Investment Q&A

Q: Good morning,
This past week, I've been reviewing each holding in my Non Registered account to identify suitable tax loss harvesting candidates. Before selling any of these tax loss harvesting candidates, I must identify the best proxy replacement.
One my tax loss harvest candidates is XDV which I've held for many years now but like so may other stocks and ETFs these days, is now quite underwater. Although I still like XDV as a core holding and it pains me to sell it, I'm looking at selling XDV and purchasing CDZ as a proxy. Your thoughts on this tentative plan would be appreciated along with any other proxy that you would consider more appropriate. Thank you.
Francesco

Q: Not a question - a clarification as I don't think the distribution/dividend level has been fully explained. Before the split I was in contact with BIP.UN IR to clarify the distribution level and was informed that the distribution level would be identical for both BIP.UN and BIPC but will be at 90% of the BIP.UN distribution rate prior to the split. This ensures that the total distribution for the 2 holdings are equivalent to the pre-split amount. Here is the wording from the prospectus.

"Further, immediately following completion of the special distribution, the
distribution level on the units will be reduced to nine-tenths (9/10ths) of the pre-closing distribution level as a result of the one (1) for nine (9) special distribution, and the dividend level on the class A shares will be identical to the post-closing unit distribution level, with the result that the aggregate distribution received by a holder on its units and class A shares will be the same as it would have received if the special distribution had not been made."

Hope this is useful for everyone out there who now holds BIP.UN and BIPC.

Q: POW has now fallen to a price giving a similar yield to ENB, around 8%. For a senior living on dividend income, which of the two has the safer dividend for a long term hold? You have tended to favour SLF in the insurance/financial space, so would you still recommend SLF over POW for dividend safety and growth, despite its lower yield? If you don't like any of these three stocks, what's your top Canadian pick for a senior looking for a decent safe yield, with some potential for long term growth?

Q: Hello,

I'm hoping you can assist me with my perceptions of the relative value one might receive if they were to invest in one or more of the Brookfield group of companies. First off I'd like to note that the statistics I am quoting for each of the firms comes from the TMX website. I note that because I'm personally never entirely confident that their statistical data is entirely accurate.

BAM.A P/E: 25.60, P/B: 1.441 Yield: 1.543%
BBU.UN P/E: 40.10 P/B: 0.918 Yield: 0.973%
BEP.UN P/E: N/A P/B: 1.335 Yield: 4.895%
BGI.UN P/E: 6.10 P/B: 0.787 Yield: 11.132%
BIP.UN P/E: 550.90 P/B: 1.744 Yield: 5.486%
BPY.UN P/E: 4.30 P/B: 0.253 Yield: 16.392%

Assuming the above values may be close to correct, doesn't that mean that someone investing a dollar in BPY.UN is purchasing units at about one quarter of their underlying value and that if the same individual were to instead buy units in BIP.UN that they would be paying $1.74 for each dollar of actual "value" they were buying?

I would appreciate it if you would please speak to my perception of what the price to book ratio implies about an investment and if you would also please rank the above noted Brookfield properties, in your order of preference, from best to worst. My target holding period is basically forever, with a desire to be able to harvest 6% or more from each of my investments, each year, going forward. Have any of the Brookfield properties ever cut their dividends in the past and if they did were there particular circumstances under which the cuts became a necessary evil?

Lastly, if there may be a website you might be able to recommend where I might be able to obtain statistical data for companies I may be considering investing in, with a high degree of confidence, that would be appreciated.

Thank you!

Q: Greetings,

A trader(yes - not an investor) recommended a couple of option selling strategy CEFs funds that can do well in this market. i am not comfortable selling call options myself but understand how they work and wanted to get your opinion of a little bit riskier trade to supplement an otherwise med conservative investor. Looking for dividends in this low interest environment. I expect that companies will start cutting dividends here so need a replacement way to generate income in the short term only.
thanks

Q: Hi, what theoretically could be the impact on BEP in the unlikely event the parent company BAM runs into credit/solvency issues as a result of issues arising from its own portfolio holdings or with its cyclical oriented subsidiaries.. Would BEP continue as a stand-alone utility relatively unscathed or would there be repercussions? For instance could BAM suck cash out of BEP to shore up its balance sheet in a crisis situation? I learned from the GFC to not assume anything is totally safe. Hopefully not round 2! Thanks.

Q: The questions on this security seem to never end but why is it better to own BIPC in a TFSA than BIP.UN?

Q: Hello 5i
BIPC has been placed in my American unregistered account. Also my wife has the same but in her TFSA account. Should I leave everything as is or put BIPC into a Canadian account? I am retired with a good pension. TD just has the stock as BIPC not BIPC.CA or BIPC.W, though it is in a U.S. account.
Stanley
Stanley

Q: I didn't follow this.company till I read the split.Can you explain the.difference briefly and which company do you think has better growth

Thank you.

Q: I have 100k to invest and require income from dividends as it for non registered account. Irregardless of sectors, which solid, dividend paying stocks would you buy that have been beaten down and provide the most dividends for the buck. Would you buy all at once or spread the purchases over a time frame.

Q: with the glut of oil currently in the marketplace and chatter that there is nowhere left to store it will this affect the amount of product flowing thru their pipes...and hence reduce operating cash flows...which of the 2 companies would it affect less...do you have a preference at this point between the 2 companies...with thanks...Cheers

Q: Hello
I sold bip and just recieved my bipc shares.
My choices are
do nothing
buy more bipc
purchase bpi (after the mandatory 30 days)
Your opinion wil be appreciated
CDJ

Q: I own BIP.UN and have received BIPC in my non-registered account. Should I sell BIP.UN and buy BIPC to get higher Canadian dividend tax credit? Will there be any tax implication? Can BIP.UN be exchanged with BIPC, without incurring expenses? Thanks.

Q: Hello Peter and team . Good graph set up. If we can share the source or build few important set ups in the site itself, that would be great.
Q- Dividend safety . Out of the following which ones you think has the dividend safety AT THE CURRENT LEVELS OF PAYOUTS-
1. BANKS (BNS, TD, RY, CM), TELECOM ( TELUS, BCE) , ENB, BIP, GWO, SUNLIFE, CU, FTS.
I am thinking of putting new money into 3-4 of these but dividend safety is must. Thanks

Q: I didn't see a div cut detail in the news- also what is the debt situation?

Q: Out of the income portfolio there are some high yield names at present can you provide the most sustainable dividends with payout ratios and you would be buyers of today.
Thanks!

Q: I have been reading the questions and answers on nutrien. I think Nutrien has been holding up very well in this market and with spring coming, their retail business,, having bought Agrium quite a while ago, the potential for food shortages, a great dividend, I think nutrien is close to a back up the truck investment.
But I don’t read financials so can you tell me how well capitalized they are. Thank you.

Q: Hi Peter,

Atrium announced yesterday that it will redeem its convertible bonds a month early (from end of June to beginning of May 2020). What is the purpose of this? Also, is it common for companies to have double digit dividend yields and not have any cuts? I understand that mortgage investment corps are more unique as they have to pay out all of their income which explains the high payout ratio (it's expected).

Q: Have Key or Ppl ever reduced their dividends?
What do you think the odds are from 1 to 10 of OPEC agreeing to reduce supply by their next meeting this June ?

Q: Hi Peter and Staff

Please explain again the reorganization- I still have same number of units of BIP.UN as I did a month ago - I THINK value per unit has gone down more than normal but I do not see any BIPC shares in my account yet at TD

Thanks for all you do
Dennis