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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Corby now ranks among the top 10 undervalued stocks in the Consumer Defensive sector and is trading near its 52-week low. It recently reported decent second quarter results, pays a nice dividend and carries no debt. Do you agree this is a good entry point for a small position, long-term hold in my RRIF? I am otherwise well diversified and have good liquidity.
Read Answer Asked by Jean on March 23, 2023
Q: Retired, dividend-income investor. I hold AQN in my RRSP, bought it in 2011 at $5.60 (not a typo) and have trimmed it multiple times due to asset allocation. Not that it matters, but I am still up 15% over my ACB.

Looking forward is what really matters. AQN is up roughly 20% from it's low of around $9/share. Q#1 = Do you think AQN can continue their short term performance?

I hold AQN, FTS, TRP, NNRG, NRGI, and utility-energy stocks held within CDZ, ZLB, ZWC. Q#2 = What conservative utility or infrastructure stocks should I consider that might "fill the gap" in my current holdings? Please list 4-6 stocks for me to do further research on.

Q#3 = Should a component of "renewables" be a consideration? That was one of the reasons for holding AQN. Ideas?

So the bottom line is = what's done is done. AQN appears to be starting to recover and there is always the chance of being bought out.
1. Hold of sell,
2. Replace with what,
3. Include renewables?

Thanks for your help....Steve
Read Answer Asked by Stephen on March 22, 2023
Q: Over the years, I have heard some fund managers calling the ENB business model deeply flawed: taking on more debt to fuel ”growth” while simultaneously raising the dividend. If ENB was truly creating shareholder value I would expect that to be reflected in the stock price over a long period of time. Yet ENB stock has been flat for nearly a decade. Is it reasonable for investors to take on equity risk in order to earn 6% rate of return in a company with increasing debt? Would it not be better to invest in a company that can demonstrate some organic growth or accretive acquisitions?

Appreciate your perspective. Thanks.
Read Answer Asked by Joel on March 22, 2023
Q: hi, can I get your thoughts on earnings, thoughts on AQN going forward, etc.
I still own large position, suffered the downturn in price/dividend, with a potential good size tax loss advantage if sell. do you see this as a buy, sell or hold for an average investor? and in my case, if selling for the tax advantage, can I get 5 or so names of mid/higher dividend yield/some dividend growth/decent company earnings growth and decent ROE, with lower risk and lower volatility? names do not need to be utilities (I own plenty). further, if you have high conviction on any growth stock (CDN companies) right now I could consider, eg BN?????
cheers, chris
Read Answer Asked by chris on March 20, 2023
Q: I couldn't resist this dividend machine and picked it up in Dec'22. I know there's a lot of factors involved (oil prices/shareholder payouts/production costs/depletion/new plant & equipment etc.) but in the current environment it appears to me that they'll be cash flow positive enough to eliminate their meager debt this year and then some. Do you have any idea what the cash flow forecast is for Gear this year and how it is derived (i.e. various components)?
In summary, do you think a return of capital is likely?
Read Answer Asked by DAVE on March 20, 2023
Q: Historically, have utilities not performed well in times with higher inflation?
Read Answer Asked by Jerry on March 17, 2023
Q: Many companies have become addicted to low interest rates over the last decade. Assuming that interest rates stay where they are for years to come (a rate once considered somewhat "normal"), do you see any problem with any of these blue chip stocks maintaining their dividend ? I'm sure over the course of the next 5 years or so some of these companies will need to renew debt at higher rates.

Read Answer Asked by James on March 17, 2023
Q: Hi 5I. I have bought Gibson Energy around $21 a few times and within 6 months it gets up to $24/25 or more and I sell it. I see it as a safe risk/reward play. At sub $22 per share Gibson pays a 7 per cent plus dividend that I think is pretty safe (what is the current pay out ratio?) I am happy to collect a decent dividend and patiently wait for the stock to appreciate. If it languishes I am fine with the divvy. I don't see that much more downside to Gibson. A couple of years ago it did dip under $20 VERY briefly. What is your opinion on Gibson Energy as a safe place to park some money when it trades under $22?
Read Answer Asked by Paul on March 17, 2023
Q: With the recent draw down in the oil price, is now a reasonable time to gain some exposure to the sector and what are your thoughts on the oil price/sector for the remainder of the year? Could you also recommend your top 2 small, mid, and large cap companies for this sector at this time?
Read Answer Asked by Dustin on March 17, 2023
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