Investment Q&A

Q: Further to the question about Riocan on April 12.

An article in the Globe and Mail on April 8 listed Riocan as one of the "thirteen TSX stocks whose dividends appear unsustainable".

An article in the Globe on April 12 had Riocan in a list with the headline "Seeking top-performing REITs that are still well valued".

How sustainable is the distribution? How will Riocan compare to some other REITs (such as CAR or CSH) for total return over the very long-term?

Q: I have held AltaGas in a registered account for many years. I recently received an Information Circular to vote in a meeting May 2. One item to be voted is a 'reduction of stated capital'. I carefully read the description provided but am no wiser about what is proposed. Is this something I should be concerned about? It seems to be an entry on the financial statements to satisfy the Canada Business Corporations Act.
Thanks,
J

Q: As a follow up question...... Looking for good growth in US mid cap industrial sector
Thanks

Q: Relatively balanced portfolio....Analytics shows heavy Canadian financial and need to add US communication and Industrials. Have
BAM 6.25% AD 2.82% FSZ 2.2% GSY 1.9% BNS 1.5% SLF 1.4% ZBK 1.4% ECN .87%
VB .8%. Which would you trim/eliminate and which US communication and industrial would you add. 5 years to retirement.
Thanks

Q: I have tried asking this question at Questrade but still haven't got a straight answer. It's about DRIP and cost base. My example: I buy 100 shares @ $10 and then I get $40 of dividends, which DRIP turns into 4 more shares. I have to declare and pay tax on the $40 of dividends I got, so my take is that I have "purchased" 4 more shares. When I go to sell, is my book price then $1040 for 104 shares?

Q: I'm looking at DOW and it looks like a dividend yield of almost 4.8% is this correct? with this yield for a solid blue chip like Dow looks very tempting, your thoughts?

Q: As suggested in Portfolio Analytics I need to add Fixed Income to family portfolio. It suggested ZAG or XBB; Defensive CBO or FLOT, Aggressive CPD or ZPR. Which of the three would you suggest to invest in? Also researching them they refer to Dividend Yield. Is it actually dividend yield or interest income? The reason I am asking should the fixed income be in RRSP (I know it is preferable for US$) or would a non-registered corporation account be fine also?
Heather

Q: I have 30% of my money in diversified CDN equities and don't need the money for 20 years.
I am not interested in bonds or REITs. I was considering putting the other 70% in the following ETF's.
45% VFV
18% VUN
18% XQQ
11% XEF
8% VEE
This would put around 57% of the total money in the USA. I am fine with that.
The MER would be around 0.18% based on the blend. I know this breaks your rule of keeping less than 25% in one fund. It also places a lot of money in Vanguard - which has been around since 1975, but nothing is for sure. Wondering what you think of this set up and also maybe I could sub out VUN for XUU. This would make 53% Vanguard and 47% iShares. Trading VUN for XUU would lower the MER a little as VUN is 0.16% and XUU is 0.07%

Q: Hi Gang,
After doing my PA, it says I am short in US holdings and the following sectors; consumer defensive, consumer cyclical, health care and industrials.
Suggestions of your favorite US stocks within each would be great. I don't need the $ for more than 5 yrs, reasonable risk ok. Looking at my portfolio as a whole, I plan on holding these in my RRSP. does that make sense re US tax with holding?
thanks
Michele

Q: Hi Ryan i note that you hold nwc in your income portfolio as do I .
My research is starting to indicate a value trap.
Then amount of volume of business that amazon is doing in the high North is increasing ten fold year over year to the point that post office are looking more like grocery warehouse.
Nwc return and sales are dropping faster than once thought.
I have reduced my position my half and am currently considering exiting in full.
It is further exasperated further when grocers in the south start getting government handouts .The competitiveness edge of the high north is disappearing
Kind regards
Stan

Q: I have the answer to the failed buyout. Another company has made a better offer to purchase Versum. The revised question would be would you favour increasing my existing entg or deploy ROK?

Q: I have owned this company for a few years and right now I am under water on it. Should I continue to hold, buy more or sell?
Sean

Q: If I were converting into ETFs what sectors should I begin with as it may take some time? Thanks

Q: Hi. I can see that Dave has just asked my question about selling GUD given its current turmoil... so I won't ask that; however, even with keeping GUD I have too little exposure in the health care sector bc I sold JJ in January. Can you provide the names of any Canadian Health Care companies I could check out. Thanks,

Sue

Q: I just got the circular for the annual meeting and note that they are going to collapse the external management contract, giving the managers mostly SMU units in exchange. Normally this is a very good thing, but I would appreciate your comments.
Patrick

Q: Hello,
Can you please recommend a Canadian dollar equivalent to the following ETF's: VOX, XLV, and RYT. Thank you.

Q: Good afternoon Peter, Ryan and others in 5i
Right now my wife's TFSA is down 20%, trailing 12 months return. In her account, she has BCE 11.19%, ENGH 26.04%, NFI 15.53%, SIS 9.41%, TOY 32.49% and MU 4.71%. TOY is down over 9%. And ENGH, NFI and SIS have all dropped from 33% to 81% from their highs. But she bought these three stocks early. As a result, unlike TOY, they are still in positive positions (unrealized gains). She thinks that in TFSA there should not be any stocks going down so much for quite some time. She is thinking of selling or trimming some of them. What is your option on these stocks? Which stocks should she trim or sell? We are seniors at age of 67 and 69, and we don't need to take money out of TFSA for a long time. Could you recommend a few U.S. and Canadian solid growth stocks for her TFSA? We do need to have some consumer discretionary stocks. Could you also suggest Canadian and U.S. stocks in this sector? Maybe three each?
Thank you very much for your excellent advice all eight years since we jointed 5i.
Jim

Q: I have owned Nexa for over a year it is down but the dividend is good.
reading td webroker seems like there is extensive positive commentary but I must confess I am not sure if holding on to Nexa is the right thing,
It represented just under 2% but has fallen to 1.4%. Seems like a play on Brazil etc as well as zinc. Should I hold and add to bring it up to 2% or let it go. thanks. it is in an rsp.

Q: Do you think Veev is a buy or sell at this point? I have a small profit and don’t know whether to take it or hold on and risk losing it on a pull back. I can’t decide whether to sell it or buy more. Thanks.

Q: Hi there. In August I became nervous about managing the amount of money I had been and got an investment advisor from the Royal Bank. I then invested half of my savings into their mutual funds. A large chunk of it is in the RBC Select Balanced Portfolio. As this is a mutual fund there is a mer of 1.94%. So question # 1 is: is this a reasonable mer?
I have noticed now that this mutual fund invests in 10 other (mostly RBC) mutual funds. So my second question is: how does this work for the other mers? Who is paying these mers? Am I paying 1.94% plus other hidden fees for the mutual funds within the first mutual fund?

Thanks,
Sue