Investment Q&A

Q: My portfolio is primarily stocks. Only bond position is XHY at 2.5% of portfolio. Want to add considerable fixed rate/bond holdings to get some balance. Could you make some suggestions. Thanks.
Dave

Q: Peter and His Wonder Team
On April 30th in response to a question you choose CPX over TA and stated TA was expensive. Since then TA has fallen approximately 20%.What do you think has caused this? Is it company related, the sector or fear of the NDP...or all three? If the shares fell another 10% or 15% would you consider it a possible long term contrarian play? Thanks for your thoughts!
Dr. Ernest Rivait

Q: I purchased Alta Gas some time back as a long term hold. Everything that I read about the company is very positive about its long term prospects. Your comments on this site have tended to be supportive of this position. Yet the shares continue to fall despite all this. The shares are down a lot since February and technically look extremely weak. Is there something that we are all missing relative to this company's prospects as the fall since February has been relentless. Today's trading appears to be starting another leg down having broken the support around $40. Clearly the market is not as positive about this company. at least in the past 4 -5 months. Is there any explanation for this drop and any rationale for continuing to hold the shares rather than stepping aside. I would appreciate your comments.

Q: with the recent slowdown announced from Teck and weak coal markets in general, what are your thoughts on WTE and does it have the balance sheet to protect the dividend? Thanks for your service.

Q: I'm hold some Pipelines and REITs and these have unrealized capital gains in a registered account. There is no need for income. Blue skying it - with interest to increase and 1/4 point seemingly backed into the stock prices for pipelines and REITS, when is the time to sell them?.....Thanks Tom

Q: Hi there,

I'm looking to initiate new positions in 2 of the following for my RRSP. Can you tell me what entry point you would target for each and which 2 you prefer? I am wondering if you expect any of them to drop in the next 3-6 months to create a better entry. Assume things are properly balanced.

I would only choose one of the pipelines and 1 utility if I went those routes. Thanks as always!

Inter Pipeline (IPL)
Pembina Pipeline (PPL)
Canadian National (CNR)
Canadian Utilities (CU)
Fortis (FTS)

Q: Hi 5i,

For long term investment quality if you could only buy VNR or TRP which would you pick and why?

Thank you,

Michael

Q: Hi

Currently looking to reduce exposure to the energy infrastructure sector. Currently hold ENB GEI IPL PPL and TRP. Which 3 would you recommend keeping? Thanks.

Q: I bought Enbridge Income (ENF) a few months back for income in my RSP. It has had nice capital gains since, and the dividend as a percentage of investment is obviously now lower. Do you see any advantage in taking the tax-free gains and moving to either ALA or IPL, which both pay a higher dividend rate. Any preference between ALA or IPL? I already hold Pembina in another RSP.

Thank-you

Q: I campionissimo its for Peter. I have 350 shares of Lassonde bought at 38.25. I may be want to sell and buy something else whithmore growth and dividend. Do you have something else in the same quality of cie. Thanks a lot.

Q: Hi 5i:

I am in the process of boosting the fixed income portion of my portfolio (knowing full well that nothing interesting is really fixed). I hold a preferred share ETF, a convertible share ETF, some short term laddered bond ETFs, and a high yield bond ETF. I'd like to add an income fund, and I'm more concerned about not losing capital than getting a lot of growth. AW lost less than BPF during the recession, and though BPF has gained more since, AW has done better from pre to post recession. I'd appreciate your advice as to which (if any) of these two to pick. Given my goals, do you have a better suggestion? As always, thanks for your great advice.

Q: Good morning,i own in my income acc.cnr/ipl/npi/ppl/ala;7% respectively.With the potential interest increase coming,i m thinking of reducing my position(sell)1/2(50%)of each holding.Do you think I am rushing for no good reason?
Thank you kindly.
PS:Great job 5i.

Q: Dear Peter and team:
Thanks for your update and report on H&R REIT. If I want to construct a safe, predictable income oriented portfolio based on just REITs and Utilities, what are the companies you will suggest? Say between 5 to 10 stocks? I am acutely aware of the interest rate risk, vacancy rate risk and potential recession risk. I ask this question b/c both Mr. David Stanley and Mr. Ross Grant avoid REITs and all the previous Income Trusts in their BTSX portfolio construction. BTSX is my all time favourite portfolio.
We are seniors and hence safety and income are important.
Great work by you and your team here and at CMS. Always enjoy your comments, answers and editorials.
Mano.

Q: I already own Enbridge and it is a large holding in my non-rrsp and I am wondering if Valener would be okay for a LIRA account or are these 2 stock similar?

Thanks

Q: Hi guys, I have fortis in my u.s. side of my portfolio, your thoughts on selling and purchasing more of either vig or spy.
Thanks
Jim

Q: The consensus seems that bond funds will tank when rates rise. I own a chunk of PH&N High Yield Bond Fund and an ETF Bond Fund - XHY. It seems to me that the active managers will position themselves for a rate rise so how do you see these two reacting when the inevitable day comes>
Thank you.

Q: With CU being at a 52 week low and it's long history of raising dividends, I am wondering your comments on purchasing a small position mainly for income. Stability, and increasing dividends are a goal. We do own FTS and EMA, TRP and PPl and wondered if adding CU would give some worthwhile diversification within the utility space? Are there risk factors of concern?
The continuing education I am getting through 5i is so very helpful. Thanks, Len

Q: In an RRSP thinking on Alaris or Freehold looking at a 5 to 10 year hold..Or to add to my Parkland fuel position..
What do you figure??

Q: Hello. I presently hold a fairly diversified range of stocks, most of which would be viewed as blue chip companies. However I'm concerned that I may be overweight in the pipeline/utility sector, where I have Key, ALA, TRP, IPL and PPL. In combination these would represent about 19% of my portfolio. Do you think I'm overweight in this sector, and if so, can you suggest which stock or stocks I should sell.

Thanks for the help.

Brian

Q: I am building an income portfolio to live fully off the dividends and therefore am mainly interested in yield in quality companies and not capital gains. What are your thoughts on investing 10% each into ETO.US (Y8.72%) and EOI.US(Y7.52%) to make up up 20% USD of my income portfolio?