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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: I am a fan of renewable energy and have positions in the following - NPI - 4%, BEP.UN - 3% and INE - 3%. I would like to add to either BEP or INE to bring one of them up to 4%.
What would your preference be for a long term holding considering dividend safety and dividend growth as well as capital appreciation over the long term - 5 years +?
When I look at BEP on Morningstar I see a long term debt / equity ratio of 2.3. INE shows the same ratio at 7. Revenue growth at INE seems better. Is INE's debt level a concern?
Thank you
Read Answer Asked by Robert on July 31, 2018
Q: Having sold both of these in the past couple of weeks, I was going to repurchase them in 30 days, but don't think I will. They both seem to be income type of stocks and I would prefer some growth. Can you recommend any stocks with better growth in these sectors or perhaps I just keep away from certain sectors as your balanced portfolio does.
Read Answer Asked by stephen on June 07, 2018
Q: Hello 5i,
I have a question which I don't know if it falls in your domain. But, i will try it. I have been thinking about gradually switching my utilities sector towards renewable energy. Currently I hold Algonquin and Emera which I will want to keep. { I know Emera is not on the renewals side, but i have a large cap gain and I don't want to pay the tax. There are other reasons to keep it, too}. Then, I have Enb and transcanada, which I would plan to sell if they come back a bit. I currently have about 9% in utilities where I think you recommend 15 for a retired person; but I am ok with that and am overweight technology and industrials. could you suggest a name or some names which would round out in a balanced way such a sector allocation?
thanks as always for the great service
Read Answer Asked by joseph on April 19, 2018
Q: I am thinking about switching from Alta-Gas to Innergex for a 3% position and taking a reduction in yield. 5 to 10 years holding time. The 2017 INE results were out late today. In looking them over I see significant improvement in revenues and adjusted EBITDA as well as a drop in the payout ratio due to an improvement in free cash flow. The dividend was increased modestly by 3%. However, earnings were down substantially.
Power generation was down due to lower flow volumes in BC and lower than average winds in France.
Would the anticipated rate increases be discounted in the current price in your opinion?
Do you think this is a reasonable switch at this time? Also, in your opinion is there anything in the 2017 results that would be a major red flag for you that I might be missing?
Thanks as always,
Rob
Read Answer Asked by Robert on February 22, 2018
Q: Hi, would like your opinion on Enf. I have had it over a year with a 4% loss,but doing ok with dividend.
I was thinking of switching to either CWX or INE for a little more growth with a dividend. Would you consider this a ok switch or would I just be spinning my wheels.
Sector is no problem, but do like good management,good cash flow, lower debt, some growth etc.
Or could you recommend one or two dividend stocks with some growth?
Thanks,long term member

Read Answer Asked by Brad on October 24, 2017
Q: Hello 5i,

Would you have interesting companies on your radar screen that are either in the renewable energy, water, or waste sector that would be eco friendly?

Please exclude BEP.UN AQN, BLX, and INE.

(aware of market cap risk and sector risks)

Thanks!
Read Answer Asked by Elliott on September 15, 2017
Q: Please list these stocks in order of preference for a purchase today. At present I already own BEP.UN and AQN. Also, does adding a third stock in the renewable energy category result in over-exposure? Thank you.
Read Answer Asked by Barrie on June 13, 2017
Q: Greetings 5i team: Could you please comment on the above stocks with respect to their current versus historical valuations? I guess I am trying to gauge the extent(if at all)their share price is being "propped up" by their yield. I think I know the sectors that are considered most vulnerable to interest rate increases, but do any companies jump to mind that could be more negatively affected than their peers, particularly if rates rose faster than the market anticipates or for the wrong reasons, i.e. inflation versus economic growth? Thank you and best wishes,
Read Answer Asked by Stephen R. on December 21, 2016
Q: Hi Peter and Team,

I find that we need to buy some more in the Utilities sector, to keep to a 10% weighting. We presently have about a three-quarter position in each of AQN, BEP.UN, and FTS. Do you think that INE would be a good addition to this mix or is it too similar to AQN and BEP.UN? We can buy and sell XUT commission-free, but I notice that ZUT (not commission-free) has a better chart. Should I increase our positions in each of the three we already have, buy a new one, or top up with XUT/ZUT? Or is there a US ETF in this sector that looks compelling? Or perhaps in the present "climate", could the utilities sector weighting be reduced below 10%? What sector should take up the slack?

Thanks for all your great advice which has been and continues to be very valuable. A Merry Christmas and Happy New Year to all of you at 5i and the members as well.
Read Answer Asked by Jerry on December 21, 2016
Q: I own a portfolio of preferreds...both reset and perpetual. Many of the Perpetual shares have returned to $25 and above. I want to role out of a few of these names and buy some other perpetual shares that have some upside potential. A name I came across is INE.PR.C. The investment currently yields 6.5%. DBRS rates it as PFD 4 high which is about as low a credit quality as you can get. Yet the market...as well as the comments on your service seem to like the common shares. Also the price in reflection to the yield seems very mispriced in the current preferred market. Is there something I'm missing??
Read Answer Asked by nicholas on August 23, 2016
Q: I've own WSP since 2014, though still sitting on a 10% gain, I'm frustrated by the poor results of the last year or so. If I choose to reduce this holding, I would like to pick up something in the renewable energy sector. The two candidates I have in mind are BLX and INE. Which one of these two, in your view, has the higher growth upside and the potential for sustainable increase in dividends? Or staying with WSP would be a better option than switching to either of these two?

Thanks.

Read Answer Asked by Victor on July 07, 2016
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