Investment Q&A

BEPC is a Canadian corporation and has no withholding taxes in any account. The gains come from a) a bounce and b) a very large renewable energy contract signed last week. But we think more gains are likely, especially if/when interest rates move lower. We would be reluctant to sell into newfound strength. We would see the likelihood of gains stronger with BEPC over BNS. The safety of the dividend can be debated. BNS is about 3X as large, but BEPC's business provides very stable cash flow and is partially regulated. Banks have been known to get themselves in trouble every so often. We would still give BNS a slight edge in dividend safety, though. But at current levels BEPC we would give the edge to for safety of principal. IF Canada enters a recession, bank stocks will likely get hit harder than utilities.