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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: 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
Q: Please rank these companies with a long term hold in mind.
Thanks
Read Answer Asked by EVAN on December 06, 2019
Q: I have small positions in the above,except for npi. I am considering selling some of bep.un,which is up close to 80% and purchasing some npi. I also have bam.a and bip.un. In my portfolios. Would you please comment on this proposed adjustment and your rationale? If yes,would you wait for a pullback in bep.un. Thank you.
Read Answer Asked by Steve on November 28, 2019
Q: Hi,

Looking for a long term hold, preferably lo-volatility and some growth. I own the banks, AQN, BAM, and ZQQ. Can you recommend your top two picks and why?
Read Answer Asked by Graeme on November 13, 2019
Q: Hi, could you please rank the preferred shares of the above companies best to worst in order of dividend sustainability only going forward. Are there any you would avoid. Thanks.
Read Answer Asked by Gary on November 12, 2019
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