Investment Q&A

Q: Today Northland Power sank by 27% and the dividend was cut by 40%. A couple of years ago Algonquin Power cut their dividend twice.
Both companies are in the renewable energy sector.
Another company that is involved in the renewable energy sector is BEP.UN.
What is your opinion about the prospects of BEP.UN going forward ? Is this company facing any risks like those faced by NIP.UN and AQN ?
Would you add or hold the shares of BEP.UN at these levels ?

Q: In a recent question highlighting the large premium given to BEPC vs BEP.UN, you responded that the stocks are “economically equivalent”. If that’s the case is it reasonable to expect the prices to align more closely with time? I hold BEPC in a non-registered account. Tax considerations aside, would it make sense to sell BEPC from my non-registered account and buy back BEP.UN in a registered account to take advantage of the current large discount?

Q: BEPC is trading at a 42% premium to BEP.UN. I understand the tax implications and ownership of LPs vs Corps, however, what is the real value/share of Brookfield Renewable? Is BEP.UN undervalued and/or BEPC overvalued? As a retail investor, irrespective of tax considerations, which of the two should I consider buying? Thank you.

Q: A retired friend of mine recently asked for my recommendations on how to invest approximately 200K which, with minimal risk, which will give him a reasonable (4.5% to 5.0%) annual dividend with minimal expectations of big capital growth, Since he currently has very little experience with investments, I would like to build a portfolio that will require minimal ongoing involvement on his part. I believe that a 10-15 year timeframe is realistic.

My thought is to split the 200K into 10 equal parts and purchase the following Canadian equities.

BNS
TD
GSY
CNQ
TOU
ENB
FTS
T
CCA
BEPC

I realize that a portfolio like this is overweight on energy. I'm comfortable with that.

What are your thoughts on this strategy and do you see any of the companies listed that you would avoid? Are there any others that you think should be added to the list?

Q: Hated BEPC for so long as I was down for many years after buying during the big hype for renewables when Biden was elected. Now, kicking myself for not buying more at the lows. My question is whether this has now run too high. Is there still a place for traditional oil and gas/nat gas in one's portfolio or for a young person (20's) should these be replaced with BEPC? Thoughts and buy price, please. Thank you!

Q: How can one explain the huge discrepency between those 2 stocks while it's the same company? One can argue that there is a tax efficiency by investing in BEPC but certainly not by this much. Is there a possibility that the difference might shring over time ? What am I missing?

Yves

Q: Given the growth in data-centre construction and electrification, which Canadian or U.S. power producers do you see positioned to benefit most. Looking for companies with actual and planned capital investments support that potential?” Additionally, as this will be a RIF addition, also looking for sustainable yield

Q: Apologies for asking something I’m pretty sure has been asked before in various ways; which version of Brookfield Renewables would you place in a TFSA and very briefly why? Thanks,

Q: Do you think that BEPC is getting a bit ahead of itself now near $50? Comments on BEP.UN have advised to use Fwd FFO to evaluate. I can’t find an estimate for Fwd FFO, but the last reported full-year FFO I found was $1.83 - bump this by 10% with a $50 unit price implies a 25x Fwd FFO, which I believe is about twice as expensive as a recent BEP.UN valuation.

Q: So if the USA is going to need 5 times the electricty that it is now generating in the near future, what stocks in order would you invest in now. Thanks Again

Q: Do any of the utilities held in these ETF’s offer the same kind of energy power support for the mega computers running AI applications as something like VRT in the US?

If not are there any Canadian companies that do so and would be an attractive investment in this area?

Q: Considering factors as dividend tax credit , yield,etc.. is it suggested to hold BEP.UN instead of BEPC in a registered account ?

Q: Hello Peter,
These two stocks are the dogs in my portfolio and am not sure they will recover in a few years to get my money back. I was thinking of adding to BN, but was wondering if gold would be a better choice. I am just worried as gold is quite high and it could do the same as two i own when the whole world was talking about green energy. Gold could do a reversal .Instead of adding to BN, what would you recommend for gold exposure.. any thoughts please? Also, any comments on why Lumine group continues to slide? Appreciate it

Q: Hi 5i
I am bargain hunting so looking at Brookfield Renewable. I charted BEPC and BEP-UN and am puzzled by the significant outperformance of BEPC over 1-5 years. I don't think the div treatment should make that much of a difference. BEPC is 9% off 52 week high, BEP-UN 15% off. Your thoughts? And if I decide to buy, am I wrong to think BEP-UN could have more gain potential?
Thanks, Greg

Q: I note that this company appears to have stalled, do you have confidence in it returning to past valuations and more? Would proposed rate cuts not help? Is this company a good investment for the foreseeable future?

Q: When looking at portfolio weightings and the Brookfield companies - do you consider each incarnation of the brookfield empire as a different company or do you consider them the same? Trying to figure out if I should trim or not, given their connections.

Q: how do you expect BIP to perform, now that we have more clarity (maybe) on tariffs ?
Both div at this level and share price not drifting any lower

I want to build a position in it as a "retirement" stock.
I have BIP.UN and BEP.UN at 3% each.

What are your fav options in this category currently?

Regards,
JR

Q: Could you please explain the inter-relationship between these two stocks? I realize one is incorporated etc but I am interested in their holdings, especially because 1. BEPC is outperforming and 2. There are large US contracts that are shaping their business. It was my understanding that each had their own different contracts but they were essentially the same company at a high level. Are they impacted differently by their contracts with Google and Microsoft or will they both benefit equally? Are their operational strategies any different?
Thanks.

Q: Hello,
Any idea why Lumine Group and Topicus are surging? Lately Arc resources has been going down and is it simply due to the price of natural gas? Also, i was thinking i am down alot on brookfield energy partners from the time i bought it, should i stick to it for long term or take a loss and move the monies into the parent company? Thanks very much

Q: Good afternoon - I have several Brookfield positions. My BN and BAM positions have more than doubled. My BEPC and BIPC positions have done well but nowhere close to a double. I do get higher dividends in BEPC and BIPC but BAM pays almost 3% at current prices. I'm thinking of selling BEPC and BIPC and putting the proceeds into BAM. The tax consequences are manageable. Your thoughts, please.