Investment Q&A

Q: Hi Peter and 5i team,
We hold Enbridge in a taxable account and are considering trading to another company with better growth potential. We like the dividend but one anaylist says that all earnings are needed to support the dividend. He thinks the stock price is over valued raising warning flags. Another anaylist likes the name and thinks it is good value.
Enbridge is in the 5i income fund. Is 5i still confident in the company? Our position at present is flat.
Thank you for your opinion

Q: Good morning, There has been so much investor angst, and a sell-off in ENB, apparently because mgmt. did not refer to dividend increases in their Q3 conference call, thereby raising doubts. ENB has elevated debt following the Spectra acquisition (in what many see as a rising interest rate environment), and a large project pipeline to fund. Why would ENB mgmt. raise expectations in the first place (on increasing the dividend so dramatically, 10-12% per year for several years) while they KNEW they would need significant cash to reduce debt and fund future projects. Makes one wonder...... Would appreciate your insight. Thank you.

Q: I'm considering to enter the battered pipeline sector with no position ( other than ZEO & ZJO purchased two months ago)
A) how should I synchronize any purchase of pipleine ( bond proxie) in a rising interetst rate environnement and should I wait until 10 years USA bonds get above 3% ?
B) the two stocks I'm considering are ENB ( continue to fall ) and ALA (seem to have stabilized at current level). Which one of the two stock would you prioritize first
Thank you

Q: I am seeking your advice on these three stocks namely ENB, TRP and CCL.B . They have reached to the lowest price for this year, especially ENB.
ENB yield today is 5.19%. My question is Should I buy these stocks at todays price. Is dividend sustainable? Thank You

Q: Something just occurred to me: if you are holding a stock that has dropped significantly, and you plan to keep holding it for the dividend and future growth (ENB in my case), does it make sense to sell it to record the loss for tax purposes, and than re-buy it? Thank you.

Q: In your recent response to Margita you recommended holding Enbridge for the dividend. As a retiree I purchased 1k shares of ENB not only for the dividend income but also the projected dividend growth of 10-12%. What are your thoughts on the later? Is there anything in the latest financials or management comments (or lack thereof) that would cause you to re-consider ENB for the balanced portfolio.
Many thanks
Mike

Q: I am considering selling my position in TOG and replacing it with ENB. I have held TOG for 3 years, its finally increasing in price ( I am down approx. 13%) and ENB is becoming a more attractive price, with a higher yield. I have equal weighting of 15% in both. Would this be a good decision going forward.
Thank you!

Q: Good Morning
For the last 12 months the insiders have sold stock worth $22,593,000 and bought stock worth $1,835,000.

Is this cause for concern? Is the dividend safe?
Thanks

Q: Is it worth keeping Enbridge just for the yield or is it better to exchange it for Altagas a better option? Is the yield safe?
Margita

Q: Any concern with going overweight in Enbridge at this point as a long term hold? I'm currently at 5%.
Rob

Q: Hi 5i Team.

The only pipeline company I own is IPL. I have been looking at ENB for a while but can't make myself pull the trigger yet. One of the reasons I originally chose IPL instead was that it had (and still has) a much lower P/E ratio, reflecting much lower growth expectations. ENB currently sits at a P/E of roughly 35 which makes no sense to me. Do you think part of the reason for the price decline over the summer is due to investors reassessing growth (multiple compression) or am I over-emphasizing P/E when looking at pipeline companies?

Can you recommend a template that I can use to determine sector allocations? Should allocations be within a particular account or for my entire portfolio?

Thanks
Peter

Q: Could you rank these utilities in terms of growth potential?

Thanks!

Q: Enbridge has been so ugly this year. I bought it at it's peek in April! I have little faith in investor sentiment on this one, but I'm tempted to add to it at these levels as I would consider it undervalued, and the yield is over 5%. Surely a 5 - 10% pop is at hand?

Q: Both AQN and ENB hit this morning with ENB reaching a yield over 5%. Have no pipelines and a 4% position in utility { KWH.UN } Considering a 4% position in each of the above. Is adding AQN over weighting utilities speculatively ? What is the reason for ENB's pullback of 3% today and do you approve of a purchase at today's prices. If I were to only add one which would it be ? Cash position currently 23%.
Thank you

Q: Hi 5i,
Your new site looks great, congratulations. I heard on BNN that enbridge missed estimates. They also said that enb has an enormous amount of debt. Should I be worried? Should I dump my stock?
Thank you
Jane

Q: Hi, I own both these companies, am now flat or slightly negative. Would you suggest
more patience, or time to move on to better opportunities? Any suggestions for replacements, they are both part of a full portfolio with the goal of dividend as well as capital appreciation. Thanks, Lavern

Q: Mid day Nov.2 ENB is down well over 4% on the day. Would you consider this a buying opportunity or are there issues that are of concern? We are wondering about adding some units for income and potential capital gains and will appreciate your guidance.
Thank you, Len

Q: My grandson has just begun working and wants to start an investment plan with a long term objective. Could you provide your recommendation for 5 safe dividend growers that also drip.
Thanks much for the excellent sevice
GUY R

Q: Hello 5i,
Which preferred do to you prefer? Pardon the pun.
I'm seeking USD dividend income from Canadian companies to take advantage of the div tax credit. Can you suggest other vehicles or strategies to achieve this?
Are these perpetual or rate reset? With rates increasing, why aren't these going down in value? The yield seems to be north of 5%. Any obvious risks I may be overlooking?
Thank you.

Q: I intend to reduce my equity holdings for two reasons – I need to free up some cash for other projects and, secondly, I am concerned about the current risk in the equity markets and want to discharge an investment loan I have against my house. I am happy with the securities I own and their % in the portfolio. Consequently, my plan is to generally reduce across the board.

I own both ENB and ENF. Should I sell one and keep the other or reduce both?

I also own ESP. It has been a wild ride and I am presently down about 25%. What is your outlook on this stock over the next couple of years? Given my plans for portfolio restructuring should I sell and book the loss or continue to hold?

In the US portion of my portfolio I own GOOGL, AMZN and FB among others. If the market enters a severe correction do you see these as more risky than the US market in general?