Investment Q&A

Q: In the questions and answers asked on the oil and gas industry, you usually mention, suncor, canadian natural resources, tourmaline, whitecap, parex, enbridge, and vermillion as high risk.

What are your thoughts on Crescent Point. They have reinstituted their dividend. Are they well capitalized. They have had a good run but can it continue or do you really prefer investing in the above names you regularly mention. I own crescent point and cpg and am thinking I should move into Suncor though everytime I move into Suncor I make the wrong move! lol

Q: I own BCE as a core holding. As a second stock in the communications sector, would you prefer Telus or Verizon in a dividend focused portfolio?

Q: Please rank the following in terms of your preference for a new buy now in a dividend focused portfolio: MFC, SLF, IFC, POW, PRU

Q: What is your preferred stock in the consumer discretionary sector that would be appropropriate for a dividend portfolio?

Q: Hello 5i Team,
I would like to expand my utilities exposure (beyond the positions I already hold in Emera and Fortis). I am considering taking a position in either Canadian Utilities or Capital Power. Both have similar yields and dividend growth over the past 5 years. Which of the two would you favour, and why? This is for a long-term income focused account.
Many thanks,
Brian

Q: Where do you see support for Superior Plus?
Thanks

Q: What's your view on Best Buy (BBY) for a dividend portfolio?

Q: What's your view on ITP for a dividend portfolio?

Q: I have a 1.7% weighting in Fortis, which is the only utility I own in my RRSP. I'm hesitant to do so because of their gargantuan debt levels. With total liabilities of around 33.4 Billion, this is higher than their total market cap of around 27 Billion.
Net Debt to EBITA ratio around 6.2x , and low interest coverage of 2.3.
Free cash flow also only covers around 11.5 % which is quite low.
So do you still see Fortis as an attractive investment for a 10 year hold ?
Thanks !

Q: I am interested in REITs for potential retirement income. However, when one looks into the details of the “dividends” often a significant portion of the yield is return of capital. Are there any Canadian reits that make distributions that are largely just income and if so can you advise of same. Thanks Bill

Q: What is your view on Tyson Foods for a consumer staple holding in a retirement dividend portfolio? In not Tyson foods, is there another consumer staple we should consider in respect of consumer defensive for dividend and dividend growth?

Q: My wife who is very conservative just put 75 thousand into her tfsa. Could you give me about 10 stocks that i could buy for her that is low risk.

Q: I am down on both companies, probably due to shortages of parts.
Do you agree selling and buying your highest recommended tech growth stocks or any stocks you suggest where short term gains are likely?
Once problems receiving parts appears to be resolved, sell the stocks and buy LNR and MG again.
While it is market timing it appears to be a more predictable type of market timing.
Thanks
Klaus

Q: Hi 5i,

Portfolio analytics is recommending that I reduce my utility holdings 12%. I have held AQN (3.4% weight), FTS (4.3%), BEP (5.2%) and BIP (5%) for four years and do like the dividends and renewable energy aspect. Today's TD analyst comments also gave me pause about being overweight utilities: "As WTI oil and energy prices have recovered over the past year on rising interest rates, alternative energy and utilities in general have underperformed. We believe that a potential rise in interest rates on improving COVID-19 trends and impending
tapering, along with the renewed relative strength in the energy sector, will
further pressure the utilities sector." My questions for you:. 1. where and how would you trim from the above holdings? and 2. your thoughts on the analysis outlined above. Thanks for your guidance.

Q: BIPC's stock price has been struggling as the company sorts through its IPL acquisition. When would you anticipate prices will begin to rise again? (Utilities currently held - in relatively equal amounts - are BIPC, AQN, BEP and NPI.) Thank you.

Q: What is your view on Fortis for a retirement portfolio? Is there another safe utility stock that would provide better growth? Would you ever hold both Fortis and Emera in the same portfolio or is that duplicating a similar type of holding.

Q: In your opinion, which one of these 2 companies has the better growth potentiel in price appreciation for the next 3-4 years ? Both have large addressable market. Thanks

Q: Just to be clear. If I journal a company from my CDN to US account, then the dividends are still subject to the Canadian dividend tax credit, even though they are paid in US funds.

The internet says: "
Since U.S. dividends are not paid from Canadian corporations, U.S. dividends do not qualify for the preferential Canadian dividend tax treatment. Foreign dividends, including U.S. dividends, are subject to tax at your marginal tax rate like interest income."

Q: Hello 5i,
I am fractionally underweight Communications (BCE, T) and fractionally overweight Consumer Cyclical (AW.UN, LNF, MGA). I am also significantly overweight Canada, underweight United States.
My thought was to sell AW.UN and use the proceeds to purchase VZ in my RRSP. The yields are very close which is a major consideration. Obviously, no tax considerations.
Would you see any concerns with such a move?
Many thanks as always!!
Cheers,
MIke

Q: In my non-registered account I have tried to build a diversified portfolio of "set-and-forget" dividend-paying stocks. I do not need the dividends currently, all are being DRIPped.
Recognizing that I'd be giving up some dividend return, what are your thoughts on replacing BEP in the portfolio with BAM?
I already own AQN in the renewables space, and ACO.X & FTS in the utilities space.
Thanks you for your insight.