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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: Re Jason question March 22 regarding metrics for downside support for telcos, utilities and reits. . What cos would you recommend which meet a sufficient number of the metrics? Thanks
Read Answer Asked by Tim on March 26, 2018
Q: Peter and Team, I raised cash progressively by trimming a few different positions from my stock portfolio (basically mirror of Balanced Equity Model Portfolio) over the last 6 months to reduce risk a bit as I have been and am still concerned about the markets (high debt levels, rising rates, very high P/E's, etc.). I put some of the proceeds in HFR. I currently have approximately 5.7% of my overall portfolio in HFR. I also have approximately 21% of the portfolio in straight cash. I want to put this money to work in something that won't crash with the markets (if they do) and recognize this means low return/low risk. How much should I be comfortable in putting in a single ETF like HFR? I've also been looking at running a small 0 - 90 day fixed income book to generate approximately 1.15% annually or so. Ideally, I'd just drop a bunch of cash on my mortgage but my significant other is concerned about taking that cash for that reason and not keeping it invested for the long term.

I digress. Thoughts on concentration risk with HFR and other low risk, low correlation ideas to make some return on my cash position would be greatly appreciated.
Read Answer Asked by Marc on March 26, 2018
Q: Can you please give me your figures on long and short term debt for ENF. Looking at data from Morningstar, Enbridge Income Fund has a market cap of $4.7 billion and a tiny debt of only $400 million. Are these numbers correct?

If indeed there is very little debt how does the company "buy" drop-down assets from ENB. Is it done through issuance of shares. If there is very little debt, and it's pipelines likely to run at or near full capacity for years to come would you agree that the dividend is quite secure for the future.

What percent of ENF is owned by ENB?

Do you have any other concerns about owning ENF as a long tern income holding.

Thank you.......... Paul K.
Read Answer Asked by Paul on March 26, 2018
Q: Hi!
In a rising rate environment, are there certain metrics that we can look at to determine whether a certain telcos, utility or REIT will be more resistant to the downside?
Thanks!
Read Answer Asked by Jason on March 22, 2018
Q: Hi,
Lets say Enbridge does what a few analysts are thinking and drops from its current 40ish to 33ish. Does this really have an effect on anything besides presenting a great long term buying opportunity? If dividends are covered by cash flow, and cash flow is under contract, does a lower share price change anything besides market cap? What other consequences do you forsee there? Im thinking about buying in now (I have many years to sit on it, so short term drops dont bother me), then watching it and averaging down if the opportunity presents itself. Since dividends are covered almost 3 to 1 by cash flow, even if the share price drops to 33, could they still not afford to continue raising the dividend to encourage more buying and therefore help re raise the share price? Maybe Im oversimplifying this, thanks.
Read Answer Asked by david on March 21, 2018
Q: This is not a question, it is a statement!
As one of your members states ENB is in free fall ! Very reputable Advisers stated as I mentioned that ENB will drop to 33 plus dollars ! But you keep defending this Company for its dividend! The stock has dropped from 58 dollars to 38 dollars now while you maintained a buy rating! How many years of dividends you have to receive to make up for the capital loss if you own 1000 shares at 58 ?
I think that a moving stop at a 5% loss from a new height is a much better choice at the prevailing energy markets!!!
Read Answer Asked by Frank on March 21, 2018
Q: Clearly the stock is in the doghouse and is getting no love whatsoever. Reading the Q&A's I keep reading that the dividend is covered by cash flow. There is no disputing that fact when looking at the cash flow statement. But the dividend pales in comparison to the other huge use of cash which is capital projects. What do you think it's going to take to turn the share price around? The market does not like something regardless of all the handholding and reassuring management has done. Maybe the company needs to come out and say they are stopping all future dividend increases (it yields well over 6% now) and that cash will go directly to pay down debt. Do you think that would be a catalyst to stop the freefall?
Read Answer Asked by Richard on March 21, 2018
Q: Hello 5i team,
I hold 3 stocks in the energy sector: ENB since 2012, KEY since 2010 and PKI since 2006.
With an average total return of 5% per year (which basically equals the yield) ENB is, by far, the worst performer.
That begs the question: granted ENB is a good company, but it does not seem to be a good stock to own.
Thank you,
Antoine
Read Answer Asked by Antoine on March 21, 2018
Q: I know its hard to compare these companies but do you have a preference between Banco Santander, Lloyds or Fiera Capital? Focus on value and dividend growth for a long term investor.
Read Answer Asked by Gary on March 20, 2018
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