skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have reviewed prior question responses on PMIF and PMO005. I understand that both should behave similarly (PMIF should have higher return longterm due to lower MER). My question is on the distribution. The distribution yield on PMO005 is about 3-3.5% it appears; the distribution yield on PMIF appears to be smaller and with variations in the distribution from month to month. Do you think this is temporary, as PMIF is relatively new? Do you think overtime, the distributions of PMIF will stabilize and approximate those of PMO005 with a similar yield? If not, why not, if the portfolio composition is the same in each case?

My feeling is that PMIF is 'safer' than high yield bonds such as XHY and preferred shares such as CPD/ZPR, do you agree? I hope to pair this with some VSB as my fixed income allocation. Do you think PMIF is worth the MER of 0.87%? This is for longterm, all-weather hold (irrespective of where interest rates go in the near-term/longterm) for consistent income.

Thank you!
Read Answer Asked by Walter on April 20, 2018
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
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!