Investment Q&A

Q: Could you name the top five Canadian dividend stocks you would buy today. Thanks

Q: I am currently holding the following investments in almost equal amounts (20-25K per):
AQN, BNS, BCE, ZAG, ZEM. BEP.UN. CU. ENB. FTS, NPI, RY, PEGI. PPL. REI.UN. SLF, TRP. T. FN. TD, VXC. VSP plus $8K cash.

Are any of these questionable in your opinion? Are there other areas that would assist allocation? I am 72 , retired and need the additional income,

Q: Hi,

I'm looking for another lo volatility, long term dividend payer with some growth like AQN, which I own. I also own TD and RY. Can you pick two choices for me from the above list? (as there are so many different offerings from BEP and BIP, I hope these are the correct ones? If not please suggest the better choice.)

Q: It has been noted that AD is fighting CRA on their taxes for the last ten years and that a potential tax reform problem with the US is present as per the statement below in the MD&A for Q2 2019.

“In December of 2018 the U.S. Treasury issued proposed regulations which provided administrative guidance and clarified certain aspects of U.S. Tax Reform. The proposed regulations are complex and comprehensive, and considerable uncertainty continues to exist until the final regulations are released, which is expected to occur later in 2019. As these proposed regulations have not been enacted as at June 30, 2019, their impact has not been reflected in income tax expense. However, if the proposed regulations are enacted as currently drafted, certain provisions could be effective commencing January 1, 2019. Based on the Corporation’s current capital structure, the resulting increase to income tax expense of the Company for the period ended, June 30, 2019 would be an increase of approximately $5.5 million.”

Are you aware of any cash provisions the company made for this?

Would appreciate your analysis on both these potential tax implications.

As always much appreciated
Thank-you

Q: 3 part question
1. Are the dividends paid by AW.UN and BEP.UN eligible for the Canadian dividend tax credit ?
2. How safe would you consider the above 7 dividends stocks given the large payout ratios?
3. Do you favor calculating payout ratios using free cash flow?
Thanks
Jeff

Q: Hello 5i team,
How does Enerflex look at these price levels and metrics for an entry point ?
I read that much of their business is U.S and Global based, so less exposed to Canada.

Q: Just a comment to add to the Dream questions. It should be noted that Dream has suspended its monthly distributions effective immediately (last distribution Sept 16), and this should be taken into account when looking at the current price v take-over price, particularly if the closing doesn't happen for a few months.

Q: Hello, I currently own Alaris Royalty and, although it pays an excellent dividend, it has dropped about 30% since I purchased it.
I am currently considering purchasing Brookfield Business Partners to replace Alaris with the hope of recouping my capital loss. Do you think this would be a good trade?
Thank you for your reponse, Alan

Q: The rise of X and ICE in the past year has been notable. I was in and took profit in X but perhaps I should return. Which company do you prefer?
Greg

Q: Peter; The new plant IPL is building is,I think, going to produce a product that is used for the manufacture of plastic. With the current drive to ban or reduce plastic use could this tun out to be a white elephant? Thanks. Rod

Q: I would very much appreciate your view on the sale of Dream Global to Blackstone. I'm a long-term holder, so not a bad move, yet the premium seems rather small, in the high-teens.
Will there be a competing bid, in your estimation, given the small premium?
Aside from that, is there a projected closing timeframe?
Thanks very much...

Q: What to do with DRG.un Hold or Sell ?

Q: Hi,

I have a two part question. I currently have enough cash in RSP to add one new position. Disregarding the fact that these are completely different companies/sectors, which security looks most attractive today as an entry point for a long term hold - ATA, GSY, or MX?

And second part, considering that some believe Sept-Oct can be a volatile period, would you generally think its ok to purchase now, or would it be prudent to wait until Nov?

Thanks for all your help and advice.

Q: There have been a lot of questions about your thoughts on CIBC and whether now is a good time to buy. It seems like you prefer other Canadian banks for their dividends and growth potential. Can you please rank Canadian banks from what you believe is best to worst for a 5 year investment horizon?

Q: What are your thoughts on selling all common stocks in a non registered account to preferred shares for an 86 year old senior ( this move is for capital preservation concerns)? Apparently the preferred share asset class has been beaten up lately, according to this senior's advisor! what would be your top 5 preferreds that you could suggest? Please take as many credits as you wish. Thank you!

Q: ECN recently doubled their dividend. This equates to a payout ratio of approximately 25% based on the midpoint of ECN’s 2019 EPS guidance. Did ECN simply double their payout ratio, or is the payout ratio staying about the same and ECN's profits have doubled?

Q: Why do the renewable stocks seem to be loosing steam here?

Q: I see that NPI is getting clobbered today, down $0.79 to $24.33 as I write this. It would appear that the market does not like the acquisition announced yesterday. What is your view of NPI going forward ? Thanks as always for your advice. Steve

Q: Hello 5i Team
I currently own Shaw Communications (SJR-B), which I have owned for several years.
The purpose to owning shares of SJR-B is to match the payments I make monthly to Shaw for my cable and internet.
Shaw has not raised it dividends ($0.09875 per month) since March 2015 and has declared the same monthly dividend to December 2019. Yet their cable/internet charges increase every year!!!!
My yield on cost is 5.46 % and the current yield (based on Friday close of $26.15) is 4.53 %. Essentially the stock has become similar to a "preferred share" where the dividends don't increase and the share price fluctuates with the rise/fall of interest rates.
The questions I have are:
1 - What are your thoughts on Shaw going forward and should I keep it and accept the reasonable yield on my book cost (the do nothing option).
2 - Sell the shares of Shaw and invest in BCE/Telus where the current yield is similar with the high probability of increased dividend growth and limited capital gains. I currently own approximately the same dollar amount in each of BCE/SJR-B/T
3 - Sell the shares of Shaw and invest in Rogers where the yield is lower with the probability of increased dividend growth (Rogers recently raised the dividend after no increases since 2015) and possible capital gains.
4 - Sell the shares of Shaw and invest in a preferred share ETF (CPD/ZPR) with a similar yield, since I the likelihood of a dividend increase from Shaw appears low and the probability of capital gains with the preferred shares ETF is higher with increased interest rates in the future (?).
Thanks for the excellent service.

Q: I am looking for a revenue opportunity in $US and AQN:US pops up as a possibility. There are no Q/A on the US dividend providing version of AQN and I would appreciate your views on this aspect if possible. Thank you. In follow up to my question on Algonquin/$US, from the list of Canadian companies paying $US dividends, which stand out for 3-5 year revenue? Thank you.