Investment Q&A

Q: This is actually a followup question to your answer to Steve's question from earlier this morning.

I also hold a core position in TRP. Dividend investor. Intended to hold 'forever'. I'm 43.

I couldn't tell from your answer to Steve's question whether you view TRP as a 'BUY', 'SELL', 'HOLD' or 'GRADUALLY TRIM UNTIL DIVESTED'. You had previously opined that oil will likely subsist as a fuel source in demand for 20+ years. That would take me to age 63. What do you think is the likelihood that TRP continues to pay and grow its dividend for say, 50 years? I know given the time frame, this is a very difficult, speculative, predictive question, but your guess is better than mine. I don't want to hang on to this position only to have to sell it at a massive loss 20 years from now, but that is the scenario that appears to be gradually unfolding now.

I hold a fairly concentrated portfolio of 20 companies, equally-weighted, and each is selected with the intention of holding for their sustained, rising dividend payments in perpetuity. When this is threatened, either imminently or in the medium to long-term, I sell. I sold SU when they cut their dividend and am glad I did.

Given this context, should I exit TRP? If so, should I use the proceeds to start a new position in AQN? I already own FTS and EMA, would this be too much overlap or too much utilities exposure? If so, I am relatively light on Consumer Discretionary (only hold CTC.A in this sector and have been eyeing QSR - do you think a switch from TRP to QSR would make more sense?

Please deduct as many credits as necessary, this was actually *many* questions in one.

Q: During these times, which is a better long time hold. TC energy or Fortis.

Q: So having been beaten up badly by ste wart Olsen, how is Bdt as a place to put money given the liberals promise of huge infrastructure projects. It seems to have a decent yield but is it sustainable

Q: Hi,

With Suncor near it’s all time lows, could you please give me three reasons why it is a bad idea to average down on the stock, and theee reasons why this can be considered a bad idea. I have a high risk threshold, and I can afford to wait 3 years.

Thanks a bunch!

Q: The Expert Guests on the TV and satellite Stock Market Shows. Announce with pride, how they have "exited the energy sector". A recent TV Guest, wouldn't touch Suncor @ $15.00, then proceeded to issue the benchmark "buy" on Apple. I was in line at the time, waiting to fill up at a Petro Canada, along side a truck packed Hwy 401.
Energy has taken it hard as of late and for obvious reasons, but how much of Suncor @ $15.00 is real ? How much if any, is that hydrocarbons are for now, out of fashion ?

Q: Boston Pizza has reinstated a partial monthly distribution of 0.065 cents per month. Too soon?
Would you start a position at these levels ($7.25 CAD)?
Thanks for your insight.

Q: Why doesn't Enbridge go private ,if it borrowed money at 3 % and its paying about a 8.5% dividend couldn't it fund itself.

Q: I am fed up with Suncor as an investment. Been burnt so many times with this company. The yield isn't enough to keep me in the stock. Do you see a recovery? Is it already getting set up for a huge tax loss selling candidate? Any ideas of a better company to replace it with? Thanks. Maybe a renewable?

Q: While my other utilities stocks are going up this one which I have held since April just refuses to go up. What could be the reason for this and should I stay in.
Thanks

Q: In the non renewable energy sector I own ENB (Ok) in registered accounts and PKI in registered. Together approximately 9%.In energy sector.
When I first bought PKI I looked at it as a mini ATD. After reading recent reports on PKI ie Report on Business and other releases, it appears to be a lot more dependent on oil and gas than I thought. At the same time analysts are upgrading the stock and increasing target prices.
I’m confused. I have a feeling I would be better off investing in renewable energy. I own AQN & BEPC making up 7% in the Utility sector. According to my suggested asset allocation I’m overweight 3% in energy while at suggested allocation of 7% in utilities. What are your views on PKI, selling and moving into other renewable options.

Q: I see this is a very high dividend payer in the last three months. Do you think the dividend can be sustained?
Guy

Q: Retired dividend-income investor. Long term holder of TRP. Would the recent decline in share price be attributable to the Biden-Trump debate #1, which analysts say Biden won (therefore putting Keystone XL at further risk) and/or the movement towards the change in sentiment (carbon-based vs renewable energy)?

I normally am a long term holder of core positions, with trimming/adding when rebalancing is required. I was due to add, once TRP came back down to $58. Now it is at $55 and I have adjusted my "adding" target to $50. I am not too far below a full position (at roughly 85%).

I do not plan to sell TRP believing that as the pandemic subsides, the oil & gas industry will recover. However, I am beginning to wonder that I may be better served to allocate these "top-up" funds to the renewable part of the energy sector instead. I also own AQN and FTS.

Your thoughts? Thanks for your help...Steve

Q: just watched your money show seminar on is the bull market over? or just beginning?
on one chart you had "signs if a good company in a crisis"
where does enbridge stand on this theory in your mind?
a bit concerning since stock is down some 30% from beginning of year and most other stocks are making a comeback.

Q: Hello 5i,
I held BEPC in a non registered US account as dividends supposedly were in US dollars. I sold BEPC and added to my BEP in that US non registered account. I also have BEP.UN in a non-registered Canadian account. Should I keep both BEP and BEP.UN or would it be advantageous to sell one of them and add to the other? If so, which one? I have increases in each but am within the portfolio percentage of where I want to be.

Q: Morning Hi 5iTeam,
Of the above 2 companies, which one would be your choice to take a position in and why.
Thanks,

Q: I own both ENB and PPL and are down 21% and 31% respectively. I keep thinking this has to the bottom for these two low risk pipelines and yet share prices of these two keep on sliding. Would you recommend doing an averaging down at these levels for both, just one, or none?

Of course in my "perfect world" scenario I'm collecting over 8% yield on the new additions for now, and chances for a big rebound in SP down the road. You insight is much appreciated.

Q: In your answer to Ian re good ETFs focused on U S dividend stocks, you didn't mention DXU or DXG. Any reason?

Q: Thanks for your response on the renewable power /clean energy participants; it prompted a closer examination of earnings expectations and current rating for each. With certain exceptions it seems to me that i) rerating and price enhancement took place mostly in 2019, ii) that for the most part valuations are now generous and iii) that the participants are primarily utilities such that, absent special situations, sustainable earnings growth will be modest when compared to growing industrials and others with which we have become accustomed. The discount issue then hinges on valuation methodology; their pe/peg ratios are excessive unless the conventions applying to utilities are very different from generally accepted norms, and I am not familiar with accepted cash flow ratios for the sector if these are appropriate and used. What is the generally accepted pricing criteria for these names and customary ratio ranges. Thank you again.

Q: I'm a long term holder of Fortis (in the "hold forever" part of my portfolio). I have been seeing quite a few headlines regarding Fortis's commitment to moving into renewable energy, including wind and solar.

Here is one recent announcement: "FortisBC announced its energy conservation and efficiency program expenditures will increase substantially to $368.5 million over the 2019-2022 period. The new program represents a doubling of expenditure in 2019 and a tripling of expenditure by 2022. The new program will lower energy use, emissions and costs in everything from hospitals to homes. Customer benefits include extending the residential high-efficiency natural gas furnace rebate to be offered year-round and providing greater access to certified experts to help manage energy use."

How do you see this move impacting Fortis's earnings and share price (with the current investor interest in renewables)? Do you see this move as part of a broader trend with ultility/power companies increasing their stakes in renewable energy?

Q: I have owned Enbridge for many years and have a fair but dwindling gain.
It seems to have persistent negative momentum, perhaps because of high debt and the perception it is tied to non-renewable energy.
Do you have some degree of confidence the stock price can stabilize or reverse? The dividend is nice, but not at the cost of capital loss