Investment Q&A

Q: I am considering selling my shares in ENB and using the funds to top up my holding in BAH. What are your thoughts on this move?
This would be in a registered fund. There is no tax loss advantage. I am interested in total return whether it be dividend or capital gain over the next 2-3 years.

Q: Hi 5i Team,

What are the payout ratio on ENB and PPL? Are the dividend safe?

Q: Hi 5i,

Main question: How much overlap is there in the equities exposure of VSP and XQQ? Are there specific companies where any such overlap is concentrated to the point of being worth mentioning?

Follow-up clarification: In Derek’s March 30 Canadian pipelines question where you ranked 4 pipes on balance sheet strength and preferability, you named Enbridge 3-bal and 1-pref. What offsets the weaker balance sheet aspect? Balance sheet differences not being material? More reliable income stream maybe in the event of a sector meltdown? The track record on growth and dividend growth maybe? Size?

Thanks

Q: With the dividend cut at IPL should 5i investors be concerned that ENB is next to cut? Thx

Q: So with the pipeline companies yielding between 8 and 20% and factoring in a 50% dividend cut, they would still have a nice yield. I suspect that some might increase, or at least slow price decline if cut.
Please list these companies in order of balance sheet strength and debt % and coverage, and order of preference. Thanks

Q: I have a large capital gain on Boyd for the 2020 tax year which I am considering offsetting by taking Capital losses which I have on the above mentioned stocks, including BYD. What is the best way to do this? Sell and wait 30 days to re-buy? Sell now and buy proxies (what would they be?)? I’m also considering using stop losses to take advantage of any increase in stock prices I might otherwise miss. Would appreciate you comments and advice. Michael

Q: I have the following securities in what I consider a balanced portfolio. The fixed income portion doesn’t show here because it consists of OAS. CCP. Plus two other pensions.
I’m thinking of sell part position in MMX ( small loss);and ARE to realize a capital loss while at the same time raising some cash for the next pullback. I like TFII . We need to keep the food chain moving. Trucking an important part . The other is cargo jet. Am I on the right track . Your opinion. Or would you look elsewhere given the current holdings.

Q: Hello
I will appreciate your comments as to how the coronavirus will affect TRP and ENB.
Do both companies have high exposure to the virus like the automotive manufacturers or low to moderate exposure to the virus ?

Thank you

Q: Hi Folks
can you comment on Enbridge and TransCanada ( TC Energy ) - are they still okay to hold at this time ? In particular are they okay to hold at the same time - I have both BUT not in the same portfolios. I have ENB in my RRSP (2.5% position), in my wife's TFSA (2.5% position) and in my non-registered account (2.5% position) . I have TRP just in my wife's RRSP (4.5% position ).
Appreciate you comments.
Thanks

Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian Utilities in the order of their weights in our portfolio. Utilities makeup roughly 8.5% of the total portfolio including cash positions and like their dividend. FTS, TRP,EMA, AQN, ENB, BEP-UN, BIP-UN. I like to reduce exposure to utilities and also like to reduce number of different shares. Two questions:
1. Is 8.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce utilities weight and to reduce the number of shares in utilities?

Q: Thank you to all at 5i for all your efforts and guidance.
I am contemplating some tax loss selling and would like your input regarding the following,
sell ENB, PPL, SYZ and replacing in order with TRP, KEY and ABT. After 30 days I will consider (and probably) revert back to ENB and PPL. Not sure if I will do the same with ABT back to SYZ.
Comments, suggestions input please (suitability of replacements, plan to revert back, etc.) that will help me move forward. I like to buy, hold and rebalance as necessary but I can use the tax losses to good advantage. Retired income investor with 3 to 4 years already covered as this plays out.
Thank you so much for your help!

Q: As far as I can tell, neither Riocan nor Enbridge have ever reduced their dividends. At 9.4% and 8.7% yields, respectively, after being down 43% and 28%, respectively, do see any longer term risks (ie: 3 years) in buying both companies at current valuations?

Q: What's your view on Enbridge? 8.7% dividend at these prices! Is the market worried about debt load?

Q: Hello 5i,
As a pensioner who requires dividends for my income, I have been looking at the above names to potentially add over the next year or so. It is my belief (uneducated guess) that it might take that long before we see any solid bottom and subsequent recovery begin.
In that vein, out of the above, how would you rank these based on the following:
1. Safety of company through a one year to 16 month recession.
2. Safety of the dividend through this same period.
3. Confidence in management team
4. Sector vulnerability
5. Value at current levels
6. Any other considerations, warnings or caveats for any of these ??
i.e. some of these have a decent 5i rating (B or higher), but the rating dates back to 2019, some as early as the summer.
And, finally, are there any suggestions you might have that are not on this list that deserve serious consideration in place of any of the above?
I am in no rush for an answer so take as long as you need to consider this question and deduct as many credits as you see fit - I should have enough to cover it. I hope that this question might also prove beneficial to other 5i members who rely on dividends for income.
All the best to everyone in this very trying and uncertain time!!! Be safe above all!!
Thanks to all at 5i!!
Cheers,
Mike

Q: Hello 5i team
Thanks for working through this mess.
I have BCE, ENB, EIF, FSZ, MG, PBH, SPB in a non registered. I can sell these for a tax loss presently but should I, and if I do should I replace them with similar dividend players or risk 30 days to buy them back? This might fall into the personal decision category but if there is any comments or advice that you could provide please.
Thanks
Jeremy

Q: Pipelines Enb,PPL,TC,GEI,KEY are the dividends sustainable and how would you rank same ?

Q: Hi, I already own ENB but wanted more exposure to mid stream companies. Can you please recommend a couple of your favorites? Thanks.

Q: If I were to average down on these stocks which would you buy first and are there any in which you would not buy at this time. Could ECN go under if things don't improve over the next 6 months. Thank you.

Q: Pembina seems to have taken a much bigger hit than Enbridge. Why?

Q: Its an impossible question to answer with any degree of certainty... but I'll ask it anyway.

Given what we know now, and understanding the future is entirely unknown, what would you say the percentage changes are of Enbridge cutting their dividend?

Thanks. Stay safe.

John