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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,

If there is never another new pipeline built in Canada (which I feel is a real possibility), how would you view pipelines companies as long term investments going forward?

Regards,

Robert
Read Answer Asked by Robert on February 23, 2018
Q: Hi, . I want to invest in 5 stocks ,mainly for income , I would like your thoughts on my ideas , and give me your ideas . p.s. I hold BNS and TD . I would buy 1 at atime over the next several months thx Jack
Read Answer Asked by Jack on February 23, 2018
Q: Further to members' questions about pipeline equities: if oil transport is scarce, then demand for pipelines services should be essentially inelastic, such that (existing) pipelines can raise prices without losing traffic. Or is pipeline economics dominated by long-term contracts and capital replacement, such that inelastic demand doesn't help?
Read Answer Asked by John on February 12, 2018
Q: Hi 5i Team,
I own positions in IPL, ENF, KEY, ALA, and PPL. I am a long-term income investor who (like many) is a bit disappointed with the relative (to the market) decline in the share prices of these companies. All of them have been good at growing their businesses, earnings, and cash flows, and dividends - cornerstones of my investment strategy. On a fundamental basis, I don't see anything wrong with any of them, and am inclined to stay the course, thinking the market will eventually reward these companies. I recognize that many of these companies carry significant debt (at low, long-term rates I would think, and not variable rates), and the current Canadian regulatory environment is a negative for the industry.
Can you poke any holes in my investment strategy with respect to these names?
Read Answer Asked by Brian on February 09, 2018
Q: Good Morning, Gentlemen;
I have a position in IPL at around $25.80 per share. I have the ability to add more (doubling in size my position, which would put me at 10% of my portfolio) at these levels but I'm hesitant because of the steep drop in share price.
My question is this: is this a sector weakness or is there something intrinsic with the company performance that may be driving the stock to these low levels (and very high dividend)? The current price as I write this is $22.73. I am investing for long term, reliable dividends.
Thanks!
John
Read Answer Asked by John on February 08, 2018
Q: I have a bit of money to invest, these markets I enjoy seeing at times.
Where do you see the most value and the greatest growth going forward from today. I like dividends, but, Photon has no dividends, I can see great potential here even with out the dividend for Photon.
Where would you place your money if you looking to pick a winner in total return. Long time investor.
Inter Pipeline, Savaria or Photon.
Thanks
Read Answer Asked by Barry on February 05, 2018
Q: I am slightly overweight the semi-pipeline sector with TRP, ENB, IPL and KEY, totalling just under 20%. I am thinking about selling KEY and either holding the cash or putting part of it into IPL given IPL's recent price and yield. KEY and IPL total about 5.5% of my portfolio. I also intend to sell some TRP when it gets back over $60. I am a patient investor with no need for funds (ever) but I will be 70 this year. How would you compare IPL and KEY in this scenario? Thanks. Great service and I've tried a lot of others.
Read Answer Asked by Earl on February 01, 2018
Q: Hi 5i Team

I'm interested in reviewing the dividend history of Canadian pipelines, utilities, reits and other income stocks over the long run, namely through recessions and interest rate movements (the tagged companies are representative). I'm trying to determine if the dividends remain fairly stable or tend to fall under these circumstances.
Can you suggest a source that would help by showing dividends for a company over the long run? Ideally, overlaying short/long term interest rates to save time.

Any help greatly appreciated.
Peter
Read Answer Asked by Peter on January 30, 2018
Q: I am reviewing my sector allocation and depending on how I place TRP , ENB, FTS and IPL, I can have up to 14.6 % of Equities or ~5% of Equities in Energy. Can you comment on the following and tell me if they are all in the Energy sector in your opinion : CNQ ( 2%), ENB(3%), FTS(3%),IPL(1%), SU(2%), and TRP(3.5%).
Read Answer Asked by Wayne on January 29, 2018
Q: for additional income and some growth I am considering the four listed companies, or what would be your recommendations. may I have your comments.
thank you.
Read Answer Asked by Karl on January 11, 2018
Q: Hi Peter and team,
Recent PR from IPL regarding the 3.5 B project is confirmed, Market doesn't like it with SP down 7% in two days, at least for short term reaction. interesting, PPL's December Corp Update Ppt, showing " Pembina is proposing development of a world-scale, integrated PDH/PP facility in Alberta's Industrial Heartland " Here is the question, :
Is the same project (PP/PDH facility) or different ones ?
If the same one then IPL decided to go ahead, would PPL take it off from its to do list ?
As PPL's 2018 Budget doesn't show any major spending on PDH/PP project and still showing in progressing... no final decisions... .
Thanks
Read Answer Asked by LEI on December 20, 2017
Q: Good Evening
Can you please comment on the reasons for the 7.5% drop for IPL. during the last two days?
As a general rule, if yields approach the 7-8% range there is usually some concern with companies not being able to sustain their dividend pay outs.
I will appreciate your comments with respect to IPL's prospects going forward.
Thanks
Read Answer Asked by Terry on December 19, 2017
Q: Six questions regarding pipelines:
(1) I understand that Enbridge finances most capital expenditures by way of debt or new equity, not retained earnings. I am thinking that this would be OK if its GAAP earnings per share are keeping pace with dividend increases and its debt service coverage is stable. Do you agree with these comments?
(2) I assume that the prospects for ENF are tied to ENB. Do you agree?
(3) Do PPL and IPL have the same policy as ENB regarding the financing of capital expenditures?
(4) Do you have preferences among ENB, IPL and PPL and, if so, why?
(5) If I am correct, ENB is mostly pipelines, PPL is mostly other midstream and IPL is somewhere in between. I have this idea that pipelines are more stable than other midstream activities. Is this simply wrong or an over-simplication?
(6) ENF, IPL and PPL represent 10% of my portfolio. Would you suggest lightening up? (I am retired and my portfolio is geared to income.)
Read Answer Asked by Carl on December 11, 2017
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