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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, With respect to recent topic of DRIP discounts, we have had our accounts with CIBC Investors' Edge for a long time and we have never had any issues receiving DRIP shares with a discount, if the company offers it. Of course, the brokerage only buys DRIP shares with a minimum of 1 share and balance of dividend is received in cash. Generally, we would need to make sure that we call the brokerage to register a DRP with the company well before the Dividend Payment Date, preferably before stock going ex-dividend.

If company does not have a DRIP program, then brokerage also offers a Synthetic DRIP, as per the their own approved list of names.

Hope this helps.

Thank You
Read Answer Asked by rajeev on November 03, 2023
Q: Considering the important number of mortgage renewals ( including many "variable rate" mortgages.. ) that are projected during the next 1-3 years,what is your point of vue about the safety of canadian banks and insurance Cies stocks during this period ? a word on US financials shall be also appreciated, .
Read Answer Asked by Jean-Yves on November 03, 2023
Q: Hello,
I recently mentioned taking a position in MDLZ for part of my international holdings, not realizing MDLZ is actually US-based. Knowing you don't follow international stocks, are you generally aware of other internationally-based consumer defensive companies listed on a major US stock exchange? I looked at Nestle, but it seems to be only buyable OTC, and I am not too keen on that market. Another thought was DEO, do you see any red flags with it?
Thanks again, Michael
Read Answer Asked by Michael on November 03, 2023
Q: Hi Team,
I had the following on my watchlist to "buy the dip" so to speak: LMN,BN, BIP.UN. WELL. After today they have all had nice moves off what was hopefully a "bottom". Is it time to buy? Is risk on again? Or is this a suckers rally after the fed induced rally? Predictive question I know...just looking for opinion. This being said; if it's a good time to buy, What Canadian stocks would you be your Top picks to buy today for a long term hold? Could you rank a list for me please? Thanks

Shane.
Read Answer Asked by Shane on November 03, 2023
Q: Thank you for your answer to my question. Regarding the PE, I cited RBC DIRECT but neglected to mention the 5I profile site which also was about 8. Your answer to my Q mentioned 16x. Which is correct? This kind of discrepancy also shows up on various other sites. How does an investor know which number is correct.

In this instance 16 is still decent but I would be happier knowing I bought it at 8x and expecting even better growth in the years ahead.

Thanks.
Read Answer Asked by Donald on November 03, 2023
Q: I'm an INMD shareholder and like most aspects of the company. The one part I don't love is mgmt's choice to hold so much cash and not buy back shares at these historically prices for the share price. In the recent conf call the CEO was asked again about buybacks and the growing cash hoard. He replied with some very non technical anecdotal examples of him seeing some random companies in the past that bought back shares and the share price never went up. So because of this he feels buybacks are not a good use of capital. He also states they are still looking for m&a. This makes me question the mgmt a bit. It makes me wonder if he's the best steward of capital for the company. Strong mgmt in the companies I own is important to me and something like this makes me wonder if he will end up chasing some m&a deal because they won't look at buybacks at such an opportune time for the company. What are your thoughts on the ceo's comments and do comments like this from mgmt make you second guess their abilities? Thx
Read Answer Asked by Adam on November 03, 2023