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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i Team
I currently own TransAlta Renewables (RNW) in a taxable account with a capital gain.
The current yield on RNW is 6.2% and the current yield for BEP.UN is 3.9 %.
The five year dividend growth for BEP.UN is approximately 5.5 % and the five year dividend growth for RNW is 3.0 % (with no dividend increases in the past two years).
1 - When BEP.UN spins out BEPC and BEPC starts trading, does it make sense to sell my RNW and purchase BEPC? Essentially I am trading dividend income for future capital gains and dividend growth.
2 - What date does BEPC commence trading, the BEP.UN press release July 16, gives a date of July 24 for BEPC.WI/BEPC (NYSE/TSX) and July 31 for BEPC/BEPC (NYSE/TSX)?
Thank you for all the clarifications posted for the BEP/BEPC spin out.
Read Answer Asked by Stephen on July 27, 2020
Q: After doing quite well selling my BIP and replacing it with BIPC after receiving the "free" BIPC, I intend to do the same with BEP.UN and BEPC. Right now BEP.UN is "overbought" according to its daily RSI and I would expect a minor correction to get the RSI down but should the price of BEP.UN dip on the day this "special dividend" is effective all other things being equal?
Read Answer Asked by Don on July 22, 2020
Q: Hi 5i Team,
I have to step on my pride here and ask a question as I'm still confused.
If I understand correctly:
1 - If I hold 100 shares of BEP.UN as of July 27, on July 30 I'll hold 100 shares of BEP.UN AND 25 shares of BEPC? Is this correct?
2- If I hold in RRSP or TFSA I should sell the 100 BEP.UN and buy BEPC shares? Should this be done right away? Wait a few days/weeks?
3- If I hold in unregistered margin account I should keep everything as is? 100 BEP.UN and 25 BEPC?

Thanks for you patience.
Read Answer Asked by Marco on July 22, 2020
Q: There have been a few questions related to an upcoming change for BEP.UN. I am not clear on what is actually happening or why.
I hold BEP.un, and would appreciate it if you could please explain what is going on, what you are recommending and why as well as timing of implementing your recommendations. As always, many thanks for your help.
Read Answer Asked by Alexandra on July 22, 2020
Q: Is there any advantage in any scenario to holding BEP.UN units over holding BEPC shares going forward, or any scenarios where one would want to convert the BEPC shares to BEP.UN units as they offer? Will investors just stop buying BEP.UN and just buy BEPC instead?
This deal will be quite dilutive to BEP will it not by fundamentally diluting the share count by 25%?
Thank You
Read Answer Asked by Clarence on July 22, 2020
Q: I'm short out of the money covered calls for August expiry for some of my shares in BEP.UN. Given the BEPC shares dividend, I expect the BEP.UN shares to drop after the July 24th expiry date but I'm a bit confused as to whether the BEPC shares will follow the option or remain with me after July 24th. In other words, will the option be priced for just the BEP.UN shares or the BEP.UN + BEPC shares after that date.
Thanks
Peter
Read Answer Asked by Peter on July 21, 2020
Q: Based on BIP.UN and BIPC performance i'm thinking of switching from BEP.UN to BEPC on the first day of trading. I think July 24th is the ex-date and that BEPC trades on a when issued basis starting the same date. Please confirm. I know there are tax pros and cons but as an investment can you comment on the short term and long term of doing this switch.
Read Answer Asked by Mike on July 20, 2020
Q: I know Chartwell is and will be under scrutiny under the current context. I fell in love with the drip and the monthly high dividends not so much the stock.

What would be your 2-3 suggestion to replace it with? Considering I want a high monthly div that a can drip without investing 100k in!

Thanks
Read Answer Asked by Claude on July 17, 2020
Q: Please rate the above for the following criteria (best first):
Safety, valuation, dividend sustainability,long term strength,
thanks
Read Answer Asked by JOSEPH on July 17, 2020
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