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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 Peter and Staff
I hold a small position in CPX in my utilities group. Wondering how you feel about KWH.UN that I do not own as a replacement or would you suggest I keep CPX or sell CPX and look elsewhere entirely in a different sector as I own all the other usual recommended suspects in this sector.
Read Answer Asked by Dennis on May 12, 2016
Q: This company is new to me, what are your thoughts, steady performer, PE66.
Would you suggest something else if not this one? thank you.
Read Answer Asked by Maureen on May 12, 2016
Q: Peter and team:

I have done very well on both NFI and WEF (2x) in an RESP for my kids. First withdrawals will be in 2-3 years.
In your opinion should I sell both and re-invest in something less volatile, or hang on for the ride.
Also, what do you think of BMO low volatility funds (ZLB and ZLU) as options on a 2-3 year RESP.
Deduct a couple if you see fit. Thanks as always.

Phil
Read Answer Asked by Phil on May 12, 2016
Q: Your response to nicholas on EIF gives me comfort to continue to hold it for yield. The article in today's Globe ROB says the exact opposite about the coverage ratio. Can you comment on what the coverage ratio is? Both of you base it on cash flows but article concludes there is absolutely no cash available to cover dividends once you factor in capex spending and therefore our dividends are surviving only on debt and equity issues. Thanks again. John C.
Read Answer Asked by john on May 12, 2016
Q: Recently Peter's response to a member question mentioned CAR.UN as a decent choice for a REIT for good income and growth prospects. That's got me started thinking about adding REITS to my non-registered account.

However, I am not educated about the tax implications of owning Canadian REITS in a non-registered account. Is income from CAR.UN an eligible dividend to qualify for the dividend tax credit? Or is it treated as straight income that is fully taxable, or are there some other form of tax treatment that is done with income from Canadian REITs?

If eligible for the dividend tax credit, are there other Canadian REITs that look attractive from a growth, income and favourable tax treatment perspective?

SGR
Read Answer Asked by SG on May 12, 2016
Q: I had the experience of buying US stocks with Canadian funds.As the settlement date was three days later and during this time the Canadian dollar weakened my base cost was rising while waiting for the settlement date;the actual cost of the shares in US dollars remained the same.I was advised by the rep to convert first the required Canadian funds and then buy the US stock I was looking for in US dollars;ie I could convert at my own preference.
Read Answer Asked by Sam on May 12, 2016
Q: Regarding Cheryl's question concerning U.S.$ registered accounts with ScotiaiTrade, I am not sure if this is what she is looking for but for RRSP accounts (maybe TFSA?) one can make the account US$ friendly so the 2% premium on Forex is not charged for sales, purchases and dividends. You make your account "US Friendly" and they charge $30 per quarter per account that is converted to that service. There is a way to do it online but one can also call them. I hope that helps.
Read Answer Asked by Derek on May 12, 2016
Q: Hello my question is about corporate bonds. I hear analysts discuss various corporate bonds on BNN and sometimes subscribers here ask about particular bonds. But when I go on to Scotia ITrade often those bonds are not listed or shown. Is there some reason why and is there a website that lists all corporate bonds US too) that may be available, such that I could at least ask ITrade about them? Thank you, Bill
Read Answer Asked by Bill on May 12, 2016