Investment Q&A

Q: The stock price seems to be in free fall on no new company news. Is it just market gyrations, or is something else going on? Thanks as always.

Q: I didn't get any allotment on the Hydro One IPO and the price shot up after it went public so I stayed away. H has retrenched to 21.90. Do you see this as a good price for an income investor? Given a choice of H or FTS, which would you recommend?

Q: Hi 5i,
For direct exposure to renewable power would you be ok with RNW? I already own BEP.UN and AQN. The juicy yield is appealing.

Thanks in advance!

Q: Hi 5i team
I,m thinking taking a position in Ipl. Thought I would get your view first
Tks

Q: Would like your insight on enb. Has a good qr., increased 14 percent dividend. The outlook for 2016 is decent but the stock is in free fall mode. It's not even a pure energy company. Should I sell while I'm much ahead.

Thanks for expert advice as always. Rossana.

Q: What are the payout ratio's for ENB and TRP? Is the metric used for this type of company different than the traditional percentage of earnings ratio?
thx

Q: Are you familiar with Penske Automotive Group (PAG.US) or Group 1 Automotive Inc (GPI.US)? What would be your opinion?

Currently I do not hold either of the two companies but was considering a purchase of PAG.

Thanks

Stephen

Q: With exposure to Alberta and future growth and revenue how would you compare Ax.un and D.un ?

Q: This comp. has incr. it's dividend 2x this yr. by .01 cent each time: PR +300%, ROE minimal ( not making any money or very little), high debt.. I own and have for 6 yr now TRP & ENB and realize that this is not a pipeline company; but, does have a utility component now, I believe. Would I be putting too many eggs in one basket, if I bought this company? What am I missing here because all the number say stay away!!!!

Q: What are your thoughts on Fortis (FTS).

Q: Hello Peter,
Would you consider TD, Royal, Bank of Nova Scotia, Fairfax, BCE, Fairfax Financial, Manulife, Brookfield Management, Brookfield Infrastructure, Enbridge, metro, Loblaws, Google, Facebook,Visa as very long term holds where one can simply get the dividends (for some of these) and not worry about ups and downs of the market. I know you have covered these in the past, but am re-aligning my portfolio to focus on very long term holds. Thanks again for your advice.

Q: thank you for your hard work. tax loss season- is their 4 or 5 hi dividend stocks you could recommend? people are starting to sell high quality stocks that are getting sold down. i have nvu.un,d.un already. thank you

Q: My income stars of 2 years ago , Banks, Energy , Pipelines : have all taken me down …
Although we are told that volume ( not price per bbl ) is the big issue with Pipelines , I am concerned at a never ending downturn . I have stuck in there and I am overweight pipes: PPL, TRP, ENB .

Certainly Kinder Morgan’s debt problems are worse than the Canadian pipelines, but with the demise in energy, and an interest rate cloud on the horizon, should we be pulling back substantially to avoid a catastrophic loss ?

Q: I am a retired, conservative dividend-income investor looking to add to the stocks I hold in the telecom-pipeline-utility sector. My current holdings are ALA, AQN, BCE and those contained within ZLB.

The candidates include ENB, FTS, IPL, KEY, PPL, TRP. I then filtered these down by using the following criteria = Beta < 1.0, Dividend yield > 5.0%, P/CF < 10.0, P/BV < 2.0. The result is TRP.

I am looking for a blue-chip, stable, dividend-payer, dividend grower, with obviously some capital growth potential.

Do you agree with my methodology? Any other filters to use? For diversity within the sector, should I included other candidate stocks?

Thanks for your help,
Steve

Q: I like the Brookfield entities and have held them, in various forms, for well over a decade. I want to also like BEP, however, I don't understand something - their cash flow per unit has only increased by about 3% on average over the last three to four years. How can they and the market expect the kind of returns that many are anticipating (e.g. Scotia - 29% including 7.2% distribution) when the multiple isn't that compressed and the free cash flow isn't really growing? Thanks for the great service!

Q: I notice that AW.UN is currently paying a monthly dividend of .1250 which equates to annual dividend of 1.50. Current EPS, TTM is only 1.32.
Based on this alone, they can't cover the dividend... am I missing something here?
Thanks!

Q: Hi Peter and Ryan, can you provide any commentary on KWH.UN. Why has it dropped so much over the last month ?

Thanks

Dave

Q: Hi,
I bought it a month ago based on your upbeat position on the stock. Down 12% in a month, but what worries me most is that the stock seems to go down regardless of the market direction. Yet, the company looks good to me (re fundamentals, P/E and dividend), so I hesitant to cut losses and walk away. What is your current view of the company, do you see any growth potential in a mid term (1-3 years)? Do you consider the dividend safe? I know they increased it twice, but dividend cut will obviously cause avalanche selling - most of your subscribers experienced it with WIN...

Q: IPL recently raised it`s dividend and is now yielding 7.21%. As a person who relies on divs, I ask myself "Is this to good to be true? The chart is terrible but the div. is fantastic. So my question: If oil stays at $40 for a longer term at what point in time does this 7.21% become in danger? Three years,5 years? I understand that you do not have a crystal ball but is IPL turning into a yield trap? Thank You Ron

Q: I am a conservative retired, dividend-income investor with a pension and CPP. My portfolio includes mostly dividend-producing holdings (AD, AQN, ALA, BCE, BNS, CGX, CPG, PBH, RY, SLF, WEF, WSP, WCP, ZLB, XIT, Sentry Cdn Inc, Sentry REIT, TD Health, RBC Cdn Equity, Fisgard, and Annuities).

I am looking to add ZWH-T for income and some growth, acknowledging the T1135 inclusion and the dividends being treated as interest income. This would be held in my non-registered cash account.

Question 1 = would any dividend withholding taxes be reconciled at tax time, due to the USA-Canadian tax treaty?

Question 2 = would ZWH be an appropriate investment for my profile above? At first glance, it doesn't look like we have much foreign investments, but when you prorate the foreign holdings and/or income we have 30% non-Canadian investments (AQN, WSP are good examples). Is 30% too high for our profile?

Question 3 = I don't read anywhere about any hedging of the Canadian dollar. Am I at any currency risk?

Thanks for your help...much appreciated,
Steve