Investment Q&A

Q: Hello 5i, I am retired and am looking at PWI for income and growth could you comment on the company Sustainable Power.

Q: PPL vs ENB for total return potential over 5 years? Compared fundamentals on RBC direct investing and PPL is cheaper, higher return on equity, less debt and more profitable. After my review I concluded PPL may now be a better stock . Do you agree?

Q: Currently own Enbridge in the energy infrastructure space and am not unhappy with it. But considering switch to Cheniere . How would you think about such a switch ? Primarily a trade - off between income and growth ?
Other considerations ?
And more specifically , while accepting that all utility type companies operate with high debt levels , how would debt levels compare between these two companies .
Thank- you.

Q: I am considering replacing ENB with NXF.B in my RRSP account. Two questions: (1) what do you think of this change considering the likelihood of increased taxation for O&G producers - i.e. "fair share tax"? (2) Are there tax implications when holding NXF.B in RRSP i.e. will I receive the stated 10% dividend or there will be some reductions due to the fact that this is CDN ETF holding non-CDN stocks?

Q: Your thoughts please on the quarter?


Thx

Q: Please, advice me which stocks are the best for this year for reinvesting position on tfsa acc, 20,000 $ ?
Or may be some others?
Thank you

Q: I currently own Aqn and bep.un and would like to ad another Canadian $ stock for a 2 to 3 year hold. Could you please give recommendations and reasoning? Thank you.

Q: I am down slightly on Aritzia and like it for the long term. I usually like to buy and hold but feel this is going to be a very volatile year for consumers. My concern is the shorter term outlook as the rising rate environment is likely to place increasing pressure on consumer discretionary stocks. As a 2023 move I’m considering selling ATZ, with a look to repurchasing when rates start coming down (who knows but perhaps later this year). In the short term, I’m considering trading ATZ for a dividend stock in the energy sector such as CNQ or ENB. Could you please evaluate this strategy, based on projections today. Essentially, which position do you think will result in the largest gain by the end of 2023? Thanks so much for your insight.

Q: Does the price of oil affect the price of Enb? What are your thought of the down grades.

Q: I know you generally have a favorable opinion on Enbridge, but I have a hard time getting past a couple of things about the company:

1. Debt load - While their cash flows have been increasing, so has their LTD. And they don't seem to be in any hurry to pay it down. That, and with interest rates moving up, will the increased service costs not hamper their future dividend growth?

2. Dividend - It was not that long ago they were forecasting 7-10% div growth. Then they reduced it to 5-7 and then 3-5. The most recent increases are closer to 3% than 5.

While I acknowledge the things they provide are basically necessities (so we need companies like this), are the best days behind this stock? Do you see another stock that is akin to Enbridge 15-20 years ago in terms of growth / dividend growth?

Thanks in advance. I appreciate the service you provide.

Q: My portfolio needs more utility, consumer defensive and consumer cyclical exposure. It also needs more international exposure. Do you have a few suggestions that you like now that might kill two birds with one stone? Would be long term holds inside of an RRSP.
Thanks!

Q: Follow up to my last question - thanks for the answer. Any comments on the sell sequence and timing for ENB, LIF, NTR and TCL.A. I have done pretty well with all of these except TCL.A which is a bit in the red.
Some of these are cyclical, and your guess on when to sell will be better than mine.

Thanks,

Jim



Question:
I have an unregistered account with about 12 CDN blue chip stocks. The purpose of the account is to generate dividend income for the next several decades, while providing slow and steady capital growth. I have taken the decision to exit ENB, LIF, NTR and TCL.A and to increase holdings in AQN, NPI, PMO205, XTR. I know timing will never be perfect, but just looking for some timing guidance due to current market conditions and cyclicality of some of these stocks. Trying to avoid horrible hindsight commentry: that was OBVIOUSLY a poor time to make that change....

Answer:
An easy solution of course is to add one of the four once a month and we would be fine with such a strategy. All four buy proposals will have some sensitivity to rates, and Canada has already indicated rate hikes will pause. The bond market expects rate CUTS in Canada later this year, so finishing purchases in June could end up well.

Q: I have an unregistered account with about 12 CDN blue chip stocks. The purpose of the account is to generate dividend income for the next several decades, while providing slow and steady capital growth.

I have taken the decision to exit ENB, LIF, NTR and TCL.A and to increase holdings in AQN, NPI, PMO205, XTR.

I know timing will never be perfect, but just looking for some timing guidance due to current market conditions and cyclicality of some of these stocks.

Trying to avoid horrible hindsight commentry: that was OBVIOUSLY a poor time to make that change....

Q: Either or neither:

ENB vs. TRP.

Q: I have some cash to deploy in an unregistered account. Add equally to the names above or start a new full positon in your current can't miss top pick from the income or balanced portfolio.

Q: Hello Peter & Team

I hold a full position + 25% (ENB) in my TFSA because of the Dividend and a comfortable feeling of capital integrity/safety. In your recent report you cite the DEBT/EBIDTA ratio runs at about 4.7% for ENB where net debt-to-EBITDA ratios of less than 3 are considered acceptable.

Is something I should be concerned about? Would you recommend holding fast with this position? (really like the dividend) And lastly, is there anything you would recommend (all things considered) in place of ENB?

Thanks for all you do

gm

Q: If the only criteria is total expected return, 10 years from now which of these two do you think you’d be happier having bought today and held? Do you feel either one has significantly more risks than the other over that time span?

Q: i am trying to make some little changes to my rrsp. If i can have your opinion on the rail way companies i have been holding UNP for around 3 years now can not complain much i am up 35% on it i am thinking of selling it and replacing it with CNR i would like to know if that will be better for me looking at around another 5 year hold. And my other question would be is i hold TRP and ENB in my RRSP as well would you sell one and if so which one would you think i should sell. Thank you so much and take what ever credits you need for this

Q: I hold shares of FSZ in My RRIF account. It has not been a good performer but pays a nice dividend which is what I want in my RRIF account. I am thinking of selling FSZ and buying Enbridge. The dividend is not as high but is the growth potential going to make up the difference. I do own PPL. What are the chances of a takeover of FSZ. Would you approve of the swap and is there any other companies you might recommend.

Wayne

Q: Hi Team,

ENB, CNQ, SU are about 7.5% of my CAD portfolio. Is it ok to hold both CNQ and SU or are they too similar? If they are too similar then which other stock should replace one of these? My investments lean towards growth and dividend growth.

I have held Visa for over two years. I was hoping it will benefit from post panademic opening. So far it has done little. On valuations it appears overvalued. So do other payment stocks. Any suggestions?

Thanks
RR