Investment Q&A

Q: Hi,
I am extremely underweight the utilities sector, so would like to buy one utility.

I like the geographic diversity of BEP.UN and that you have it rated as “A”.
Would this be your top utility pick?

I’m not concerned about dividend yield or even total return, so much as which utility will come through the next economic downturn with the least damage.

Thanks,

Q: My wife only wants to invest in environmentally friendly companies ( eg renewable energy sector etc). I have bought for her QST. I would like to put her in solid larger companies that pay a dividend. Could you recommend your top 5 picks?

Q: Good Afternoon,

I am looking at raising some cash. Of the above, which 3 would be your sell preference, in order of 1st, 2nd & 3rd.


Thank you.

Q: Hi all,
I am a buy and hold dividend investor looking for income and some growth with a 5+ year horizon. I am considering opening first positions in the above mentioned Brookfield family. I am interested in your opinion on the relative merits of these investments (how would you rank them). Also how / where should they be held in relative order to minimize taxes - Open / RRSP / TFSA - CAN / USD account?
Thank-you
Ken

Q: For a energy utility for a long term hold in an rrsp does BEP.UN fit the bill or would Algonquin or Fortis be a better choice.

Thanks

Q: Hello 5i
The P/E for BIP BEP and CSH seem a bit odd. Would you please explain the reasoning of these P/E's?
Thank you
Stanley

Q: Can you please explain why there is tax withholding on these shares? Also, what percentage was withheld? Is the company domiciled in Bermuda?

Q: 10:15 AM 5/16/2019
1. Could you please provide the numbers for, and compare and comment on : debt levels, financial leverage, debt to cashflow, and payout ratios for EMA, FTS, AQN, BIP.UN, BEP.UN.
2. You seem to always rate EMA at the bottom of the list [Why?] but I believe EMA has sold off some significant assets [Emera Maine and others?, more to come?] so debt levels should be lower, so is it a secure buy now for long-term dividend income?
3. I worry that BIP and BEP both have extremely high payout ratios. You have suggested that a total of 15% of one's portfolio in these two would be acceptable. Are you still of that opinion?
Thank you........ Paul K

Q: I realize that BEP.UN could have US tax implications if not held in a RRSP\RIF. Does Bam.A have any similar tax implications or is it treated the same as most other Canadian stocks.
Would the maximum recommended holding for BAM.A be be at about 7.5% of the portfolio or since it is diversified by the other Brookfield companies would it be higher and if so what would the recommended limit be.
Ron

Q: Could you provide what you see as the best 3 investable stocks that should benefit from continued growth in the renewable energy sector and the move away from carbon based fuels. I am not looking for high risk new technology but rather companies that look like a good bet to grow profitably over the next 10 years.

Thank You

Q: Could I please get your top 3 picks in the growth and income portfolios at the current moment. Thanks, Don

Q: I am considering adding to this co. based on their earnings. The price is drifting lower which is giving me hesitation... what are your comments on the earnings? What about guidance provided?

Q: US dividends - not a question.
The Canadian stocks above also pay US dividends.

Q: Not a question but information about dividends received from the above. I have my investments at Questrade, and hold the Canadian-listed in my LIRA and TFSA and the U.S.-listed in my Spousal RRSP. I have been receiving the Canadian dividends (as per close of day Bank of Canada exchange rate) paid into my Canadian account without any fee and U.S. dividends paid as announced into my U.S. side of the account. This occurred without me making any request of Questrade. I believe it is because Brookfield pays the dividend to the brokerage in the currency of the stocks held.
Cheers, J

Q: Thank you for for answer yesterday about setting up my parent's investments. To summarize, they are very conservative, above 80 years old, and looking for safety and income.

I would now like to ask you about the distribution of the equity component of the investments (composing only 17% of the total, the rest being in bonds, preferred, and GICs). Those below are all in equal weight. What do you thing?

BEP.UN, BCE, BNS, CM, CU, ENB, TRP
XHC for healthcare exposure
IWO for US growth
VGG for US exposure
XEF (in a half position) for international exposure
VEE (in a half position) for emerging market exposure

Could you please suggest some more to round things out? I need another 5 or 6 stocks.


Also, do you have any objection to using ZAG and HYGH as bond substitutes for their conservative portfolio? I am buying individual preferred shares for that component.

Thank you once again,

Fed

Q: I am looking to increase my Utilities sector to 10% ;currently have BEP.UN at 5% and FTS at 3%. I just reviewed both companies 2018 Annual Reports and noted FTS 's Revenue Growth ,Earnings and ROE are all lower relative to 2017 whereas BEP.UN(although a smaller company ) increased in all areas relative to 2017. With this information I am not inclined to invest further in FTS and in fact I am wondering if I should take profit from my Fortis (in RRSP) and then diversify in a third utlity. Second question -what other utility would you recommend at this time? Thank you for your time.

Q: Further to Fred's question about where to put Trust Units; my experience is never in a Family Trust (or other Trust) as the reporting deadline for BEP.UN is the same as when the the Family Trust return is due, ie. March 31. If you hold BEP.UN in a private corporation you also cannot finalize your corporate tax return until the tax information is received. This goes for all Trust Units (.UN) as well as investments similar to ZQQ.

Q: Thanks for all your help.

It is tax season, and trusts are giving me issues with their reporting being complex and late, generally. Being late, I’ve have to update my taxes that were already done by my accountant.

I am trying to figure out where best to put trusts, like BEP.UN, for tax and reporting purposes. Are they best in a Corporate account, personal, RRSP, or TFSA?

Thanks again,

Fed

Q: I own several Canadian stocks in my TFSA that pay dividends in USD. Are the dividends eligible for the Canadian dividend tax credit?

Q: I hold a half position of AQN and wish to add further renewable energy holdings. I am considering increasing AQN or initiating positions in NPI, BLX or BEP.UN
Would you please rank these four. Should I consider others?
Thank you,
Werner