Investment Q&A

Q: Hello, Im assuming you will get a few questions on TC Energy. What is your opinion on this company with its 6% loss today and huge increase in spending for its pipeline project? Is it time to get out? Would Enbridge be better now?

Q: I wish to add more energy stocks to my portfolio for diversification. I have ENB and SU. I am thinking of adding GXE, PXT & TOU, all three seem to have very low or no debt, and either PPL or TRP. All for a 5-year hold. I do enjoy the high dividend yield but would still wish to have some growth and safety. Please feel free to add or remove any from my list of your choice, rank them from the best to the least, and each with a reasonable entry price. How long of a time frame would you recommend to spread over the additions?

Thank you again for your insight.
Roger

Q: Hello 5i Team,
I'm helping my son build a dividend portfolio with stocks to hold long term. Would like to add a couple of pipeline names, with ENB, TRP, and PPL at the top of the list. I've read most of your previous comments on these companies, and most money managers I see on BNN speak favourably on these names in terms of sustainability of the dividends. What I don't hear mentioned often, however, is just how full these pipelines are - are they fully contracted, with no spare capacity to transport more oil and gas, or is there "slack" in the system? What's the outlook looking forward for just how full these pipeline networks will be? It would seem to me that cash flow and dividend sustainability in the future will largely depend on how full the pipeline networks are. How would you rank these companies on that basis?

Q: I'm in the process of building a dividend portfolio. Should I have both or on these stocks. Leaning towards Enbridge if only one. Planning on have a diversified portfolio of 10 stocks .

Q: Hi, Higher yielding equities, like Utilities, Pipelines and Telcos seem to be hit more and more, everyday. Do you see these sectors to come under more pressure, as FED/BOC is not likely to relent and continue with the rate hiking cycle, may be even into 2023. We are sitting with 15-20% capital loss situation, for above two companies bought in Aug/Sep, this year. Would it make sense to sell/harvest the capital loss and buy back later with the assumption that there is more downside to come ? Thank You

Q: Hi team,
I have been a long term holder of ADW and overall with dividend and trimming at prior highs will come out just above par with this holding, which is not desired for multi year, but a nice learning experience for me.
I am thinking of selling and splitting between tc energy, sun life and alphabet. The first two for greater yield play, and all three on the belief that on positive macro news all will perform better relative to ADW (small cap, debt level, your B rating, consumer lag on discretionary).

Thanks for your thoughts.

Q: Enbridge is the only pipeline stock that I currently own. I am looking to buy more. Before I do, do you think the TC Energy involvement in the Kitimat LNG project makes it a better investment right now? Would you consider owning both?

Thanks,

Mike

Q: Hi, Could you please confirm the Ex-Dividend Dates for these two companies. The company investor relations website says Ex-Dividend Date - Sep 29, 2022 and Record Date - Sep 30, 2022. But the TMX as well as our CIBC Brokerage shows Ex-Dividend Date as Sep 28, 2022. Could you please confirm. Thank You

Q: What is your opinion about TRP? Why? How do you rate the three big pipeline companies in Canada? Thanks very much

Q: I've been curious about the Buffett Indicator (the ratio of total stock market valuation to GDP) for Canada. Am I correct in saying that it is about 1.7X or so, whereas it should be closer to 1:1 ? If so, what TSX stocks / sectors are pushing it up so high? I grabbed three large caps from different sectors to have a look at their present valuations...

You mentioned that BNS is historically cheap with a P/B of 1.2, so I'm guessing this one is fine.

If one looks at BCE's present P/E ratio it would be approximately brought back to 2012 levels if today's BCE stock valuation was reduced by "today's Buffet indicator overshoot".

TRP's present P/Cash Flow appears to be fairly high compared to some metrics in the past decade. Again, if the stock price was reduced by that 1.7 factor, maybe the valuation becomes more realistic.

I am only able to compare to metrics going back the past 10 years, so this may be part of the problem. Or perhaps I'm analyzing things wrong here and you have a different way at looking at this (?)

Q: Hi, This week's sharp decline in Pipeline ( ENB/TRP and Others) and Utility (FTS etc ) stocks - Do you think, it is a result of market's renewed fear of continued rate hikes into 2022/2023, as suggested by FED Chair on Friday and re-iterated by other FED Presidents over course of this week including Cleveland FED President, Mester, Today. Pipelines and Utilies sector has performed well this year, but may be, due to its higher yield, is causing some worry to investors. Your comments, co relation of high rates and other factors, impacting these sectors will be much appreciated. Would it be prudent to underweight the sectors, in near term. Thank You

Q: Hi, TRP and ENB had a bad day with both stocks declining 2.5%, by close. There was no specific news for either company. Oil was weak today and price dropped about $2.50-$3, during course of the day.
My understanding is that movement in oil prices has no direct impact on these stocks, in a meaningful way. XEG, on the other hand was down just less than 1%. Was TRP/ENB drop unusual ? Thanks

Q: Hi, Could you please compare the two companies with respect to nature of their business, safety, income and growth prospects. I know, Enbridge also has a utility like natural gas delivery business to residential/businesses, not sure of TRP. Could you also comment on their historical stock performance, relative to each other. Do you think one is better than the other? We own ENB for many years and are considering to add TRP to our portfolio for income and growth, for 10-20 years. Thank You

Q: Hi, What's your opinion on TC Energy, for income and some growth, and with a bias to indirectly benefit from Oil and Natural Gas prices ? TRC recently acquired an interest in a Mexican pipeline and stock had an overhang due to a large equity issue, which seems to be slowly dissipating now. Stock has nice dividend yield of over 5.5% and analysts generally appear to be positive, on the stock, specially after the new acquisition. How is the current valuation and do you believe that debt is manageable? Is it a decent buy at current level - $65 - $65.50 ? Thanks

Q: Hi 5i

I have too many stocks and am starting to pare back. I have these five stocks in Energy. Which two would you sell? To which stock(s )would you add the cash from the sale.

Thanks for the excellent advice. It is so comforting to have 5i to ask questions of. It is hard to be objective sometimes when it is your own portfolio.

Cathy

Q: Hello,

Do you know what's going with TRP? It's been declining more than its piers i.e. PPL and ENB.
Do you think buying on weakness would be a good strategy here?
Also, which pipeline stock would you prefer for a medium to long term and which one you think is the safest?

Thank you

Q: what caused the big price drop today?

Q: 7:19 AM 7/8/2022
Our retirement income portfolios are heavily weighted to higher dividend companies : banks, utilities, pipelines, telecoms, BIP and BEP, and CNR.
We are considering adding one or more of the following companies: PKI, EIF, NWC, SLF, TRP.
We would expect them to provide reliable increasing dividends plus some ongoing share price growth over the years.
Could you please indicate what order you would purchase them and maybe a comment or two on each for a very long term hold.
Thanking you.......... Paul W K.

Q: Of my pipeline holdings, these 3 companies occupy ENB40%/TRP38%/PPL22% respectively. Ironically, over the last 5 years share price-wise, ENB has done the worst, and PPL the best. I would like to add a bit more to the group and normally I would start with PPL so to balance the three. I would appreciate your thoughts on the future of these 3 or any other alternative options and given the splits, which would you choose? Also, would you say that moving NG is the better longer term bet vs oil?

Q: what is your favorite pipeline today? cash account

thanks help