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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: Your response to Brian on Dec 15 included the following comment: "if you own 85% of your portfolio in high dividend stocks, then this is more of a concern".

I am a retired, conservative, dividend-income investor, with a pension, CPP, annuities, the above listed stocks and 3 income producing MFs (RBC Cdn Equity Income, Sentry Cdn Income, Sentry Global REIT).

I fit the 85% easily. I believe my portfolio is diversified by sector and by security. I also believe the securities have, for the most part, sustainable and growing dividends. I am a "buy-and-hold investor with reasonable tolerance for volatility.

Your comments and concerns please, along with any recommended improvements. Thanks...Steve
Read Answer Asked by Stephen on December 16, 2016
Q: I manage my husband's and my TFSA's as if they are one account so we do not duplicate the stocks in the 2 accounts and can have a reasonable size of position. We have a similar weighting of ALA, REI.UN, SIA, WSP, ZEB, BEP.UN, CGX, and HR.UN and PKI, and a double weighting of CPD and CDZ. We currently have about $110K in the two accounts and $20K of that is in cash. Can you suggest what we might add to or change in the above list, considering that we prefer income paying securities with some growth prospects and want the TFSA's to act independently of our other investments as a relatively conservative growth vehicle.
Read Answer Asked by Maria on December 02, 2016
Q: Hi I have some money that I want to park for a few years in a couple of stocks that are considered conservative. I am thinking of ALA and Chemtrade. They both seem reasonably priced. I will be reinvesting the dividends. Are these good choices and can you recommend a couple of others? I have considered SLF but it sure moves quickly based on interest rate news or rumours. Thanks, Bill.
Read Answer Asked by Bill on November 16, 2016
Q: I would like to increase my holdings in pipeline stocks. My interest is a combination of dividends and capital gains. Which of the following would give the me the largest return over a 3 + year period - ALA, ENB, IPL, or PPL. My only current pipeline holding is TRP.
Read Answer Asked by George on November 14, 2016
Q: Other than TransCanada. would Keystone's approval benefit Interpipeline, Pembina, Enbridge and Altagas and, of so, would it be significant. Who else would benefit?
Thanks.
Read Answer Asked by Steven on November 11, 2016
Q: Hi,

I own ALA and IPL. I was going through the Q3 report for ALA and there were a couple of points that concerned me. First is that the Company has a working capital deficiency in the third quarter of $287 million for a quick ratio of 0.67. They also didn't generate enough funds from operations to cover their dividend payments and capex for the quarter. Debt to total capitalization is reasonable at 45%, but some other metrics are less rosy. I realize that some of the cash flow shortfall can be offset by the DRIP. Are you concerned by these metrics? IPL also had a small working capital deficiency in Q2 2016, but not a cash flow shortfall. Is it expected in these high leveraged businesses?

Thanks,
Jason
Read Answer Asked by Jason on October 28, 2016
Q: HI Peter,
I have small positions in the three companies: ECI, ALA, and ACQ. I would like to reduce my holdings to two. I am looking for income and capital appreciation. I was thinking of selling Enercare and putting the proceeds to Altagas and leaving ACQ the way it is. Please advise. Thank you.
Read Answer Asked by umedali on October 24, 2016
Q: Would you consider KEY a reasonable buy at today's prices to be held for dividend and some minor growth? Is there another company you would prefer for the same objectives of dividend and growth? Would you prefer KEY to ALA in view of the latter's potential current issues?
Read Answer Asked by angus on October 18, 2016
Q: I was allocated some subscription receipts with IPL's recent deal. I am looking to add another pipeline company with a strong and growing dividend that is fairly value or under valued if you can find one. What would you suggest? Also, do you believe that energy infrastructure should be included in our energy sector exposure or utility exposure or other?

Thanks,
Jason
Read Answer Asked by Jason on August 24, 2016
Q: I am a senior who needs dividends. Currently preferred shares are 20% of my taxable account(10% overall). I hold PPL.PR.M and ALA.PR.I. Could you recommend 2-3 other minimum rate resets?
I held and sold my Concordia shares the day before you took them out of the growth portfolio. Your advice has been great and very consistent. I wish 5i was around 50 years ago.

Thanks, Jim
Read Answer Asked by William James (Jim) on August 18, 2016
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