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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: In response to a recent question on BIP.UN, you mentioned it is best in a RRSP or non-registered rather than a TFSA. Is that the same with BAM.A:CA and BRF.PR.E:CA as well? Is the RRSP the best account tax wise? I understand this is true for all US Dividend paying stocks and US Reits, but is it also the same for any TSX listed stocks that make income outside of Canada? Then for TFSA accounts, are they best for Canadian and US growth Stocks, and Canadian Reits?
Thank you!
Read Answer Asked by Pat on May 27, 2020
Q: Can you please explain why BIPC trades at such a significant premium to BIP.UN. I hold both now in rrif and tfsa accounts and read BIPC is structured to provide equivalent returns to BIP.UN. Yet as I’m writing this BIP.UN is $55.65 while BIPC is $62.06. I thought both units held the same securities and differed only in structure- partnership versus corporation for some tax reasons. BIPC is said to be exchangeable to BIP.UN yet why do this at a current loss of close to $7 /unit.
Thanks for your help,
Steve
Read Answer Asked by Steve on May 26, 2020
Q: Hi 5i,

I'm quite surprised at the premium of BIPC vs the LP. I am tempted to sell all my BIPC and buy the LP units to get more units and the higher dividend yield. If I don't make the trade, do you think the premium would persist? Or, is there something the company could/would do to remove the premium (e.g. issue more shares of BIPC only or make the units exchangeable both ways). Is that a risk of losing the premium then?

TIA!
Read Answer Asked by Wayne on May 26, 2020
Q: I own BIP.UN and received a small interest in BIPC as part of the transition from a “Unit“ to a regular company. It was my impression that the shares of the old company would be automatically converted to the new company, but so far this has not been the case.
Do I have to sell the shares in order to convert?
Thank you for your advise.
Ernie
Read Answer Asked by Ernest on May 15, 2020
Q: There is news that Brookfield Infrastructure LP reduced the dividend by 10%. I suspect this simply reflects the dividends declared on Brookfield Infrastructure Corp, not a real reduction for the enterprise as a whole. Is this correct?
Read Answer Asked by Carl on May 08, 2020
Q: I am underwater on these and would like to harvest the losses and re-buy after 30 days (or not). Can you suggest temporary replacements for each? Any of these names you would not buy after the 30 days and just add to others?
Please deduct as many questions as appropriate.
Thank you.
Read Answer Asked by Carlos on May 08, 2020
Q: I was surprised and now curious as to how come BIP. UN is listed as a utility and BIPC.CA is listed as a financial services? I thought that they were identical except for the structure.
Your comments would be appreciated.

Ron
Read Answer Asked by Ron on May 08, 2020
Q: Received some BIPC shares from my holding in BIP.un. At the beginning both were equivalent in $ but now the spread is between $3 and $4. Although both are in my TSFA, should a consolidated all in BIPC before the spread get bigger?
Read Answer Asked by ray on May 01, 2020
Q: I have held BIP in a RRSP for a number of years, and now also have a small holding of BIPC, which I am considering rolling back into BIP for simplicity sake to reduce total holdings. Is the distribution per share going to be exactly the same for BIP and BIPC? Are there any issues (withholding, etc) that would affect the distribution received from one stock and not the other, keeping in mind this is all in a registered account?
Some days the price differential is such that I could sell BIPC and buy BIP and the differential would more than cover the commissions (yeah, I would actually still lose). I would appreciate any comments about the pros and cons of this move.
Thank-you
Read Answer Asked by grant on April 27, 2020
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