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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: Buy shares in TD and BNS this week or wait until after bank earnings week May 23-30? On the one hand banks appear to be breaking out now, on the other hand if the shorts are right and bank prices drop in value on soft earnings there might be a better opportunity end of May. Two sides to this stratagem. What would you do?
Read Answer Asked by LARRY on April 29, 2019
Q: I have not ventured back in to the gas/oil sector yet but thinking of doing so. Do you prefer services or producers at this point? For producers, do you prefer gas or oil or a mix? Could you give me a couple of your favourite names that you suggest I consider for getting back into the sector? I have a long time frame, medium tolerance for risk and like growth. Thank you for all your help.
Read Answer Asked by Donna on April 29, 2019
Q: Thank you for for answer yesterday about setting up my parent's investments. To summarize, they are very conservative, above 80 years old, and looking for safety and income.

I would now like to ask you about the distribution of the equity component of the investments (composing only 17% of the total, the rest being in bonds, preferred, and GICs). Those below are all in equal weight. What do you thing?

BEP.UN, BCE, BNS, CM, CU, ENB, TRP
XHC for healthcare exposure
IWO for US growth
VGG for US exposure
XEF (in a half position) for international exposure
VEE (in a half position) for emerging market exposure

Could you please suggest some more to round things out? I need another 5 or 6 stocks.


Also, do you have any objection to using ZAG and HYGH as bond substitutes for their conservative portfolio? I am buying individual preferred shares for that component.

Thank you once again,

Fed
Read Answer Asked by Federico on April 29, 2019
Q: Given that the sector is out of favour at the moment, I wonder if you could give me the names of the 3 or 4 Canadian forest products companies that you like best overall considering balance sheet, income stability and dividend. I'm prepared to wait a while for a recovery but there seem to be some decently priced companies in the sector at the moment. Finally, do you think that it's advisable to invest in this sector at the present time if one has the patience to wait for recovery? Many thanks. Don
Read Answer Asked by Donald on April 29, 2019
Q: Good morning,
This is a follow up to my previous question re: Horizons Total Return Index ETFs and more specifically HXT:CA and HXS:CA that I intended to purchase as long term core investments in my grandchildrens' in trust accounts prior to recent proposed changes in the recent federal budget affecting the favourable tax treatment of Horizons Total Return ETFs (No distributions).
I'm still searching for a few great investment ideas that would be suitable as a long term hold in my grand children in trust accounts. IWO and QQQ were mentioned as potential candidates given their relatively low distributions but given that the in trust accounts are already set up to hold investments in CDN $$$ and to offset currency risk, could you please recommend three or four ETFs, stocks or combination thereof that distribute little or no distributions and that you believe would be suitable as a long term hold in my grandchildren in trust accounts. My intention is to invest approximately $50K in each in trust account. I thank you in advance and look forward to your specific recommendations.
Read Answer Asked by Francesco on April 29, 2019
Q: Could you confirm that if I buy bonds in an ETF, they pay dividends rather than interest and are therefore taxed at a preferential rate. If I buy bonds, they pay interest which is taxed at a higher rate.
Are all management fees for investments held with a financial advisor tax deductible or only those held in non registered accounts (margin accounts).
Would management fees for RRIFs, RRSPs and TFSAs qualify for a tax deduction?

Could you confirm that if I hold securities in foreign securities such as Berkshire and have bank deposits in foreign currencies one is required to declare any amounts exceeding $100,000. Is this amount at cost or retail value of the security. Is this calculated in Canadian currency? Are foreign investments held in registered accounts (RRIFs, RRSPs and TFSAs exempt of this declaration. Could this be avoided by holding Canadian securities that have foreign investments such as TD, Brookfield (BEP.UN, BPY.UN, BIP.UN, BAM.A)? How does one calculate the value considering the volatility of the exchange rate if it is to be converted to Canadian currency?
I assume it is calculated on the cost of the security to avoid the volatility of the security.

Read Answer Asked by Donald on April 29, 2019
Q: I've been researching large cap high quality dividend growth companies with a >2% dividend yield for cash positions in registered and non registered accounts. For the most part the Canadian banks are the only ones that are attractive on valuation, but I currently have a 20% position. I've love to buy more of CNR, T, FTS, AQN, CAR.UN, TRP but they have run up quite a lot. One strategy is to keep buying the banks to a 30% weighting and reduce back to 20% once valuations get to 13x forward earnings. Two questions, 1. what do you think about this idea 2. In case I have missed some ideas, what are 5 Canadian names outside of the banks you would recommend with decent valuations? Thank-you.
Read Answer Asked by Albert on April 29, 2019
Q: I am looking to. Build a dividend paying portfolio consisting of 15 can stocks. I already have rbc, td , enbridge, bce Telus pempina ,vermillion , Northland Power, Algonquin and inter pipeline
Can you please recommend a few others to add
Thank you
Read Answer Asked by Michael on April 29, 2019
Q: I hold both VEE and VEF in a Cdn dollar trading account,; given that we are unlikely to see any substantial appreciation in the Cdn $$ for a while, is that a duplication, and if so, would it make more sense to just keep the unhedged version?
Read Answer Asked by steve on April 29, 2019
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