Investment Q&A

Q: Where do you think this might bottom out? I sold half around 11. It’s in my rif so no tax issue. Just blow it out??

Q: We are planning to set up a separate investment account for our grandkids. Assume a 10 year hold. There are a few sectors we would want to overweight - 3 stocks, CAD or US, in Financials, Industrials, Technology and 1-2 stocks in the others. What would you look for and how would that translate into individual stock selections.

Q: Your top 5 Dividend stocks in order please for CND and US? Long term holds

Thanks you

Q: Capital Power has performed extremely well this year, for a utility stock especially. I am wondering how much more room it might have to run. I also hold AQN at a loss large enough to eliminate my gain on selling CPX, so tax considerations are not an issue. I am pondering the wisdom of selling both AQN and CPX and replacing with another utility such as BEP.UN. I am looking at capturing a yield >5%. Any other suggestions would be welcome.

Q: Following these recent QA regarding BN.

Sep30 “ As per the latest annual financials, BN holds a 25.0% interest in Brookfield Asset Management (BAM), a 54.6% interest in Brookfield Renewable Partners (BEP.UN), a 73.9% interest in Brookfield Infrastructure Partners (BIP), and a 34.5% interest in Brookfield Business Partners (BBU)”

Oct01: “Owning the three noted will provide higher income and somewhat similar exposure. But BN will prove the 'private equity' component of its businesses that the others have less of.”

I own BN since BAM-reorg and it did very well this year. If we look at it’s underlying assets : in the last year BAM/BBU did OK but not as much, but both BEP and BIP did poorly. May be a stupid question, why did BN do so well? Market speaking? “private equity” or other assets heavier than we think? Thanks ++

Q: I am assuming that the recent increase in weight of BEP.UN (Income Portfolio) is also an endorsement to accumulate BEPC since they are supposedly “equivalent”. EPS forecasts for BEPC appear as grim as for BEP.UN, with increasing losses forecast for ’24 and ’25. In a recent Q&A on BEP.UN it was stated EBITDA is more relevant than EPS since it’s a limited partnership. BEPC is not a limited partnership so should it be valued differently? I don’t recall ever seeing a stock begin to trend up in the face of falling 2-year EPS forecasts. 5i has cited the expected decline in rates as a catalyst, but there must be other factors contributing to the rising stock price - perhaps rising revenue, confidence in management, …?

Q: The information provided to Tom on September 23 made me wonder about this company, specifically that it’s operating earnings has not covered its dividend for the last 12 months.

I am not a fan of EBITDA which you consider to be a better indicator of the financial situation. Does not INTEREST affect cash flow and the ability to pay dividends ?

You indicate that cash flow varies widely with water levels and electrical generation. With climate change ( drought and floods ) being a significant factor to operating cash flow, should I not be concerned ?

BEP.UN is close to 10 % weighting across my different accounts.

Thanks. Derek

Q: For BEP.UN, I read that the earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. Also the dividend is not well covered by earnings and cash flows. Are these reasons to sell BEP.UN now???......Tom

Q: According to my Portfolio Analytics, I should raise my investment in the areas of Consumer cyclical and utilities.

Can you recommend your top 3 picks in both Cdn and US stocks for these sectors?

Thank as always.

Q: I hold Bep.un however BEPC has outperformed they are both same so why there is a big difference they both pay almost same dividend. Should I move to BEPC

Thanks for the great service

Q: What is your view on EIF.Ca for the next year? I am rethinking the stocks in which I currently have losses. Is this one worth holding or is there one with more growth you would suggest for a well diversified portfolio focussed on growth
Thank you for all your help over the years
Donna

Q: Hello Peter,
The utilities sector is moving up (assuming due to lower rates), but BEP.UN does not seem to get back to its old high; it seems to be range bound. Any idea why this is the case?

Q: For a conservative investor and a long-term hold in a TFSA:
a) which has more room to run from current valuations in your opinion, ATD or BEP.
b) If you didn’t need the cash dividends right now, would you invest in BN over BEP.UN to maximise return and mitigate downside risk?
Thanks kindly!

Q: Would you consider ZWU to be a reasonable replacement for the following equities in a RIF ?
BEP.un, BIPC, BIR, ENB, FTS, TOU
Please give Risk assessment 1 (low) out of 10 (high). Other suggestions/comments appreciated ?

Q: Can you rank the top 5 canadian utilities for a long-term hold for income.

TY

Q: Acknowledging that 5i may not agree with my opinion here, if one were to believe that Solar-Wind Battery Storage systems will eventually be cheaper than Gas / Coal / Nuclear, etc. power, would BEP.UN be the best investment choice?

With regards to the above, are there any other Canadian options - even an ETF - for holding within a non-registered account. I'd want to avoid that T1135 form !

Q: If I were to pick only two themes for long term investment, they would likely be urban water supply and the electrification of North America. (Would appreciate your thoughts on those choices...).

Regarding electrification, I'm well positioned in energy providers, including green & conventional energy producers. I have a half position in HPS.a and a small amount of GRID. I am struggling to decide if I should move upstream into a copper producer (BHP?) or if I should stick with small caps like HPS.A to get more torque.

I'm retired and no longer young; my finances are solid. Most of my investments are with a professional manager. I keep about 20% for fun, but even the fun money is mostly in fairly blue chip stuff. It is in this small chunk that I shall play around, and I am okay with adding a bit of risk.

So the question is: raw material producer or end user stocks? Where would you head? Specific suggestions most welcome.

Thanks in advance.

Q: If you owned BEP and BN, do you think it's worth selling BEP to buy BN as a replacement? I understand is that BEP pays BN a lot in fees, and that would be the smarter play in the longer run. What would you think of that? What are people saying about the cagr growth over the next few years? For example, if BEP is expected to grow up to 12%, but BN is expected to grow at 18%, BN would probably be the better choice. Is that logical thinking at all? Thank you!

Q: What are you highest conviction Canadian dividend stocks at this moment with interest rates falling, if one is looking for a combination of dividend yield and total return.

Q: NPI continues to be in the doldrums despite recent earnings being quite decent. Do you feel optimistic about an eventual price recovery?