Investment Q&A

Q: Hi, AQN stock has languished over past years and shares have been testing investors' patience. Even a recent large acquisition has failed to reignite the stock price. Based on your recent comments, you consider AQN fine for income but not much is expected in terms of capital appreciation. For a quick comparison of share price performance, I pulled the charts of these four utilities over 12 months and noted that while CPX and ACO.X outperformed by a wide margin, AQN was a complete laggard with FTS in the middle of the pack. We are retired investors and looking for ( In Non Regd account ) stability of income ( with increasing dividends) and some growth potential. We have owned FTS and AQN for many years, but are considering to switch out of AQN ( fully or partially ) to CPX or ACO.X. What are your thoughts about this plan and how are the current valuations of CPX and ACO.X for the switch ? How would you rate these four companies, in order of preference ? Thank You

Q: Hi 5i team.
about 6 weeks ago sold AQN for a tax loss and increased position in FTS and bought some BEPC on top of BEP.UN as I am thinking of switching to BEPC to make life less complicated tax wise.
Problem (and a good one to have) is that I have a large capital gain in BEP.un.

Utilities portions as total of all portfolio.
BEP.UN is about 2%
BEPC about 1%
Fortis about 2%
Polaris about 1%

Question is what to sell or reduce to add in AQN back at about 2%?
Would you suggest a different mix?
I like the dividends and am OK w slow to moderate growth - retiree and looking at conservative ongoing investment. (I like all of these stocks.)

I am willing to pay some taxes as I worry about the capital gains tax rate rising at some point under our current government.
Subtract as many questions as needed.
Thank you.

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, How would you rate these companies for Utility/Renewable Power sector ? Northland Power has received a lot of attention recently from investors and analyst community and stock has made a good move. Do you rate this company as an attractive investment in this sector ? Will NPI be a good complement to add to an investment portfolio, with FTS and AQN already owned ? If so, what would be a decent entry level ? Thanks

Q: Hi Folks,
I currently hold FTS and AQN in my non registered account. I would like to add one more utility company, I am looking at BIPC and BEPC - which one would you recommend at this time. Appreciate your comments.
Thanks

Q: Good afternoon,

I'd like to add a position (or 2) in each of the following sectors: REIT (TCN or GRT.UN or CAR.UN or a better idea), energy (CNQ or SU or a better idea) and industrial (already own WSP, TFII, XYL, TT and could add to one of these or consider a better idea). I could also use a utility suggestion (either add to FTS or AQN or add BEP.UN). And, I'm always looking for an opportunity to add BAM.A to my portfolio. In what order would you add or take new positions given the current environment being favourable to a given sector and/or a good entry point for a particular stock.

Your service is always greatly appreciated, thank you,

Lisa

Q: Hi Peter and Staff

In an answer to Ken on August 4th you stated that neither of these companies generate free cash flow - is that correct ?

Thanks for all you do
Dennis

Q: In addition to the Income portfolio, please suggest 10 diversified Canadian large cap stocks that should produce a total return of 8% with minimum volatility and a dividend ie no roller coaster ride. Thank you

Q: Hi all,

Looking for another company that will compliment my holding of ENB. Was thinking of TCL. Would those two be too much of an overlap? Any other suggestion would be appreciated for a large cap with dividends stock.
Thanks

Q: Hi!
With Bank of Canada raising 1 percent, I was surprised to see utilities perform well. I understand the sell off in banks would be due to loan losses. Would higher interest rates not be bad for the utilities or is it that these are seen as safety and therefore rising? Do you see utilities like Fortis and Emera as expensive now and would you support lightening up on banks to buy these due to higher risk with banks during potential recession?

Q: Hello, happy Canada to all. Currently building a moderate portfolio with the stocks above, all full positions except WSP, open to also taking on some more risk and buying into the negativity. Long runway of 5-10+ years. Am looking for 3 new options that would help achieve an overall 2.5-3% dividend yield (2 CAN and 1 US). And 3 growth options (2 CAN and 1 US). Please omit GSY, ENB, MG, TOI, and GOOG (I know, sorry) as these are also held in a separate account. Thank you for all that you do!

Q: My question is about tax efficiencies on yields and distributions.
Has anyone created a table to demonstrate the tax implications for stocks? Can this be easily determined? Should REITs always be in TFSAs? What are the tax savings regular acct vs TFSA? How or what would the dividend tax calculation be for the stocks I mentioned?

Thanks for your support
Mark

Q: Would you switch from FTS to BIPC to take a tax loss and keep BIPC instead?

Thx

Yves

Q: Hi Peter
here are 3 income stocks that have been dropping recently . are there any company specific issues i should be aware of or is it the general market drop .
How do you feel these companies will fare in a recession
Thank you
Howard

Q: Hi, There seems to be a systematic decline in equity values, for past two days, in sectors like Utilities and Telcos, which are considered proxy to bonds, due to their higher yields. They held on better than the market, in general, during past few months. Do you think, the fear of rising rates has finally caught up with these sectors and these stocks might come under pressure, even more, in near term, as Fed and BOC continue with their plans to hike interest rates. What's your advice ? We have about 10% weighting in each of the two sectors. Thank You

Q: In our unregistered, income account I recently sold LIF and have decided not to return to that stock after 30 days. Instead, planning to buy more of one or two of the existing stocks.

Since this is an income account, yield is important and also quite happy to see total account balance steadily increasing whilst tapping off the cash.


I need some help deciding which ones to add to, and have 3 criteria:
1. Best yield
2. Current portfolio weighting
3. Best value over next 5 to 10 years

1. From highest to lowest yield:
TCL.A, BCE, AQN, EIF, BNS, CPD, T, SLF, QSR, ZRE, RY, LNF, FTS, BEPC, NTR

2. From lowest to highest weighting:
ZRE, LNF, TCL.A, QSR, AQN, NTR, BEPC, SLF, CPD, T, BNS, EIF, BCE, RY, FTS

3. Can you please help me to rank these stocks from highest to lowest value / growth prospects, or if that is to big a task. Please recommend overall best 3 selections given my criteria.


Thanks,


Jim

Q: Hi,

Although these stocks are not alike, which two would be your top choices for the next few years based on growth, dividend, possible recession, manageable volatility, and momentum? Please explain why as well.

Q: I hold the above utilities and have seen many recent questions on these. I believe our electrification demands will continue to rise very significantly over the next few decades.
I am retired and mainly looking for dividend growth and some, or good overall growth. Please rank as to which you think has the best outlook over next 5 years or more. I hold similar amounts of each? Would you add to one or two mainly or equally to all?
Thank you for great service.
Tulio

Q: Would now be a favourable time to invest in Canadian utilities. Could you offer 2 or 3 dividend paying utilities ( over 5%) .

Would covered call ZWU be a good choice ?

Q: what are your favorite utilites today. Does not have be these. This is for a cash account,

thanks help