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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 Peter. To my dismay, I currently hold too many pipelines... Enbridge, Pembina, & Inter Pipeline. I wish to cut 2 of the positions and then possibly pickup Algonquin Power. I also own Fortis & Emera. Which pipeline would you suggest keeping, and your reasoning behind it. Also, do you feel 3 power utilities would then be too many and if so, which 2 would you prefer? I welcome your input. Thanks.
Read Answer Asked by Ron on April 16, 2018
Q: I currently own in my RRSP the following stocks : GUD, KXS, SLF, SIS, AQN (1/2) and FTS (1/2). I have 6K$ that I would like to add to only two or three of those stocks to avoid too much trading costs.
I have a longterm timeframe (20years +) for my RRSP and am diversified across my other accounts.
I was thinking of KXS, SLF and SIS first, but utilities also look quite cheap to me these days.
What would be your selection? I'd rather not add a new position to avoid having to many...
Read Answer Asked by Julien on April 16, 2018
Q: My wife and I currently have 6.8% of our combined retirement savings invested in ENF. As we have made this acquisition quite recently, we are neither up nor down on this investment. We've just received the company's 2017 annual report and I'd appreciate your confirmation of a key financial metric, I see noted within the information we've received.

On page 4 of the 2017 Annual Report I see an indication that the company's Dividend Payout Ratio climbed from a level of 86.9% in 2016 to level of 96.1% in 2017. My first question is: Am I correct in understanding that the firm therefore paid out 96.1% of all it's net income in 2017?

The reason I ask that question is that the information we received includes a very clear statement of the company's intention to continue to raise their already very generous dividend by 10% in each of 2019 and 2020. They point to planned future projects, they seem to feel should make those targets eminently achievable.

If they are already paying out 96.1% of their net income, won't they likely need to grow that income by at least 10% in any year in which they might wish to increase their dividends by 10%; if they wish that dividend level to be sustainable over the longer term?

How likely do you feel their targets for income growth and dividend growth might be?
Please know that we can tolerate substantial swings (declines) in the price per share of this holding, provided we believe the dividends are both sustainable and likely to grow at least at the rate of inflation, going forward. Thank you!
Read Answer Asked by Richard on April 16, 2018
Q: I am looking at VGG as a way to use Canadian dollars to acquire a reasonable number (around 70 I believe) of dividend growing US large caps. Do you think this ETF makes sense for US exposure to dividend growers or would you prefer to invest using US dollars and select 5 or 6 dividend growers (any suggestions in that case). Lastly do you consider this a sensible investment strategy for part of a balanced portfolio at this time for a 3 year hold. I appreciate your input as always - Ken
Read Answer Asked by Ken on April 11, 2018
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