Q: Would you consider taking a 27% hit on whitecap for tax loss and replace it with Bep.un to get the 7% yield I was getting with white cap before the nose dive. Do you consider the dividend to be secure along with better growth? Tks. Larry
5i Research Answer:
WCP, as a producer, will have more upside potential and also more volatility than a utility-like company like BEP.UN. We have posted new comments on BEP.UN this morning. With the VRN merger we would consider the dividend secure, barring a complete collapse in oil and gas prices (which admittedly, seems possible in the current environment). We would be OK with a switch if an investor wanted a more stable name, but we would not view WCP as a SELL in and of itself.