Investment Q&A

Q: ENB. SU,TRP and PPL are my current energy holdings and I am down on all four. I have held for a long time and I am concerned energy is not coming back quickly. What would you suggest.? Reduce in all, cut 1 or 2 , if so which would you suggest I sell. As usual your input is respected.

Q: I have decided to go with your recommendation and move a small portion of my portfolio to a robo-advisor. Few questions:

1. I have losses on PPL(37%) and TD (15%), Would you sell now and transfer the cash to or hold on to these until they recover?
2. I have narrowed down to two robo-advisors. Questtrade and Wealthsimple. Which one would you pick?

Thanks again for quick and helpful responses,

Q: Dear 5i team,
I’ve read all (I think) replies to questions referencing these companies, in the last year or so.
I’ve read views that seem so different to what my brokerage says (TD). For example, member Helen noted she was done with SU. I was happy to see you still think it’s best for its sector- TD lists a bunch of analysts who collectively think its a strong buy, as does a couple of reports they include in their screens.

Why are some stocks being rated strong buy but some folks want to sell them for tax losses, or won’t buy them at all?

I can’t see energy (and businesses that serve energy) not getting back on track mid term. Do you agree? Mid term in my mind is 3-5 years. I was thinking that if an investor bought say SU at $18, it moved to $36 in 3-5 years, that is doubling one’s investment. Is that not good enough, or is the underlying issue not doubling one’s money but that it’s high risk of big loss instead?
While I’m using SU as example, I thought these questions were relevant to all these co’s.

Would you think an investor was silly to buy some of all these today?
Please provide the ‘why’ for your opinion, thanks so much.

Please use credits as needed. Thank you ! :)

Q: I am planning to take some losses as offsets to capital gains from previous years. In some cases, I am considering replacements as well. Please advise of any concerns with, or suggest alternatives to, the following sale (purchase) plan.

Sell HWO, PSI & IPL (buy PPL and AQN - already own ENB, ALA & KEY)

Sell SU & CJ (buy CNQ and PXT - already own ARX). I also have a sizeable loss on VET, but consider that is presently so far below comparables, that I should wait for some recovery – or sell now and move on?

Sell HR.UN (buy another REIT, possibly TCN.UN and/or ERE.UN - already own IIP.UN & NWH.UN).

Sell CHR.

Thanks - Don

Q: I am thinking of selling ENB for a tax loss (again) and repurchasing it after 30 days. Your advice previously was to use PPL as a proxy. Would you still suggest the same strategy?

Appreciate your insight.

Paul F.

Q: I own both ENB and PPL and are down 21% and 31% respectively. I keep thinking this has to the bottom for these two low risk pipelines and yet share prices of these two keep on sliding. Would you recommend doing an averaging down at these levels for both, just one, or none?

Of course in my "perfect world" scenario I'm collecting over 8% yield on the new additions for now, and chances for a big rebound in SP down the road. You insight is much appreciated.

Q: I am going to sell TD Bank in a cash account for capital gains to be used against capital losses earlier this year. I could buy it back immediately or purchase something else. I am thinking of PPL. Which would you pick for reasonably safe total return over the next 2 years?
What Cdn non-tech stock would you pick for best reasonably safe total return over two years?

Q: Hi Peter,
In a reply to a question today you said ENB would become a "Cash Flow Monster" if they stopped investing in new growth initiatives. Agree.
1. Would you consider the same assumption for PPL?
2. And if new growth initiatives were/are to diminish over the next 1 -30 years due to the increase in renewables what would you see ENB/PPL most likely doing with the increased free cash flows?
Thanks as always for your perspective.

Q: I have a question about my TFSA - is there decreased value to own US-traded income stocks in a TFSA? If I'm obliged to pay non-resident withholding tax, doesn't that partially defeat the benefit of my TFSA? In particular, I've read with interest the 5i researchers' (the "5iR") position that ENB is generally favoured over PPL presently. Would the 5iR's position change if the holding were in a TFSA? Is the withholding tax a material concern?
Thank you in advance for your advice,
IK.

Q: The Canadian pipelines had a bit of a dip on Wednesday. Is this share price decline related at all to the hurricane in the US? If so, how will the hurricane impact business for the Canadian pipelines, as a whole?

Thanks.

John

Q: I bought more today on the dip.
Is it just a dip ?

Q: I currently have a total of 5% of my portfolio in an equal combination of ENB and PPL. How advantageous (if at all), would it be to add BPMP for the sake of its dividend and seemingly low current valuation? As this would be a non-registered account investment does the tax treatment of U.S. dividends present a material issue?

Q: Tax loss versus growth considerations question. Holding ENB for several years and still below water. Have held PPL for a couple of years prior to recent meltdown and recently decided to sell PPL to realize tax loss using TRP as proxy for next several weeks until 30 day period has expired. Looking at your recent answers to questions on these 3 pipeline operators (I only need two, maybe one) and considering TRP focus on a friendlier fossil fuel firmament USA got me to thinking that maybe I should just hang on to TRP despite Keystone and Crooked Joe threats rather than going back to PPL after 30 day period is up... In your view which of the 3 companies have the better growth prospects in USA space given all three are down in this negative fossil fuel energy space? Portfolio is growth/income focused tilted mostly to equities. Retired but do not depend on portfolio income.

Q: Your thoughts on their 1/4 reports please, deduct points as you see fit.

Many Thanks

Q: With a 5-10 year time horizon, can you recommend any dividend stocks which have stable dividends and high yields due to current market conditions? I think that RioCan and Enbridge both fall into this category and would be interested in similar stocks that have a yield in the 8-10% range.

Q: Hi 5i guys,

RE: Capital loss .. attribution rules .. taxable account.

Am underwater on PPL and am considering selling at a loss and buying a similiar company in the sector i.e. ENB or TRP.
Is this allowed for CRA purposes ?
Thanks as alway,
Steve

Q: Is the PPL dividend reasonably safe? Which dividend is safer ENB or PPL?
Appreciate your service.

Howard

Q: Looking for a reasonable dividend (>2%) with some growth in a non-registered account. Was thinking of binning PPL and ZRE (down more than 20% on each), harvesting my tax losses, and replacing with PKI and SIS. Would you suggest holding the course, or swapping one or both out for PKI and/or SIS? (I would have considered swapping out for TRI and/or SLF, but am already at 19% financials.) Thank you.

Q: What do you think its fair price should be at this time and what year end target price do you give it assuming oil runs up to 45-50.
Thanks Steve

Q: Own ATE,BAM,BEP.UN,BYD,CPX,DSG,LSPD,PKI,PPL,REAL,SHOP, TFII,VFV,VGG,WSP,VIG, VOO.
I have 8.25 % in ENB with %UNR of -4.57 and 4.32% in PPL with % UNR of -30.67. Should I sell PPL and allocate funds elsewhere? Any sector other than oil and gas you would suggest allocating the funds. Sample of your top picks appreciated.

Thanks for your advice in the past. I like your new offerings. Due for renewable in November will be taking advantage of it.

Roy