Investment Q&A

Q: Is now a good time to buy?

Q: With the sector rotation taking place I'm interested in buying or adding dividend paying companies that could benefit from the change taking place. With that in mind, and hoping for some growth and relatively secure dividends, could you please suggest what you consider to be your top 5 Canadian and 5 American companies that could benefit from this sector rotation.

Q: good morning - it is time for me to prune my BEPC position which I took eighteen months ago at your suggestion, thank you very much. I have plenty of utilities, financials and telecom and would like to add to my health care, consumer discretionary, materials and maybe even real estate. I currently own VEEV and WELL both thanks to 5i and also have Magna, Dream Industrial, Northwest Healthcare, Interrent and ATD.B. Can you suggest some solid dividend paying Canadian companies with promising futures, please. I have been considering Nutrien and NFI. I am also thinking of increasing my BCE or T, or Magna or ATD. Do either Empire or Loblaws make sense. I do need dividend income and would like a three per cent yield. Fussy, right? Thanks again. Most of the positions I hold have taken with your guidance. I am stuffed with Fortis and AQN along with the banks and SLF. You have been a great guide, thanks.

Q: Hi 5i team,

I am tempted to borrow up to $25K to buy dividend paying stocks in a non-registered account. That represents less than 3% of my portfolio, so I am comfortable taking the risk. The interest rate is 2.45%, and the interest would be tax deductible against my income, so my real cost would be < 1.5%. The question is what Canadian dividend paying stocks should I buy?

The dividend paying stocks I currently own are: AD.UN, AQN, ATD.B, BAM.A, BCE, BEP.UN, BEPC, BIP.UN, BNS, CCL.B, CSU, DOL, ENB, ENGH, FTS, MG, MX, OTEX, PKI, QSR, PPL, SLF, T, TD, WSP. I could add to these, or are there better suggestions out there? I have had dividend grower ENB since 2011 when I paid $39 for it, and now it closed under $36 on Friday. Not too thrilled that after 9 long years it is below what I paid for it. Same with BNS: had it since 2014 and I am down 17% on my original investment after 6 years. In the last 3 months I added to AQN, BAM.A, BEPC, FTS, and PKI.

Do you see anything wrong with my strategy?
What sectors would you recommend buying today for this strategy?
Similarly, are there any sectors that you would avoid today with this strategy?
What dividend paying stocks would you suggest to buy with borrowed funds?

My portfolio is already diversified by sector and geography, so you don’t need to take that into account in your answer. This is for a long term buy and hold strategy.

I could pounce if some opportunities arise during tax loss selling season, so I want to be prepared.

Paul

Q: What is your view of Thomson Reuters. Do you see it as a continuing success story for future growth. Thanks.

Q: Please provide your comments and financial position on these LNG producers listed large to small on market cap.
What percentage of their business is strictly LNG.
Are dividends sustainable that are ranging from about 7 to 15%.
thank you

Q: Looking for your thoughts (arguments pro and con) and perhaps suggestion. I'm currently out of Pembina Pipelines (PPL:CA) for tax loss harvesting (I've temporarily added to my ENB holding to maintain sector exposure). But here's my question: should I just avoid rebuying PPL (after 30 days)? Currently, I have exposure to both TRP (2.7% weighting) and ENB (2.1% weighting) within our family's ~55-stock portfolio. Maybe it is "best" (simpler, higher-quality companies, etc., at expense of somewhat less diversification) to just keep the 2 pipeline stocks (TRP, ENB) versus going back to having 3 stocks (TRP, ENB, PPL), but maintaining similar overall pipeline weighting (~5% of portfolio). What do you think?
Ted

Q: How will this election result enb. future. thx

Q: Retired dividend-income investor. With the dust trying to settle on the USA election, where do you see the Canadian Energy sector sitting over the next year or two? I understand Renewables are taking off (I own AQN, FTS), but Renewables are very expensive right now and it is going to be a long way off before the oil industry is going to be extinct. My own feeling is we have at least a 20 year runway in front of us.

Having said that, TRP's Keystone XL is potentially in Biden's crosshairs. The research I have done is a) if KXL is constructed, then good for TRP, as it is apparently not priced in to its stock price; b) if KXL is flushed, then also good for TRP as the uncertainty is removed and TRP has plenty of other growth projects in the process of being approved/constructed; c) also if KXL is flushed, TRP would have so much free cash flow, that it would be a "cash cow".

The reason for my question is I have a almost full position in TRP and I view TRP as very cheap right now and was going to top it up. Your thoughts please?

Thanks...Steve

Q: With the Biden as US president, how will that affect companies like TRP. and the like in the next few years? Thank you

Q: Hi team
this stock has increased his /her dividend for many consecutive years

I am aware that ATCO which owns a big chunk of Cu.ca has taken a beating as well

do you think that the dividend is safe (wonder what is the pay out ratio)
and the yield is not too high

wonder what is the reasons for the recent pull back ?

do you think it is a value trap of it is safe to start a partial position

I am looking at dividend income as well as some capital appreciation
(try not to lose too much capital as I am retired)
thanks
I have already got FTS, EMA and NPI

Michael

Q: My interpretation from the quarterly report is there will be an expected increase in the quarterly dividend to 45 cents per trust unit. The last payout was 31 cents. Is this correct about the dividend increase. This is the exert from the company:
Following the GWM Contribution and the restart of distributions from BCC and Kimco, the Trust's Run Rate Payout Ratio is approximately 74% when including distributions, overhead expenses and current distributions to unitholders expected for the next twelve months. As calculated, the Run Rate Payout Ratio is expected to generate approximately $15.9 million in excess cash flow or $0.45 per unit;

Q: Please comment on earnings release. Thank you.

Q: They reported today. I'm in on this stock at $7.00. Just wondering if a three year hold will give me some capital gain or would you just move on and put into something that will make a profit.

Q: This stock has been tanking of late Third quarter results might be the cause of that. Is this a time to consider a leg in or wait for a technical signal Thanks.

Q: The BIP.UN and BIPC difference is approached $20. It seems that when BIP.UN goes up BIPC goes up twice as much. For a clear momentum stock, would you invest in BIPC instead of BIP.UN, thanks

Q: Hi 5i
BEPC and BEP.UN together represent 8% of my portfolio currently (BEPC=5.6%, BEP.UN=2.4%). Both are doing well and it appears they will continue to provide nice gains over time. I am wondering about trimming BEPC. What would you consider to be a reasonable % holding for BEPC and BEP.UN together? Thanks!

Q: Hi Guys,
BCE & SAP both reported today.
Rev is down from last yr.
Is it all priced in and would you start a position in a conservative portfolio?

Q: Hello - Your thoughts on TRP earnings, and more importantly, your level of confidence of this company going forward. Does it deserve the current valuation?

Thanks.

Q: Hi, could you please comment on Pembina’s earning particularly in view of dividend sustainability. Thanks.