Investment Q&A

Q: Great Service Thinking of buying Enbridge or Emera for growth and dividend. What is your pick and why. Thanks

Q: May I get your assessment of MFI at this time. How are it's financials and growth looking after the last quarter's results? The share price has just broken above its 6 month trading range.

Thanks, Tim.

Q: Trying to decide between T and BCE.. I know you prefer T but it seems to me that BCE might have more avenues of growth. What do you think ??

Q: Buy, hold or sell Pembina Pipeline? Also what is the status of the Pembina/Versen LNG plant on the Oregon coast? Tx

Q: You mentioned strong institutional support for their recent debenture offering. Could you please elaborate? Which institutions participated, for how much, and where is this information available to retail investors (if at all)?

Thank you!

Q: In regards to Austins question,the two split shares above will quit paying a dividend on the common shares when the Nav for the common shares plus the preferred drops below $15.00.you can keep track of the Nav on their website.Dgs has been by far my best income stock,buying in for an average $6.94,gives me an annual return of 17.3% on original purchase.Present Nav. is $17.30 according to Brompton's
website.DFN pays a lower dividend,but has a bigger cushion in it's NAV.I think these are excellent vehicle for income as long as you keep track of the NAV value!!

Q: Hi 5i,

I read that with the move to passive investing that TRI would get less sales from advisors, etc. Is this a legitimate concern? Do its other business unit make up for the decline? Do you think the company still has good potential?

Thanks!

Q: A couple of others do not display above, MKZ.un, BSO, LCS & OSP. Is there a reasonable amount of safety in any of these Very High Di Payers? If a stock pays a Dividend > 8%....who cares if there is NO appreciation, as long as risk is limited.

Thanks as always!

Q: Can you address the payout ratio for Altagas? And also the debt level relative to competitors? How are they going to pay for the large acquisition next year and will this send their debt too high? Thanks.

Q: Good Morning
My question is about which preferred shares can be classified as being part of a FIXED INCOME component of a portfolio.

1. Would you classify the rate reset preferreds as part of a fixed income portfolio?
2. Would you classify also the perpetual preferred shares as part of a fixed income portfolio?
3. Would you classify only the investment grade preferred shares as part of a fixed income portfolio (e.g banks and insurance companies) ?

Some analysts include only rate resets and not perpetuals as part of Fixed Income. Yet others only the investment grade preferreds as part of fixed income.

What is your opinion?

Q: Hi 5i,

Will the new tax changes in the USA have effect on KWH?

Thanks,
Dave

Q: MT Newswires
08:42 ET
AltaGas, WGL Signs Settlement Agreement in Maryland for Proposed Merger

Peter; This release today seems to remove some uncertainty re the merger/takeover but the stock seems indifferent. Am I missing something ? Thanks. Rod

Q: I was considering buying some LIF for it's recent momentum and dividend, even though it seems to have exceeded analyst price targets. But then I noticed that the CFO and CEO own only a few thousand shares each. Is that info incorrect? Does this indicate their own lack of confidence in their share price? It seems fair to expect them to have a bit of skin on the game.

Q: Your outlook on EXE please. Do you like it, would you add new money today.

Q: Which of the above stocks would you consider having the greatest growth potential within the next one to two years with the least amount of downside risk? Can you please provide your rationale for your choice.
Thanks

Q: I am looking at these two stocks for income and growth, 3-5 year hold. They are different sectors, and either one fits into my portfolio balance wise. ABT seems to be on a downward trend since it was your top pick, would you still recommend? Would you suggest a full position in one or the other, or half in each? Thanks as always.

Q: Is it a cause for concern that the monthly dividend keeps slowly being reduced? We are at 6 cents a month now.

Q:




Hi 5I , Your thoughts and recommendations on Purpose ETFs symbols PID and PDF in a managed account. Or do you have other ETFs you would prefer instead. We are seniors late 70s.
Thanks MF

Q: I would appreciate your take on - The cracks in the Enbridge dividend story by David Milstead in the G&M dated Dec 3, 2017. Some of the key points in the article include (all CAPS from the article):

- ENBRIDGE EMPHASIZES 'AVAILABLE CASH FLOW FROM OPERATIONS' TO INVESTORS WHEN IT TALKS ABOUT THE SUSTAINABILITY OF ITS DIVIDEND. IN CALCULATING THIS MEASURE, IT IGNORES MOST OF ITS CAPITAL EXPENDITURES, DEDUCTING ONLY 'MAINTENANCE' CAPEX TO ARRIVE AT THE NUMBER. THAT HAS LEFT BILLIONS OF DOLLARS OF CAPEX OUT OF THE MEASURE OVER TIME. WHEN ALL OF THE COMPANY'S CAPITAL EXPENDITURES ARE DEDUCTED FROM OPERATING CASH FLOW, ENBRIDGE POSTS NEGATIVE FREE CASH FLOW IN NEARLY EVERY YEAR. STILL, THE COMPANY PAYS DIVIDENDS — AND ISSUES DEBT, AS WELL.
- For the third quarter, Enbridge reported $360-million in maintenance capital expenditures. Total capex was $1.95-billion. Depreciation, a measure of how much of the company's property, plant and equipment was "used up" in the period, was $848-million.
- In the last 10 years, from 2007 on, it was only in 2016 that Enbridge actually posted positive free cash flow, a paltry $83-million. The 10-year total is a staggering $24.1-billion in negative free cash flow. That's before paying out $7.4-billion in dividends. Perhaps not coincidentally, the company issued almost $25.6-billion in net debt over that decade. It now has $65-billion in debt on its books, including the tens of billions it took on in the merger with Spectra Energy Corp. this year.
- https://www.theglobeandmail.com/globe-investor/inside-the-market/the-cracks-in-the-enbridge-dividend-story/article37172663/

I would have expected that maintenance capex would be inline with the depreciation expense. Is Milstead highlighting one of the risks in ENB - ie., that the dividend is solid as long as the market has confidence in the Company and it can raise additional capital each year.

What mid/large-cap companies in this sector would you would recommend that have more conservative financials?

Thank you.

Q: Please comment on the David Milstead article in today's ROB. He claims that ENB shouldn't be paying a dividend.
Thanks
Frank