Investment Q&A

Q: Altagas Limited ( ALA ) is selling subscription receipts at a price of $31, and I have committed to a purchase. My prime reason for doing so it to enjoy the relatively generous current dividend of about 6.4%. What is your opinion as to whether the company can continue to pay this dividend and the future stock price outlook?

Q: I hold ALA:T shares. Recently they announced $2.8-bil public offering 2 31/=. Do you thing I should sell the stock and put a buy order for this subscription issue which will participate is dividend also whenever they are on call? How good or accretive is WGL Holding acquisition is and based on this should I acquire more or exit the position now and enter after 6 to 10 months? I have 3% of my portfolio.
Thanks

Q: Peyto and Alta gas have fallen lately for different reasons. How secure is their dividend, and their price ? Which one would you rate better for a 5 -10 year hold ?

Q: In a TFSA, 5+ year hold, if purchasing today, would you buy ALA, BEP.UN, or FTS.

Q: Hi peter
On ala you state the acquisition underpins the dividend increase .What do you mean by underpin?
Kind regards
Stan

Q: Subscription receipt offered for $31.00. Do you see this as a good buy at a slight discount to today's closing of $33.32 or should I wait, as sometimes I note in many instances that the initial reaction to issuance of new shares tends to drive the price bellow the offer price. I already own 200 shares at 40.86 and looking to average down. I also like it for income and wonder if the dividend is safe and do you think that the new merger will contribute to ALA`s ability to grow the dividend.

Thank you.
Joseph

Q: Thoughts on the WGL deal now that we have the specifics?

Q: What is your opinion on this bought deal from Altagas with 7% discount?

Q: If you could purchase only one of ALA, (Altagas) or IPL,( Interpipeline), which would it be and why.

Thanks for the great service, David

Q: are these reasonable buys for income and/or growth?

Q: In response to a question yesterday you indicated that you believe that the ALA dividend is not at risk. I have read that high yield can be a sign of weakness in a stock. Is it your opinion that the current high yield of 6.5% for ALA is sustainable at this level? Do you believe that for stocks in general a high yield is an indicator of weakness in any stock? Thank you.

Q: good morning:
altagas sure seems to be making a lot of news so far this year ]with more news this morning. Do you think they will have to dilute shares to do some of these these deals and would you think since they pay a nice dividend now this could be in jeopardy.

Q: I'm building a non-registered account with companies that pay out a fairly high dividend (tax efficient for the dividend tax credit) and with an emphasis on growers. In particular companies that have indicated their intention of growing the dividend 5-10% annually and in some cases provided timelines as well. Looking for steady increasing income from this account but also hoping the increasing dividend will provide a floor for the stock prices against increasing interest rates expected over the next while. Time line 5-10 years.

For example, ENB who have indicated 10-12% dividend increases through 2024 (choose this over ENF who has indicated 10% increases through 2019). This should take ENB's dividend payout up to around 9%+ based on the current stock price. I've also included ECI in the account so far.

BEP/BIP don't fit the bill due to the distributions not being tax effective.

Looking for more ideas, perhaps 5-10 that I could consider adding to gain some diversification as well.

Thanks!

Q: Hi, I am curious to understand market reaction to ALA's possible merger talks with WGL Gas utility. Some of your comments suggested that ALA shareholders will welcome the news and price could go up resulting in increase of our portfolio holdings in ALA. Market seems to think otherwise, as reflected in 5% drop in ALA price in the morning trading. WGL price , on the other hand shot up 6%, yesterday and even higher today. I understand that WGL is a gas utility, which could result in a lower price multiple for ALA, if there is a merger.Financing concerns, issue of new equity could be another concern, you think? How is it compensated with the highly accretive nature of the transaction ?

I would greatly appreciate your insight.
ALA and IPL are my midstream holdings and added ALA this morning on weakness, for stable income and some growth in future.

Q: Given the approx. 5% drop in ALA's price due to a likely merger, would this be a good buying opportunity? Also, why would this (and other stocks) drop when a merger looks to be accretive long-term unless they take on a ton of debt?

Q: Two Questions:

1. I am overweight in these 3 pipeline/utilties due to run of share prices, ala,ipl and ppl should I trimm back all 3 or sell one, if you were to sell one which would it be?

2, With the recent sell off in energy stocks Vermillion is holding up better than most especially compared to similar companies such as Esso and Exxon, is this another sign of what a good core position Vermillion is or should we expect Vermillion to decline?

Thanks again for the great valuable source 5i provides.

Q: Good Morning
Can you please elaborate as to hoW the merger announced yesterday will affect the following preferred shares:

ALA.PR.U in US Funds
ALA.PR.I
Thank you
Terry

Q: ALA-tsx was halted yesterday, Thursday, Jan. 12, around news reported in "The Wall Street Journal" (the only place I could find info at 4:00 pm..)

"Canada’s AltaGas in Talks to Combine With D.C. Utility WGL
Deal could value the parent of Washington’s natural-gas utility at $5 billion to $6 billion"


Do you have more info or thoughts? I am not a subscriber to the Journal so could not read the complete article.

I suspect this will be good for both companies.

I hope ALA does more dividend increases & wonder what will happen to ALA's DRIP/SPP plan I have been in for years.

Q: My only energy holdings are equal positions of ALA, ENF and PPL. These total 7% of my equity portfolio and are held in a registered account (RRIF). In your view does this represent an over-concentration in the energy sub-sector, and if so which of the three would you sell? I could sell ENF or PPL at a profit, but would incur a loss by selling ALA. Thank you.

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