Investment Q&A

Q: Hello Peter
The Negative comment yesterday on BEP.UN was from Ross Healy who rated it as "Don't Buy", and said [quoted from Stockchase.com]:
"This one is a difficult call to make. The fair market value is at or below where it is trading. The balance sheet strength is not what he would like to see. He would not be drawn to this one and he would not recommend it. It does not have the supportive earnings he would like to see."

Your comments appreciated as I hold a large position in it and have been quite pleased with the performance and income
Thanks....... Paul K

Q: I have heard some mildly negative comments about one of my holdings, BEP.UN, recently. Is there an alternative that you would recommend in this sector?
With appreciation.

Q: Hello,could you please explain the amplitude of the 125 high P.E on BEP.UN this is the case in few of your picks.
Thank You
Dan

Q: I asked this question in the blog but probably should be here.

My broker told me that BEP.UN was a bad investment because the $2.25 payout far exceeded the $1.11 earnings? When I go online to check this out I get conflicting numbers, so not sure who to believe. Can you clarify as to the integrity of BEP.UN
Thankyou....Jim

Q: Brookfield Renewable Announces Final Results of Exchange Offer and Intention to Take Up Class A Preference Shares, Series 5 of Brookfield Renewable Power Preferred Equity Inc.
Would you be a buyer of this stock in the current environment with a possible 2 year hold. (How does the above affect a current shareholder? Thank you.

Q: For the A,B, or C company ratings in your reports, what factors are used to determine them ? e.g. A for Brookfield, C for Extendicare ?
Thanks.
Dan.

Q: I'm constructing an income portfolio and I'm looking for long term stability.

With Brookfield Renewable Energy, part of their dividend is comprised for a Return OF Capital. This is essentially giving back to shareowners a piece of the assets. I don't see how this is sustainable for any company, let along one that has a lot of CAPEX involved as it is a utility.

Can you help describe why management has chosen this course of action and what's the long term plan for the dividend?

Q: Hello -

Is there any issue in investing in this (type of) company within an RESP?

Thanks.
Jim

Q: I notice that you have BEP rated as an "A". I am looking for diversification in my wife's portfolio, for safety and stability. I notice, however, that BEP has a very ugly chart for the past year and some disappointment re earnings reports. What is your present opinion of BEP?

Q: I like the Brookfield entities and have held them, in various forms, for well over a decade. I want to also like BEP, however, I don't understand something - their cash flow per unit has only increased by about 3% on average over the last three to four years. How can they and the market expect the kind of returns that many are anticipating (e.g. Scotia - 29% including 7.2% distribution) when the multiple isn't that compressed and the free cash flow isn't really growing? Thanks for the great service!

Q: Question: Do you follow any solar and wind energy companies that would benefit from future trends away from fossil fuels?
Would appreciate your comments.
Thanks

Q: Peter and Team,

With the environmental regulation changes happening in Alberta and the seemingly relentless drive of public policy toward a "carbon free future" at any cost, doesn't it seem like the writing is on the wall for a company like BEP.UN to move higher over time? Do you think the market will recognize this?

Q: What do you think of their Rate reset Pref Ser7. 5.5% is their offer. Came through Scotia iTrade. May not get the quantity that one requests. Worth buying? Safe for 5 years?
On an another note, I know that they will return the original 25 $ in 5 years even if it goes down. But what if the shares appreciate?

Q: First, in your response to the question about pipeline holdings, you mentioned Pembina raised their dividend this year. Did you mean Interpipeline, which just raised theirs recently?
What is the future of Brookfield Renewables and how will solar impact it's use over the next decade? I want to put this into a RRSP and just keep it - nice dividend - but I don't want a dated product.
Thanks.

Q: AS PRESIDENT OBAMA SORT OF PROMOTE RENEWABLE ENERGY OVER FOSSIL FUELS,I'M DISAPOINTED BY TODAY BEP HAIR CUT,I'M 72 AND 6% OF MY RETIREMENT PORTFOLIO ACCORDING TO 5I INCOME CRITERIA IS INVESTED WITH THIS SINKING BOAT,NEWERTHELESS HOW YUSTIFY A PE.OF 164,COULD YOU PLEASE EXPLAIN.
THANK YOU TO PETER & TEAM

Q: Q3 results - comment please.

Q: Peter and Team,

My portfolio is largely in line with the balanced equity model portfolio. I currently have 3.9% of the portfolio in IPL. I wondering if I am better off keeping IPL or moving that money (and may be increasing the position to 5%) to Brookfield Renewable Power. It feels like the world is shifting to renewable regardless of economics and I am wondering if BEP will give me a better long term return than IPL. As a piece of side info, I hold stock in TransCanada as well.

Thanks for the input.

Marc

Q: Could you please comment why BEP has significantly underperformed most other renewable utility companies on a 3 month, YTD and YOY basis. Thanks.

Q: My comments about BPE are: In 2014 we used Turbo Tax (TT) to submit our taxes. TT increased my return twice in price until reaching their "Business Rate" because I had one form T5013 for BPE. My wife's return went through with no problem but when I submitted my return there was a statement issued "We're sorry the Canada Revenue Agency was unable to accept your NETFILE return".After trying to correct and send with no success I contacted CRA who directed me to a Tax Advisor. She tried and was unable to resolve and re-directed me to another Sr. Tax Advisor who also tried to resolve my/their problem with no success. He advised I contact TT.
After a long wait I did chat with someone from TT who gave me some vague answers with no specifics and ended our chat abruptly. At this time I decided to delete form T5013 from my return and file and submit the form later. CRA help desk advised I wait until receiving my Notice Of Assessment which I did. I then sent in form T5013 with a letter of explanation and was re-assessed. I don't need the hassle again and will never again use Turbo Tax. Regards Gord

Q: In an answer today you said that BEP.UN is not eligible for the dividend tax credit but indicated that POT is. I hold bep in a non-registered account. If it is not eligible I would consider it better for my RRSP. Is there a rule of thumb or a resource anywhere that can be used to figure this out.