Investment Q&A

Q: I own shares of Enerplus (ERF), which is being bought by Chord (CHRD). My questions are: (a) do I need to do something active (i.e., tender the shares) and if so, by what date? (b) since I will receive some CHRD shares as well as cash, does it make sense to have my ERF shares reside in the U.S. side of my brokerage account (while waiting for this transaction to close)?

Ted

Q: Appears interest rates have topped and will likely go down in Canada going forward, historically what sectors outperform in this enviroment? I'd assume the higher dividend payers would benefit,and am considering an out of utility etf in a cash account using debt to fund, for instance ZUW paying a montlhy dividend close to 1% higher than my Home LOC interest cost. I've used my LOC for many years funding this account and am well aware of the pro's and cons. Part of my strategy is the added tax benefit of the interest expense deduction, and would think long term should get a modest capital gain on the beaten up utilitites. Would you have a better idea than utilities, I need roughly an 8% dividend to cover interest? Thoughts?

Q: In any otherwise well diversified RIF portfolio I am considering exiting T and BEP.

I am looking to replace them with a couple of holdings that you feel have far greater upside in the next 3-5 years (realizing that the volatility may increase to some extent but in line with the potential for greater returns).

I have referred to several of your current favourites (which we do not currently hold) as potentials and am open to other suggestions you might have along the same lines.

If you could comment on the elimination of T and BEP and also if you believe any of the listed ones (or others ) would provide a substantially better risk/rewad profile over the next 3-5 years it would be appreciated.

Thanks,

Terry

Q: Your take on Whitecap’s quarter please.

Q: this one is eligible for dividend credit?as with GIC its interest ,correct?
So for tax reasons it would be more preferable?
About Alaris,what is happening with this company?and why is it lagging ?
You think alaris would be a good investment now?

Q: Hello Team,
Which of these two would you prefer and why?
Thank You,
Barry

Q: I am a fan of buying companies that perform the boring, tedious and "un-sexy" jobs. Star would seem to qualify and would also seem to have good cash flow, etc. Despite it's very poor momentum, it seems, otherwise, o.k. What are your thoughts regarding this stock for an income investor?

Q: Would you recommend any small or mid cap US stocks in the utility sector? Or if this is a sector where large cap is preferred? Interested in your thoughts in both cases.

Q: AQN has fallen from grace for quite some time now.
The %Dividend Yield appears to be approx. 7.3%.
Do you see any potential catalysts/positives for this company?
Is there debt any better and can their cash flows support the high
dividend? Many thanks!

Q: I’m an income investor. Basically I live off my dividend stream without the need to touch capital. In this approach, periodically I look for opportunities to bump up my income stream. I see that PPL is pretty close to its highs and that it only raised its dividend marginally last year. This is the sort of situation where I consider perhaps a switch to something paying a higher dividend with a potential of higher stock price appreciation over a longer period of time. I’m thinking of moving into some combination of BNS, ENB, maybe even BCE. what do you think??

Q: My question pertains to the risk associated with BCE. It is often recommended as a good dividend stock (which it definitely is). However, when I buy dividend stocks, I am equally looking for safety in my investment. The following are few notes:

• The share price is lower than it was 10 years ago.

• In a response to Nick on April 3 you mentioned “the dividend in FY2023 was $3.7B, which is covered by a cash flow of $7.9B,” (which aligns with the Operating Cash flow). Looking at the FY2023 report “https://bce.ca/investors/AR-2023/2023-bce-annual-financial-report.pdf” (page 20) they mention that their dividend payout policy is to fall in the range of 65-75% of free cash flow and that their payout in 2022 was 108% and in 2023 111%. I would think that this may be a better gauge as their capital requirements appear to be regularly high, and a number exceeding 100% may not be sustainable for long.

• Their level of debt appears to be very high.

• Their revenues have had minimal increase year over year and their net earnings declined quite dramatically.

• I understand they are trying to turn things around but are heavy regulated.

What is your opinion considering the above, your understanding of the situation and the current share price which appears to be historically low (offering an incredible dividend).

Would you be a buyer of the stock? Thank You!

Q: The dividends alone on these companies are becoming quite alluring. What are the risks of a cut? Or a drop in the share price from where we are today looking out about 5-10 years? From the dividend alone, one could nearly double their investment in that time frame. I don't normally chase yields, but it's hard not to when both of these companies are trading around the same levels as they were in 2016 (or earlier).

What should happen to these companies share prices if/when interest rates get cut in June?

Please deduct as many credits as necessary.

Q: When I read your answer to Richard on April 11th about BCE I shook my head and said, 'Yes, you've got it right.

Then I read the speach of the BCE CEO from the BSO conference and he stated as follows:

An important mandate is to create greater diversity within Bell Media, adding that diversity makes for great business. He said the company wants half of the English and French language programs it commissions this year to be generated by creatives from Black, Indigenous people of colour and nder represented groups. He wants to make sure the company delivers "differentiated storytelling" by having a "diverse inclusive workforce".

I have been a shareholder of BCE and have not been pleased with its performance to date, by a long shot. If I read the above, that the CEO delivered I wouldn't go near the equity.

Given what you said in your prior answer that needs to be done to retain the dividend and grow, I'm not sure this guy wants to, or knows how to do it.

I just feel he wants to run the most woke communications company in Canada.

Do you have faith in him doing what you stated to succeed?

Thanks

Sheldon

Q: Of these three utilities, BEPC’s share price has suffered significantly more than the other two over the past year. Is there a specific reason why?

Q: Why was ENS just offered at such a low price - nearly 6% discount? ENB was unaffected. Thanks.

Q: Hello,

Thank you for all you do.

For a 5-10 yr hold, could you rank the above on total shareholder return vs risk (I am thinking debt exposure/interest rate risk), but there may be others.

Thank you

Q: Hi 5i
Currently own both but I intend to sell AQN to top up PSI or release funds for something new.
My question is relating to the likelihood of AQN suddenly gaining attention and being re-rated to the upside, effectively making this a timing question.
Thanks

Q: when mister market allocates a 9 percent yield on utility does this not provide a red flag to 5i.? forgetting the fall back answer of falling interest rates what specific strategies does BCE need to implement to restore value to its shareholders ? what is the current payout ratio on the dividend and how does it compare to the last 3 years history? thanks Richard

Q: Hi, I hold both of these and while both seemed to be recovering a while back, BEPC headed back down and now BIPC is also tanking the last few days. What's your view on these two Brookfield companies? Do I sell one or both or hold and wait this out? Thanks for your help as always.

Q: if wanted a dividend and growth what u.s. etf do you think is best for large caps