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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: May I have your current thoughts on Alantica Yield? Have they reduced their debt load since your February review of the company? I suppose as a utility like company they can carry more debt due to their steady cash flow. On the other hand recent experience with ALA has taught us that utility like companies can still get into debt problems! 6.9% dividend yield seems to be implying that the company is entering either the danger zone or becoming a great buy - not sure which. Gordon Pape recommends the stock in todays Globe. We already own AQN, BEP.UN and ALA to a 6.5% weighting. We could make a purchase of AY and bump our weighting up to 9%. We wouldn't go higher. In your previous review you noted a link with AQN, could you explain the link a little more?
Thanks,
Jim
Read Answer Asked by James on October 30, 2019
Q: ALA has been weak lately. The stock is still up about 30% since Jan 1st but lower over one year. Do you think the weakness is related to selling the remaining portion of their Canadian spin-off or just normal trading? Looking at the one year chart it appears some sellers could be taking profits and others could be crystallizing capital losses. I don't think volume has significantly picked-up during the decline - the stock just tends to drift lower.
Any thoughts you have would be appreciated.
Regards,
Jim
Read Answer Asked by James on October 29, 2019
Q: LOOKING FOR GROWTH PROSPECTS AND SAFETY OF DIVIDEND FOR THE ABOVE
THANKS
JEFF
Read Answer Asked by JEFF on October 29, 2019
Q: Hi,

BEP has taken off recently and despite the market's rush to safety and dividend paying stocks, I can't rationalize the quick increase. From my charting work, the current price is as high as it'll go in the near term unless it has some new sources of growth (i.e. acquisitions). I'll also note that its upward move comes with increasing volume, however in the past 2 weeks both price and volume have stagnated (which supports my thesis and chart that this has topped).

AQN, looks better at the moment - similar dividend as BEP, but with more growth potential.

For me, all points lead to selling BEP and looking to buy back in later or initiate in AQN. Can you convince me otherwise?



Cam.
Read Answer Asked by Cameron on October 29, 2019
Q: Hi,
I am looking for income and considering the above Brookfield companies. Would you please provide an overview of the different tax treatments of the income distributions. Are they best held in a registered or a non-registered account? Also, do you prefer one company over the other and if so why? Thank you
Read Answer Asked by Gordon on October 28, 2019
Q: 5i Team,

Please provide your guidance on US based ETF's that you believe could be a buy now, and perhaps others that could be placed on a watch list pending a market adjustment or a new developing trend line. Goals would be moderate growth (lean towards safety) with a steady and growing dividend. I currently hold VIG and would want to expand my US based exposure. Position would be held in either a cash or rrsp account. Many thx. Steve.
Read Answer Asked by Stephen on October 28, 2019
Q: Peter, I read your article in the National Post on Saturday. You focus on a handful of companies that are superior according to your filters. Of these how would you rank the companies above? And have you any information about them which you would like to add? Thanks for your insights.
Read Answer Asked by christianne on October 28, 2019
Q: I currently hold the above 3 utilities in equal weights in a well diversified portfolio and am considering adding Fortis or Emera. I'm looking for safety, dividends, and some growth. I would prefer to keep the count down to 3 stocks so could you please rank them for me?
Thanks
Read Answer Asked by Lyle on October 28, 2019
Q: Your comments on dfn doing a financing on class a shares at 8.75. Stock now trading in 8.45 range. A buy? What price would the shares stop paying a dividend? Ala dropping this last week. Would this be from cost overrun on pipeline in us that it owns part of? Expected earnings due Oct 30?
Read Answer Asked by kenneth on October 28, 2019
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