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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: Please let us know what you find out about ENB as far as it being involved with master limited partnerships. My quick search tells me Enbridge is a normal corporation rather than an MLP. Enbridge Energy Partners, EEP, is an MLP. My information concerns the U.S. stocks. I don't know if there would be different considerations for Canadian shares of ENB. Thank you for your ongoing information, education, and guidance.
Read Answer Asked by Jerry on March 16, 2018
Q: In my portfolio I selected CLF for a significant amount of the fixed income portion of my accounts (in both RRSP and non reg accounts). A the time (almost 2 years ago) I thought it would be the safest since it is a government bond index. However, am down by almost 6% since purchasing. My priority for fixed income is to not lose capital. Do you have another suggestion? Perhaps GICs make more sense? Are there worries in the market regarding Canadian government debt (i.e considering escalating debt levels at the federal level as well as some provinces - like Ontario and Alberta).
Read Answer Asked by BRYAN on March 16, 2018
Q: Good morning. Looking to add a few stocks (services, financial, utilities) for 5+yr hold with growth and income. EFN, AD & ENB are my front runners, respectively. Could you suggest one other alternative to each of those three that you would recommend? especially interested in your opinion on EFN today with their earnings news. And what is EFN payout ratio? great service thx. I am 35 years of age with higher-risk tolerance.
Read Answer Asked by Gordon on March 15, 2018
Q: Never mind my question as I have the reason for the decline:
FERC Revises Polices, Will Disallow Income Tax Allowance Cost Recovery in MLP Pipeline Rates

The Federal Energy Regulatory Commission (FERC) today responded to a federal court remand by stating it no longer will allow master limited partnership (MLP) interstate natural gas and oil pipelines to recover an income tax allowance in cost of service rates.

The U.S. Court of Appeals for the District of Columbia Circuit in United Airlines, Inc. v. FERC, (827 F.3d 122 (D.C. Cir. 2016) held that FERC failed to demonstrate there was no double recovery of income tax costs when permitting SFPP, L.P., an MLP, to recover both an income tax allowance and a return on equity determined by the discounted cash flow methodology.

The Commission today acted in response both to the court remand and comments filed in response to an inquiry issued after the court ruling. FERC will now revise its 2005 Policy Statement for Recovery of Income Tax Costs so that it no longer will allow MLPs to recover an income tax allowance in the cost of service.

The revised policy statement explains that, while all partnerships seeking to recover an income tax allowance will need to address the double-recovery concern, the application of the United Airlines court case to non-MLP partnerships will be addressed as those issues arise in subsequent proceedings.
Read Answer Asked by Greg on March 15, 2018
Q: Hi, could you offer any advice on CHIP program or reverse mortgage to release funds to seniors wishing not to downside, thanks.
Read Answer Asked by Peter on March 15, 2018
Q: Peter,
I have looked at the rate of dividend growth of many Canadian companies over the last 15-20 years. There have been many substantial increases. I fully realize that dividends are completely at the discretion of the board of directors and are really dependant on income. However from your time in the business have you seen periods of say 5-10 years where there was very stagnant dividend growth or alternatively has it been more of a consistent upward trajectory? I also am aware of this can vary very much from sector to sector, but am looking more at the type of stocks that would be categorized as dividend aristocrats.

Thank you

Paul
Read Answer Asked by paul on March 15, 2018
Q: I have owned stocks in above companies for a while. I want to make additional investments in quality dividend stocks.
I also own stocks in KO, GE, MSFT and SYY. Total portfolio about Cnd $ 300K and US $ 120K
1st question, In your opinion, should I sell any of the above stocks, if so which ones.
Which additional stocks would you recommend for me to purchase
Thanks for your guidance. John
Read Answer Asked by John on March 15, 2018
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