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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: What are your thoughts about the sale of the Montney assets to Crescent point ,and with a prospect of 9.50/ share dividend to Spartan shareholders, do you see any negatives for the shareholders of either company?
Thanks,
Philip
Read Answer Asked by Philip on March 29, 2023
Q: I own the above pipeline stocks in various accounts. In my flee to safety and dividends, I am now overweight in this sector. Could you please rank the above securities and which security you would hold or sell.

Thanks
Dave.
Read Answer Asked by David on March 28, 2023
Q: Good Morning All,

With Spartan Delta reportedly selling $1.2 billion in assets to Crescent Point, SDE will be issuing a special dividend of $9.50 per share, as well as providing a share of Logan Energy and a warrant for an additional purchase of Logan Energy at 35 cents, plus a special 10 cent dividend, I believe for holders of Logan at the end of June.
Could we please get your view on this deal? Do you favour heading down that path, or would you prefer selling SDE on today's bump? Any other comments regarding this deal?

Thanks,
Don
Read Answer Asked by don on March 28, 2023
Q: The chart for the above is interesting. Basically there has been a 10X return since the covid low several years ago. The oil price hit $115 in May 2022, but the share price for MEG was only 20% higher than it is today, with the oil price at a little over half of what it was in May 2022, at about $68.
Many expect oil to regain some footing here and rise, maybe to $100 or more over the next few years.
But from this price history, we should really only get about 20% higher on MEG shares even if the oil price climbs back to $115 right? Why would shareholders want to pay so much more for MEG shares with oil at $115 in the future than at a previous date where oil was at $115? It would seem that at the future date of $115 oil, we would be even closer to a renewable economy than we were in 2022 and therefore be even closer to the decline of an oil based economy, making the MEG shares less valuable? Thanks.
Read Answer Asked by Michael on March 28, 2023
Q: Hello 5i Team

I currently hold Enbridge (ENB) and looking selling 50 % of my ENB holdings and purchasing Gibson Energy (GEI). The resulting portfolio would have 2 GEI shares for every 1 ENB

Overall my total dividends do not change significantly as the ratio of ENB dividend to GEI dividend is 2.28 (0.8875 / 0.39 = 2.28).

ENB raised their dividend 3.20 % in 2023 versus GEI which raised their dividend 5.48 %. My thoughts are ENB will continue to raise their dividend by 3 % per year (slower growth) and GEI will continue to raise their dividend by 5 % per year.

Is this a reasonable course of action or should I continue to hold a larger portion of ENB and ignore GEI?

Thanks
Read Answer Asked by Stephen on March 27, 2023
Q: I'm considering adding PPL to my portfolio and just went through their website. I found the mix of Oil vs Nat Gas vs LNG very easily...Oil = 40%, NG = 25%, LNG = 35%.

For comparative purposes, I went through TRP and ENB websites = not so easy to pull out the same data breakdown. Can you help...thanks...Steve
Read Answer Asked by Stephen on March 24, 2023
Q: Retired, dividend-income investor. Following up on your answer to my earlier question. I hold AQN in an RRSP and am considering replacing it. You suggested the following stocks = PPL, NPI, BEPC, BIP.UN, BLX

I have researched their metrics (P/E, Beta, P/B, P/CF, P/S, ROE, Payout, Market Cap) and technicals. My ranking, based on a desired conservative holding, Is = PPL, NPI, BEPC, BIP.UN, BLX.

My rationale is I hold FTS, TRP and AQN representing 8.6% of my portfolio vs NNRG and NRGI at 7.3%. I am leaning towards adding a more conservative name...such as PPL.

Q#1 = Is there an overlap between TRP and PPL, to the point that I only need one? What % do each of these names have in Nat gas vs oil? I know TRP is heavier to NG, not sure about PPL.

Q#2 = based on my above notes, what would your suggested ranking be?

Thanks....Steve
Read Answer Asked by Stephen on March 24, 2023
Q: I'm generally underweight energy and was thinking of averaging down on TOU and ENB and starting a position in CNQ.

I'm a bit hesitant with ENB.

Any concerns? Or anything I should be aware of?

Thanks,
Robert
Read Answer Asked by Robert on March 23, 2023
Q: Retired, dividend-income investor. I hold AQN in my RRSP, bought it in 2011 at $5.60 (not a typo) and have trimmed it multiple times due to asset allocation. Not that it matters, but I am still up 15% over my ACB.

Looking forward is what really matters. AQN is up roughly 20% from it's low of around $9/share. Q#1 = Do you think AQN can continue their short term performance?

I hold AQN, FTS, TRP, NNRG, NRGI, and utility-energy stocks held within CDZ, ZLB, ZWC. Q#2 = What conservative utility or infrastructure stocks should I consider that might "fill the gap" in my current holdings? Please list 4-6 stocks for me to do further research on.

Q#3 = Should a component of "renewables" be a consideration? That was one of the reasons for holding AQN. Ideas?

So the bottom line is = what's done is done. AQN appears to be starting to recover and there is always the chance of being bought out.
1. Hold of sell,
2. Replace with what,
3. Include renewables?

Thanks for your help....Steve
Read Answer Asked by Stephen on March 22, 2023
Q: Over the years, I have heard some fund managers calling the ENB business model deeply flawed: taking on more debt to fuel ”growth” while simultaneously raising the dividend. If ENB was truly creating shareholder value I would expect that to be reflected in the stock price over a long period of time. Yet ENB stock has been flat for nearly a decade. Is it reasonable for investors to take on equity risk in order to earn 6% rate of return in a company with increasing debt? Would it not be better to invest in a company that can demonstrate some organic growth or accretive acquisitions?

Appreciate your perspective. Thanks.
Read Answer Asked by Joel on March 22, 2023
Q: Good morning - I have slightly profitable position in both ENB and BEP. I am wondering about reducing ENB and increasing BEP. I like both companies and have a long term horizon. Both pay decent dividends. Your thought please.
Read Answer Asked by alex on March 21, 2023
Q: If I look at the top holdings it appears that the fund will still enjoy the previous level of dividends, add to this the funds from the call options.
With that in mind the dividend from the fund should remain approximately the same as now. Thus a decrease in nav but with a higher yield than a few weeks ago. Am I missing something
Read Answer Asked by Leon on March 21, 2023
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