Investment Q&A

Q: I know there is crazy volatility right now, but am I missing something one this one. Approaching a 50% dividend that looks sustainable, P/E ratio is closing in on 1. What are your thoughts on this stock?

Q: I am looking to follow the S&P 500. I am not sure what etf is best to use. I have seen you recommend VFV in Q&A but your model etf portfolios hold ZSP. Is there one you would choose over another? Is there another option I should consider? If you can advise if it is best to put in a register or unregistered account. I have room in both my TFSA and RRSP.

Thank you for the great service.

Q: I understand Boardwalk exposure to Alberta is high. At $27, what is the valuation vs the other residential reit? They do also have exposure to ON, QC and SK. Do you see value here? Would you buy ? 5 year + hold. Thank you

Q: For cash destined for a non-registered account can you suggest categories of stocks that, given their current valuations following the recent market meltdown over the past couple of weeks, you would expect to have the best total returns over the next three years or so, listed in order of expected total return?
1) 6-8 Canadian blue-chip dividend-growth stocks with at least 5 years of consecutive dividend growth (ideally 10 years) and a current dividend yield of ≥ 4.0%, good balance sheets, reasonable/minimal debt, etc. Looking for “best in class” amongst a few different sectors - ie only need one (“best”) bank, one telco, one pipeline, etc
2) 2-3 Canadian blue-chips who may not meet the above dividend yield and growth specifications but whose current valuations make them an appealing possibility
3) 2-3 more growth-oriented stocks, do not have to be traditional “blue-chip” - with or without dividends who would be expected to have the best total return possibilities over the next three years.
Would you be buying now or waiting until there are maybe a couple or three consecutive days of positive market returns and/or when the current market volatility seems to be settling down (however you would define or identify that) or buying in over a period of time? If so, over what period of time and buying at what interval/ frequency?
Thanks for your insight.
Bruce

Q: What do you think of this fund? Would you be a buyer today?

Q: I'm interested in the Canadian banks due to the recent drop and the dividend yield which is very attractive. I have remained in cash for most of this crisis and am anxious to buy. However, I'm very concerned that we are in for further shocks to the economy given the fallout of this virus. How much exposure on the downside do you see to the Canadian banks' balance sheets? I know that if the market goes down, everything will move in tandem but what I'm worried about is that we are in for a high number of failed small and large businesses. Also, I've left my money in US dollars for the last number of years because I think it's a better place to have money and will be buying Canadian banks listed on the USA exchange if that makes any difference. Thank you as always for your comments.

Q: What has been proving to be non-correlated to equities in this market? From a quick look, not really the usual suspects such as bonds, gold or even bitcoin. I expect the best answer to this question will come with more hindsight, but appreciate your views. Thanks!

Q: Hi Team,
Two part question, charge me accordingly:

For a US growth tech stock, what are your thoughts on Twilo? I own it, and I am down 32% on it. I realize the markets are in turbulence, but even before that it has been underperforming my other tech holdings since last quarter. Is there something changing with its growth story here, or is it simply a valuation catch up issue combined with last quarters results? When I bought it I was under the impression that they are in long term, secular growth trend here with their sms messaging business and as such. Should I continue to hold or should I be trading it in for a better name in the sector? Suggestions?

Also....what are your thoughts on GSY at the moment? Is it just me or is it one of the most compelling growth stories with dividend on the tsx right now, especially at current valuations? I am thinking its fall has been "unjustified" at this point and cannot see so far how this coronavirus would essentially hurt their business (being this is a virus scare slowdown and not a financial crisis) . If anything, perhaps improve it. We have lowered interest rates which should help boost margins possibly, and fiscal stimulus coming down the pipe. Just wanted your thoughts before adding more to my position here. I added on the way down at 65 (too early), and am thinking of adding more. I am not really worried about weighting at this point. My time frame is for the long term here (20yrs). Thanks,

Shane.

Q: There were a couple of questions today on BMO's ZCS. Both your replies suggested not too much concern holding the short term corporates over a longer period of time. Do you have differing thoughts on ZCM and ZLC? BBB rated bonds in ZCS, ZCM, ZLC are 36%, 58%, and 39% respectively.

Also of note all three seem to have a large discount to NAV. Yesterday between 4.3 to 5.5% (ZLC being the highest). Not sure that is normal, or not, as I don't look that closely and BMO doesn't appear to post the info.

Thanks

Q: What are your thoughts on why gold is losing ground in the face on all this uncertainty and debt?

Q: Am looking into investing in ETFs that are exposed to China given things are returning to normal, new incidents of COVID-19 are down, Apple stores are reopening etc. Does this make sense? If so what ETFs would you look at?

Q: Hi 5i Team,
In this crazy market, your opinion is very appreciated. I listed my holdings in both US and CA. Are you seeing any stock in the list concerning ( fundamentals changed or poor balance sheet etc) with SELL recommendation even with a loss. These are hold in 2 tfsa and the investments are 5+ years. These companies are hold with 4 diversified etfs and follow the markets and nothing to do about them and i'm always with 6 to 8% cash with "see and wait mode".
USA: MSFT,V,CRM,AMZN,ADBE,TTD,GH,AYX,DXCM,ISRG,AVLR
CANADA: ATD-B.TO,BAM-A.TO,TRI.TO,LSPD.TO,ECN.TO, REAL.TO, CAE.TO
TFII.TO,SHOP.TO, WSP.TO, PBH.TO, DSG.TO, KXS.TO, PLC.TO,GSY.TO
BYD.TO, CSU.TO, PEO.VN

Thanks for help with this"Knocking Out market"

Q: Given the recent pullback on TSGI, what action would you recommend those currently holding the stock take?

Q: Hi Team,

In this panic selling who are the big sellers? ETFs, Institutional, pension funds etc and they are moving to cash since bonds are also sold along with stocks. I believe individual stock investors are very small percentage of market. Is there a website which shows etf outflows/inflows.

Keep up the great work.

Thanks

Q: Can you rank these 3 companies and justify the ranking?

Q: comments on latest quarter and how do you think they will do in this environment. thanks

Q: Your opinion on this REIT in general and in comparison to other real property Can REITS.

Q: Your take on ufs please. Last question was back in November. Would you consider it a fair hold ifnothing else but for the dividend? THANKS FOR ALL THE CONSOLING FACTOR. TKS LARRY

Q: retiring next week and now this happens
i will be totally dependent on dividend income
yes, i should have bond income but i don't
ytd shows:
50% of dividend portfolio is <20%>
50% at <37%>
should i sell <37%> portion to protect portfolio?

Q: I park my cash in PSA in Canada. Do you have a recommendation where to hold short term US $$-is there a PSA equivalent I can put my US $$ into? Thank you, Bill.