Investment Q&A

• Quebecor Inc. Class B Subordinate Voting Shares (QBR.B $53.94)
  • $53.94 P/E (TTM): 15.33X Cap: $12.33B
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Q: Hi Peter and Staff
In my telecom basket I have a small position in QBR. It has done well but wondering over a 10 year period if you think it's growth and low dividend are likely to exceed those of BCE ,T,RCI, SJR or CCA
Thanks for all you do
Dennis

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Read Answer Asked by Dennis on January 03, 2017

• Genworth MI Canada Inc. (MIC $43.48)
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• Franklin Core ETF Portfolio (CBL $23.88)
  • $23.88 P/E (TTM): 12.4X Cap: $2M
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Q: Hi Peter and Staff
In my basket of non bank ,lifecos I have small positions in AI, CHW,FC,FN,FSZ and TF. I have been happy with all of them -would you drop any(which in order if so) in favour or MIC or CBL or be happy with what I have
Thanks for all you do
Dennis

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Read Answer Asked by Dennis on January 03, 2017

• BCE Inc. (BCE $35.69)
  • $35.69 P/E (TTM): 5.36X Cap: $33.28B
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• Rogers Communications Inc. Class B Non-voting Shares (RCI.B $53.39)
  • $53.39 P/E (TTM): 4.29X Cap: $29.03B
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• TELUS Corporation (T $18.57)
  • $18.57 P/E (TTM): 25.83X Cap: $28.98B
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Q: Are you still happy with T? I have held it since August 14, 2014. Since then it has increased by 24.5%, according to StockCharts Perf Chart, while RCI/B has increased 34.4% and BCE by 32.4%. Do you recommend a switch at this point? Can you explain why or why not?

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Read Answer Asked by Fred on January 03, 2017

• Magna International Inc. (MG $89.07)
  • $89.07 P/E (TTM): 17.63X Cap: $25.10B
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Q: Are the auto parts companies considered industrials or consumer discretionary? Thanks Bill

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Read Answer Asked by Bill on January 03, 2017

• Enbridge Inc. (ENB $71.80)
  • $71.80 P/E (TTM): 27.44X Cap: $156.66B
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• TC Energy Corporation (TRP $86.90)
  • $86.90 P/E (TTM): 26.86X Cap: $86.90B
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• Brookfield Renewable Partners L.P. (BEP.UN $43.97)
  • $43.97 Cap: $28.93B
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• AltaGas Ltd. (ALA $45.66)
  • $45.66 P/E (TTM): 18.02X Cap: $13.67B
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Q: In my 35-stock portfolio, I have a 9% overall weighting in the following:

ALA - 3%
ENB - 2.5%
TRP - 2.1%
BEP.UN - 1.4%

I am assuming that 9% is an "okay weighting" for this group (?) but my main question is, whether or not you see too much overlap in these stocks.

I know this group provides a mixture of storage and pipelines that move shale oil, crude, gas, etc. I also have exposure to renewable energy which has kept me from investing in other power-related stocks such as Fortis and Canadian Utilities.

Do you have any concerns about the weighting or overlap?

By the way, the only energy stock I have is TOU - 1.2%, if that makes any difference.

Thanks.

Jim

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Read Answer Asked by James on January 03, 2017

• Canadian Convertibles Plus Fund (CCI.UN $4.84)
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Q: Your opinion on CCI.UN for income and long term hold , is the 10% plus sustainable?
Happy New Year
Cec

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Read Answer Asked by Cecil on January 03, 2017

• iShares S&P/TSX Capped REIT Index ETF (XRE $16.10)
  • $16.10 P/E (TTM): 12.81X Cap: $1.10B
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Q: Since income trusts are taxed as income (highest tax rate), would it be a good strategy to hold them in a TFSA? and is there an ETF for income trusts?

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Read Answer Asked by Garth on January 03, 2017

• Superior Plus Corp. (SPB $6.30)
  • $6.30 P/E (TTM): 97.6X Cap: $1.37B
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Q: Greetings 5i,

Your thoughts on Superior Plus Corp.

Thank You and all the best in the New Year!

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Read Answer Asked by Duane on January 03, 2017

• Miscellaneous (MISC)
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Q: I have an allocation of about $66k for non Canada/USA equity Etfs. For maximum diversification (by country) Should I be looking at a few different ETF's in different regions (BRIC/Asia/Japan/AU) - or should I be buying one or two World (ex USA/Canada) ETF's - If so what what are your top 2 or 3. - Also is there a very broad international bod ETF as well?

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Read Answer Asked by Ron on December 30, 2016

• Caribbean Utilities Company Ltd. Class A Ordinary Shares (CUP.U $13.41)
  • $13.41 P/E (TTM): 11.99X Cap: $568M
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Q: Any thoughts?

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Read Answer Asked by Gilbert on December 28, 2016

• Vanguard Canadian Aggregate Bond Index ETF (VAB $23.34)
  • $23.34 Cap: $7B
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Q: I'm 56 years old with no fixed income and have been quite comfortable with this choice up until now. I recently have decided to have 5% in fixed income but have no knowledge on bonds. I have a balanced portfolio of stocks and try and hold 5% in cash to take advantage of good stocks in a down market. I was thinking of VAB and a 5 year GIC for fixed income. What are your thoughts and recommendations. Have a wonderful holiday to all at 5i and your families. Merry Christmas!

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Read Answer Asked by Cheryl on December 27, 2016

• BCE Inc. (BCE $35.69)
  • $35.69 P/E (TTM): 5.36X Cap: $33.28B
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• Fortis Inc. (FTS $77.85)
  • $77.85 P/E (TTM): 22.42X Cap: $39.50B
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Q: Hi, I want to purchase a good dividend paying stock. I am thinking of either BCE or FTS. What are your thoughts on BCE and/or FTS maintaining & growing their dividend yield. Thanks.
… Cal

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Read Answer Asked by cal on December 27, 2016

• TransAlta Corporation (TA $17.86)
  • $17.86 Cap: $5.31B
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Q: Could you expand on the implications of the new "contract" TA has with the province of Ontario

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Read Answer Asked by Edgar on December 23, 2016

• Richelieu Hardware Ltd. (RCH $44.02)
  • $44.02 P/E (TTM): 28.45X Cap: $2.43B
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Q: Could I please have your opinion of RCH. It has great 5yr and 10 yr charts and doesn't seem to be followed by many analyst's.

Thank you

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Read Answer Asked by George on December 23, 2016

• AltaGas Ltd. (ALA $45.66)
  • $45.66 P/E (TTM): 18.02X Cap: $13.67B
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• Enercare Inc. (ECI $28.99)
  • $28.99 P/E (TTM): 44.2X
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Q: Own half positions in each of these stocks - ALA and ECI - and plan to simplify by consolidating into one holding. Which would be your preference - for income with some capital appreciation?

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Read Answer Asked by William on December 23, 2016

• Fortis Inc. (FTS $77.85)
  • $77.85 P/E (TTM): 22.42X Cap: $39.50B
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• Algonquin Power & Utilities Corp. (AQN $9.31)
  • $9.31 Cap: $7.15B
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Q: With interest rates rising (in the US) the ongoing babble from so many 'experts' has been to stay away from 'bond proxies', namely utilities, telcos, pipelines, etc. However, those stocks have been performing quite well since the fed raised rates. Today Desjardins came out with top picks for 2017 (in the G&M which suggested Algonquin's forecasted returns would grow by 39% next year and Fortis by 17%. Do you think they're being too optimistic? And are these forecasted results already baked into the stock prices?

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Read Answer Asked by John on December 23, 2016

• Miscellaneous (MISC)
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Q: What is your favourite tech stock that has a decent yield? Time frame is forever.

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Read Answer Asked by Peter on December 22, 2016

• Enbridge Income Fund Holdings Inc. (ENF $31.88)
  • $31.88 P/E (TTM): 5.5X
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• TransAlta Renewables Inc. (RNW $12.48)
  • $12.48 P/E (TTM): 45.91X
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Q: Could you comment on both RNW and ENF? Do you have a preference or are both OK to hold for income?
Thanks and have a Merry Christmas.

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Read Answer Asked by William on December 22, 2016

• Chemtrade Logistics Income Fund (CHE.UN $16.19)
  • $16.19 P/E (TTM): 18.73X Cap: $1.87B
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Q: It is mentioned that Reits will be affected by rising interest rate ,are income funs like Che.un,Bpf.un similarly affected ?

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Read Answer Asked by terrance on December 22, 2016

• Enercare Inc. (ECI $28.99)
  • $28.99 P/E (TTM): 44.2X
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Q: Hi Peter and Team!!! A Merry Christmas to you all!!! A quick question, it is my impression that ABT and ECI pay out more dividends than they take in in earnings. Is this correct? And if so is it a problem and may the dividends be possibly cut? Cheers, Tamara

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Read Answer Asked by Tamara on December 21, 2016