall asset allocation targets (not to mention my fixed income portion of my portfolio.

I normally like to run a concentrated portfolio of around 20 positions, composed of +/- 6 ETF-MF and +/- 14 stocks. I have mapped out the use of my current cash (15%) into monthly repurchases over the next 6 months. My question relates to the combination of ETFs, but focusing on ZWC. I own ZWC for its high CC dividend, but recognize that the upside is potentially limited in a recovery. Also, when mapping out spending my cash, I reach an uncomfortable level of too high an allocation per individual stock. That led me to consider adding another ETF. I looked at several, and filtered them down to CDZ, XEI and XDV. I have chosen CDZ as my candidate to add. Looking under the hood at the ETF holdings, they appear to not overlap too much with my own individual stocks.

Do you like this strategy? Does it result in a significant overlap in stocks, held either individually or within the existing ETFs?

Thanks for your help...Steve

Q: Hi Peter, VCN and XAW are in one portfolio, VXC is in another. Would you add to these or is there a better choice considering the Canadian dollar or Covid? Thanks.

Q: Thoughts on this one
Thanks Terry

Q: Hi folks, I would like you to reco some good dividend ETFs in the Candian space that you think are potentially a good buy for now. By 'good', I meant the company should have solid fundamentals, and the price should be low so the yield is high. I do not expect the US tech to boom forever, I would rather reap my 7 to 8% percent and hope it last forever. Thanks :) Tony

Q: I have exposure to these etfs in my rrsp. Would you recommend selling zwe and adding zeq? How much overlap is there between xef and zeq?

Q: Is this a good time to buy XQQ and what does the -9% cash/derivative component of this ETF mean?

Q: Hi 5i Team,
I am considering to invest in high yield corporate bond.Would you recommend to invest in corporate bond than equity in this environment? Can you recommend few names?

Thank you,

Q: I am wondering about the risk to APR's dividend, given that they have triple net leases..
The yield is over 20%. Do you expect that a number of tenants who operate the dealerships may go out of business or otherwise declare bankruptcy? If one assumes that this economic contraction should not last more than a year, and there would be pent up demand, would dealerships give up on the business or would most be expected to cut expenses and just try to get to the other side?

i realize they haven't increased their dividend, but at 20+%, its a moot issue.

Should I take a bite now or wait to see the next quarters results?

Q: Would you add to a small holding of cae in myTfsa. I presume that with the layoff of many pilots and given that eventually more will be hired and recertification is required every 6 months that cae will benefit. Should I be concerned about debt level? Thank you.

Q: I sold some securities today in my personal account at a loss to offset some CG's I had. I know I can't buy the shares back for 30 days in my personal account; but do you know if can I buy the same security in a Corporate account that I own?

Q: What can be expected in the future. The market killed this trust. The income for the trust must have stayed the same here, for now. So would buying in to cost average be a good idea? what about payout ratio?

Q: Of these 9 equities + ETFS, which would you see as reasonable to hold on to if one believes there is a prospect of recovering from the current economic storm from the virus? Some have been held for a long time are still positive, most are down; TOU is the worst (85% drop) and is now very small. They are held in a registered account, so tax loss selling is not an issue. Thanks for your excellent service.

Q: Good Evening
NWC
It is my understanding that NWC is providing food like the supermarkets to the public. Therefore, is it a safe bet during this coronavirus environment? Have they ever cut their dividend ? Is their dividend safe?
As well, some analysts saw their acquisition of an airline as negative. What is your opinion?
Is it advisable to average down at this level?

REI.UN
I own both the stock and a couple of their bonds. What is your opinion with respect Rio Can surviving the coronavirus crisis?
Please deduct one credit for each company.
Thanks again for your insight.

Q: Some of my holdings like BEP.UN has become more than 5% total weight. Would it best to trim and sell some in this environment , and add to those that have a very small weight due to the price coming down so much? They are stocks and ETF that 5i recommend.

Thanks

Q: Thanks for your work, much appreciated. Regarding dividends from Canadian banks: I have problems figuring they won’t cut. The crisis will take months or most likely 1-2 years (vaccine is the only definitive solution, what we are doing now is only mitigation). The debt load will be very large (mortgage, loans, etc.). Banks will have to keep some money for provision.
Am I missing something ?

Q: Canada had 1 million ei claims. the us had 3.3 million claims 10 times pop are we that bad

Q: DFN, the high-dividend split share fund that people sometimes ask about, has missed its first dividend since its inception in 2004. It even paid the monthly dividend throughout 2008-09. I see the share price is up this morning. I don't think people realize they will not receive the dividend and that it could be many months or even years before the dividend returns.

Q: Hi 5i,
I would like to invest 10K (TFSA) in these two EFTs, any concerns?
thanks