Investment Q&A

Q: As a retired investor, I am keen on stocks with low betas, high dividends and some growth. AQN, NPI and BEP all meet these criteria and are all up significantly, riding on a crest of green sentiment. These three stocks now compromise 13.5% of my total portfolio. I am loathe to part with my green energy stocks as they are doing so well. That said, have I put too many eggs in one basket? At what percent should I cap my green energy investment? Other than higher interest rates, what could impact continued growth in this sector?

On a related note, I am now overweight in utilities, which now represent 21% of my total portfolio. This includes the three above-mentioned stocks, plus Fortis and BEP. Would you suggest reducing this weighting? And if so, which stock(s )would you be inclined to sell?

Thank you.

Q: Hello. I think my queries submitted have gone AWOL! May I have your comments on earning please

Q: Hi 5i,
My BEP holding is up 70% and represents 5.2% of my portfolio. I see you are recommending trimming in your model portfolio. I was considering a trim sometime this year but I was thinking it would make sense to wait for the "free" new company shares that are being allocated later this year (1 for every 4 shares). Does this thinking make sense?

Q: I have read the q and a's on the proposed split but I am still confused so please bear with me if this is a repeat question. I currently hold 100 shares in my US Rrsp account as the dividends are paid in US dollars so this avoids any exchange fees. I understand that I once the conversion occurs I will own 40 shares of the new company. Should I sell before the conversion to maximize my US dollars and buy Bep in my Canadian Rrsp account? I guess I just need to understand the implications. Thank you.

Q: Can you name 8 companies with good balance sheets that I can buy long term bonds in. I may go out up to 25years.

Q: Which Canadian Blue Chip companies in Industrials and Utilities would you recommend investing in at this time?

Q: Could you please explain to me why Bam. has such a small dividend at1.1%, compared to Bip. at 4.08 and Bep at 4.46. Also, which of the three might fare better in a downturn. Thanks, Ken

Q: Seth Klarman has said that the greatest advantage an individual investor has is the abilty to have a long-term perspective. With that in mind, several years ago I had assembled a core 20/20 portfolio- 20 stocks for 20 years. They consist of:
CDA: TD, BNS, BCE, ATD.B, BAM.A, CSU, CGI, FTS, ENB, CN RAIL
USA: APPLE, GOOGL, AMAZON, VISA, BRK.B, MCD.

I also hold smaller quantities of utilities ( AQN, EMA, BIP.UN), small growth mutual fund (mawer global small cap) and reits for diversification. Can you help me complete my core 20/20 by suggesting 4-6 US DIVIDEND GROWTH STOCKS and perhaps 2 Canadian holdings that I should add or replace. Appreciate your excellent service as always.

Sincerely Ajay

Q: What are your thoughts on these companies? Looking at investing in hard assets at this stage in the cycle. Will they hold up better in the event of a recession?

Thanks,
Jason

Q: My direct investing account categorizes BEP.UN as American equity. Does it really qualify as a US holding?

Q: Hello 5i,
Should I move my BEP:US, BIP:US back to my unregistered Canadian account to avoid withholding tax and get the dividend tax credit?
Thank you
Stan

Q: hi, 5I
Your response to a question about buying that stock:
We would be comfortable buying BEP.UN today.
My question is what parameter(s) are you rely on to say that, apart the fact that it is doing new high everyday (I like the change from limited partnership, and the market also )
But this is a one time, and it seems very expensive to me.
Your detailed answer would be very appreciated
CDJ

Q: Hello 5i. I would like your opinion on the renewable energy industry. These companies seem to have done well over the yr. Would you classify these as being cyclical and what would there cycle be? I am looking at getting into these but find their valuations expensive currently. Do you see a catalyst for their prices falling in the near future or do they have momentum on their side?

Q: can you give me some companys you follow with renewable energy to buy thanks

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: 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: Hi Peter/Ryan can you tell me if there is benefit or a drawback in holding a trust in a TFSA more specifically BAM or BEP.UN. I was thinking of adding one of these. Which would be a better addition to a TFSA to reap the greater reward. Thanks, Nick

Q: Hi Team,

I love the work you do. I was just wondering what you would recommend purchasing when KWH.UN gets bought out? I am looking to replace it with another utilily. I owned Enercare, but when that got taken over I didn't replace it with another utility (but a bank stock). I am really looking for a good utility company. My investment style is that I try to be balanced. I like a combination of growth and dividends and hold my stocks for a long time. If you currently like a few, could you rank them in order and tell why you like them?

Thank you for all your hard work,
Terri