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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 5i,

I am retired and have a 5-10 year investment horizon. I love your Q&A database and find it provides almost all the answers I need.

My question is a general one around interest rates, but I have provided A&W as an example.

I have heard for, it seems like more than a decade, that when interest rates rise, then the price of dividend producing equities will suffer as folks move to bonds and other more growth orientated companies or funds. I have always thought that, say A&W with a 4.4% dividend (and a visible healthier food strategy driving higher sales) would retain its value unless interest rates rise "a lot". The dividend is likely very stable and tax beneficial, so very attractive.

Now, with conditions forming out there that may lead to rising interest rates, and maybe "a lot", how concerned should I be with, say, holding my A&W.

General comment. I notice that some of us who ask questions like to define our status (retired) and time horizon (5-10 years) as we pose a question. I would be supportive in providing a general profile that is maintained at your end so you can "look me up" when answering questions. Optional for us, as some might not want to share. Just a thought.

Love your service.
Read Answer Asked by Jim on November 21, 2016
Q: Purchased several years ago at $25. plus, I am now looking at a pref. that trades around $14.
Current yield is just short of 10%.
In your opinion Is it time to double down and enjoy more of the juicy yield or bow out and lick my wounds?
The position makes up less than 5% of my portfolio and is my only preferred share holding.
Should you think it prudent to sell this security, would you please suggest an alternative.
I am 70 and comfortably retired.
Dave
Read Answer Asked by Dave on November 21, 2016
Q: I know it's not your primary focus but I am wondering if you could provide some basic information on the above company. An article in Seeking Alpha suggested this US REIT is undervalued because it invests primarily in B Class shopping centres which may be out of favour because of concerns over the growth of e-commerce and how that change of shopping habits will kill these types of properties. If you accept the premise that these smaller plazas are not going to disappear, does this company represent a good value play? It pays a 9.5% (US) dividend and I don't to be in it just to chase a dividend.

Paul F.
Read Answer Asked by Paul on November 21, 2016
Q: A member question regarding "Forever" stocks prompted me to backtest to 1999 a 30 stock portfolio (20 Canadian, 10 USA) that, even then, probably looked like "Forevers". I used the Globe Investor Gold service for this purpose.

This "Forever Portfolio" started at $1.3M and today is worth $10.2M - not a bad endorsement of buy and hold.

2 Questions:
1. I could not find stock symbols for a number of companies, such as Apple, Google, CP
or Constellation Software and Cineplex. Can you recommend a source that could help
in this regard?

2. A few companies seemed to have surprisingly low total returns over this 17 year period - namely BCE flat; FFH -10%; AT&T -2%; KO-N 22%; GE -8%, and VZ-N -8%.
Does this seem reasonable to you or might there be glitch in the system that produced inaccurate total results for these stocks.

Thank you for your help here.
Read Answer Asked by Donald on November 21, 2016
Q: This company currently has 14% subordinated notes (TBL.NT) issued that mature September 1, 2020. Last trade was at 114.5. I reviewed the annual report and noted that almost 53% of these notes are held by insiders. The balance sheet shows negative shareholders' equity but the company reported after tax profit of over 11 million in each of its last two fiscal years. I'm thinking of buying some of these notes in my RSP as fixed income exposure and would appreciate your comments.
Read Answer Asked by MATHEW on November 21, 2016
Q: Hello:
I have been thinking of adding some ATD.B to my portfolio but have noticed the stock has been down slightly since the Trump win. Is this a bit of nervousness because of
ATD.B holdings in the U.S.?. Is the market wary of Trumps approach to anything not
American. I noticed Trans Alta Renewables & Alqonguin have reacted in a similar manner.
Thanks: Jerry
Read Answer Asked by Jerry on November 21, 2016
Q: I noticed that under the 5i report that SIS is listed as an industrial stock. I thought this stock is more of a stock that belong in the health care sector. Which sector is more appropriate.

Thanks
D

On another note I would like to thank everyone who make this a wonderful web site for all of us wanting to learn and being able to ask any question and get an unbiased answer.
Read Answer Asked on November 21, 2016
Q: FFH and ECI have set new lows. Their charts are ghastly and their RSI numbers are in the oversold category, especially FFH. I am now at the point where I am debating adding more funds to these stocks (buy low, right?) or selling them and moving on. Currently they are a small part of my portfolio: FFH 1.2% and ECI 1%. I can see that ECI has fallen with income stocks, but I would appreciate your views on the collapse of FFH stock.
Read Answer Asked by Dennis on November 21, 2016
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