Investment Q&A

Q: What would you recommend as fixed income alternative?
Thanks
Jean

Q: We have 2 Rrsp accounts. The first one contains mostly 5i recommendations with a focus on dividend income and some growth. We would like to structure the second account to be more conservative and withdraw the dividend income. We like the Canadian banks ie RY and BNS as the dividend is safe and pays well and even when there is a sell off in the banks (including 2009) they eventually bounce back thus preserving capital but in the meantime one just collects the dividend. i know you would say that we should diversify so my question to you is what other stocks would you suggest that pay a 4percent dividend and have the security of the banks over the mid to long term or until Interest rates increase to make GICs/bonds an option.
Thank you.
M

Q: Hi, 5i.

For pure utilities, I have BEP (2.0%) and RNW (1.5%). I also have ENB (2.0%) and IPL (1.0%) if you consider those utilities.

I'm looking to increase my utilities allocation and wondering if I should add to what I have or take a position in Fortis (or another name you recommend).

Thank you,
Robert

Q: I own these shares in my portfolio for some growth and income. FTS has dropped sharply in the past couple days, instead gaining because of the deals they have done. I like to have your opinion as to how safe they are? Would I be better of trading them for ETFs like ZUT and ZWU as they seem less volatile. Perhaps you can suggest alternatives. I would also like your view weather to buy ENB or ENF or another pipeline stock. I like the new format, my apologies for my previous comment of finding confusing.
Many thanks, J.A.P, Burlington

Q: Can you help me understand Fortis's decision to divest a 20% stake in it's ITC acquisition for only $1.3B, or just 11.5% of the total acquisition price ($11.3B) for which Fortis is on the hook for. This seems like a bad deal to make...
Thanks

Q: Did Fortis make a good decision? I'm wanting to add to my current holdings with the current drop today but I'm wondering if I should hold off.

Q: did Fortis get what they were looking for the ITC shares it sold to the Singapore sovereign wealth fund

Q: I am looking for a rising stream of dividend income. Please recommend some top-notch Canadian utilities.
Thanks.
Paul

Q: Hi Peter, Can you please suggest me 5 names based on today's price which I will hold until 2030 and those will have a good growing dividend? Does Fairfax financial qualify? I just mentioned FFH as I am looking for those names that will predictably increase book value and dividend on a 15% CAGR basis for next 15 years. Just want to mention that the changes 5i made to the site is very effective. Great service!!

Q: Further to Charlie's question, does this US acquisition spree and it's debt, change your view on the quality of Fortis preferred shares.
Would you own them for income?

Q: I would like your opinion of Fortis purchase of ITC Holding for 11.3 billion U.S. Dollars. Would Fortis still be a safe stock for a senior as it looks like they bet the farm on this deal.

I know it is different but when Baytex made a large U.S. deal it never worked out for them.

Thank you very much
Charlie

Q: Why is ITC Holdings down? Is this an opportunity to obtain FTS shares at a discount by buying ITC and holding until the closing date? What would be the risks?

Q: FTS is down 10% as I write. Do you regard the drop in price because of the acquisition as a good entry point or should I avoid because of the size of the deal? Thank you

Q: HellO and a question re the overall Global market condition.
It would appear we are in a Bear market with no bottom in site yet. What strong Canadian areas in the Utilities, Consumer and Industrial areas would you suggest one parks some money currently. It does appear money is rotating to these areas out of the more risky areas to safety. Thank you for your insight.

Q: Please rate the following in order of preference for an income portfolio: FTS, AQN, BLX, INE. Subtract question credits as required. Thank you.

Q: I'm thinking of adding to the utilities sector of my portfolio. Considering all metrics, do you think this is an opportune time to be adding? Also, the companies I'm interested in are Fortis, Emera, Brookfield Renewable Energy Partners and Algonquin. Please rate your first, second, third and fourth choices, and explain your first choice.

Q: I'm looking to add a low(er) volatility utility name like FTS or CU. Which do you prefer? Or is this a 6 of one, half dozen of the other type question and they are both OK to buy?

Q: What are your thoughts on Fortis (FTS).

Q: Hello - Would I be correct in saying that the price for Fortis is presently cheap? When I look back over a 5 year period the P/E ratio appears to be at its lowest level right now. Would you agree?

I have no data that goes back further than that so I don't know what the average P/E would be over a longer time frame.

Q: Is FTS at any risk as far as being coal-dependant ?
Thanks for your help.
Sam