Investment Q&A

Q: I have some extra cash sitting in a bank account earning next to nothing. I hold positions in the above companies and am thinking about adding to one of them. I understand that no equity investment is truly safe but which company would be your pick if capital preservation and dividend safety was top of mind. Thank you.

Q: For a three year hold what company do you prefer and why? Thanks.

Q: Which has better growth prospects in your view over the next 1-2 years: FTS or SLF? Thanks.

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 am looking at putting together a portfolio of set-&-forget Canadian dividend-paying stocks, in what will be my only unregistered account, making up about 30% of our overall portfolio. The registered accounts (70% of portfolio) are now all in mixes of VGRO, VBAL and XAW.
My emphasis is on stable large cap companies, with a sprinkling of smaller cap, low beta, decent and growing dividends. I expect to draw down the capital at 6 - 7% per year (in addition to the dividends). Beyond the drawdown, capital preservation is secondary to the income.
What are your thoughts on the following mix? Additions/deletions?
Communication: BCE, T
Consumer Discretionary: CTC.A, LNF
Consumer Staples: NWC, PBH
Financials: BNS, TD, SLF
Industrials: SIS
Materials: SJ
Real Estate: CRT.UN
Energy & Utilities: ENB, AQN, FTS, ACO.X, BEP.UN (or BEPC)
My other thought is 100% CDZ but I'm not very impressed with the historical returns and the (relatively) high MER.
Thanks. Lotar.

Q: I am low on utilities as per the portfolio analytics. I currently own the above stocks. my question is would you add equally to these or do you have a preferred stock of the three or perhaps one more to add to the group?

thanks Dave

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: hi guys
if you could please rate these stocks in order of your preference for a 2 year hold already own aqn but have not been overly impressed seems to be stuck near or at current price thanks as always

Q: Could you please rank the following companies for expected dividend growth over the next decade: AQN, EMA, CU, FTS

Q: Hi 5i,

Please kindly comments the above stocks (FTS, SU, ENB, KEY) in oil related sector, I am thinking to invest for 1-2 years, kindly to rank the risk and potential in coming future. Should I keep all of them or may suggest to take off one? Perhaps I should consider FTS more on utility rather than oil related? Thanks for your advise.

Q: Hello
It appears all the utilities with the word "renewable" in the their name have gone gangbusters after the blue wave US election.
I am looking to invest in a utility that more reasonably priced and maybe running under the radar.
Does your terminal show the % of renewables for the following utilities.
Fortis, Canadian Utilities, Algonquin Power, Emera.
Thank you.
Stephane

Q: At 27%, I am significantly overweight in utilities (BEP, BIPC, AQN, NPI, FTS). FTS, at a full position in a non-registered account, has been the weakest performer of late. Considering replacing it with one or two of the following: TRI, GSY, TFII or BAM. Looking for growth, a bit of a dividend and don't mind moderate risk.
1. Is now the time to sell FTS?
2. If sold, which stock (or stocks) noted above would you replace it with?
Thank you.

Q: EMA and FTS are both trading below their 200 dma and at their support prices.
Is there anything fundamentally wrong with either company to account for the drop? Or is money just rotating out of utilities?
I have 1/2 position in each and am thinking to add to them on this dip.
Would you suggest to add now at these prices? Or wait for them to turn up and over the 200 dma as they may just drop further?

Q: What Utility would you prefer for a 3 to 5 year holding period?

Thank-you.

Q: Our investment group holds these 3 stocks in our portfolio and they seem to have not increased over time. Are these companies you would recommend selling or keeping as we don't by and sell rather hold and hope for steady growth? What are the reasons for their recent performance?

Q: Happy New Year 5i!
I recently joined and have been reading as many of these questions as I can get my hands on and appreciate your insight.
I've recently started a TFSA portfolio with a breakdown as follows:
- REI.UN (14%)
- TD (33%)
- FTS (29%)
- HR.UN (3%)
- T (12%)
- SIS (5%)
- ATZ (5%)

I have been attempting to buy into companies and reinvest via DRIP and thus my preliminary focus on dividend companies (with diversity taking a backseat). What are your thoughts on REITs for growth going forward over the next couple years? Are they worthwhile keeping or do you foresee more upside with investment into growth stocks? If so, do you have a top 2 growth stocks that could compliment the rest of the portfolio in lieu of REITs?

Thanks so much!
Kyle

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: Recommendation sought for investing new TFSA contributions. Expected drawdown on TFSA to start in 4 - 6 years.
My wife and my combined TFSA holdings are about 18% of our total portfolio, and the combined TFSA holdings are made up of:
PRMW & KEL <1%
PXT 3%
BCI 4%
BAM 7%
SIS 8% (20% loss)
XAW 8%
KXS 11%
VGRO 55% (the only investment also held in other accounts)
Cash 3% plus new contribution
I'm considering WELL (for growth) and FTS (for dividend & stability), possibly TFII?, or add a bit to PRMW (none of these are held in other accounts), for the new money.
Reasonable? Appropriate? Other recommendations?
Thanks for all you do, and I wish all of you a healthy & happy year.

Q: Hi Peter, Ryan and Team,

Happy New Year greetings.

FTS and WPK have provided me excellent returns in the past 5 years but recently have been rather stagnant. Can you give a list of 3-4 suggestions to replace them with ( it does not have to be in the same sectors) inside a TFSA?

Thanks.

Q: I own all these in my utilites allocation (AQN 3.5%, BEPC 2.4%, FTS 2.5%, NPI 1.6%). I'm looking to pull some capital out of these to redirect towards industrials and consumer cyclicals for the upcoming year. Could you perhaps rank them on valuation, and/or suggest which way you might go, i.e. shave a little off each, equal weight them, drop one or more, etc. Thank-you as always.