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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 am overweight Utilities and underweight Energy. I have large positions in BEP and AQN, both of which have considerable capital gains as well as FTS which has plowed along steadily but not much gain. I am thinking of selling FTS and buying ENB or TRP. In an earlier question you suggested that you liked TRP over ENB if you had to choose. Do you like any other energy sector company better for a long term dividend loving old timer? I already have a chunk of SU and Canadian Natural Resources. On the other hand, I am noticing analysts starting to love FTS. Should I stay or should I go, and to which energy company? Thanks for helping me stop going in circles. Al
Read Answer Asked by alex on December 08, 2020
Q: I hold BIP.UN in a registered account. When BIPC was created I decided to keep BIP.UN but it is looking like I don't understand the corporate structure. Typically with a unit trust or a partnership the unit holder pays the tax on the income whereas the tax is paid within a corporation so dividends are "after-tax". Since the amount of the distributions are the same for the two entities I figured that BIP.UN would be better off because it didn't have to pay all the tax on its income. By my rough calculations: since the split BIP.UN is up about 20% whereas BIPC is up about 80%. What did I miss?
Thanks for your insight.
Ian
Read Answer Asked by Ian on December 07, 2020
Q: Hello I have accumulated about 27% of my cash portfolio in ENB and TRP combined due to DRIP and the fact that I have held the shares for about 20 years. The also make up about 10% of my total investments. If I sell, the tax will be like a kick in the pants and so I have never sold. The dividends have always been good too. But with Trudeau looking for areas to raise some cash, I feel capital gains might get worse. If I were to sell some of this, would you suggest some renewable energy issues such as AGN or BEPC to replace?
Read Answer Asked by Ken on December 07, 2020
Q: I have a 5% weighting in ENB. I'm considering selling half my position in ENB and using the proceeds to buy TRP. My thought is spread the risk from one company exposure. It appears that ENB daily volume is much greater the TRP. Does it make sense to hold both pipelines or stick with one? When does daily volume of shares traded come into the equation?

Best, Don
Read Answer Asked by DONALD on December 07, 2020
Q: I have a RRIF valued at $200 K. It have been professional managed with less than a satisfactory performance. I want to takeover management of my RRIF.
At the age of 88, I need high cash flow from investments to meet the annual deduction requirement. Please suggest stocks, covered call ETFs, REITS, and other investment that may meet my needs. Thanks for you help.
Read Answer Asked by George on December 07, 2020
Q: Hi there,
Brookfield Renewable has tumbled faster and farther in the last week or so than at any point since March. Is there a sector reason behind this (ie fears of rising rates) or is it company related?
Read Answer Asked by John on December 07, 2020
Q: If you were entering new money today to try to yield at least 4 or 5 percent, what would be your top 5-10 dividend income stocks in Canada that you feel would be a safe hold for at least ten years? Alternatively, what would be your top dividend stocks in the U.S. obviously yielding less?
Read Answer Asked by Neil on December 07, 2020
Q: A recent question was asked to explain the difference between BEP.UN and BEPC. In you answer you stated that in a registered account BEP.UN gets a higher yield, but the tax credit is lost. Could you please explain 1) why BEP.UN would get a higher yield in a registered account and 2) the tax credit being lost, are you referring to the tax dividend credit. Thanks … Cal
Read Answer Asked by cal on December 03, 2020
Q: I have done well with BEP/BEPC - in a non-registered account - and am now overweight (combined 8.4%). Love the growth and solid dividend. My choices now are: 1) Hold the course 2) Reduce to 5%, take the tax hit, and purchase a stock with similar attributes to BEP/BEPC i.e. stable dividend >1.5% and strong growth prospects.

Would you choose option 1 or 2? And if 2, would TRI be a good candidate? Other candidates you might suggest? (Already own WSP, AQN, BAM, FTS, MSI, NPI, PBH, SIS, T and X.) Thank you.
Read Answer Asked by Maureen on December 03, 2020
Q: Hi you made the following ‘generation vs distribution’ comment wrt AQN to Peter on Dec 2. Could you please expand on this a bit further as I mistakenly thought AQN was primarily generation. Could you similarly comment on NPI and INE re generation vs distribution. Thanks.

“The majority of its (AQN’s) business is distribution and has less exposure to generation already.”
Read Answer Asked by Gary on December 03, 2020
Q: Does Emera have exposure on the Muskrat Falls project? I see the regulator has asked Emera to "adjust" for slow / non-existent benefit from The Link between NS and NL. Emera remains up 30%-40% from my purchase but would suggest a pivot to FTS or a Brookfield company here? Or anything other non-oil utility?

Thank you.
Read Answer Asked by Marilou on December 03, 2020
Q: Could I get suggestions for long term dividend paying stocks for a young investor to add to these stocks.
Read Answer Asked by Roy on December 03, 2020
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