Investment Q&A

Q: Hi 5i Team,
I own positions in IPL, ENF, KEY, ALA, and PPL. I am a long-term income investor who (like many) is a bit disappointed with the relative (to the market) decline in the share prices of these companies. All of them have been good at growing their businesses, earnings, and cash flows, and dividends - cornerstones of my investment strategy. On a fundamental basis, I don't see anything wrong with any of them, and am inclined to stay the course, thinking the market will eventually reward these companies. I recognize that many of these companies carry significant debt (at low, long-term rates I would think, and not variable rates), and the current Canadian regulatory environment is a negative for the industry.
Can you poke any holes in my investment strategy with respect to these names?

Q: We're now $1900 underwater on 800 shares of KEY. Any hope for the future? Sell, hold buy? These are troubled times ! Many thanks - Ted

Q: I am slightly overweight the semi-pipeline sector with TRP, ENB, IPL and KEY, totalling just under 20%. I am thinking about selling KEY and either holding the cash or putting part of it into IPL given IPL's recent price and yield. KEY and IPL total about 5.5% of my portfolio. I also intend to sell some TRP when it gets back over $60. I am a patient investor with no need for funds (ever) but I will be 70 this year. How would you compare IPL and KEY in this scenario? Thanks. Great service and I've tried a lot of others.

Q: The question is in relation to a Cash Acct. which collectively yields sufficient dividends to support all necessary expenses on a yearly basis. The makeup includes the following:
AQN, DRG.UN, LNR, WSP, PKI, EIF, RBC Dividend Fund(all Cdn.. Bks), RBC as well as KEY & PPL which have been held for over 8 yrs. A large capital gain will result if either is sold but will be mostly offset by old losses. My question is which of the two do you recommend selling & suggestions for at least 2 GROWTH dividend yielding replacements. Thank you.

Q: Hi 5i,

I have been a long term holder of KEY. I hold it for longer term cap gain (not big gain, but gain), and dividend.

I am still in positive territory, but I am concerned about the decline in price from $45 down to $35. $35 appears to be a multi year technical (chart) floor.

I have read all your recent answers to the questions on KEY. I would summerize as a lower risk longer term revenue stream play.

Should I be concerned about it breaking through the $35 floor ? Is there something else I should be aware of ? Would you recommend changing to another equite in the same sector (please deduct as many questions as you see fit).

Love your service !!!!!!

Q: Have held both KEY & PPL for 5+ years & enjoyed substantial gains & excellent dividends from both. However, major changes have taken place in this sector and I have decided to move on. In our principal Cash acct we hold KWH.UN, DRG.UN, WSP, PKI, LNR, RY, WPK, SIS, & CHW - all dividend paying. Would appreciate your suggestions for 2 or 3 CDN. replacements. My RIFF investments cover USA, Asia & Europe. Thank you.

Q: Why did energy infrastructure companies drop this week? Is this now a buying opportunity?

Q: What do you think about the stock Keyera with todays news on the agreement signed with Chevron (to fractionate and handle natural gas liquids from Chevron's Kaybob Duvernay operations near Fox Creek, Alberta.) ? Would you be a buyer of this stock?

Q: Could I have your opinion of Keyera re. How natural gas price impacts their costs, their debt and ability to service their debt.Also who are their compitition in this space and would any of these companies be a better investment?
Thank you.

Q: Hey 5i folks could you give me your views positive and negative on investing in these six without regard to sector allocation. Looking at a 5 year hold. Perhaps ranking them from most to least favourite. Thanks for your help - Ken

Q: Hello team,

I am looking for income in energy sector? i am leaning towards a investment in more of a gas related company than oil, I believe its a better longer term bet. The two companies i am most interested in are Keyera and Altagas. They both have been trending lower lately! What is the main difference in the two companies, and which is your favourite for a 3-5 year hold. Plus could both be owned? Do they compliment each other?

Thanks,
Stephen

Q: Hi Peter, Ryan, & Co.,
Keyera sold off today, I assume after the market reacted to the latest earnings reported yesterday. Can you comment on the most recent quarter's results? I've watched other energy infrastructure companies like IPL, ENB & ALA sell off considerably recently - are these great buys now, or is the entire sector in long-term decline?
Thanks,
Brian

Q: Want to refine my pipeline/processor holdings consisting of ALA,ENB,ENF,IPL,KEY,PPL,VSN.
Looking for yield plus growth of ~7%. Have held all for over three years and some seem range bound,Not sure which have the most castalyst for growth.
Your thoughts on best to own and which to drop. Would likely convert the proceeds of disposed ones into more of the holds to maintain same total $ position in the group.

Q: Please rank ENB, TRP, PPL, IPL & Key as to their dividend rate, safety of the dividend and the volatility of the share price from best to last. I want to add one of these companies to a RIF. Thanks

Q: Hello 5i,
A guest on BNN recently mentioned Keyera in the context of being a potential take-over candidate. I realize such is likely nothing more than idle speculation, but I am now curious: where would such a bid most likely originate? Utilities such at ENB, FTS, TRP, etc or more the likes of a Suncor? Or, are either equally as probable?
I would like to know what kind of viable candidates you would see out there. I am guessing KEY would go to a Canadian buyer under the present set of circumstances. Thoughts?
Thanks,
Cheers,
Mike

Q: Hi Peter, Ryan & Co.
I've been holding Keyera for over 5 years, mostly for the income. They announced a 6% dividend increase yesterday, along with quarterly earnings. Can you please comment on the latest quarterly results wrt volumes, cash flow, and whether KEY can continue to increase its dividend by 5-6% per year looking forward?
Many thanks,
Brian

Q: Hi5i,
Could you comment on Keyera. How does the balance sheet look and the sustainability of the dividend? Would it be considered a decent buy at these levels?
Thanks Dave

Q: Hello 5i team,
Do you have an explanation for the big jump in KEY share price today?
Thanks,
Antoine

Q: I have owned IPL, PPL & KEY for many years & as a result have built up substantial capital gains & continue to receive very healthy monthly dividends. My question &/or query is whether to continue with these very staple equities or sell all or part to better deploy funds in other sectors. I do not NOW hold any direct oil or gas investments; having sold all in early 2015 as I firmly believe the oversupply of oil & gas will only continue to grow throughout the world until we have replaced it with alternate technologies. Your comments are always appreciated. Thank you.

Q: Do you have any idea why key era went up almost 3% today? I know the earnings report was due after the market closed, but I didn't see anything special about the report. What did you think of the earnings report and the market move today?