Investment Q&A

Q: I am pretty sure you have answered this before but I could not find anything with the search option, so here goes.

Brookfield companies have a complex structure and I was wondering in which category exactly their distributions fall with regards to taxation. For example I read that sometimes distributions from shares of BIP held in a TFSA were subject to the 15% witholding tax, while some other times they were not.

Could you please clarify the situation and also state your prefered account in which to hold BEP, BIP and BAM? I have them on my radar, so I want to make sure I maximize returns when the time comes to own them.

Thank you very much as always.

Q: Looking to add to my RRSP account - your opinion please, AQN or BEP.UN. I was going to add AQN but they just issued 12.5 million shares at $13.76 which is below current market value. Should this sway me towards BEP.UN ?

Q: Hello -
There are two recent articles on Seeking Alpha regarding each of BEP.UN and BPY.UN by the same respected contributor.

Although I wouldn't expect you to necessarily read the whole articles, do you generally agree with their bullet points?

Three other points within the articles that jump out at me for both are:
- long runway / future growth - BEP.UN (good),
- good current valuation - BPY.UN (good)
- large amount of debt - Both (not so good).

He states however that much of the debt for both is non-recourse which he claims is less concerning. Would you agree with that statement -especially if we were to run into some sort of global debt crisis?

https://seekingalpha.com/article/4228344-brookfield-renewable-partners-king-global-green-energy?ifp=0

https://seekingalpha.com/article/4227404-brookfield-property-partners-berkshire-real-estate?ifp=0

Thanks.

Q: PLEASE RATE THE BELOW IN ORDER :
A; AS PER DIVIDEND SAFETY
B; AS PER VALUE COMPARED TO CURRENT SHARE PRICE
KWH.UN (Crius Energy Trust)
VET (Vermilion Energy)
ALA (Altagas)
HOT.UN (American Hotel Income Properties REIT)
BEP.UN (Brookfield Renewable Energy Partners)
CJ (Cardinal Energy Ltd.)
DRG.UN (Dream Global Real Estate Investment)
IPL (Inter Pipeline Fund)
PPL (Pembina Pipeline)
DR (Medical Facilities Corp)

THANKS YOU
yossi

Q: Should I trade my bep.un for ema? Which do you think will be a better choice for the near future. Thank you

Q: Hi, most of my portfolio is trying to hang in with such a volatile market, but these two companies are killing me.
I see vet is now over 9% dividend which I like, but also know nothing good comes from it.
Is it time to raise the white flag to fossil fuels and go totally renewable, or would I probably be selling at the low?
I have to hand it to the environmentalist and protesters they are doing a great job against the oil companies.
Could you give me two of your favourites for renewables.
Thanks

Q: Can you provide me a list of several dividend stocks that are relatively recession-proof but still have decent yield and potential for long-term growth? I'd like to start investing a bit in dividend stocks a bit each month but am wary of the financial uncertainty that is hovering over us right now.

Q: Due to 5 I's comments on management and the rising payout ratio I have sold my KWH.UN and plan to replace it with one of the following options. In a portfolio currently containing 16 stocks and ETF's. Going to replace it with either BEP.UN or NFI or both. Which would you suggest ? 2.75 % in each or 5.5 % in one ? I am leaning toward BEP'UN if one but would like 5I's opinion. I could also go 5.5 % in each as there is surplus cash. { 17% }

Q: trying to decide between npi and bep.un . what do you think is best ? Thanks

Q: I want to add a renewables. I am stuff between aqn and bep. Both seem to be growing quite nicely. BEP has had more consistent returns. AQN had some serious trouble in 08 and I think it was down to around $2. If I am going to drip, does AQNs 5% discount play a factor here into your decision? I notice Scotia having AQN distribution rising slightly more rapidly than BEP into 2020, do you agree with this? What are key geographical / operational differences that would play an impact into long term growth?

Q: For income & some growth please rank the following in order of preference:
ALQ
BEP.un
ENB
KEY
PPL

Q: Can you compare the two for me? What is growth expectation for each and valuation on a comparative basis. The yields are very attractive while BEP has committed to increasing their yield through 2022. Also, can you note why BEP.UN is rated an "A" and would it still be rated an A as it hasn't had a report in a while? Thanks.

Q: I own a Brookfield Renewable preferred (Series 11) that pays $1.25 (5%) thru to April 30, 2022. If not called, it will convert to the greater of GOCs+382bps, or 5%. Given my view of interest rates, I am comfortable with the position, because even if it is not called, I will be left with what I expect to be a good quality credit with a relatively attractive yield.

My concern is that it seems to have got caught up with the recent volatility, and is trading well below $25. Currently it is $23. I want to add more, but I wonder if I am missing anything here. I would still expect it to be called in 2022, as I just would not expect management to allow it to float at what I expect would be an above market interest rate. But I am already underwater significantly more that I would have ever expected on this, and I am leery of adding to the position.

Thoughts?

Q: With the general pounding the markets took in October, the glass half full sees opportunity. My portfolio is particularly light in Materials, Telecom and Utilities, and I'm looking to top up in a registered account. What companies look attractive to you today based on undue overselling?

Q: Looking to add an income company to my portfolio. Which of the two indicated companies would you recommend considering where we are at in the economic cycle?
Thanks for your guidance.

Q: These are a list of my stocks that I may sell for tax losses. I would like to have your opinion if I should sell and rebuy these in 30 days.

Q: Hello 5i,
I dont own any of the Brookfield group currently, but would like to at a discounted price. How would you rank all the bips, beps, bamas, bpys, etc, Which would you buy at current prices, for best 2- 3 year holding period, including growth and dividends ?

Q: Hi Peter/Ryan
I am in the dog house on listed stocks in my registered accounts (RRSP/TFSA/RESP). For TOY and TSGI , I will wait for your review in Q&A section. As part of cleaning up portfolio would you keep these or if not then replace with which stocks? Money requirement and risk is not an issue.

Value your opinion. Thanks

Q: I haven't kept up with news in Brookfield Renewable but see it has really declined. I had been looking for an entry point. Is this it? Yield seems great and it is very oversold. Was there a reason for the decline? Is now a good time to start a position? I Have a 5% weighting in AQN presently.

Q: In your answer to Dennis you indicated cash flow was 33 cents were 44 was expected. However normalized cash flow rose from 24 cents to 44. What is "normalized" and is that the 44 cents that was expected? Sounds like one of those "alternate truths" we hear about these days.
The sale of $1b in assets seems to have rattled stock holders however isn't that Brookfield's forte; sell fully valued assets and use the funds to buy the bargains they see in emerging markets and US public equity markets.
In summary I am wondering if I should buy shares at the current price to return the holding to 5%.
Your assistance is, as always , appreciated.
Mike