Investment Q&A

Q: I would appreciate you placing these stocks in order that you would purchase them. Also how many of these would you hold in a portfolio?
Thanks

Dave.

Q: In my RRif I own Key & PPl, high yielding stocks to help cover forced withdrawals.
They declined on Friday despite a drop in bond yields.
So you think the decline was due to a drop in Wti?
Trump intends to increase tariffs which could result in higher interest rates due to inflation and his energy policy could lead to lower oil prices.
As a result of the above should I reduce key & Ppl & invest the proceeds into companies that will benefit from higher interest rates such as Mfc & Slf

Q: Hi 5i,
Any idea what's going on with Keyera? Right now, it's defying gravity and I don't think there's a single analyst out there who has called that, and although I own it and I like it, to me the underlying numbers don't justify the heady heights it's reaching. Any thoughts?
Thankyou,
Peter

Q: Stop me if you've heard this story this year: I am having a once in a generation year with my portfolio up 50%, a chunk of that driven by Nvidia and its explosive growth. NVDA is now 40% of my portfolio which I acknowledge is insane. But having owned it since 2016 and benefitted massively, I have no intention of selling it, at least not yet. The rest of my portfolio is made up of successful U.S. and Canadian tech, and, on the other end of the scale, conservative, low beta, mostly Canadian dividend payers. They provide ballast to my tech/NVDA risk. Getting to the point: I have $35K to invest and it should be directed to the conservative part of my portfolio. What names would you suggest that tick the following boxes: +4 % well-covered yield, slow but steady share price growth, solid fundamentals, probably Canadian though open to U.S. stocks, irrespective of sector. In the conservative part of my portfolio I already own: all 6 big banks, FTS, ENB, GRT.UN, BAM, BRE, EIF, FC, FFH, PPL, SLF, TFII, TRI.

Apologies for the windy question and thanks!

Q: Both PPL and KEY are recieving positive recommendations form analysts. PPl looks cheaper on valuation. Both have similar dividends. If investing new money, which would you choose?

Q: Can you identify of the 10 top oil companies in Canada which ones receive WTI vs WCS oil pricing? How would you rank these companies for both risk and total return?

Q: Hi 5i,
I've held a stake in KEY in my RRIF since the 2020 meltdown, which is now up considerably. I'd always told myself I would divest 1/3 of it if it reached $40, and it looks like that may happen pretty much anytime. What would be your top 3 non O&G, non-utility suggestions to replace that 1/3 of KEY (which currently yields 9.48% based on my cost base). Primarily I'm looking for income, but some growth is always nice too. Aside from the exceptions noted above, sector allocation isn't a concern for me.
Or would you suggest that based on KEY's fundamentals and the healthy yield I enjoy I should set my target higher - perhaps $45.00 - and wait a while longer before divesting a portion?
Thanks for your input,
Peter

Q: Good morning Gentlemen: Looking out 2-3 years, could U rank the above companies from most prefer (5) to least prefer (1)?
Secondly, If Trump get elected, Which of these companies will be affected negatively because of protectionism, if at all. Thank you

Q: Hi,
I didn't understand your answer about Brian 's question posted today. (July 4th)
To my limited understanding, your answer should point out to EMA as a better option. Lower pay out ratio. Higher dividend growth. Or am I misinterpreting your answer.

Q: Hello 5i Team,
I was thinking about adding to my EMA position until I read last week's dividend growth forecast reduction to only 1% - 2% per year instead of its historical 4% increase. While the "going in" yield is attractive at over 6% now, would the reduction in dividend growth stop you from putting more money into this company's stock?
As an alternative, I was also considering adding to Keyera - lower initial yield, but dividend growth in the 4-5% range annually.
How would you compare these two in terms of payout ratio, debt management, and total return prospects over the long term?
Many thanks,
Brian

Q: I would like to add to one or both equities.
What is your preference? A short explanation regarding size, dividend safety and possible growth would be appreciated.
Thank you as always.
Albert

Q: Good morning all;

I currently own 4 energy infrastructure firms in tax sheltered accounts; amounting to 7% weighting in my portfolio. As part of an overall portfolio review i've concluded I'd like to get that down to 2; for a combination dividends and growth. My question is - which would be your preferred 2 with these parameters.

Thanks as always.

Dave

Q: I need to raise some cash. Can you rank these investments from your favorite to least favorite currently please and thanks

Q: A lot of market commentators are observing that there is potentially a correction ahead. Ordinarily I would follow your long standing thought to not try to time the market and I would simply stay the course. But one income oriented account I am concerned with has a priority of capital preservation. These 7 named stocks make up about 1/2 of the holdings. Can you please provide your quick assessment whether they are reasonably safe in the event of a downturn. If not and they are more exposed to a decline, would trimming be sufficient or are there some other names to migrate to protect the account assets?

Many thanks for your excellent service

Q: I own these energy stocks and some are on the plus side and others are on the losing side. I've been waiting for quite some time for the Chinese economy to take off, but it seems to go nowhere ? I would like to trim some of my holdings. Please place them in order of what you would keep down to some you would let go. Maybe you could code them as 10 being the best and 1 as being the worst. Thanks.

Q: I am thinking about taking a full position in either Altagas or Keyera. Could you please provide your thoughts on both companies.

Thanks

David

Q: Will soon have manditory withdraw of funds from a RIFF. Please rate these for sale with some reasoning.

Q: I am finally going to dump my AQN holdings and would like to redeploy capital to get similar dividend yield. I hold hold postions in all of the other stocks listed. How would you rank order them in terms of value/upside and are there any particular standouts which you would recommend for a buy now. Thanks

Q: In your opinion which one of the two in the sectors below offer the best return over the next 5 years?
Energy Infrastucture-Key or PPl
Retail-Atd.b or Dol

Q: 1:17 PM 8/30/2023
Hello Peter

I am trying to decide if it is worth investing in either Keyera or Gibson Energy as both seem to be attractive stable little companies that just go about their businesses.

I would appreciate your comparative analysis of Keyera and Gibson Energy for a very long term hold. Can you comment on debt levels, quality of management, possibility of a takeover, liklihood looking forward of regular dividend increases, and the potential of each company for future growth.

Both companies have nice dividend yields now. but no meaningful increases in share prices so the only reason to own either one is for the annual dividends, but Keyera's share price has fallen from about $50 in 2014 to about $34 at present so the dividends barely make up for the capital loss. Similarly Gibson's share price now [about $20] is the same as it was in 2011 so no growth there either but at least you did get to collect some dividends along the way.

Gibson's dividend was up each year since 2012 but was flat from 2017 to 2019, and Keyera's dividend was raised annually from 2004 till 2020 with twice with no raises, and no raises from 2020 to the present so one wonders if the cash flows are a bit weak some years.

It seems to me that of the two Gibson, although a much smaller company than Keyera, may the better bet.

So in your opinion is there any economic justification in investing in either of these two little companies?

On the other hand maybe this is a wild goose chase looking at Keyera and Gibson and maybe it is better to just stick to PPL, ENB, and TRP.

Thank you.......... Paul W. K.