Investment Q&A

Q: You are still holding ENB even though the stock has declined over 20%. At what level would you be selling at this point considering interests rates will be rising which should add pressure to the stock?

Q: I have owned this security since inception would you suggest to continue to hold till maturity or just sell with the issues now facing enbridge?

Q: good morning:
bad news is all that Enbridge keeps getting all the time. stock gets some footing and then gets smashed time and time again. Just wondering your thoughts on the Minnesota news this morning concerning pipeline? this one sure takes patience

Q: Over the past year it seems like most Canadian pipelines are buying a major US pipeline: Altagas, TRP, Enbridge, Fortis, Emera, Pembina, other? Why does this suddenly make economic sense, what makes US purchases so affordable?

Q: Is it a mistake to own both ENB & ENF? If I need to drop one which ome should I sell? I bought both of them for income purposes.

Q: A friend recently sent me an article on Enbridge written by David Milstead and published in the Globe And Mail Dec. 3 2017. The article refers to the cracks in the Enbridge dividend story. I think the following quotes from the article summarizes the author's contention that Enbridge does not have the cash flow profile to be an income investment.
THE MISSING BILLIONS
ENBRIDGE EMPHASIZES 'AVAILABLE CASH FLOW FROM OPERATIONS' TO INVESTORS WHEN IT TALKS ABOUT THE SUSTAINABILITY OF ITS DIVIDEND. IN CALCULATING THIS MEASURE, IT IGNORES MOST OF ITS CAPITAL EXPENDITURES, DEDUCTING ONLY 'MAINTENANCE' CAPEX TO ARRIVE AT THE NUMBER. THAT HAS LEFT BILLIONS OF DOLLARS OF CAPEX OUT OF THE MEASURE OVER TIME. WHEN ALL OF THE COMPANY'S CAPITAL EXPENDITURES ARE DEDUCTED FROM OPERATING CASH FLOW, ENBRIDGE POSTS NEGATIVE FREE CASH FLOW IN NEARLY EVERY YEAR. STILL, THE COMPANY PAYS DIVIDENDS — AND ISSUES DEBT, AS WELL.
Can you please comment on this based on your analysis of the company, your assessment of its cash flow profile and its ability to maintain and grow its dividends.
Thanks
John

Q: Hi 5i team,
From your 3 portfolios, which are the stocks that interlisted on US exchanges, and which stock pay their dividends in US$? Thanks.

Q: Hi Peter
Do you think it is time to buy back ENB.
What is your outlook for SHOP. I am thinking of adding to my position.
I don't have any health stock at the moment, do you have any suggestions?
Thanks
Margita

Q: I have a question about which two of these 3 companies(ENB,PEY,BIR) which you buy at this time and why?
Thanks

Q: Do you have any suggestions for stocks that have been unjustly beaten up lately? Thanks

Q: Hi Peter. To my dismay, I currently hold too many pipelines... Enbridge, Pembina, & Inter Pipeline. I wish to cut 2 of the positions and then possibly pickup Algonquin Power. I also own Fortis & Emera. Which pipeline would you suggest keeping, and your reasoning behind it. Also, do you feel 3 power utilities would then be too many and if so, which 2 would you prefer? I welcome your input. Thanks.

Q: I have recently taken a full position in Enbridge and am thinking of taking another half due to the price being so deflated and the strong dividend. Should they cut their dividend do you think that would that take more than 15 percent off the price?

Q: I've decided to begin building an income portfolio and have chosen the companies listed above. (Mostly from your Income Portfolio). I am retired but my pension income covers my monthly expenses. I'm looking for companies that you believe are strong enough to maintain, and hopefully increase), dividends in the long run. I understand we are in a climate of interest rate increases and income stocks could suffer as a result so I'm wondering if I should wait to begin building this portfolio. My intention is to round out the portfolio by adding companies from your balanced portfolio. My questions are:
1. Can you suggest a strategy that you consider to be wiser as I begin to develop my new portfolio?
2. Do you consider the companies I have chosen to be the best choices for a new portfolio considering all current investment metrics? Could you suggest any I have missed?
Thank-you for your continued support.

Q: Peter and team

Thanks to member Walter, I have looked at a website that lists the U.S. preferred shares that trade on an American exchange. I realize that while U.S. stocks are not your focus are there any preferred shares that trade on an American exchange that you would recommend for an income investor? Are these p/s any more complicated than ones issued by Canadian companies ? I believe there are some companies on the TSX that have issued preferred shares that pay in U.S. $ and still are eligible for the Dividend Tax Credit. Are you familiar with any of these names?

Thanks

Paul

Q: I sold these stocks mainly due to the fact that they are down 20% from my cost base and needed some Losses to offset some Gains. My decision now is to either repurchase these 30+ days forward or buy some other stocks to replace these. I have a long time frame and a balanced portfolio. Your suggestions would be appreciated. Stephen

Q: I understand that the key criterion for evaluating a company’s ability to continue to pay a dividend is “ free cash flow”.

1. What is ENB’s free cash flow?
2. What is the dividend payout ratio?
3. Is free cash flow projected to grow over the next 3 years?
4. I looked for this information on your “profile “ page for ENB.
I did find 5 yr dividend growth 17.48 ... is that a percentage number for that time period?
I did find price to cash flow but not the information I was looking for.

Can you help me both with the information requested and provide some guidance in how best to interpret and use the profile information.

Thanks for all your help here.

Q: Could you please rank these stocks for growth assuming the sector ever improves.
Could you also do another list of just the dividend payers ranking income strength (safe and/or growing divi)

Thanks.

Q: I am down 50% in ALA and 17% for ENB in my TFSA.
Does it make any sense to hold or should I just sell. If sell, what should I replace them with for a long-term hold?

Q: I hold both IPL (1.7%) and ENG (2.2%) in my portfolio. ENB has been hit harder over the last 12 months. Do you believe it will have a better recovery than IPL and if so, would it make sense to sell IPL and add to my ENB position. They would be no tax consequences.

Q: Hi,

Just wondering what your take is on the steady decline in share price over the past year?
Thanks:)