Investment Q&A

Q: In your answer to my question yesterday you noted "If the NAV falls below a certain level (found in the prospectus), the payout will be cut and that will likely be a huge hit to returns."

To be more precise the prospectus says:

"No regular monthly dividends will be paid on the Class A Shares in any month as long as any dividends on the Preferred Shares are then in arrears or so long as the Net Asset Value per Unit is equal to or less than $15.00 (calculated as described under Details of the Offering Valuation of Assets ). Additionally, it is currently intended that no special year-end dividends will be paid if after payment of such a dividend the Net Asset Value
per Unit (calculated as described under Details of the Offering Valuation of Assets ) would be less than $25.00."

When I look at the actual dividend history, I see that DFN has consistently paid dividends of $0.10 per share every month since inception -- including 2008 & 2009 when the markets were so unsettled.

I also note that DFN shares have traded below $15 since Jan 2008, reaching a low of %4.66 in 2008 and trading in a range of $10 - $12.50 since July 1, 2009.


My questions are:

1. Does it seem like they like have more flexibility to continue dividends than the prospectus indicates?
2. Given the this history of consistent dividends over a fairly long period, covering the scary 2008 -- 2009, why would you not consider DFN a screaming BUY?

Q: Hello, please give me suggestions for a few(4-5) income stocks with moderate risk, for a long term hold in a TFSA account. A response to a gentleman last week included a suggestion of Enbridge (which has spiked up impressively over the last two weeks, and now am afraid too expensive to buy, I already own all banks Slf, Wsp, ppl, Alta gas, Manulife amongst others.

I am looking for names, preferably with Current attractive entry points. Any sector.

Many thanks

Q: MRE's second quarter results met analyst expectation but the stock sold off for several days (I realize that analyst downgrades likely contributed). May I have your thoughts on the quarter and future prospects, please?

Q: Good morning Peter, Ryan, and Team,

Apparently Enron has reared its ugly head once again. This article from the Globe and Mail describes a lawsuit announced by the Alberta government:

http://www.theglobeandmail.com/news/alberta/e-mails-reveal-how-albertas-enron-clause-was-orchestrated/article31303953/

From the article, "The court action names Enmax; TransCanada; and Capital Power. It also names electricity generator Atco Ltd., the Balancing Pool, which is a public body, and its own power regulator as defendants. The court case is slated for November."

Enmax isn't a publicly traded company, but the other two are. (I don't own either). Are there any other companies that may be impacted from the fallout that will occur from this lawsuit? I'm thinking of AQN and FTS as examples.

As always, thanks for your insight.

Q: Which 3 reit's would you recommend for a hold of several years?

Q: What do you think of this deal of Inter Pipeline to buy The William Companies a Canadian Natural Gas Midstream business, their given almost 4% discount on the deal? Thanks

Q: I would like your opinion on Npi. Is it a sell or hold? Thank you.

Q: What are your thoughts on the earnings of the above companies - Emera just bumped up their dividend by 10% and results looked good. Results were good for Fortis and Enercare also. All 3 have exposure to US.

I currently hold Enercare and am looking to add more weight for long term (20+ years) to utilities. Any recommendations ?

Q: Could I please have your thoughts and analysis on Emera's 2nd quarter earnings. Thank You.

Q: How would you compare Dividend 15 Split (DFN) with Dividend Select 15 (DS)? Which, if any, would you prefer?

Q: Can you please comment on Csh.un & Crr.un earings. Both stocks are down 2%.
Would you consider as buying opportunity.

Q: Hi 5i team,
This REIT's share price fell almost 4% after the financials release on friday. As I believe eastern Canada will do well over the next few years, would you recommend it at this price, or could you propose better alternatives ?

Much thanks

Q: Westjet now has the first discount airline entering the Canadian marketplace with a continued dark outlook for their core routes (Alberta). What are your near term (3-6 month) and longer term (1-2+ years) thoughts on the stock price/valuation? Any and all insight is welcomed.

Thank you for all your great work this year, it has been an exciting one!

Q: I'd be interested to have your opinion of these two companies. Thanks very much.

Q: Hello,

In a previous answer you mentioned that the distribution for CBO, for tax purposes should be treated as interest income. Is the same true for XHY? I checked on Blackrock site but could not find tax related info.

Thank you

Q: Hello Peter, Ryan & 5i Team

I'm looking to bulk up my US exposure, specifically US$ income rather than growth names. Would you favour ETFs or a small set of individual companies for this purpose (any suggestions of either? Thank you)

As always, thank you for your insights and wisdom.

Q: What are your top recommendations for Canadian power producers. I am selling Northland Power (NPI) based on my advisor's recommendation and would like to re-invest in the same sector.

Q: INE just released its Q2 results, earnings are up but cash flow is down and the dividend payout ratio is up as a result. So is the dividend at current level sustainable? And what is your take overall of the Q2 results.

Thanks.

Q: Could you please provide some information on Brookfield Select Opportunities Income Fund (BSO)? How does this fund work, and for whom would it be appropriate? For instance, would it be a fair assessment to use it as part of Fixed Income portion in a well-diversified portfolio? -- and to use it as a full position (in this case being around 5%)? I'm assuming it trades just like any other equity? Thanks for all your great service.

Kudos to Peter, also, on a great show on BNN last night. A superb explanation on what's going on at Concordia ... which should quell all the questions for a while. : )

Q: Hi 5i Team, at 63 I know I should be in Bonds........but can't get myself to, especially if they go Negative. Hence, I'm looking for 1 or 2 good companies that pay a good/safe dividend. CHR pays almost 7%, and their Air Canada contract is good until 2025, so low risk of the dividing slumping & using the Rule of 72, my $ should double in 10 years. Can you please comment &/or offer an alternative? Thanks!:)