Investment Q&A

Q: 10:14 AM 4/9/2015
Hi 5i staff
You show Metro having a 4.1% dividend in your "5i Filter - Very Shareholder Friendly" Blog Table today, but when I search various sources I get a 1.80% dividend at the Morningstar website, and a 1.29% yield from the TSX website. What is correct.
Thankyou... Paul K

Q: I have owned Transalta for 15 years and have had it on dividend reinvestment for the same period. All of the other utility stocks that I own have performed well (ema,fts,trp,enb) but TA has been an underperformer. I am considering switching TA for Capital Power (CPX) and was wondering if you would agree with this switch.

Q: Further to Greg's question today, you suggested shifting some of his money to more blue chip dividend paying names. Could you give us a few names you would recommend at this time.
Thanks as always.

Q: I reduced my utility sector exposure to zero a few weeks ago due to the potential for rising interest rates. I know you don't favor reducing sector exposure to zero and given the potential delays in a Fed rate hike as highlighted by the minutes released today, I am considering scaling back into the sector. Would you favor Brookfield Infrastructure or Renewable Energy? Are there any other large infrastructure companies?

Thanks,
Jason

Q: Hi team, I was just looking for a replacement bond for a recent maturity and I found a %4.00 First National bond maturing in 2020, but without any rating on this bond. I realize there is always an interest risk going out 5 years, but I continue to use a bond ladder ranging from 2015 to 2022 as I think a person should still hold some bonds. I am not afraid of buying individual bonds, just have never bought one from this company. Thoughts? or should stop buying individuals bonds and go to an ETF. Thanks again for you great help.

Q: Hello Peter and Team
With interest rate increases seemingly at bay for the time being (certainly in Canada) I am interested in beefing up my position in the Utilities sector. I am torn in a choice between ENF ( Enbridge Income Fund, and AQN ( Algonquin Power ). They both have strong upside potential for their own respective reasons, but I am at a loss in determining which one has the advantage, if any. I am looking to place one of the two within a well-diversified income oriented portfolio, with a preference for stocks offering income supported by growth. As always, I would appreciate you valuable input, in helping me with this decision.
Thank you kindly,
Rick

Q: Hi, Bank of America is only bank in my portfolio, bought it around 8$ but it didn't do much during last year. Should I sell it and switch to some Canadian bank. What is your risk/reward assessment vs. Canadian banks.

Thank you for great service.
Milan

Q: INFRASTRUCTURE:
There are noises of increased spending in North America on infrastructure. Could you recommend several STOCK options that have a dividend and growth and THE rational for them. w\would also like an ETF, if there is one, for the above
THANKS
YOSSI

Q: The stock has come off its low and seems to have stabilized. Do you feel this is a good time to buy? I look forward to your response.

Thank you,
Bob.

Q: I have noted that many of the recommendations you make regarding equity ETF's consist of companies that have a record of consistently increasing their dividends. If one wants to buy the actual companies rather that an ETF, which companies that you currently favor, (i.e. showed up in your recent balanced portfolio or income portfolio) would you recommend I buy now?.

I realize this is an open-ended question, and you don't know how my portfolio is constructed but I'm curious about which of the companies you have chosen for your balanced portfolio most closely match the criteria of consistent dividend increases.

Could you direct me to any other sources that might give me more insight into which companies increase their dividends consistently.

Q: Is it financially strong enough to buy/own this stock. Because it is a Trust Unit, will it be able to continue to pay dividends and interest in the future. Also might there be growth in the dividends.
Your analysis and advice on this company will be greatly appreciated.

Q: To add to your reply to Herbert in today's column, I have held both BEP.UN and BIP.UN since June '13. Both pay good dividends but BIP is up 50.8% while BEP is up just 30.1%

Q: Do you prefer pza.un or aw.un. Thank you. Don.

Q: All three dividend EFTs have a number of differences, but which of the 3 do you feel will give the best overall long term return and why?

Q: Could I please have your comments on this fund. I currently own IPL and am considering this fund as a means of adding other infrastructure plays.

Thank you, David

Q: I would like to sell GH as a tax loss. I held the stock primarily for income. Could you suggest a few 5i covered stocks that I could use to replace the income with some possibility of capital appreciation and/or divvy growth as a bonus. Thank You Ron

Q: ENF announced they received the formal proposal from Enbridge regarding the liquids business transfer on March 31. No details on the transfer were announced. Investors have been waiting for and expecting this, however, there seemed to be quite strong selling pressure and volumes today. Also, ENF has pulled back around 20% from its high in early February.
I'm just wondering if this pullback is:
- investor concerns regarding the required share issuance
- the stock overshot on its run-up to February
- unfavourable details on the 'proposal' from Enbridge have leaked out
- just the vagaries of the market

Your thoughts on the above and would you continue to hold for income? Thanks.

Q: What are your thoughts on ENF at these levels ?

Thanks Ken

Q: I was eyeing PZA when they recently issued a bought deal at $15, and am now even more interested as it has fallen to about $14. What is your opinion of PZA, why would it drop so much from the recent offer price, and is the distribution stable? This would be bought for income in an RSP.
Thank-you, Grant

Q: Hi Peter and Staff
Are you still high on this company? Also, confused (normal) as to where it belongs sectorwise. Think I have been told utilities but I have a hard time comparing it to the likes of Fortis,Northland,Valener due to its businesses including fuel distribution ?
Thanks for all you do