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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: 7:42 AM 3/25/2019
I am looking to invest in 10 or 12 of these companies for a very long time: RY, CM, BNS, CNR, SU, CNQ, NTR, ET, NWC, FTS, EMA, NPI, AQN, BIP.UN, BEP.U, ENB, TRP, PPL.

I am concerned to select companies with the highest probability of surviving a severe recession intact while continuing to sustain or increase dividends over the next 10+ years.

I fear some may have too much debt or other "hidden" problems to survive a major downturn so could you please comment on debt levels and vulnerability.

Could you please arrange them in order of "security of income", safest first, and maybe single out any weak ones. I am not overly concerned about future price fluctuations as long as dividends can be sustained.

I quite realize these are not the same as government bonds and do not have the same levels of safety. I intend to hold them purely for rising income with no intention of selling.
Thank you............. Paul K
Read Answer Asked by Paul on March 25, 2019
Q: Hi, if I hold either of these stocks in a TFSA would they be exempt from any U.S. or foreign tax reporting? From a tax reporting perspective would it be the same as if holding them in an RRSP? Thanks.
Read Answer Asked by Gary on March 18, 2019
Q: Could you please select the two or three stocks from the following list that you think will have the greatest total return over the next ten years:

WCN
BAM.A
AQN
SMU.UN
BIP.UN

If you have any other suggestions that would be also be appreciated.
Read Answer Asked by Doug on March 12, 2019
Q: Reading through 5i answers to questions regarding Cdn. coys that pay dividends in USD made me wonder if there is a way to increase my cash holdings in my USD account without incurring FX charges and being eligible for the foreign tax credit.

I currently have AQN and HOT.UN in my TFSA that pay dividends in USD that are converted to CDN$ with the extra wrinkle of HOT deducting withholding taxes that are not eligible for the foreign tax credit because it is held in TFSA. Also hold BAM.A and BEP.UN and BIP.UN in Cdn. cash trading account that also pay dividends and interest in USD$ and are converted to CDN$ when paid.

Can I as owner 1) TRANSFER my AQN (up about 150%) and HOT.UN (down 25%) shares this year from my TFSA to my USD cash trading account to get dividends/interest in USD and 2) do the same with BAM, BEP and BIP from Cdn. cash trading account to USD cash account to capture and keep the USD payments and avoid FX conversion fees and build my USD cash reserves in USD cash account without incurring any fees and charges from my online broker? Or do brokers and CRA have rules against clients benefiting from structuring dividend/interest transactions in a manner like this?

Obviously this would open up SOME space for extra contributions to my TFSA in early 2020 above and beyond the TFS $6000 contribution limit to provide for increased flexibility for sector rebalancing and re-allocation opportunities. Also this would make the USA withholding tax payment on the HOT.UN dividends eligible for the foreign tax credit when filing my tax return to CRA?

Comments?
Read Answer Asked by William Ross on March 08, 2019
Q: Further to the question on Brookfield prefs, the 5i response likely refers to BIK.PR.A (the Investment corp). I hold BIP.PR.C (Series 3) in a registered account because as can be seen from the link:
https://bip.brookfield.com/~/media/Files/B/Brookfield-BIP-IR-V2/2018-tax/2018%20Canadian%20Taxable%20Income%20Calculation%20Preferred%20-%20Series%203.pdf
the majority of income is foreign. All BIP.PRs are the same and I believe BEP also.
Read Answer Asked by Jeff on March 08, 2019
Q: From your previous advice to other members, I am aware that these securities are best held in RRSP/RIF accounts for tax purposes. My question is whether the same advice applies to each company/partnership for their Canadian dollar preference shares? Are the dividends impacted by withholding taxes and are the shares eligible for the Canadian dividend tax credit.

Thanks
Read Answer Asked by angus on March 06, 2019
Q: Hello -
I currently own BIP.UN, BEP.UN and BPY.UN in a CAD RRSP account. These three stocks pay dividends in USD. I do already have a USD RRSP account that holds American stocks. Would it make sense to move these three Brookfields to the USD account to avoid the exchange conversion fee when I receive quarterly dividends? I don't believe there is any issue in holding Canadian stocks in a U.S. account.

Thanks.
Read Answer Asked by James on February 20, 2019
Q: Hi, is the distributions received from these stocks classified as dividend or R.O.C. ? What is your thoughts or can you suggest some good stocks that payout roc as I have a high income from dividends. I understand that roc lowers book value and in turn can increase capital gain. Thx Jack.
Read Answer Asked by Jack on January 14, 2019
Q: I currently hold a global infrastructure f class mutual fund (CIBC Renaissance ALT062)in registered acct's. It has had poor resent performance with a big drop at the end of 2017. Cause?( It has a 15% investment in UK and top holding in Eurotunnel). Could you recommend an ETF or company as a suitable replacement. Also, would it provide more choice and liquidity if I converted to US dollars?
Read Answer Asked by Peter on January 14, 2019
Q: I am a 65 year retiree and I have app $22000. in a TFSA and I am looking at adding another $3000. Looking at an income portfolio. Can you make a suggestion as to how to balance my portfolio and add to my portfolio.
Read Answer Asked by Suzanne on January 09, 2019
Q: Do you have any dividend yield plays with this market correction,that a person could take advantage of? I prefer a yield with some growth,kind of looking at ENB,IPL,AQN. I currently have BNS,some preferred,debentures,etc. I would appreciate any suggestions you might have.
Read Answer Asked by Randy on January 03, 2019
Q: Hello -
If I own 5% of each of BIP.UN and BEP.UN, would it make sense to own 5% of BAM.A as well (or any particular percentage) ?
If it makes any difference at all, I own BIP.UN and BEP.UN in an RRSP and would consider owning BAM.A in an open account.

Thanks.

Jim
Read Answer Asked by James on January 02, 2019
Q: In addition to the question regarding Brookfield companies structure, I recently learned about the following just want to pass the info along.

We took the option to exchange Enercare shares with Brookfield Infrastructure Partners LP shares which turned out to be NOT eligible in registered accounts, there are tax consequences if it is owned in registered accounts.

Our discount brokerage informed us there is an option to exchange Brookfield Infrastructure Partners LP shares 1:1 with Brookfield Infrastructure Partners LPU shares which are eligible in registered accounts, however, the exchange triggers deemed disposition.

Owners of Brookfield Infrastructure Partners may want to check.

Happy Holidays to everyone !!
Read Answer Asked by Steve on December 21, 2018
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