Investment Q&A

Q: From a value perspective, where the current price is compared to it's historical price range and it's future potential, in what order would you add to these equities (NTR, FTS, XIT, XST, ZUT) to reach asset allocation goals?

I understand it is not apples to apples, due to some of the equities are stocks vs ETFs; and some are conservative vs aggressive.

When looking at both the technicals and fundamentals, I would suggest that NTR and ZUT are undervalued and could be earlier purchases, compared to FTS, XIT, XST. Purchases will be spread out over several months.

Your thoughts on the order?

Thanks...Steve

Q: Hi 5i, I've held both Fortis and BIP.UN in a registered account for just over five years. I am thinking of selling Fortis and reinvesting the funds into a larger BIP position. When I look at the Fortis return of approximately 7% and dividend yield in comparison with BIP return and yield, BIP appears to win. I like the fact that BIP's business is broader and more global. My current Brookfield family holdings are about 11% of equity holdings so I realize that this move would increase my exposure to Brookfield to about 15%. I know you can't comments on position sizing but would appreciate your thoughts on making such a move. I know Fortis has an exemplary track record in increasing dividends but maybe it's time. Thanks for your service!

Q: hello 5i:
Looking at estimates of Cash Flow (Fastgraphs) for FTS, I see that 2024 is estimated to be 7.69, 2025 is estimated to be 8.08 and 2026 is estimated to be 5.18.
First question is why such a drop off in 2026? A red flag for long term buyers, no?
Second question: how would such a scenario affect dividends/dividend increases?
Third question: how would preferred shares and in particular FTS.PR.K be affected?
thanks
Paul L

Q: Hi 5i,

I would like to sell BEPC to benefit from tax loss and buy back in 31 days.

Portfolio includes:
2.5% Fortis
2.5% BEPC
1% PIF

Also have :
2.5% BIP.UN
1% BAM
2% BN

I am retired, like dividends and some growth.

1. Looking for a proxy for BEPC for one month
2. Your suggested mix of Utilities.

( Will probably increase BAM some more.)

3. PIF - I like the dividend but volatile for a utility and hasn't gained SP for many years. I have a small loss. Is the dividend secure? Any reasonable gain anticipated over next year or two for PIF?
Might gains be a little more outsized due to interest rate reductions in next year or so?
Do you think it could be a takeover candidate?
Should I hold this or sell?

Thank you for your usual great advice.
I prefer more rather than less detail. (Subtract as many credits as needed.)

Q: Do you have a preference between these two for a long term hold?

Q: My son is getting married this year and he and his fiance are planning to purchase a home in the next 2-3 years. He has opened an FHSA acct and invested these funds in a GIC. He also has cash in his RRSP and TFSA accounts that are held at TD Waterhouse Webroker which he wants to use for a down payment on the home as well when the time comes. Could you please give me your top 3 income/savings vehicles and your top 3 dividend stocks (understanding these are riskier) you would recommend he purchase through his TD Waterhouse account in this scenerio.
Many Thanks
Scott

Q: Hi Team,
could you rate these companies for a 3-5 years horizon considering I am looking for income and capital preservation but a bit of capital growth would also be good...

Thank you

Michel

Q: Looking to invest my TFSA contribution. Can you give me your top 5 Canadian dividend growth stocks at the moment.

Q: I am considering swamping Fortis out for Capital Power for higher overall return in the intermediate term (3 to 5 years). Thoughts?

Q: My wife is going to do an “in kind” transfer from her RIF to her TFSA. She is looking for best total return on a 3 to 5 year hold. Please rank these companies with a few pertinent comments.
Again - much appreciated. ram

Q: Hi, I've heard that over the long term, dividends make up the most significant portion of one's stock market gains. Is this true? When I look at my winners, (CSU for one), it's not, but in any case, could you list 3-5 of your current favorite dividend growers?
Thanks as always, Rod

Q: Hello Peter,
I am thinking of increasing my weight to 5 percent for Fortis. I understand that the company has been stable for long time with increasing dividends, but is it possible that it could run into headwinds as Algonquin did? I am wondering if i should stick to 3 percent and put the other 2 percent in hydro one and Emera.. Thanks very much

Q: Which do you prefer between these two for a 10 year hold and rational?
I hold BEP and wondering if I should switch to FTS.
Thanks

Q: What would your top three utility picks be today for income and some capital appreciation?

Q: Curious about yields. It feels like the yield on ETF XHY remains around the level it was several years ago (~6%) despite other stocks yielding much higher returns. Shouldn't those ETF holdings (high yield corporate bonds) be ticking upwards too which should drive the ETF yield higher? Maybe there is a time-delay as they have to reset?

So with various stock yields as high as they are I would like to try to benefit from the yields AND set up for capital gains on the same stocks that *should* pop as interest rates normalize and fall a bit. What are 3 CAD and 3 USD stocks that fit the bill? (High current yield AND good likelihood to strong share price increase in 1-3 years.) And where would ENS fit relative to those suggestions?

Q: For a "safe dividend stocks " strategy perspective, I noticed that those 2 stocks in my portfolio have reached a relatively low point (no loss),is it then time to 1)"average up " , 2)to wait and see,or3) eventually to sell in case of a new situation?

Q: Hi Folks,

My RRSP portfolio consists of the above stocks all with relatively the same weighing. Can you suggest 5 names or so, (CDN and U.S) that I take a look at that would complement the above? I am looking for a company that would be a good buy today for both income and capital appreciation - total return.
Thanks

Q: I have held NPI for sometime and am down almost 8%. I know you're not a big fan of the stock currently and prefer BEP, H or FTS. That said, 9 of 9 analysts are rating NPI as a Strong Buy. None of the others are rated as highly. What are you seeing that they do not?

Q: How would you rank these electricity producers for a 5 year hold, probably longer.

Please add what other companies are worth consideration

thank you

Q: I own the above high dividend yield Canadian stocks, just under 4% yield and up. I am looking to add maybe 10 to 20 % to 4 or 5 positions. The yield on these is enough for us now so no hurry to sell anything.
Retired, but still looking at safety of capital. I have left out O&G plays and other potentially riskier plays. (except Enbridge)

Which of these, or other stocks do you believe have the greatest potential for price appreciation over the next couple of years if/when interest rates drop.

I am looking for your top 5, here but feel free to add other picks.

Thank you. Take as many credits as needed.