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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: I am retired and use the revenue from my RRIF to fund my retirement. I am overweight in financials and energy.I need to add to utilities as I only have 1 stock KWH.UN. I am considering FTS, AQN and BEP.UN. Would like to add 2 from this list. Appreciate your thoughts.

W
Read Answer Asked by Wayne on February 22, 2017
Q: Your response to a recent question asking which of these companies to add to:
"BIP has grown the dividend by 16% and BEP has grown the dividend by 35.5%. We would use history as the guide here and side with BEP.UN."
Consider over the past year BEP.UN share price increased by 7.5% whereas BIP.UN increased by 36.5%. Over 5 years BEP.UN gained 46% but BIP.UN gained 132%. In my history book BIP.UN wins hands down notwithstanding the difference in dividend increase last year.

Steve
Read Answer Asked by Steve on February 02, 2017
Q: BIP.UN and BEP.UN both released their Q4 results in the last two days and both raised their payouts. I currently hold both stocks. If I'm to increase my investment in only one of them, which one would you prefer in terms of longer term growth and further payout increases down the road? Thanks for your insight.
Read Answer Asked by Victor on February 02, 2017
Q: If Canadian interest rates remain the same (or even go down) this year, while US interest rates rise, what effect would this have on Canadian companies/stocks in the telecom (T), insurance (SLF), bank (BNS), and utility (BEP.un) sectors? Thanks in advance!
Read Answer Asked by Jonathan on January 19, 2017
Q: Hi, i'am thinking of selling Bep.un, I read an article saying it has a $33 target,and is paying out over 100% on AFFO,it also goes on to say because of its unique structure it has numerous conflicts of intrest ,therefore is a weak position for its unit holders.
Just wondering if you somewhat agree and if I sold,what two or three replacements could I buy with a good dividend.
Thanks,Brad
Read Answer Asked by Brad on January 13, 2017
Q: i am concerned that owning pipes and parkland (which I do, for income) is going against growing headwinds, and there is a growing international trend toward cleaner energy, renewable energy, etc. I don't think I need dump all of these now, but at some point, don't you think we should be lightening up. Or is it such a longterm issue I need not worry about it. i want to be ahead of the curve.

If you agree, then what would you recommend instead for income, in the areas of clean energy and renewables?
Read Answer Asked by arnold on January 11, 2017
Q: WORKING ON GETTING THE SECTORS BALANCED--HAVE 3 UTILITIES AND ONLY ONE TEL COM--WANT TO ADD SEVERAL THOUSAND TO EACH SECTOR---WHAT DO YOU SUGGEST?
THANKS AND HAPPY NEW YEAR
Read Answer Asked by peter on January 04, 2017
Q: In my 35-stock portfolio, I have a 9% overall weighting in the following:

ALA - 3%
ENB - 2.5%
TRP - 2.1%
BEP.UN - 1.4%

I am assuming that 9% is an "okay weighting" for this group (?) but my main question is, whether or not you see too much overlap in these stocks.

I know this group provides a mixture of storage and pipelines that move shale oil, crude, gas, etc. I also have exposure to renewable energy which has kept me from investing in other power-related stocks such as Fortis and Canadian Utilities.

Do you have any concerns about the weighting or overlap?

By the way, the only energy stock I have is TOU - 1.2%, if that makes any difference.

Thanks.

Jim
Read Answer Asked by James on January 03, 2017
Q: Hi Peter and Team,

I find that we need to buy some more in the Utilities sector, to keep to a 10% weighting. We presently have about a three-quarter position in each of AQN, BEP.UN, and FTS. Do you think that INE would be a good addition to this mix or is it too similar to AQN and BEP.UN? We can buy and sell XUT commission-free, but I notice that ZUT (not commission-free) has a better chart. Should I increase our positions in each of the three we already have, buy a new one, or top up with XUT/ZUT? Or is there a US ETF in this sector that looks compelling? Or perhaps in the present "climate", could the utilities sector weighting be reduced below 10%? What sector should take up the slack?

Thanks for all your great advice which has been and continues to be very valuable. A Merry Christmas and Happy New Year to all of you at 5i and the members as well.
Read Answer Asked by Jerry on December 21, 2016
Q: Merry Christmas to all at 5I and thanks you for a very productive year, My question involves BEP.un as I am looking to add it to my portfolio on a pullback. I already own ALA and it is at 2.5% of my portfolio. The rest of my portfolio is as close to the Balanced Portfolio as I can get. Could I have your thoughts on this acquisition.
Read Answer Asked by gene on December 21, 2016
Q: Many of your suggested stocks for the income portfolio such as ABT and BEP.UN would have Graham and Malkiel shivering in their boots. My own portfolio has stuck more or less to their tenets but your suggested stocks in many cases have some of their fundamentals quite off the mark. I am worried that in a strong downturn these may not survive for a long haul such as what happened with many gold mines.

My question is, should I have faith (which is why I signed up with you) or hold a limited position in these types? I hold a well diversified portfolio with a goodly amount in GIC's. Thank you and happy holidays.
Read Answer Asked by STANLEY on December 19, 2016
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