Investment Q&A

• Richards Packaging Income Fund (RPI.UN $32.71)
  • $32.71 P/E (TTM): 16.0X Cap: $362M
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Q: Two general questions:

My ACB on RPI is approaching zero. When I eventually sell, will Revenue Canada consider zero as the minimum possible ACB or am I expected to continue to calculate an ACB once it goes into negative territory?

This is likely more of an issue for my eventual estate, as I assume once one gets to ACB one just collects dividends unless management does something really silly. Is there any other reason to consider selling a reliable dividend payer once ACB gets to zero?

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Read Answer Asked by David on June 10, 2019

• Icahn Enterprises L.P. (IEP $8.37)
  • $8.37 Cap: $4.85B
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Q: Hello 5i I was hoping you could help me evaluate iep. It seems to have a low p/e of around 5x, but the growth prospects over the next 1-2 yrs dont look positive. Has a big dividend with a yield of around 10%. This company seems to have done well for its shareholders over the years. Wondering what you think. Thanks

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Read Answer Asked by pietro on June 10, 2019

• Duke Energy Corporation (Holding Company) (DUK $123.11)
  • $123.11 P/E (TTM): 20.59X Cap: $96.68B
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• Consolidated Edison Inc. (ED $99.95)
  • $99.95 P/E (TTM): 18.76X Cap: $36.65B
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• Southern Company (The) (SO $93.13)
  • $93.13 P/E (TTM): 24.53X Cap: $103.93B
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• TerraForm Power Inc. (TERP $19.35)
  • $19.35 Cap: $4.38B
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Q: I’m looking to add a U.S. utility stock to my portfolio, what are your thoughts on these companies? Any others you would suggest?

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Read Answer Asked by Dan on June 07, 2019

• KeyCorp (KEY $19.02)
  • $19.02 Cap: $20.81B
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• Pembina Pipeline Corporation (PPL $52.38)
  • $52.38 P/E (TTM): 17.75X Cap: $30.58B
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• Inter Pipeline Ltd. (IPL $19.12)
  • $19.12 P/E (TTM): 17.07X Cap: $77.95B
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Q: Wondering if this is a good time to take a position in one of these Canadian mid-stream oil companies. Which one would you buy today if looking for the highest short term price appreciation? (say over the next year). Why?

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Read Answer Asked by Les on June 07, 2019

• Transcontinental Inc. Class A Subordinate Voting Shares (TCL.A $20.03)
  • $20.03 P/E (TTM): 9.46X Cap: $1.68B
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Q: What is your take of Transcontinental after the conference call?
I decided to listen to the conference call myself and felt even the analysts were somewhat discouraged.
However, the CFO's comments on hearing the last of printing issues seemed promising.

Much appreciated!

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Read Answer Asked by Massimo on June 07, 2019

• BCE Inc. (BCE $34.98)
  • $34.98 P/E (TTM): 77.65X Cap: $32.86B
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Q: Dear 5i,
For communication exposure in Canadian portion of the portfolio would you add today BCE and/ or T to well diversified RRSP and TFSA? This is for Income conservative investor. If yes would you suggest full or half position? Thanks in advance.

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Read Answer Asked by Hali on June 07, 2019

• Enbridge Inc. (ENB $66.01)
  • $66.01 P/E (TTM): 23.44X Cap: $144.66B
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Q: Could you give your thoughts on ENB as an investment given the current Michigan Line 5 issues. Thanks

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Read Answer Asked by Donald on June 07, 2019

• Transcontinental Inc. Class A Subordinate Voting Shares (TCL.A $20.03)
  • $20.03 P/E (TTM): 9.46X Cap: $1.68B
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Q: Hi, based on the results, would you prefer to wait another quarter or two, before pulling the trigger to liquidate the position and free up the capital. Results seem to be a little bit reassuring and CEO sounded more optimistic about Coveris integration, this time around. Thanks

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Read Answer Asked by rajeev on June 07, 2019

• Vermilion Energy Inc. (VET $10.53)
  • $10.53 Cap: $1.61B
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Q: Comment from Tony Marino president and CEO at VET at RBC global energy conference this week:
Under the current pricing environment, the company believes its dividend and capital program to be over-funded.
Vermilion expects to cover its dividend plus sustaining capital spend at a US$40/bbl WTI price, with growth capital covered
at US$50/bbl.
The company observed its elevated dividend yield but affirmed commitment to its current levels.
Reassuring for those worried!

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Read Answer Asked by Denis on June 06, 2019

• Just Energy Group Inc. (JE $0.21)
  • $0.21 Cap: $9M
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Q: How can Just Energy continue to pay their same divy even after a money losing quarter.?! Stock was up 5% today to $4.74!

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Read Answer Asked by Thomas on June 06, 2019

• Enbridge Inc. (ENB $66.01)
  • $66.01 P/E (TTM): 23.44X Cap: $144.66B
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• Fortis Inc. (FTS $69.59)
  • $69.59 P/E (TTM): 20.77X Cap: $35.27B
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• Algonquin Power & Utilities Corp. (AQN $8.02)
  • $8.02 Cap: $6.17B
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Q: Hello, Within a long term hold rsp account, would there be a benefit to adding FTS to a portfolio with ENB and AQN already owned? Thanks

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Read Answer Asked by Lavern on June 06, 2019

• Vermilion Energy Inc. (VET $10.53)
  • $10.53 Cap: $1.61B
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Q: Hi, VET drops to $29. Now the dividend is close to 10%.
My questions are : (1) Will the dividend be substantable？(2) If the oil price continues to drop, do you think the company cut the dividend？Is the possibility high？Thanks

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Read Answer Asked by Esther on June 05, 2019

Q: Can you please give me your top Canadian dividend pick at the moment based on valuation, yield and dividend growth. I am overweight in financials. pipelines ,utilities and energy. Please have the pick not be one of the mentioned groups.

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Read Answer Asked by Joe on June 05, 2019

• Algonquin Power & Utilities Corp. (AQN $8.02)
  • $8.02 Cap: $6.17B
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Q: After AQN's recent acquisition CIBC published a report predicting minimum growth from the current stock price; Canaccord's target price is actually lower than the current price. Now analysts are wrong more often than not. Your view of AQN's prospects? Thank you.

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Read Answer Asked by Walter on June 05, 2019

• Cineplex Inc. (CGX $11.48)
  • $11.48 Cap: $679M
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Q: Would you take a position in CGX at these level ? 5 year time horizon. 3% of portfolio.
Is the 7.5% yield correct / safe ? Can you please comment on their payout ratio.
Thank you

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Read Answer Asked by Pierre on June 04, 2019

• BCE Inc. (BCE $34.98)
  • $34.98 P/E (TTM): 77.65X Cap: $32.86B
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• Hydro One Limited (H $50.57)
  • $50.57 P/E (TTM): 24.45X Cap: $30.33B
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Q: Currently have cash flowing rental property where I've built some cash reserves that I'd like to put to work. Looking for stable, lower risk, higher yield opportunity to put this cash to work in TFSA. Any recommendations?

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Read Answer Asked by Rob on June 04, 2019

• Algonquin Power & Utilities Corp. (AQN $8.02)
  • $8.02 Cap: $6.17B
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Q: What do you think about the recent acquisition of the Bermuda assets? Do you see a dividend raise in the near future as a result?

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Read Answer Asked by Adam on June 04, 2019

Q: here's a PSA for the gang

the brookfield group of companies are generally solid businesses and good stocks

yet, the tax reporting is generally late and mostly very convoluted

PSA - if at all possible, place brookfield assets in registered accounts

you, or your accountant will be happier

bob

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Read Answer Asked by Robert on June 04, 2019

• Brookfield Property Partners L.P. (BPY $18.59)
  • $18.59 Cap: $17.34B
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Q: I have some US cash I was considering investing in BPY on the NASDAC. Is it a limited partnership in U S too and if so what type of account tax wise would it be best to hold it in? Thank you, Bill

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Read Answer Asked by Bill on June 03, 2019

• Enbridge Inc. (ENB $66.01)
  • $66.01 P/E (TTM): 23.44X Cap: $144.66B
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Q: Any specific reason for Enbridge's decline today?
Thanks.

John

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Read Answer Asked by john on June 03, 2019