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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, I just have a question about holding CAD listed stocks that currently pay dividends in CAD$. If the stocks are also US listed, how do I go about getting the dividends in US$ if I wanted to?? Do I need to ask my broker to convert the cad stock to the US equivalent? In that case, would they just convert it at the current FX rate and would I get them to journal it over? Would I use norbert gambit to do this possibly to save on FX conversion? Any advice would be great!

Thanks!
Keith
Read Answer Asked by Keith on January 07, 2020
Q: Hi, Brookfield Infrastructure announced this $2.4 billion purchase of Bell Cincinnati by offering Bell shareholders Cash, but I am not sure if there was a mention of how company intends to finance the deal. They also indicated Brookfield's intention to invest $ 1 billion for Cicinnati Bell's infrastructure development. Any ideas, if company will use its cash resources or an equity financing may be in the cards and if so the time frame. I was wondering, if recent decline in unit prices from $70 to $63.65 had something to do with this. Thanks
Read Answer Asked by rajeev on January 02, 2020
Q: Bgi recently announced a change to the fund manager. Is this a good or indifferent change? Also, the fund has done quite well recently is there a reason such as recent buy back of shares or us this increase sustainable. Along with Bgi I also own Bip.un In the same riff account ( as a result of the Enercare takeout) I wonder if I should own both or is there an overlap?
Read Answer Asked by Maggie on December 27, 2019
Q: Want to pass along info from BIP investors relations regarding Unit Split and creation of an Exchange Corporation (BIPC) on how it affects the Brookfield Infrastructure Partners Exchange LP units holder:

1. LP units are exchangeable to BIP.UN 1:1 for 7 years,
2. The exchange is deemed disposition, i.e. taxable, last day to exchange for 2019 tax year is 12/27,
3. LP unit holder will NOT get BIPC shares upon split, only BIP.UN holders get BIPC shares,
4. LP units holder will get equivalent value of additional LP units instead.

Happy Holidays and all the best in 2020 !!
Read Answer Asked by Steve on December 20, 2019
Q: I am interested in adding "infrastructure" sector stocks to balance my investments. I would appreciate your comments on ARE, WSP, BIP.UN , STN. or other options in this sector. Thank you
Read Answer Asked by Richard on December 17, 2019
Q: I hold both of these companies and need to take some profits and redistribute to other holdings. From previous questions I understand a date for the spin offs has not been announced. I do not want to sell now and lose out on the benefits of the spinoffs.
Would the current share price reflect the value of these spinoffs and then drop a corresponding amount when it hits the effective ex-div date similar to regular dividend payments?
I also plan on rebuying the spin off version of bip.un in my taxable acct (both currently in RRSP) based on my understanding that the full dividend would then be eligible for the dividend tax credit. Is this correct?
Thanks.
Read Answer Asked by Bruce on December 16, 2019
Q: I asked the following question earlier this week: "I was a shareholder of Enercare and received Exchangeable LP Units on BIP.UN's acquisition of Enercare. When the Exchange Corporation is created - will I receive 0.11 BIPC shares for each of the Exchangeable Units? (I have asked BIP.UN the same question but have not received an answer yet)"
I have now heard back from BIP.UN Investor Relations and they have advised that only holders of the regular units of BIP.UN will receive the BIPC shares and that in advance of the split (1Q 2020) that I could exchange the Exchangeable LP units for BIP.UN units. I checked with my broker (RBC Direct) and they confirmed that there is the option to exchange now and that I need to advise them by 12/27. I have also asked BIP.UN if the exchange of Exchangeable Units for regular BIP.UN units is a "non taxable event" but have not heard back from them yet.
Thanks
Read Answer Asked by Gary on December 13, 2019
Q: Like a few of your previous questions I find myself in the pleasant position of being overweight BIP.UN { 21.4 % for the third time } and BEP.UN { 5.6 % } . The latter is only marginally overweight so I'm good with that. The former will be trimmed to 15 % for the third time. I know that is still too high but I'm comfortable with it. I was planning on deploying the funds taking a 4 % position in EIT.UN and 2 % into cash. But I've noticed that 5 I generally recommends taking at " least " a 5 % position in ETF's. I wouldn't be adverse to that as it has a juicy yield. I realize that weightings are a personal decision so I'll ask it this way. Between what percentage weighting low to high would 5 I recommend I make my decision in a moderately conservative portfolio ? Also I have done my due diligence on EIT.UN... I'm aware of the MER. I'm aware of the energy weighting. And I'm aware of being capped by a covered call strategy.... What I don't know is the return of capital and how much this should affect my decision . On their tax page I see capital gains as a return of 48 % and return of capital as 46 %. To make it meaningful should one be subtracted from the other ? Basically I'd like to know what the number is and " how to ? " and " should I ? " use it in making my investment decision ? Also in the selling of the 6 % BIP.UN should I wait to receive my free shares before doing so ? ... Thank you for your terrific service.....
Read Answer Asked by Garth on November 28, 2019
Q: I own 3 banks: CM:CA, BMO:CA and BNS:CA. I am thinking of selling CM:CA and split the proceeds to buy 2 Brookfield positions. What would you recommend between BIP.UN, BPY.UN, BIP.UN? Thank you
Read Answer Asked by Kimberley on November 28, 2019
Q: Thanks for your many comments on the securities cited. Currently I hold small positions in both in my TFSA and with the New Year fast approaching, I wonder if I would be best served if I transferred both to my taxable account and increased my contribution room in the TFSA for 2020 and expanded my holdings in the TFSA with other securities next year. Your insights and opinion would be appreciated as always. thanks, Bill
Read Answer Asked by Bill on November 27, 2019
Q: Goodmorning
I have a 1% position in ZGI and a 3% position in BIP.UN I am thinking of selling ZGI and using the proceeds to invest in BIP.UN in an effort to cut down on the number of positions I have in the total portfolio I am wondering what your thoughts would be with such a move?
Thks
Marce
Read Answer Asked by Marcel on November 27, 2019
Q: In a state of confusion regarding these holdings...the spinouts? and the future outcome. Would like to hold forever (like the dividend)........What should I do? Positions. BIP.UN, 3.6% of portfolio, value now $280k..with gain of +74k. BEP.UN, 2.8% of portfolio, valued at $215k with gain of +86K
Read Answer Asked by David on November 27, 2019
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