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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: Hi Guys,

I own an Enbridge preferred share (ENB.PR.Y) which currently has a dividend rate of 5.285%. I am considering selling this preferred and buying the Enbridge common which has a current dividend rate of 7.055%. My motive for doing this is additional income and possibly higher capital gains in the future. I have no other investments in Enbridge and my stock allocation in pipelines can handle the change. I plan on purchasing a different company’s preferred share to make up for the loss of the Enbridge pref.

My questions are as follows:
1-From a safety of capital point of view, how much more risk do you think I will take on?
2-From a safety of income point of view, how much more risk do you think I will take on?
3-Do you see a downside to this move?

Thanks for the help.
John
Read Answer Asked by John on April 30, 2018
Q: Hello Peter and 5i team,
What is your view of the wine industry in general and Andrew Peller in particular? A news article says that wine prices are set to rise as bad weather brings the worst harvest in 50 years to the industry leaders in France, Spain, and Italy. California was hit by wild fires and climate change is hurting other countries. Is this a positive or a negative for the Canadian wine industry?

I hold ADW.A in myTFSA and it has risen to an 18 % weighting. If I trim some ADW.A, which of the following would be your top pick for growth: BBU.UN, ENB, SYZ, Or GUD

Thank you very much for your opinion
Read Answer Asked by john on April 30, 2018
Q: I am thinking of adding these for income and noticed that none are listed in your Income Portfolio. How would rate these with respect to debt level, safety of dividend, P/E, potential growth, other metrics and management team? This is a long term hold and I can stand a fair bit of volitility.
Thanks for your excellent advice.
Read Answer Asked by Richard on April 27, 2018
Q: I am looking for a bond ETF to park a substantial amount of money $400K plus for the next 12-24 months. In today's environment with interest rates on the rise i am looking at the following MFT, HYI, XHY or is there a Pimco ETF that would be more suitable.My goal would be to make 3-4% in a safe investment. Any other recommendations would be greatly appreciated.
Read Answer Asked by Brian on April 27, 2018
Q: I hold these 3 bowzers and am obviously getting whipped. Is there any sound logic in combining the 3 into just one of them and that one would have the highest probability of the quickest recovery? I would turn to 5I for advice on which one that would be.

Carl
Read Answer Asked by Carl on April 26, 2018
Q: 6:21 AM 4/26/2018
I own in excess of $100K in a combination of BEP.UN and BIP.UN bought on the TSX in Canadian Dollars in cash accounts at both TDWaterhouse and at Scotia McLeod. This year TDWaterhouse issued a statement of Foreign Ownership. Scotia McLeod did not. My accountant phoned Scotia McLeod and Scotia said they are both Canadian Companies so are not considered to be foreign so a T1135 form is not required. Can you clarify this issue please
Thank you........ Paul K
Read Answer Asked by Paul on April 26, 2018
Q: I have Student Transportation in my US account. What would be some good US dividend Stocks and/or ETF's I could invest in to replace the lost dividends that I receive when it is sold later this month? I am looking at 3 or 4 stocks and 1 or 2 ETF's.
Thanks for the advice as it is always welcome.
Read Answer Asked by Kevin on April 25, 2018