Investment Q&A

Q: Hi all,
I am a buy and hold dividend investor looking for income and some growth with a 5+ year horizon. I am considering opening first positions in the above mentioned Brookfield family. I am interested in your opinion on the relative merits of these investments (how would you rank them). Also how / where should they be held in relative order to minimize taxes - Open / RRSP / TFSA - CAN / USD account?
Thank-you
Ken

Q: Hello 5i
The P/E for BIP BEP and CSH seem a bit odd. Would you please explain the reasoning of these P/E's?
Thank you
Stanley

Q: 10:15 AM 5/16/2019
1. Could you please provide the numbers for, and compare and comment on : debt levels, financial leverage, debt to cashflow, and payout ratios for EMA, FTS, AQN, BIP.UN, BEP.UN.
2. You seem to always rate EMA at the bottom of the list [Why?] but I believe EMA has sold off some significant assets [Emera Maine and others?, more to come?] so debt levels should be lower, so is it a secure buy now for long-term dividend income?
3. I worry that BIP and BEP both have extremely high payout ratios. You have suggested that a total of 15% of one's portfolio in these two would be acceptable. Are you still of that opinion?
Thank you........ Paul K

Q: Own all 3 in TFSA: 400 SIS, 1500 SPB & 1000 BIP.UN (thanks to ECI purchase - ended up with 1500 - sold 500). Sitting on $50K cash in this account. I was thinking of adding 600 SHS of SIS and 500 SHS of SPB ( owned since 2009) which will still leave me with a fair bit of cash to deploy. Comments/suggestions. Not a lot to choose from in TSX group. Large equity portfolios: RRIF, RRSP & Non Registered accounts.

Q: I am retired and currently own both companies for the long term. Bip at 3% and Bam at 5%. I want to raise my exposure to the Brookfield companies. Looking for a stable dividend and some growth. I also like BPY. Would you rather raise BIP, to 5% add to Bam or add a chunk of BPY. say at 3% for a first piece of it. Is there an overlap problem owning various Brookfield companies ?

Q: Hi,
What is your opinion on BIP.UN results ? Do you still like it?

Thanks,
Morris

Q: I have all these stocks in my non-registered account, I have some money to deploy. My two smallest holdings are CP and WCN, should I add to either one or would you suggest a new stock?

Q: US dividends - not a question.
The Canadian stocks above also pay US dividends.

Q: Not a question but information about dividends received from the above. I have my investments at Questrade, and hold the Canadian-listed in my LIRA and TFSA and the U.S.-listed in my Spousal RRSP. I have been receiving the Canadian dividends (as per close of day Bank of Canada exchange rate) paid into my Canadian account without any fee and U.S. dividends paid as announced into my U.S. side of the account. This occurred without me making any request of Questrade. I believe it is because Brookfield pays the dividend to the brokerage in the currency of the stocks held.
Cheers, J

Q: Hello Team,
After the parent company, which of the Brookfield companies would be your favourite in terms of total return and why.
Thank You,
Barry

Q: I own several Canadian stocks in my TFSA that pay dividends in USD. Are the dividends eligible for the Canadian dividend tax credit?

Q: 7:10 AM 4/11/2019
When I search the BIP.UN website I find:

"Specified Foreign Property
For the purpose of reporting foreign property by Canadian investors, pursuant to section 233.3 of the Canadian Income Tax Act, Brookfield Infrastructure Partners L.P. is not a specified foreign property and therefore does not need to be reported on Form T1135 - Foreign Income Verification Statement."

However when I search the BEP.UN website I find no comparable statement. But I get a statement from TDWaterhouse Wealth to the effect that BEP.UN IS a foreign property.

Does this mean that BEP.UN needs to be reported as foreign ownership or is BEP.UN just like BIP.UN and TD has made a mistake?

Thank you....... Paul K

Q: I’m considering Brookfield Infrastructure Partners (BIP.UN) for my TFSA as a means of diversifying from common shares while maintaining a return above current fixed income rates. Would you recommend the current price of $54.92 as a reasonable entry point or is there a valuation point that you would be more suitable considering that I would also like to ensure potential growth? Alternatively, is there another security you would consider in order to achieve my goals.

Q: Good Morning,
Can you please rank in order of preference.
Currently own CSH & BEP.

Thank you

Q: I would like your comments on the Brookfield group of companies. You have BEP.UN in your income account. How would you rank these. I am a retired 77 year old interested in a conservative dividend generating portfolio. Have have BEP.UN and BPY.UN in my portfolio.

Thank you.

Q: I own 1500 SHS of BIP.UN in my non-registered account and a 1000 of the other in a registered account. I noticed that my Mar. distribution for BIP.UN was $1012.00 not 1500 x .5025 = $753.75? This is what> The difference is ROC? These type of securities should probably be held in a registered account, I would think? Very complicated at tax time with the T5013. Unfortunately, you cannot exchange securities - ie. BIP.UN to registered account in exchange for securities of same value. BIP.UN has been an awesome investment.

Q: Hi 5i:

I hold 5% positions in both and have solid gains. I was thinking of dropping one and going to RPD or FDC and raising my tech exposure to 10%. Which one would you drop from my portfolio and do you like this strategy? I have a 5% position in KXS. I am well diversified across all sectors. Thank you.

docsinc

Q: Hi, I am looking at buying minimum rate preferred share trust units in BEP and BIP and similar to the common shares a portion of the distribution is return on capital. I will hold them in an RRSP account. I am trying to better understand what ROC actually is. It almost sounds like it is just returning part of your capital invested back to you. If so, is it a ‘real return’ to the shareholder or just getting part of your money back. If so, what is the attraction? I’m confused. Thanks.

Q: Is it better to hold bip.un in a rrsp account? If so, Is there a way to transfer these shares from an unregistered to a rrsp account without capital gain tax?

Q: 7:42 AM 3/25/2019
I am looking to invest in 10 or 12 of these companies for a very long time: RY, CM, BNS, CNR, SU, CNQ, NTR, ET, NWC, FTS, EMA, NPI, AQN, BIP.UN, BEP.U, ENB, TRP, PPL.

I am concerned to select companies with the highest probability of surviving a severe recession intact while continuing to sustain or increase dividends over the next 10+ years.

I fear some may have too much debt or other "hidden" problems to survive a major downturn so could you please comment on debt levels and vulnerability.

Could you please arrange them in order of "security of income", safest first, and maybe single out any weak ones. I am not overly concerned about future price fluctuations as long as dividends can be sustained.

I quite realize these are not the same as government bonds and do not have the same levels of safety. I intend to hold them purely for rising income with no intention of selling.
Thank you............. Paul K