Investment Q&A

Q: Hi Everyone at 5i!!!! I have a TFSA with a goodly amount of Tech stocks, Shop. Light speed , unity software, Crowdstrike NVDA etc… most of which are in the tank. So my thinking is to just hang on for five plus years in hopes of recovery. I see no sense in selling because the realized losses would cause severe heartburn. The TFSA also has half of its value in divided paying stocks .. banks , Fortis,.. etc. So now my question… would you suggest I reinvest the dividends in the beaten up tech stocks in anticipation of a comeback or reinvest the dividends into their source stocks. I am newly retired but don’t need the money and hopefully not for quite a while . Cheers, Tamara

Q: AMT has been beaten down badly. I have some funds in US $ that I thought I should put to work. This should be fairly recession resilient but will sharply higher interest rates hurt this company when they have any of their substantial debt coming up for renewal? I am never sure what drags down the value of utilities, telcos, reits, etc when interest rates go up. Is it the fact that TINA is no longer true or is it the big debt loads become too big when they have to be renewed at higher rates? Or is it a combo of the two? AMT has not had a particularly high dividend at least recently so I am not sure the TINA effect applies in this situation. What is your take?

Q: i do not own birchcliff preferring other names but i am curious after announcing a special divvy of 20 cents per share, increasing their cap ex and confirming the 60 cents annual divvy starting in january the stock is getting hammered-is this because the markets prefer stock buybacks over
divvys paying down debt especially in relation to oil and gas names. dave

Q: Recommendation for best Canadian dividend ETF for long term hold

Q: I'm in the process of building a dividend portfolio. Should I have both or on these stocks. Leaning towards Enbridge if only one. Planning on have a diversified portfolio of 10 stocks .

Q: About 10 days ago, I read that AQN was selling 49% of 3 US wind farms and an 80% stake in a Canadian wind farm. Doesn't this dilute the company's objective of being a renewable energy firm? Did it make a lot of money from the sale, was it a loss or can you shed any light on the sale? The share price has dropped about 25% in the past 2 months and the dividend in now comparable to the dividend of ENB. AQN is projected to increase its dividend another 6% at the end of 2022. Does any of the above or other factors, such as payout ratio, etc. significantly affect the risk profile of the dividend payout ?
Thanks a lot for your views. It is amazing to me that you can provide very reasonable perspectives on such a wide range of stocks and topics.

Q: Please comment in more detail about the 25% drop in share price in the past month, the massive debt load at over 3x total equity - to increase I assume with recent acquisitions, and on what appears to be a major revaluation by the market. In your last report on BEP.UN (July/21) you stated the 12.4x forward sales multiple (at the time) was the lowest since 2019. Currently BEPC appears to be trading at less than 2x sales.

Q: In this time of rising interest rates , do you think one should hold on to EMA and FTS for the longer term or should I sell if you think they may tank a lot more?

Q: Two months ago I sold AQN to harvest a loss and reinvested in ACO.X which has slumped ( like the market, like the sector). I'm now looking at the AQN yield and wondering whether taking a loss in ACO and re-buying AQN is a good move. I can use the losses but its not urgent. Your thoughts please? thanks. Al

Q: why the downward trend for both. any concerns. would you add to a small position

Q: would you buy some shares(10,000) for a 5 years term?

Q: Your opinion please on Sienna senior living in regard to: 1. Buy, hold or sell today;
2. Safety of dividend;
3. Quality of company in terms of debt, management, cash flow, etc.
4. Short and mid-term prospects.
Many thanks, Don

Q: Hi, Higher yielding equities, like Utilities, Pipelines and Telcos seem to be hit more and more, everyday. Do you see these sectors to come under more pressure, as FED/BOC is not likely to relent and continue with the rate hiking cycle, may be even into 2023. We are sitting with 15-20% capital loss situation, for above two companies bought in Aug/Sep, this year. Would it make sense to sell/harvest the capital loss and buy back later with the assumption that there is more downside to come ? Thank You

Q: Pref shares have been generally weak lately and today AQN-PR-A is down 8.4%. I see no reason for this. Your thoughts? Does it make sense to add to my position at this price? Effective yield is now 6.8%.
many thanks

Q: The two Canadian railway companies have out-performed CSX this year. Any explanations? Which one is a buy now? CSX seems much cheaper.

Thanks,
Liping

Q: What are your thoughts on this company, is it a buy? Would be in a registered account. Thanks

Q: Outlook for BCE

Q: Hi Folks,
I am looking to re-invest this quarters dividends in my RRSP account. Of the four mentioned above, which would be the best to add to at this time and why.
Thanks for your help.

Q: I am looking to retire in the next year, and positioning our portfolio more toward income.

Within the utilities sector we held AQN, BEP.UN, BIP.UN and CPX at close to equal weights 3.1-3.3% each (market value).

I recently sold AQN at a 20% tax loss and initiated a new position in FTS (yielding 4.25% after it's big drop). This will be a long term position.

I'm up approx 50% in CPX and even on BIP.UN.

I'm currently carrying a 16% loss on BEP.UN, and am thinking of selling it for a tax loss (I have significant realized capital gains to offset).

I'm considering either splitting the proceeds between BIP, CPX and FTS; or waiting to sell BEP after the 30 day period on AQN has passed, repurchasing it to regain the lost dividends and for diversification.

From recent questions I understand that AQN's dividend is likely safe, and is considered sufficiently different from FTS to support owning both. I like that it is at 2019 levels, and think there is a good possibility it may reward a patient investor. Is debt a concern?

Which course of action would 5i recommend, and why?
1. Sell BEP at a tax loss and split the funds between BIP, CPX and FTS; or
2. Sell BIP at a tax loss and repurchase AQN,
3. Or is there another course of action that you'd recommend?

Thanks!

Q: I am looking for the "safest" dividend paying stocks to add to the above list that will help me weather the recession that according to most commentators will last well into 2023.
5 each from the US and Canada will be of great help.
Many Thanks