Investment Q&A

Q: Hi 5i,
I have 3 different questions- please deduct accordingly.
1.) Since March 24 KEY (+12.46%) has outperformed each of ENB (+6.21%), TRP (+8.75) and PPL (+8.06%) by fairly substantial margins. I know that's a short time frame, but can you offer an explanation for KEY's better performance, and would you expect it to continue to lead the others over the next year?
2.) GSY is at or close to its lowest level since January 2021 - do you think the relevant company, sector and economy related bad news is now priced in and expect it to recover to the $150 range over 12 - 18 months, or do you think that's a pipe dream, and why or why not?
3.) In your opinion is ET likely to recover to at least the $14.00 level (where I bought it some time ago) this calendar year - and why or why not.
Thanks!
Peter

Q: How do you think SU will do in the next couple years and what would be your top 5 favorite energy plays in the Canadian Market? Also, with China reopening, US dollar on a downtrend and noticing several major Metal/Copper stocks gapping up like FCX and VALE, SCCO, how would you rank these and what are your top 5 companies domestic or international to take adv of rising commoditiy/metal prices

Q: What do you think of Oil as seasonally strong for summer months.? We are seeing some uptick for the past week.

DVN
ENB
XOM
MPC
MPLX
a favourite ?

Q: Hi Everyone!! Peter, I always enjoy your article in the National Post. In this past one” Five things I wish I knew when I started out”…. You mentioned as one of your points , that companies that don’t need any money at all are the best investments . Could you please list a few Canadian and US companies that are in that situation?
Cheers,
Tamara

Q: Can you give me 4-5 Canadian non financial divvy stocks that look attractive to you right now? Thanks

Q: Hi 5i,
Do you still favour LIFE over DHT.un? And what about holding both in a TFSA?
And what is your opinion of PPL? It never goes up? I also have ENB but they have the underwater pipeline issue. What would be alternatives?
Many thanks for your patience and great suggestions.
Connie

Q: If a series of events were to occur that would cause the long end of the yield curve to spike to 10%, how does this affect highly indebted companies such as ENB, TRP and BEP.UN ? What measures can they take to avoid bankruptcy in that scenario, and what would be your level of confidence that they could ?

As a 2nd part to this question, what are your top 5 Canadian dividend-paying stocks that would have balance sheets that one would not necessarily need to be concerned about ? i.e. durability under the above situation.

Q: Why has ENB dropped in the last 1 year from about $58 to $49.96?
Thank you.

Q: Hello 5I; could you estimate what the cost would be to ENB stock price if their Line 5 pipeline does not get approved by the US government?
Thank you and regards, Ron Lepofsky

Q: I own the above pipeline stocks in various accounts. In my flee to safety and dividends, I am now overweight in this sector. Could you please rank the above securities and which security you would hold or sell.

Thanks
Dave.

Q: Hello 5i Team

I currently hold Enbridge (ENB) and looking selling 50 % of my ENB holdings and purchasing Gibson Energy (GEI). The resulting portfolio would have 2 GEI shares for every 1 ENB

Overall my total dividends do not change significantly as the ratio of ENB dividend to GEI dividend is 2.28 (0.8875 / 0.39 = 2.28).

ENB raised their dividend 3.20 % in 2023 versus GEI which raised their dividend 5.48 %. My thoughts are ENB will continue to raise their dividend by 3 % per year (slower growth) and GEI will continue to raise their dividend by 5 % per year.

Is this a reasonable course of action or should I continue to hold a larger portion of ENB and ignore GEI?

Thanks

Q: I'm considering adding PPL to my portfolio and just went through their website. I found the mix of Oil vs Nat Gas vs LNG very easily...Oil = 40%, NG = 25%, LNG = 35%.

For comparative purposes, I went through TRP and ENB websites = not so easy to pull out the same data breakdown. Can you help...thanks...Steve

Q: I'm generally underweight energy and was thinking of averaging down on TOU and ENB and starting a position in CNQ.

I'm a bit hesitant with ENB.

Any concerns? Or anything I should be aware of?

Thanks,
Robert

Q: Over the years, I have heard some fund managers calling the ENB business model deeply flawed: taking on more debt to fuel ”growth” while simultaneously raising the dividend. If ENB was truly creating shareholder value I would expect that to be reflected in the stock price over a long period of time. Yet ENB stock has been flat for nearly a decade. Is it reasonable for investors to take on equity risk in order to earn 6% rate of return in a company with increasing debt? Would it not be better to invest in a company that can demonstrate some organic growth or accretive acquisitions?

Appreciate your perspective. Thanks.

Q: Good morning - I have slightly profitable position in both ENB and BEP. I am wondering about reducing ENB and increasing BEP. I like both companies and have a long term horizon. Both pay decent dividends. Your thought please.

Q: Hi - for the above companies, how would you expect them to perform in a recession? Do you expect them to have positive alpha? If not these, could you list a few companies that you would be inclined to buy heading into a recession? (ignoring factors like diversification, personal risk etc etc.).

Q: I have been reading the oversupply to come on Lng gas etc in 2025 because of over building/over supply.
I am wondering after watching the above slip downward if this is just passing phase related to current gas stories or is this something I should consider selling and investing in more stable products. Appreciate your input. thanks. Maureen

Q: Many companies have become addicted to low interest rates over the last decade. Assuming that interest rates stay where they are for years to come (a rate once considered somewhat "normal"), do you see any problem with any of these blue chip stocks maintaining their dividend ? I'm sure over the course of the next 5 years or so some of these companies will need to renew debt at higher rates.

Q: In my RIF account I have RY, TD, & ENB reset preferred shares all bought when issued at $25, now trading in the $14 to $17 range. The accumulated book value is $61K. My present annual yield is 3.9%, 3.8% & 4.4% respectively. The reset year is 2024, when the reset interest rate will be the Bank of Canada 5 year rate plus 2.3%, 2.4% & 2.7% respectively. So my question is, with interest rates presently rising, in your opinion are they worth holding to the reset date or should I accept my loss & redeem them now. Thanks … Cal

Q: Hi group i own both ENB and FTS - over the last 3 yrs FTS has outperformed ENG by a large margin do i need to own both / which one would you keep and add to present position

Also i am waiting to add to APPL MSFT GOOG AMZN...would you wait or buy now? Thanks