Investment Q&A

Q: I own 1500 SHS of BIP.UN in my non-registered account and a 1000 of the other in a registered account. I noticed that my Mar. distribution for BIP.UN was $1012.00 not 1500 x .5025 = $753.75? This is what> The difference is ROC? These type of securities should probably be held in a registered account, I would think? Very complicated at tax time with the T5013. Unfortunately, you cannot exchange securities - ie. BIP.UN to registered account in exchange for securities of same value. BIP.UN has been an awesome investment.

Q: Hi, I am looking at buying minimum rate preferred share trust units in BEP and BIP and similar to the common shares a portion of the distribution is return on capital. I will hold them in an RRSP account. I am trying to better understand what ROC actually is. It almost sounds like it is just returning part of your capital invested back to you. If so, is it a ‘real return’ to the shareholder or just getting part of your money back. If so, what is the attraction? I’m confused. Thanks.

Q: Hi. looking to pick up 3 cie , for a 10 yr period in a RRSP account , would you recommend any of them or any others that are not on the list.

Thanks

Q: I would like clarification of the dividend reported for BEP.UN. TD states the yield is 6.5% with a quarterly dividend of .52 Todays price is $42.07. Annual dividend would be .52 x 4 = $2.08 $2.08/$42.07 = 4.94%. Can you explain the difference.

Thank you

Q: Hi, if I hold either of these stocks in a TFSA would they be exempt from any U.S. or foreign tax reporting? From a tax reporting perspective would it be the same as if holding them in an RRSP? Thanks.

Q: Reading through 5i answers to questions regarding Cdn. coys that pay dividends in USD made me wonder if there is a way to increase my cash holdings in my USD account without incurring FX charges and being eligible for the foreign tax credit.

I currently have AQN and HOT.UN in my TFSA that pay dividends in USD that are converted to CDN$ with the extra wrinkle of HOT deducting withholding taxes that are not eligible for the foreign tax credit because it is held in TFSA. Also hold BAM.A and BEP.UN and BIP.UN in Cdn. cash trading account that also pay dividends and interest in USD$ and are converted to CDN$ when paid.

Can I as owner 1) TRANSFER my AQN (up about 150%) and HOT.UN (down 25%) shares this year from my TFSA to my USD cash trading account to get dividends/interest in USD and 2) do the same with BAM, BEP and BIP from Cdn. cash trading account to USD cash account to capture and keep the USD payments and avoid FX conversion fees and build my USD cash reserves in USD cash account without incurring any fees and charges from my online broker? Or do brokers and CRA have rules against clients benefiting from structuring dividend/interest transactions in a manner like this?

Obviously this would open up SOME space for extra contributions to my TFSA in early 2020 above and beyond the TFS $6000 contribution limit to provide for increased flexibility for sector rebalancing and re-allocation opportunities. Also this would make the USA withholding tax payment on the HOT.UN dividends eligible for the foreign tax credit when filing my tax return to CRA?

Comments?

Q: Hi,
I have approx 10% weight in these in a long term RRSP following your porfolios(Only 1% WN as spin off)
I have about $!0,000 to add. What are your thoughts?
Add to a few laggards or add new?

Q: From your previous advice to other members, I am aware that these securities are best held in RRSP/RIF accounts for tax purposes. My question is whether the same advice applies to each company/partnership for their Canadian dollar preference shares? Are the dividends impacted by withholding taxes and are the shares eligible for the Canadian dividend tax credit.

Thanks

Q: Good afternoon: could you please rate those three Brookfield units for total returns over 5 years. dividend payout and growth.
Thank you.

Q: I have $25,000 in my TFSA invested in the above companies, eaqch with a weighing of between 8% - 10%. Looking to add another $10,000. I'm 63. Preference is dividends and some growth. Looking for stability if another December 2018 were to repeat itself.
May I please have your suggestions, in order of preference. Please deduct appropriate credits.

Thank you.

Q: Hello -
I currently own BIP.UN, BEP.UN and BPY.UN in a CAD RRSP account. These three stocks pay dividends in USD. I do already have a USD RRSP account that holds American stocks. Would it make sense to move these three Brookfields to the USD account to avoid the exchange conversion fee when I receive quarterly dividends? I don't believe there is any issue in holding Canadian stocks in a U.S. account.

Thanks.

Q: Might there be a preference of one of these two companies for long term growth?

Q: In my portfolio I have following Canadian equities: AQN (4.9%), BCE (4.78%), BNS (4.64%), WXM (4.5%), SIS (3.8%), BEP (2.68%), MG (2.29%), KXS (2.03%), PBH (1.94%), MX (1.92%), COV (1.87%), TSGI (1.76%).

I have a full positions worth of cash I would like to add to my Canadian content and was wondering on your thoughts as to adding to one new stock (ATD.B, WSP, CCL.B, other suggestion), 2 half positions, or adding to my existing positions.

I have a 20 year time frame and comfortable with some risk.
Thank you.

Q: Hi 5i - can you see a total return of 10% per year over 5-10 years on BEP.UN (currently yields 7%)? Thanks, Neil

Q: Good morning. I’m looking to invest in either BPE or AQN, both of which companies you are positive about. I’m looking at the respective yields ( 6.6 vs 4.2) and am wondering about that disparity. If risks is correlated to reward, does that mean BPE is more risky and if so, why is that? I notice that BPE is showing negative EPS and that makes me wonder how they can sustain such an attractive dividend yield. Thanks

Q: Which of the Brookfield companies would you invest in if you could only choose one and why? Is Bruce Flatt the CEO of the of all of them via the Brookfield parent company?

Q: I’m looking to add a 3 positions to this list. I was thinking about bns or slf. Can you give me some other suggestions from the balanced portfolio? This account is 20% of my total investments, and is for medium to long term savings. The rest is in well diversified funds. Thanks.

Q: could you please rate these stocks in order of preference and why. thank-you.

Q: With a theoretical projection that a slow-down is nearing, which 5 dividend paying stocks would 5i suggest to your readers that can ride out a market decline and offer a reasonable rate of return on investment?

Thank you
Debbie and Jerry

Q: Given your recommendationed percentages for sector allocation could you tell me which stocks in your balanced portfolio are utility stocks and telecom stocks and if there are none in your balanced portfolio which would be a buy at this time?