Investment Q&A

Q: Which of these is better to move from my investment account to my TFSA? I own both but can only move one (80 BIP.UN or 100 BBU.UN).
John

Q: Hi still hold all 4 of these stocks but would like to consolidate them, the BIP shares are in an RRSP of BEP in a non-registered account which is more income oriented. I am mainly concerned with which have more growth.
Thx
Nancy

Q: I have owned BIP.UN for four years and have a 76% unrealized capital gain. I also have a small amount of BIPC as a result of the recent spin off which has a 78% unrealized gain. I do not want to own both as they are essentially the same and BIPC represents only 0.3% of my portfolio. The plan is to amalgamate by selling one and using the proceeds to buy more of the other.

The question is which one to sell? This is in an unregistered account. Which of these two do you favour in an unregistered account? A sale of BIP.UN will result in a greater immediate tax liability than BIPC but the tax will have to be paid at some point anyway and it might be a good idea to decide, at this time, which is the best one for me to own going forward. I know the premium on BIPC is expected to decrease but so for it has not. In fact, over the past 8 months BIPC has increased approximately 78% while BIP.UN has decreased 6%. Over this time, BIPC has increased in market value approximately the same percentage as BIP.UN has over the past 4 years.

Q: I hold BIP.UN in a registered account. When BIPC was created I decided to keep BIP.UN but it is looking like I don't understand the corporate structure. Typically with a unit trust or a partnership the unit holder pays the tax on the income whereas the tax is paid within a corporation so dividends are "after-tax". Since the amount of the distributions are the same for the two entities I figured that BIP.UN would be better off because it didn't have to pay all the tax on its income. By my rough calculations: since the split BIP.UN is up about 20% whereas BIPC is up about 80%. What did I miss?
Thanks for your insight.
Ian

Q: Good morning,
Q1. Your thoughts on FAI ETF as a core holding in a RSP and/or TFSA account would be appreciated.
Q2. I currently hold in my RSP (US$) and TFSA some of the names held in the FAI ETF (AQN/BIP/PKI/BAM/EMA) and would appreciate your thoughts on each of these companies and whether or not it would make better sense in terms of risk and growth potential to simply replace each of these companies with an equivalent purchase of the FAI ETF.
Thank you.

Q: I hold the above 7 stocks in my RRIF. I have to sell part of one of them soon.
Ignoring sector balance; I am concerned with maximizing long term growth whether it be capital gains, dividends or interest. So I would like to sell the one with the poorest prospects for gains over the next 2-3 years.
I should also note that my largest holding,NVDA, is over 7% of my entire investment holdings. This is a level where I would normally start to trim a bit but it has been on such a tear that I have been reluctant to trim it. And I note that you are still keen on it as a growth stock.
So I am comfortable to leave it alone if you agree.
Which would you suggest be sold?
Thank you

Q: Hello Peter, Ryan and Team,

I need to sell some of my shares in these companies to fund another investment. Of the stocks listed, in what order would you be inclined to sell first? Thank you.

Brad

Q: Hi!
Stocks have increased a lot recently and most of the above are well off their lows with stocks like BEP and BIP almost reaching their high of the year. Would you feel comfortable entering new money into the above names for income/growth or wait for a pullback? I know timing the market is next to impossible but do you see this rising market as sustainable and if one waits will the opportunity to enter still at reasonable prices be missed? Also, what are your thoughts on RDVY. It was not listed as a choice on the drop down list.
Thank you!

Q: Doing a complete revision of my portfolio and these names came up for consideration.
I would appreciate your input as to whether they could be a good investment at this time.

Q: According to a TD Waterhouse report issued on Nov 10th, the valuation of BIP.UN using forward P/FFO looks very attractive over the next two years in comparison to 2020:
2020E 16.1x, 2021E 13.7x, 2022E 12.5x
As long as it can maintain it's current multiple over the same period I should be able to experience capital appreciation.
How much confidence should I have in these forecasts? Do these forecasts seem reasonable for the stock?
Thank-you.

Q: I don't know how to derive an estimate for the fair value of the difference in share prices for the above Brookfield companies. Since the date of their respective share distributions, BEPC and BIPC have outperformed their economically equivalent LP unit prices by 30% and 39% respectively. When are the price premiums too big to account for the differences in tax treatment and investor access?

Q: The BIP.UN and BIPC difference is approached $20. It seems that when BIP.UN goes up BIPC goes up twice as much. For a clear momentum stock, would you invest in BIPC instead of BIP.UN, thanks

Q: Looking to take a position in these three companies. What is your opinion on each? Take as many credits as required.

Q: Hi Team, Looking for a stable type of name with some yield to accompany some a high growth U.S names in my daughters TFSA, between FTS and Bip.un Which would you prefer at this time for a very long term hold. I thank you in advance, Sam

Q: About 3 months ago you provided a report on IPP.UN. By all accounts things looked favourable and it appealed to me thinking it was defensive but since then it has decreased about 15%. I recall a comment from you since then, suggesting the Gov't bringing in rent controls had a negative impact. Where do you see things going for IPP.Un from here?
I also have BIP.UN. Do you see it as defensive?
If I want to raise some cash, which would be better to keep? Thank you for your excellent service.

Q: Peter,

I own Atco, Algonquin Power, Fortis, Canadian Utilities , Emara and Brookfield Infrastructure. My concern is I am missing out on the renewables / green space companies. In the utility space what other recommendations you would give to ensure I am covered.

Thank you
Paul

Q: I am looking to build a new portfolio of dividend paying stocks that average about 6% yield but with some capital appreciation possibility. What would be 5-7 good names to look at?

Q: Hello,
Over the years, I've accumulated a significant amount of BIP.UN in an RRSP account, with the intention of holding it for the income generated over the long term. Since the Mar 31 split, shares of BIPC are up around 50% while BIP.UN is up around 28%.

Does it make sense to cash in this gain, sell the BIPC and use the proceeds to buy BIP.UN, thus adding some "extra" income generating units? Would also make tracking a little simpler.

Any other factors to consider?

Thanks for your time,
Roman

Q: What are the prospects for BLX and advise if both positions should be held or sell 1 and invest proceeds in the other.

Q: Hello 5i Team
I own several Brookfield entities (BAM.A, BEP/BEPC, BIP/BIPC, BPY/BPYU and BPO preferred) in various accounts based on tax effectiveness/reporting (based on my own interpretation).
1 - What would be a reasonable percentage of an entire portfolio (non-registered, RRSP and TFSA) that should be allocated to the "Brookfield Empire"? My thoughts are an investor should have no more 10 % of an entire portfolio invested in the various Brookfield entities as an optimum amount.
2 - What would be the absolute maximum of an entire portfolio (non-registered, RRSP and TFSA) that should be allocated to the "Brookfield Empire"? My thoughts are an investor should have no more than 15 % of an entire portfolio invested in the various Brookfield entities as an absolute amount.
3 - What would be the allocation of the amount invested to each of the Brookfield entities in the portfolio amount allocated to the Brookfield entities (i.e. BAM.A 25%; BEP/BEPC 25 %; BIP/BIPC 25 %; BPY/BPYU 20 %; BPO Preferred 5 %).
I have not included BBU as part of the question as I don't see the need to invest in it.
Thanks