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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
I know you like Brookfield Renewable Energy Partners [BEP.UN] and the 5.63% dividend is excellent, however I worry that TD Waterhouse only shows earnings of $0.24 per share [with a P/E ratio of 117.3], and the dividend is $1.58.

To add to the confusion Stockhouse show earnings of $0.24, P/E of 46.6 and dividend of $1.516. The data from Morningstar are even more confusing and contradictory.

I know you like to look at the free cash flow, as you wrote to Claude on Dec 13th, which is huge, but I really don't understand how this works. You said "various non-cash accounting charges" need to be taken into account but if the money is spent it isn't there to pay dividends. So what is a "non-cash" charge? Sounds like a shell game or cheque kiting to me!

If all the cash flow covers expenses and capital investment how can there be enough left over to cover the dividend? Surely NET earnings must exceed the dividend if it is to continue on a sustainable basis without the company having to borrow money to pay it.
Thankyou..... Paul
Read Answer Asked by Paul on January 19, 2014
Q: How would you compare cdz.a and xtr as income etf funds ?
Read Answer Asked by terrance on January 19, 2014
Q: Hello 5i
What is your opinion of First Trust Senior Loan ETF "FSL" for fixed income? Do you also have any recommendations for fixed income type investments?
Read Answer Asked by Richard on January 17, 2014
Q: I am overweight Utilities/Income stocks. Would you please rank my equities for overall return over the next 2-3 years: Brookfield infrastructure (BIP.UN), Chemtrade (CHE.UN), Inter Pipline (IPL.UN) and K-Bro Linen (KBL). Is the suggested waiting for this category is 5%? Thank you for your help.
Read Answer Asked by Paul C. on January 08, 2014
Q: Hi Peter,

I am thinking of purchasing LIQ but noticed it has rallied significantly in the past few days. What do you think of this company? Should I be aggressive to purchase it at current levels or can I be patient and accumulate it on dips?
Read Answer Asked by Brian on January 07, 2014
Q: Hi Peter and Co, and a very prosperous New Year to all,

Would you give me your opinion on XTR, the ishares Diversified Income ETF? I've held this for a while in RRSPs and wonder if it is a good choice for the income part. If not, please make some alternative suggestions.
Many thanks
Read Answer Asked by Gail on January 06, 2014
Q: Hi and happy new year. I am a new member and love your service. Just renewed at the discount rate even though I have only been a member for 3 months. I am impressed with your dedication, I recently asked a question at 6:30 AM and you gave a great answer by 7 am. The Early bird gets the worm. Now to the question: The Vanguard corporate bond ETF "VSC". What do you think. Seems like a small fund but mer is only about .18 per cent.I need to rebalance my stocks which have done very well in the past 4 years and buy some bonds. Corporates still seem the only way to go at this point.
Read Answer Asked by MANFRED on January 06, 2014
Q: could you please give your take on phn total return bond fund i am down 4% and it is app. 5% of portfolio held in tfsa.i am considering adding this years contribution to it but also wondering a better allternative. your gratefully Larry
Read Answer Asked by Larry on January 06, 2014
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