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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: I understand the WCS price of oil is heavily discounted from the WTI. would it follow that the WCS producers should be avoided? Which of the following companies would be WCS dominated: ath,bte,erf,gxe,lou,meg,cpg,cve,joy,tve,wcp,cnq,cj
Read Answer Asked by hal on October 12, 2022
Q: I am looking to retire in the next year, and positioning our portfolio more toward income.

Within the utilities sector we held AQN, BEP.UN, BIP.UN and CPX at close to equal weights 3.1-3.3% each (market value).

I recently sold AQN at a 20% tax loss and initiated a new position in FTS (yielding 4.25% after it's big drop). This will be a long term position.

I'm up approx 50% in CPX and even on BIP.UN.

I'm currently carrying a 16% loss on BEP.UN, and am thinking of selling it for a tax loss (I have significant realized capital gains to offset).

I'm considering either splitting the proceeds between BIP, CPX and FTS; or waiting to sell BEP after the 30 day period on AQN has passed, repurchasing it to regain the lost dividends and for diversification.

From recent questions I understand that AQN's dividend is likely safe, and is considered sufficiently different from FTS to support owning both. I like that it is at 2019 levels, and think there is a good possibility it may reward a patient investor. Is debt a concern?

Which course of action would 5i recommend, and why?
1. Sell BEP at a tax loss and split the funds between BIP, CPX and FTS; or
2. Sell BIP at a tax loss and repurchase AQN,
3. Or is there another course of action that you'd recommend?

Thanks!
Read Answer Asked by Cory on October 11, 2022
Q: I am trying build a list of buy and forget core stocks for each sector. I hold the following utilities in various accounts: FTS, BIPC, BEPC, AQN, NEE, BLX, NPI. Can you please rank these for safety and also for growth. I hold BLX in a corp account because it has the lowest yield - do you see BLX as a long term buy and forget stock? Thanks.
Read Answer Asked by Grant on October 11, 2022
Q: I own AQN in my dividend growth portfolio and would like to add another utility. Is Fortis to similar to AWN or different enough for a diversified portfolio. Also thining of Emera or perhaps ATCO for better diversification. Which of these or others would be your preference for another utility in a portfolio?
Read Answer Asked by Gerry on October 07, 2022
Q: I'm thinking about selling PXT now (say mid-October) to lock in the tax loss early, and then buy back later (over 30 days, of course) at a even lower price (gaining more shares hopefully).

I know PXT is depressed due to the local political issues in Colombia. Do you have any updates on these problems? What are your views on these situations? Is PXT still a good investment? Thanks.
Read Answer Asked by Victor on October 07, 2022
Q: Hello Peter
Out of the three stocks, AQN has the highest dividend; however, is this sustainable? From an overall safety with decent dividend, I was thinking of Fortis instead of BEP.UN. Any comments please?
Read Answer Asked by umedali on October 06, 2022
Q: I am contemplating buying PSK for nat gas exposure but I don't know the actual % of total royalties that are derived from nat gas. Do you have that data for both PSK and FRU? I would sell FRU to make the buy in spite of the fact that FRU has outperformed PSK slightly over the past year and div if much higher. I am attempting to partake in the success of the LNG facility on the west coast. Is this move wise and will it accomplish my intent?

Carl
Read Answer Asked by Carl on October 05, 2022
Q: Hi...further to my recent questions regarding Eric's NRGI ETF, I just want to make sure I understand the tax treatment of this ETF before I purchase it.

According to his website, NRGI is 82% USA and 18% Cdn as of Aug 31/22.

Please correct me if I am wrong:
1. Any share price appreciation will obviously be taxed as Canadian capital gains.
2. Any dividends from a Canadian company will be taxed as Canadian dividends and received the dividend tax credit.
3. Any dividends from a USA company will be taxed as interest income.
4. Any "covered call" dividends from either a USA or Canadian company will be treated as Canadian capital gains (not 100% sure on this one).

So, ignore the share price appreciation aspect for now. Eric has stated the target distribution is 7%.

My conclusion is that the distribution could then be split into roughly 5% dividend (82% of which would be taxed as interest income) and 2% covered call (taxed as capital gain).

Q#1 = So, is it safe to say that the ETF would be taxed with roughly 4% being interest income tax, a negligible amount of Canadian dividends, and the vast majority being taxed as capital gains (share price change plus CC-dividend impact)?

Q#2 = So, I believe it still makes sense to buy this in a Cash Account...do you agree?

Thanks for helping me understand this one....Steve
Read Answer Asked by Stephen on October 03, 2022
Q: Where do you. think the price for a barrel of oil is headed in 2023? A difficult question but based on your years of experience, I'd appreciate your opinion. Please give a few reasons for your answer.
Read Answer Asked by Les on October 03, 2022
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