Investment Q&A

Q: Hi 5i team,

My question is on the future of natural gas as a heating source in Ontario, for example. I will not try to make this overly political and just provide facts based on carbon tax rates from Enbridge's site: https://www.enbridgegas.com/Natural-Gas-and-the-Environment/Enbridge-A-Green-Future/Federal-Carbon-Pricing-Program

As of April 1st Ontarians will pay 7.83 cents / cubic metre in Carbon ta . With current Gas Supply Charge (GSC) at 10.356 / cubic metre this works out to a ct of 75.6% before hst. I a short 9 years this will increase to roughly 320% ((170 ÷ 40 * 7.83) ÷ 10.356) of the GSC.

So my question is: If people move off natural gas to heat their homes, what impact will this have on the pipelines. Do you see any other investment themes to replace natural gas? Basically get off the grid solutions, although they are really expensive today,

Thx

Q: If one looks at TRP as of today (March 1st), it is actually trading at the same level as it was when COVID took hold (March of 2020), when it declined from ~ $75 to the low $50s. While I understand that the Keystone rejection was a blow to TRP, and has sunk the share price, and that the current investing environment basically shuns anything fossil fuel related, I seem to think that this is just a waiting game. If I remember correctly, TRP just increased their dividend by about 7%, and historically the dividend has grown by about 7.5% annually over the last 5 years. So I guess what I'm saying is while I understand the current market infatuation with all things green, it seems to me that TRP is undervalued, given that North America is still going to be drinking from the hydrocarbon spigot for some time. My question to you is whether or not I am missing something obvious, or if you agree with this thesis.

Q: Greetings 5i team,
I am looking to sell my shares in IPL (hopefully at a higher bid than currently offered by Brookfield Infrastructure) and replace them with another pipeline company. I can either add to my current position in ENB, or put the money into TRP. Can you please compare the balance sheet strength of both companies, future growth prospects, and dividend growth prospects? ENB recently raised its dividend by 3%, while TRP raised its dividend by 7%. Is TRP the better income stock moving forward? I'm a long-term investor with a 10-yr + investment horizon.
Many thanks,
Brian

Q: For an RSP retiree wanting reliable yield, which of these companies would you pick or would you have some of both in the portfolio?
Thnx

Q: How would you rank the following, upside opportunity with total return(div and capital appreciation). Are there any you would avoid. Horizon is 2-3yrs.

Q: ENB and TRP comprise 100% of my energy exposure and about 4% of my portfolio. I am looking to reduce my exposure to ENB but find it hard to sell a stock that seems quite undervalued. Part of my concern is that I will be selling at the same time as all the ESG sensitive fund managers and sovereign wealth funds who are reducing holdings in anything related to “fossil fuels”. So a part of me says “be patient” because ENB could easily hit $50 by the end of the year when more of the pandemic is in the rear view mirror. Would you sell now or wait?

With the proceeds, I am looking to buy something with more growth, perhaps REAL which seems value priced right now, or SYZ which pays a decent dividend. Which of these two would give a better total return over the next ten years compared to ENB? Or would you even say “ignore the noise and stick with ENB because it’s a stronger blue chip company longer term”?

Q: I’m thinking of buying a position in TRP, for my TFSA. Now that the dust has settled on Keystone I am thinking it seems like a good buy, with a good dividend and the likelihood of an upward movement.

What are your thoughts about this purchase or do you have another company that might fit better into the same scenario for my TFSA.

Thanks John

Q: Hi, purely in terms of relative dividend security could you please rank the above blue chips companies over the next 5-10 years.Thanks.

Q: Now that Biden had made it clear that he will cancel Keystone pipe line. What impact does this have on the above four companies? With this in mind how would rank these companies based on growth and safety of dividends?

Thank you

Q: Morning
Quick question....
Which stock would you invest in now....
TC energy or Keyera, and why
Thank you for your help

Q: Dear 5i,

I have a question about TRP.
If TRP were to walk away from the XL project what material impact will it have on the company? Is it significant and do you think it is a short term blip or will it hurt them long term?

thanks

Q: Which of these companies has the most natural gas pipeline/distribution? Are there any not listed with significant natural gas related assets? Thanks!

Q: With Biden to sign XL ppl stoppage, which companies should I stay away from or does someone like ENB benefit?What do you see as the fallout from this?

Q: With Biden apparently going to cancel the XL pipeline, what do you think will be the impact on the company and is has most of this already impacted the share price?
Geoff

Q: In a previous question relating to TRP, you wrote "Interest might come back to the name but with the poor momentum, we would prefer to wait for some sustained strength in shares before getting interested." How much emphasis do you put on momentum vs valuation? And with an increase in momentum, you would see an increase in the valuation. If you were a long term investor and believed in the company why not buy at a more attractive price?

Q: I am looking to "trim the fat" from my TFSA, which currently holds 20 stocks: ATD, BCE, BMO, BNS, CCO, CM, ENB, FFH, PDYPF, INO.UN, LAS, NXE, NWC, NA, NTR, PEY, PZA, MJJ, TRP, WELL. Are there any positions that raise red flags with you? In addition, could you suggest 3 or 4 value picks suitable for a long-term hold (20 years plus)?
Thank you!

Q: I own ENB, FTS, and TRP but think I should position more into green/clean /renewable type energy companies. I do own AQN which I believe fits into the clean/renewable category. So I am thinking to sell one of ENB, FTS or TRP and replace it with a greener alternative. So which one would you sell and what would you buy to replace it with(can you provide more than one option)?
I would like to just take a moment to thank you all at 5i who have such a huge positive impact on my investing. Over the last few years, since signing up, you have given me so much more confidence in my ability to manage my own affairs. You are the perfect resource. There to lean on, answer my questions and point me in new directions and to new opportunities.

Q: I currently own $10K in each of these companies,,, looking to invest another $10k into possibly SLF or BCE. I look at 1 year at a time and then judge after. My aim is growth. Would you change anything?

Q: Can you rank these companies in order of preference for current investment?

Q: TC is around 8-10% above its March Covid low and the trend doesn't seem to be moving upward. Do you see some decent price appreciation ahead of this stock? Is it a buy, hold or sell?