Investment Q&A

Q: You have an updated report on Enbridge (ENB) dated 24 January. In the SUMMARY section of that report I see the words "bond proxy". That's an interesting concept. I own a full allocation of ENB because it is a safe, stable source of tax-advantaged income - indeed a sort of "bond proxy". Staying with that idea, are there other equities/ETFs/products that 5i would consider to be "bond proxies"?
Can you suggest a few?

Would a close look at your Income Portfolio provide a selection of appropriate names?

Tax-advantaged income is preferred over interest-producing products.

Thank you,
IslandJohn

Q: I am debating taking a half position in MRU and EMP-A or a full position in DIR-UN. The two grocery stores are down a bit but will there not be consumer pressure to keep prices reasonable which could influence profits? I have no idea! What would the experts at 5i suggest here?

Q: Hello 5i Team

I currently hold shares in Canadian Utilities (CU) and a smaller position in Emera (EMA).

With CU recent dividend increase of 1 %, I am beginning to become disillusioned with CU, as they appear to have minimal growth. ATCO's recent dividend increase was approximately 3 %.

If I sell my CU position and buy EMA, I will reach my target holding of EMA. I would then look to buy ACO if it drops to approximately $40 (potentially selling puts to generate income).

Questions

1 - Does this seem a reasonable course of action?

2 - Should I continue to hold CU and slowly buy EMA to hit my target holding?

2 - Should I sell my CU position and buy ACO?

Thanks

Q: I have some Tou at a much lower price and was considering selling half and waiting a few weeks in hopes that gas price rises and repurchasing at a lower price. Thoughts?

Q: What would your top three picks be for you income based companies in your model portfolio? i.e. Top 3 buys today?

Q: Hi 5i,
I was watching a recorded market call yesterday from early Feb, with Ryan Bushell. He made the case that T will outperform BCE in the coming years (he seems to be very much a long term investor) and he laid out a number of reasons why he thought BCE might underperform T. It made me look at my holdings in each and wonder if I should switch out my BCE for more T.
In reviewing them, the share price of BCE has declined just over 8% in the past year while T is down 9.3%. Their P/E is near the same, but BCE's ROE is currently 15.6% to T's 12.7%. The current yield on BCE is 6.26%, compared to 4.9% for T. Based on my purchase price, I'm earning a little more than that on each - 6.55% on BCE and 5.12% on T.
I know that Ryan's take is based on his view of the future for each name, and he thinks the future is rosier for T. But based on the numbers I've laid out above - which I recognize are all about the past and not the future - I don't see a compelling reason to jettison the BCE I hold in my RSP and use the proceeds to bump up my T.
I would be very interested on your thoughts on the two, looking ahead.
Thanks,
Peter

Q: I know you generally have a favorable opinion on Enbridge, but I have a hard time getting past a couple of things about the company:

1. Debt load - While their cash flows have been increasing, so has their LTD. And they don't seem to be in any hurry to pay it down. That, and with interest rates moving up, will the increased service costs not hamper their future dividend growth?

2. Dividend - It was not that long ago they were forecasting 7-10% div growth. Then they reduced it to 5-7 and then 3-5. The most recent increases are closer to 3% than 5.

While I acknowledge the things they provide are basically necessities (so we need companies like this), are the best days behind this stock? Do you see another stock that is akin to Enbridge 15-20 years ago in terms of growth / dividend growth?

Thanks in advance. I appreciate the service you provide.

Q: Between these two US energy conglomerates, and in a RIF account looking for consistent yield north of 4%, which would you prefer and briefly why.
Also wondering which has a larger breadth of operations.
Thank you

Q: I am tempted to trade Loblaws for Telus in my RIF. Telus has a better dividend and to me seems to have greater growth prospects. What do you think of this trade?
Thanks
David

Q: My margin account interest rate is currently at 7.90%. With recent increase of interest rate by BOC, the rate may go up by another 0.25%. Out of the 5 stocks I am holding in this account, only two (MPCT.UN and PEY) have dividend higher than the interest rates. Would you recommend any other Canadian stocks with high dividend/ yeild for margin account.

Q: Dividend yield for ENS is 10.10%. Lower than in the past but still very high. How can they pay out this much when ENB only pays 8.77%?

Would you be a buyer of ENS?

Thanks as always. Your advice is appreciated.

Q: Hi is Eif directly impacted by the rising interest rates? Has Eif locked in their interest rate on debt?
Do most companies manage their exposure to debt as well or better than Eif?

Q: What do you think of TITANIUM TRANSPORTATION , management , financials, growth prospects ? Would you suggest buying for a 1.00 % ( total all portfolios )weighting in an TFSA ? Thanks. Derek

Q: Do you foresee any share price growth over the next year? Two years?

6% is still a large dividend. Is it sustainable?

Is their debt manageable?

Q: Just looking for updated views on both.

Q: From a dividend growth and overall return perspective, could you please rank the above etfs ? I do not need the income so my preference would go to HXT. Am I getting exposed to a lot more volatility in your opinion ?

Q: Hello 5i,
Just a follow up on feb 6 question on bipc. Was it attractive below $40 usd or cad?
What is the actual p/e on it?
Which would you consider better today: bepc or bipc for total returns over next two years?
Tia

Q: Looks like you can get everything in this 1 stock. Utilities, Railways, toll roads, pipelines, data centres, ports, communication towers and so on.
How would you value this for a long time purchase, i definitely want to avoid another AQN.
I have their debt to cashflow at around 4.6 x ( net debt 4.16 B ) ( Cash from OP 0.893B)
In your deep dive do you see any alarm bells ? and at what price would you see it as attractive?
Thanks Gord

Q: Hello 5i,
Could you do a brief comparison of the these companies pros and cons and which you would chose?
Thank you
Dave

Q: Good Morning 5i.

I am looking for some US income suggestions.

Preferably with yield’s in excess of 4%.

Long term - safe and secure - holds with potential for dividend and value growth.

Thanks very much.