Investment Q&A

Q: Which of these is a better long term hold for an income investor?
Both of these are showing very high yields, PEY at 11%!? Is this sustainable?
I currently hold PEY in a cash account and am down although I'd like to add more to this sector.

I see a few options here:
Sell PEY, buy PNE and hold
Sell PEY, buy PNE return to PEY after tax loss harvested
Buy more PEY over allotment and sell excess after tax loss harvested
Any thoughts on these options?

Thanks

Q: Can you explain the difference between the above three and which one you prefer.
Thank you.

Q: I think I know the answer but can you confirm that the payment from this is considered interest and not a dividend by CRA? With that in mind what are your top picks for yield and capital preservation with a dividend yield to save taxes?
Thanks
Richard

Q: I don't understand. A recent 5i answer on AQN stated:
"On an operating cash flow basis, the dividend was still coverered in the 12 months to Sept 30."
As I look at the Balance & Income Sheets as of Q3:
Working capital is $-579,890,000
Net income for the 3 quarters this year is $-182,000,000.

AQN will payout $0.92 per share in dividends for the year. They've already committed to $0.22 for Q4
676 million shares x $0.92 = $616,400,000 payable in dividends for the 2022 year ($154,000,000 to be paid in Q4)

Somehow, somewhere isn't it true that the dividend payments must be impacting that negative working capital, the negative net income, the increasing debt amount and increasing interest to service the debt? In essence, aren't the dividends coming from borrowing, whether directly or indirectly?

Thanks, always appreciate 5i's perspective.

Q: In adding to my cash account, which of LIF and RUS do you prefer and why?

Q: Hi Peter, Ryan, and Team,

For this year's TFSA, and being underrepresented in energy, please rank CNQ, SU, and TOU. Any other suggestions would be welcome.

Thanks in advance.

Q: Hello, I am underweight Consumer Defensives, currently having only a small position in Costco.

Could you rank your favourite ideas in this sector with growth potential and current valuation as important criteria?

Thank you, Doris

Q: Happy New Year - I am a retiree who depends on dividend income. I have half positions in EIF and TFII. I am considering taking my gains in TFII and buying more EIF which would not put it over 5% of my holdings. The increased dividend is attracting me and I'm wondering about the security of the EIF payout. My TFII gains can be offset with losses in other positions so taxes are not an issue. Trying to consolidate my holdings as the PA says I have too many small ones. Thanks

al

Q: which company is the safest buy in your opinion TRA OR ENB ?

Q: I would appreciate your take on WTE please. It is trading today at $23.02, off a 52 week low of $21.59. Dividend appears solid and diversification of customers/product ongoing. The stock has been downgraded to hold by a number of analysts. While there is a recession sensitivity, the dividend and a "target" valuation of +/- $33 is appealing over a 3-5 year hold time frame. Again, thanks for your work and insights.

Q: Hello Team.. My question is on TRP which has a 48% ownership position of Bruce power station. Could this be considered a risky asset considering the high cost of future repairs and the potential liability of an accident given its advanced age. I have considered TRP as core holding with a great dividend but the nuclear side of the equation concerns me. I have a strongly positive bias towards nuclear energy so your perspective would be appreciated. Thanks. Gary

Q: A good entry point for QSR? How can the addition of someone from Dominos help with the next leg of growth?

Q: Good day,

Can you please rank the following for me in terms of personal preference - ENB, KEY, PPL, T, BCE, SLF, TRP. I own them all, but just want to see how closely calibrated my weightings are compared to your relative rankings.

Thank you.

Q: Happy New Year !
A bit of income, a bit of growth. For a long therm retired 79 is the whole thing sustainable?
Thanks
Dan

Q: I have 6000 shares bought around $23.00 of tpz. Div. is $1.20 a year. Key. recently bought major purchase from Plains and upgraded to buy. Dividend is $1.92 a year. Your opinion of both companies please. At current prices would you sell tpz and buy key.?

Q: What do you think of tou. is it a buy now or wait a while. Do you think the future looks good.

Q: hi folks:

what am i missing here?

time and again, when a dividend company comes under pressure (in this case AQN) all the wags talk about 'soaring and unsustainable dividends'

this clip from today:

Yes – Algonquin’s juicy dividend. The drop in share price has caused Algonquin’s dividend to soar. As of the time of writing, the stock is down over 50% year to date, while the dividend yield has swelled to 10.93%.

That’s an insane, if not unsustainable, dividend yield. Even if Algonquin were to slash its dividend in half, it would still offer a very competitive yield, and still one of the better-paying options on the market.


the dividend $ has NOT changed; only the yield as a % of share price has

either the company can support the dividend or it cannot

my point: a dividend is a reflection of the strength of the balance sheet and the companies cashflow

that the price gets knocked in half is irrelevant to the dividend paid

UNLESS said bal/sht and cashflow will no longer support the divy at that amount

(yes, i understand that the current price reflects people's belief that the balance sheet cannot continue this level of dividend)

so, are these type clips just sensationalizing or am i completely wrong?

again.........

thx

happy new year team

Q: The above companies dividend yield is more than 6%. Three of them, BNS, CM, and POW have dropped in price by 20% or higher. BCE has dropped by 8%, and TRP has dropped by 6%. ENB has actually increased in price around 8%. I own all of them. Thinking of adding some Canadian dividend shares. Question is which of these dividends are safe going forward. Can you rank them based on dividend safety. Also, please rank them for potential price gain/loss for 2023. Any other with reasonably good dividend, dividend safety and potential for gain in price.

Q: Hi, Toumaline stock has come under pressure, over past 2 weeks. Natural Gas prices have also been trending lower for some time, with today's reports about warmer weather forecasts for USA and Europe, through January, 2023. What is your outlook on NG and LNG prices and supply/demand situation, for 2023 and beyond ? Do you believe that despite near term headwinds, stock could continue to outperform and should be part of ownership, in Energy sector ? Thank You

Q: I am working to balance out my portfolio; being low in both Consumer cyclical and defensive names. The objective for one purchase is income /modest growth and CTC.A is of interest. It appears (still) in a number of income lists, has a sporadically growing dividend and shows a current dividend of 4.85%. It is down over 22% on the year. I'd appreciate your take on this stock and any insights if you have a worthy competitor for this purchase. Many thanks and a Happy New Year.