Investment Q&A

Q: In an announcement on apr4 altagas mentioned that they might sell minority interests in their northern bc hydro assets as part of wgl financing. Do you think this might be considered negative by the market?

Q: JCP stated that its nominees will buy $3m of KWH.un if JCP successfully elect director candidates to Board.Your view please.Txs for U great services & opinions

Q: Hi Peter, Ryan,and Team,

The Motley Fool had an article called "3 Canadian Dividend Aristocrats With Dangerously High Payout Ratios".

They cite current and 2018 payout ratios for these three stocks:
CGX: 150% and 144%
ECI: 182% and 124%
PKI: 340% and 329%. (yikes!)

They end the article with this statement:
"It’s important for investors to understand the sustainability of a company’s dividend. These aristocrats all have a history of raising dividends, but their high payout ratios are reason for concern. This does not necessarily mean they are bad investments, but investors looking for sustainable dividends may be better off looking elsewhere."

Should this article be taken with a 'grain of salt'? Are their payout ratio numbers valid? What about the Motley Fool in general? Is it worth reading their articles?

Thanks as always for your level-headed and pertinent advice.

Q: Please provide me with a list of solid Canadian stocks (such as the Brookfield group) in which I may receive dividends/distribution in US dollars.
Is the income converted to CDN for income tax purposes (by me, the co. or RevCan) ?
I assume there will not be any withholding tax as they would be CDN companies?
Would I be charged a commission by anyone, i.e. the company or Scotia iTrade?
Anything else I need to know?
Thanks
Derek

Q: I'm looking for a few boring US stocks which have held up well of late to offset my more 'exciting' tech holdings. Can you give me your opinion on Firstenergy and Hanover Insurance (THG)?

Q: I am down 50% in ALA and 17% for ENB in my TFSA.
Does it make any sense to hold or should I just sell. If sell, what should I replace them with for a long-term hold?

Q: What is your opinion about the WesternOne. DB .G Is it save to keep it till 2020 or
sell .The price is dropping .anything new ?

thanks a lot

Margit

Q: Is the BGI.UN dividend reasonably safe? How is it covered?

Thanks.

Howard

Q: Good morning. Why is K-Bro Linen continuing to drop almost daily? Is it time to sell?

Q: I hold both IPL (1.7%) and ENG (2.2%) in my portfolio. ENB has been hit harder over the last 12 months. Do you believe it will have a better recovery than IPL and if so, would it make sense to sell IPL and add to my ENB position. They would be no tax consequences.

Q: Hi,

Just wondering what your take is on the steady decline in share price over the past year?
Thanks:)

Q: I understand that there are concerns about the Corus business model, going forward. However, its current price (around $5.80) seems extremely low considering its P/E and its dividend, even assuming a reduction in the dividend. Is it currently undervalued and worth a shot now or would it be wiser to wait until after the quarterly on April 5 to see if it's really in the tank? Essentially, do you think it truly is only a six dollar company or maybe not even that?
Thanks!

Q: Peter and staff,

In order of preference, please list your favourite utility stocks for an income investor. Please subdivide into electrical, gas and pipelines.

Thank you and may thanks for your great service.

Paul

Q: Hi Peter, Ryan, and Team,

If one is bearish on pipelines, what do you think of a switch from TRP to PKI, in a TFSA, so that an appropriate weighting in energy could be maintained? Or do you have any other suggestions? All time period charts for these two stocks show PKI beating TRP, and PKI has a lower beta.

Thanks in advance for your valued advice.

Q: Hi, What would be a fair market price for the new 4.65% $1000 new debentures, based on 7 years term, discounted cash flow and conversion price of $182.51 per common share, in view of shares trading at current level ? Thanks

Q: Hello 5i:
We currently hold about 4% of our portfolio in CSU.DB; bought first about 3 years ago with subsequent additions. It's been a very good and stable performer (thanks for the tip as in addition to the excellent dividend, we also have capital gains). Can you provide another name, possibly A ranked company that would have a similar fixed income contribution? Or, should we merely increase our weighting in CSU.DB?
btw, we also hold CSU (the regular equity) at about 3% of our portfolio.

thanks
Paul L

Q: At what point does 5i acknowledge the severity of the problems at these companies, including reducing their 5i stock ratings? Both of these companies have been severely punished for very good reasons. Too much debt. Cant get the prices they wanted for asset sales. Cant sell shares into the market for a decent price. Interest rates are rising. They have backed themselves into a corner and have really damaged themselves, ENB more so then ALA. ENB future dividend increases are a fantasy, a cut is more likely. Yet still rated an A- ?

Q: Hello 5i team - you have/had a great long weekend!

My question is about Alta gas and their receipts for the WGL deal. The receipts are trading at 24.65 and the stock is at 23.84. If I understand this correctly if the deal goes through the receipts turn into stock so at 24.65 that would still be 8.88% dividend. And if the deal falls it gets paid at $31 per that would be a 25%+ gain ... what am I missing here - why shouldn't I purchase these receipts?

Thanks,
Sean.

Q: Can I please get your opinion of Polaris Infrastructure (PIF).

Thanks

Dave

Q: Hi 5i,

Can you recommend a Dividend Appreciation/Growers ETF for each of the following regions: CAD, US, Europe, Asia? I would prefer to have all CAD Hedged.

Thx