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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: One of the themes that I am seeing is companies reducing in carbon intensity. It seems to be more prevalent in Europe right now, with companies building or buying wind and solar power generation for hydrogen production and use. How can one get exposure to European companies through North American markets including wind turbine manufacturing companies, as the European Union launches a new push to make hydrogen one of the clean fuels of the future? With Covid it seems that EU will push the green energy theme for bonds as well. What do you see as an implication of this in North America? What NA companies and ETF's would you see in this hydrogen arena?
Read Answer Asked by Richard on July 14, 2020
Q: Hi Peter and team,

Looking for some recommendations. $30,000 to invest in a TFSA. Low-risk. 3-5 companies with dividends. The timeframe is three years. What would you recommend? Would you be okay with CSU, NPI, and PBH?

Thank you very much,
Read Answer Asked by Stefan on July 07, 2020
Q: What one would you buy today for long term hold, total return in 5-10 years. Hard to imagine CU having any trouble continuing to grow the dividend with one of the longest track records in Canada. Already own FTS,AQN,BEP in other accounts this would be for an alternate account or should I just stick with adding more of the 3 already owned.
Thank you
Read Answer Asked by Kyle on June 01, 2020
Q: According to Reuters article, companies exercising ESG management are getting favourable attention from large investors. I expect some companies will attract a premium price for some time if they demonstrate ESG and advertise the fact. Could you list a half dozen of 5I favourites companies which are at least on the ESG narrow path to higher valuations.
Thank You for your service.
Read Answer Asked by Clarence on May 19, 2020
Q: There was an announcement a couple of days ago that BC Hydro was idling some facilities due to a reduction in demand. In the current situation I would guess that there must be a significant reduction in the industrial use of electricity. The prices of AQN and FTS have pulled back a bit. NPI is up today, perhaps on decent results. What does your crystal ball tell you about the demand for electricity going forward and the future prices of utility stocks.
Thanks for your thoughts.
Ian
Read Answer Asked by Ian on May 19, 2020
Q: Hello 5i team,
Thank you for your help today- what I’m hoping to get some perspective on is tactics one could do to grow a portfolio- what you’d think wise or stupid, please.
In TFSA, two holdings happen to be up: AQN by 35% and NPI by 21%. Everything else is in the minus by -30 to -35% due to the current situation as generally they’re ok businesses, like two banks, phone co, etc.
Tactically, would it be an idea to sell the two that are up, and buy a few which are quite down now, then in due course replace what was sold?
I was thinking of more banks like BNS or BMO, and PPL, CNQ,SU, and KEY.
The idea being that the gains over time would be more than the growth in price of the two being sold, thus netting an overalL growth in funds.

In RRSP, two are close to break even, just a couple hundred dollars each in the red, namely T and NA.
If sold, I was thinking of BIP, BPY, and maybe SU, CNQ, and BMO- fairly similar to the TFSA idea.

I like dividends, I know SU just reduced; I’ve not heard if these others have/plan to. I think I’m fine with a 3-5yr estimation of recovery period for these ‘down’ stocks, if you think that’s likely.

I’d appreciate your counsel on this, thanks very much!
Read Answer Asked by Hilary on May 13, 2020
Q: Hi, if we are in a lower for longer or forever energy pricing environment what might be the impact on the above companies? Also, do you think their dividends could conceivably be in jeopardy? Thanks.
Read Answer Asked by Gary on March 13, 2020
Q: It looks as though utilities, and renewable utilities in particular, have taken off, while Canadian pipelines, which are also traditionally stable investments, are either flat or dropping.
Do you have any comments on whether:
1. this is a short term disparity or a fundamental shift,
2. whether one group is better than the others at current prices, and
3. If the recent drop now otherwise creates a good point of entry for any or all?
Read Answer Asked by Peter on March 09, 2020
Q: The valuations on companies with a favourable ESG component are lofty at best. Do you see any in this sector that are still reasonably priced? A dividend would be preferable.
Thanks for your consideration.
Read Answer Asked by Denis on February 21, 2020
Q: These companies represent 17% of my portfolio, with ENB and NPI positions being 3.5% each and the remaining approx 2 % each. Recently stock prices of several of these have increased 10 % or so.

Should I adjust any of these positions?

Without really knowing the remainder of my account, what percent in utilties would be suitable for a ten year horizon?
Read Answer Asked by Richard on February 11, 2020
Q: In reviewing the 5i responses to questions on these 3 companies you seem to favour BEP. In examing the numbers for the last 5 years through Morningstar I noted the following:
2015 16 17 18 19
AQN .30 .33 .37 .38 .79 EPS
6.53 7.14 7.62 6.40 12.9 ROE%
4.60 4.55 5.10 4.18 6.44 ROIC%
BEP. .01 -.23 -.18 .13 .31 EPS
.05 -1.08 -.81 .53 1.34 ROE%
1.86 1.85 1.70 2.82 3.26 ROIC%
NPI -.07 .64 .85 1.46 1.67 EPS
-1.85 15.7 22.1 35.6 39.6 ROE%
1.7 4.7 5.7 6.3 6.6 ROIC%
Both AQN and NPI would seem to have significantly stronger results (ROE%, ROIC%). What key data points do you look for in this investment sector? Your thoughts on your selection criteria would be appreciated.
Read Answer Asked by Richard on February 06, 2020
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