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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: Hi Peter & Co.,
Fabrice Taylor made an interesting comment on ALA on today's Market Call show. He said his analysis of ALA's cash flow statement suggests that the dividend is being funded through borrowing and equity raises, and not cash flow from operations. This is the first time I've heard a comment like this about ALA's dividend and its implications for the sustainability of the dividend. What's your take on this?
Many thanks,
Brian
Read Answer Asked by Brian on February 17, 2017
Q: Hello, Thanks for your wonderful note about the Altagas subscription recipts. This seems to be case of heads, I win a decent amount (10+%) tails i still win some (2.8%+). I called my broker he says Ala.r is trading in the open market..not in ipo any longer. I wanted to clarify if Ala.r is the correct symbol if i were to go through with this..actually i already did make small purchase. Now thinking about half position.Thanks again.
Read Answer Asked by Shyam on February 14, 2017
Q: Thoughts on Alta gas valuation and stability of dividend. I only have a half position of Raging River. I am going to pull the trigger and take a full position. Would you add AlA at this time or recommend another. I'm open to risk and have a time frame of 5 years plus.
Read Answer Asked by Richard on February 14, 2017
Q: Can you give me your thoughts on the following 3 companies, PPL, ALA, ENF, do you think this a good time to add 5% position for each of these 3. I currently hold KWH.UN (5%), BCE (5%), BEP.UN (5%), ZDV (25%), ZPR (35%), and ZRE (25%), I am up currently up 26% on ZPR, thinking of reducing my exposure to ZPR znd add these 3 names.
Read Answer Asked by Nino on February 09, 2017
Q: I don't wish to belabor the points that have been brought up on the ala sub receipts.I bought half a position in ala, I sold some of my Box.un,and my plan was to wait to see what happens with the offer before I sell the rest. Looking at the price difference between the common shares and subs, I am tempted to buy some more of the ala subs now. Just trying to get my head around the pro's and cons. I understand that the shares held in escrow will probably get about 2% interest, creating a shortfall that will need to be paid from escrow funds, maybe around $.10 a share per month.One of the fellows said that if the deal falls through, the sibs will get back $ 31, what if there is not enough money in escrow to pay this, will ala pay out the shortfall.One last thing, someone said that this may not close for over a year, if so, does that mean that the escrow shares will need to pay out the shortfall of the dividends?, if so it could well be over a $ 1.00.Sorry for this being so long winded, but do I have the "facts" right
Thank you in advance for your response.
Read Answer Asked by auftar on February 09, 2017
Q: Hi peter
What your thinking on the long closure on this acquisition June 2018.
The sub receipts are income until then and what about being accretive do we have to wait till next year to see any results from the acquisition and div increase?
This seems to be a very complex scenario wonder if should cut and run.
Kind Regards
Stan
Read Answer Asked by Stan on February 08, 2017
Q: Just a comment to Mike re: TDWaterhouse and the Altagas dividend. TDW rounds off to even cents on its quick quote screen, so ALA's actual dividend rounds up to $0.18 and is reported as such (the dividend received by the investor is accurate). I have also found that sometimes they include a special one-time dividend/distribution in the rolling figure, which can significantly reduce the accuracy of the reported figure. If you find a stock of interest, best to check the company website to confirm the actual dividend payment.
Read Answer Asked by grant on February 07, 2017
Q: My question is more a general. I am looking at the Tdwaterhouse investments site and I am wondering how they calculate the dividend rate. The company that leads to this question is ALA who's listed dividends are .18 per month or $2.16 /year. The share price was $30.46 and the dividend rate listed is posted as 6.89%.
My calculation would be 2.16/30.46 = 7.09%. Why the difference? Their rate does adjust with the price changes. Does their rate reflect dividends paid in the last year and hence not include dividend increase part way through year or going forward.
As an investor I am interested in the dividend rate going forward. What am I missing. When should dividend increase be reflected.
Thank you again for your excellent service. ps kwh is of to a great start.
mike
Read Answer Asked by Mike on February 07, 2017