Q: I have been keeping a good portion of our portfolio in cash, and for the last couple of years in GICs where the interest rate near 5% was ok. But some have and others are coming up for renewal and rates are now lower, around 3.25%, Would something like PPL be a reasonable alternative to earn a somewhat better return wth still a good degree of safety? Any other suggestions? Many thanks for your excellent service.
5i Research Answer:
It is important to note that any equity can decline, so risk changes here should be considered. But we would consider FTS, ENB, BAM, H, PPL as solid dividend companies with both income and growth potential. We would consider them all 'relatively' safe due to their business stability and cash flow. A dividend ETF such as CDZ can also be considered if one wanted more diversification of holdings.