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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: Good morning,

I bought some ENB.PF.V in May, at the time the yield is 6.88%, today its yield is 7.08%, so I want to buy more. I know ENB runs a unique business with a wide moat. I read ENB financial data and found the company keeps issuing new debt to fund dividend and if I am correct that it's payout ratio is even over 100%. So I sold common shares and bought preferred. With today's 7.08% yield, it's very attractive, any risk associate with this series?

I also want to ask if there is a website (free or paid service) has all the information of all Canadian preferred shares include risk rating for investors to do research?

Thank you!
Joseph
Read Answer Asked by Joseph on June 19, 2019
Q: This is a follow-up questions about determining whether a company is considered growth vs income. Can I interpret what you said as being:

If the sales and EPS do not increase much, or stays the same, over many years, and the company offers a reasonable dividend then it is considered income.

On the other hand, if the sales and EPS increase steadily over several years, then it is considered growth, whether or not it offers any dividend.

And if the sales and EPS fluctuate year to year, it may be cyclical, which is a separate category.

If it does not fit into any of the above, then it is a company of that should not be considered investing in.
Read Answer Asked by Federico on June 19, 2019
Q: Hi Peter and Team,
I have held a position on BNS, RBC and TD for about 5 years now. Seeing that BNS has been under performing relative to RBC and TD over the last year and a bit, I was thinking of liquidating my position on BNS and put the proceeds into RBC and TD equally. Just wondering what your thoughts are on this.
Cheers,
Read Answer Asked by Harry on June 19, 2019
Q: do you think I should continue to hold ROK or perhaps switch to something with more potential.
I could add to AVGO and I do like CRM and or MRVL.
I realize I wouldl be reducing industrial and adding to tech.
Would you have any suggestions. Thank you.
Read Answer Asked by Maureen on June 19, 2019
Q: I held this bond for many years, as you know the Company filed for bankruptcy in 2015. I cannot get any information on if I will be getting any money, can I ask for you help in providing if there is any money left here and where I can go to claim it or figure out what to do with this bonds,

Thanks
Read Answer Asked by Saad on June 19, 2019
Q: I'm down around 20% on these preferreds in less than a year. Will the price ever recover? Hang on to them or bail out. They represent 5% of total portfolio.
Read Answer Asked by Vern on June 18, 2019
Q: We are seeking income (although capital retention is also important) and wonder if we would be wise to sell IPL which you don't seem big on and replace it with BPY.UN which you seem to like. The sector is not too important as the portfolio has a good balance of pipelines and REIT's. Both companies mentioned have a very good yield.
Read Answer Asked by David on June 18, 2019