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Brookfield Renewable Partners L.P. (BEP.UN $34.76)
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AltaGas Ltd. (ALA $41.33)
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Brookfield Renewable Corporation Class A Exchangeable Subordinate Voting Shares (BEPC $46.36)
Q: I have held these two stocks for a long time but I am frustrated with their performance. They have been flat in the past 5 years. I am thinking of selling both and repacing them with ALA. Am I wrong and can you give me your thoughts on Alta gas or do you have a better replacement idea. Thank You.
5i Research Answer:
ALA has done well over five year, but we would note it cut its dividend by 56% just before the start of 2019. The stock fell on the news and thus was poised for a bounce from a lower base. Also, if looking at performance of BEP.UN, investors need to account for the spin-off of BEPC as well. IN 2020 BEP.UN shareholders got one share of BEPC for every BEP.UN unit held. BEP.UN is down 1% this year and BEPC is up 10%. ALA has outperformed, up 18%. We think ALA is decent enough, but we would consider BEP.UN to have more longer term potential.