Investment Q&A

Q: What would account for ATCO's lackluster performance over the last 10 years? Lumpy earnings? The chart looks quite good in the years prior to 2012, and the dividend appears to have been raised fairly regularly.

As a retired dividend stock investor, I am interested in it's diversification. I do have exposure to the Brookfields, but do you think there is enough difference between ATCO and BIP/BEP to warrant an investment in this company?

Q: Hi, There seems to be a systematic decline in equity values, for past two days, in sectors like Utilities and Telcos, which are considered proxy to bonds, due to their higher yields. They held on better than the market, in general, during past few months. Do you think, the fear of rising rates has finally caught up with these sectors and these stocks might come under pressure, even more, in near term, as Fed and BOC continue with their plans to hike interest rates. What's your advice ? We have about 10% weighting in each of the two sectors. Thank You

Q: Could you explain the divergence in stock price between these two classes of Atco? According to the Globe, Y is up 9% over 52 weeks, while X is only up 5. YTD, X is up 7.31% while Y is up 15.56%. In the last 5 days X is down 4.2% while Y is up 9.81%

Q: Please rank the above 7 stocks in terms of the negative impact a recession-based bear market would have on their price, and also on their ability to maintain their dividend.

Thank you!

Q: Hi guys
could you please give me your evaluation of this stock and whether it is a good play in this sector or if you feel there is a better choice thx as always

Q: Can you name 5-6 Canadian dividend stocks that you think might be a good spot to ride out higher interest rates for a while? Thank you

Q: Hi 5i,

Which one would you choose between ACO.X and CU for an RRSP?
Can you help explain your reasoning?
What would be a good price to pay for your choice today?

Q: Could you please explain your logic for your answer to "Greyhairs".
It seems counterintuitive.
Thanks.

Q: Hello Peter and team,
If given a choice, would you choose Hydro one over Atco? Any idea why Atco has not done well over the last 5 years and if one is to invest , is this a good time? Thanks very much.

Q: Hi Peter
Can you please explain the rationale in adding Atco to the income portfolio? If 80% of its income comes from Canadian utilities, why not purchase CU directly? How is Atco better than other canadian utilities?

Thanks

Q: Hi 5i,

Is there value in swapping EMA for ACO.x in my portfolio with all things being equal. Its in your div. port. so one of your favorites.

Thanks!

Q: In my RRIF account I hold NTR which has broke two of my sell/trim thresholds. It has grown by 100% and is now over 7% holding in this account, so I may trim back to a 5% holding. My short list to replace with a higher dividend income in mind are ACO.X, EIF, NWC, and PKI. Could I please get your ranking and if any should be removed from short list.

Q: I might be finding out I'm less comfortable with volatility than I thought I was <g>. Or am I losing sight of longer-term trends and overreacting to isolated daily extremes?
Two of my holdings are down quite a bit more today than the general market and my other (mostly relatively conservative? - communications/banks/utilities) holdings.
Anything going on sector-related (CT REIT down almost 5%) or company-specific (Atco / utilities down over 3%)? None of my other utility holdings are nearly this bad today.

Q: I am trying to steer my and my husband's TFSA's more toward growth. The stocks listed are some of the stocks in our TFSA's that I am considering swapping out in favour of growth-oriented stocks on my watchlist. Can I get your opinion? Do you think that any of the listed stocks have enough growth potential to belong in a growth-oriented TFSA?
Thank you, Doris

Q: I am drastically under invested in utilities. I presently hold the following - each is under a 1% weighting - AQN, ACO, BIPC, BEPC, BEP.UN, CU, and Fortis. Which would you sell? Which would you add to? All are in corporate non reg acct. Also want to increase my US and International exposure. Is there a reason not to do it in this sector?
Would appreciate US and International companies you favour. 5 year hold.
Thank you.

Q: Hi, looking at income and some growth , with the view to ride out a downturn that may or may not come in the future.
With this in mind would you prefer one of the above ,or something else ? Five year or more hold
Thanks

Q: I am looking at putting together a portfolio of set-&-forget Canadian dividend-paying stocks, in what will be my only unregistered account, making up about 30% of our overall portfolio. The registered accounts (70% of portfolio) are now all in mixes of VGRO, VBAL and XAW.
My emphasis is on stable large cap companies, with a sprinkling of smaller cap, low beta, decent and growing dividends. I expect to draw down the capital at 6 - 7% per year (in addition to the dividends). Beyond the drawdown, capital preservation is secondary to the income.
What are your thoughts on the following mix? Additions/deletions?
Communication: BCE, T
Consumer Discretionary: CTC.A, LNF
Consumer Staples: NWC, PBH
Financials: BNS, TD, SLF
Industrials: SIS
Materials: SJ
Real Estate: CRT.UN
Energy & Utilities: ENB, AQN, FTS, ACO.X, BEP.UN (or BEPC)
My other thought is 100% CDZ but I'm not very impressed with the historical returns and the (relatively) high MER.
Thanks. Lotar.

Q: Hi Everyone at 5i! I am thinking of adding more dividend players to my tech heavy TFSA, just to start balancing things out a bit. I was thinking of adding Manulife and Atco...they seem cheaper, have some growth prospects and raise their dividends yearly ( though albeit, manulife ran into some problems a while back. ) Are my proposed additions decent selections? Cheers, Tamara

Q: ACO.X. I am looking at this one to add to my portfolio. They seem to have their fingers in a lot of pies: modular business must be hurting with the slow down in requisite businesses that support them like O & G. Seem to have a lot of debt. as well. Do you have a break down of each business segments contribution to revenue and profit? It's share price is almost at peak levels as well. Would you buy at current price for a long-term hold as a core position?

Q: ACO.X or CU.With preservation of capital and income as goals,do you have a preference?