Investment Q&A

Q: For my more conservative/income portfolio I’d like to add a utility (already have AQN). Which would you prefer between Fortis or Emera (which I believe has a weaker balance sheet)? Or would you have a different recommendation entirely? Thanks

Q: Hi 5i.
Looking to boost the dividends in my Canadian equity portfolio by peppering in some preferred shares, Can you recommend 5 companies preferred shares that are buyable with an eye on safety, I currently have CSU.DB
Many thanks!

Q: In a September 29th question I asked if Emera had missed estimates and you said they missed 4 out of the past 8 quarters. Yet I look at the chart and it keeps going up, currently hitting resistance at $60/share.

Why/How does it keep going up even though it has missed estimates when other utilities like AQN are getting hammered?

Thanks

Q: My wife and I are retired and rely on dividend income. In the event of a recession, including rising inflation and interest rates and a 20%+ decline in equity markets, how safe/sustainable does 5i view dividends from the named companies? With unrealized gains on all of these, are there any that 5i would suggest selling, accepting the taxable gain, and holding the cash for a rainy day? Thank you. Edward

Q: How would you rank these companies for prospects over longer term (say 5 years or more) measured by total expected return on stock.

Q: For a longer term (5-10yr) dividend hold we currently own AQN and are wondering if adding or replacing it with another such as EMA, FTS or NPI is prudent given AQN's flaccid performance over the past 18 months.
Thank you for sharing your insight.

Q: I have held NPI in both registered and non-registered accounts for years. The stock price has more than tripled, so obviously I am happy with that, but I am now retired and invest mainly for dividends. NPI currently yields less than 3%, a bit low compared to some other power producers like EMA or CU (I already hold some CU but not EMA). NPI also seems to be struggling to get back to its past highs, and if it did then the yield percentage would be that much less. I am considering selling NPI in the registered account and replacing it with either EMA or CU (recognizing these 2 are not currently as strong in the renewable space).
Could you compare the dividend growth, dividend sustainability, debt levels and future stock growth potential of these 3 stocks, and comment on my plan.
Thank-you

Q: Hi, I have read that several U.K. utilities have recently collapsed given soaring wholesale natural gas prices and the inability to pass costs on to customers. Could the same thing happen here and if so which companies might be the most susceptible? Could any of the above companies be impacted? Thanks.

Q: Please rate your top 5 electric Canadian utilities
1. for long term growth potential
2. for safety in a correction.
Thanks

Q: May I have your comments on their earnings please

Q: I hold some AQN now and was looking to diversify by adding EMA. Is there enough of a difference to matter, and what do you think about using these two as a core utilities position in an account focused on dividend income?
Thanks for your recent input on SFC- it was beneficial in my decision process and proves the merits of your service to me!

Q: Would consider this company as a bond replacement in a sleepy business with dividend growth potential?? Buy ????
Thx

Q: 11:05 AM 5/20/2021

On March 18, 2021 "Using safety and valuation as the primary metrics", you ranked these 4 utilities : We would rank: FTS, NPI, AQN, EMA.

You consistently rank EMA at the bottom of the list yet since 2008 the graphs of FTS and EMA are almost exactly the same, both raise their dividends annually and EMA has a higher dividend [4.5% as opposed to 3.7%].

You must see something I am missing. What is the problem with EMA making it so much less desirable than FTS. Please be specific if you can, as this problem has bothered me for a long time. I own 4%EMA and 5%FTS positions in the two and need to add a bit to one. I plan to own these "forever" strictly for income and enough growth to offset inflation.
Thanh you.......... Paul K.

Q: Why have Fortis and Emera run up so much since March? Both were around $50/share at the beginning of March and they both have increased by about $7/share since.

Thanks

Q: Its astonishing how similar the charts look alike for FTS, EMA and CU. They have had a good move. The charts on AQN and NPI look very similar to each other as well, however moving sideways. Why do you think AQN and NPI seem to be lagging FTS, EMA and CU? Best, Don

Q: The other day i asked about selling emera. There were a few details that i neglected to mention. I am thinking of investing the money in clean energy utility. Because they are currently down i thought it a good idea. Looking at utilitirs, though, is it reasonable to have too big a concentration? I already ow icln and algonquin. But, if the answer is yes on that score, which one? i already own a full position in Bam.a. Does this mitigate against Brookfields energy arm and then most reasonably leave boralex?
Thanks

Q: hello 5i:
We hold AQN and BIP.UN in the utilities space and I'd like to increase by either adding to an existing position or initiating a new position. We also hold BAM.A, so indirect exposure to BEP.UN. Using safety and valuation as the primary metrics, can you rank the stocks above?
thanks
Paul L

Q: good day 5i
Thinking about selling emera, which I will have high capital gains on and buying a renewable energy stock. I already own a full compliment of icln and wondering whether I should buy another renewable? If so, which one? I am selling emera because I suspect the government may impose higher capital gains taxes soon. And also because I think there will be more growth, with of course stability, with renewables. I thought I would pass this idea through your radar to see whether you see it as a worthy idea
Thanks

Q: For new money to top up my income portfolio holdings per above. How would you rank if buying today based on valuation and future growth (revenue, earnings,dividends)
Please also rank the sectors (banks, insurance, utilities, telecom ). Thank-you.

Q: Stocks like EMA and FTS have declined about 10-12% during the last four months whereas the TSX is up by about 12%. Are there any fundamental issues with these companies? Or the rotation of funds from utilities to riskier companies is causing the decline of the utilities?
Thank you for your insight.