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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 hold Crius primarily for income. The sharp drop today though was a big surprise...despite knowing that Seeking Alpha is behind it and they could be spreading misinformation.
While I plan to continue holding for now I would like to be reasonably confident that Crius has been and is being responsible in managing dividend payouts. That information will be pivotal in deciding whether or not to buy more.

Would you please outline the “math” to support the fact that Crius. been fiscally responsible in this regard ....or not.

Thank you for helping out here.
Read Answer Asked by Donald on March 01, 2018
Q: Hello 5i Team.
I own these stocks for the dividend, in sectors that are currently getting hit due to rising interest rates (I assume). From your point of view, is it best, if one needs the income, to not be concerned with losing equity value and just continue collecting the dividend and hope that over time, these stocks will recover? Or is it best to sell and research other options. (I am 66 years young). Please also rate these stocks from best to least in terms of dividend safety and growth potential. Thank you for your wise advice.
Read Answer Asked by Jocelyne on February 27, 2018
Q: Hi. Most utilities have taken a sharp hit over past 2 weeks, due to mounting concerns about their valuation, in the rising interest rates scenario. I guess, this could present an opportunity for long term income seeker investors. However, if rates continue to rise, these companies could also be subject to revaluation due to lower multiples, thus, being solely income vehicles with little or no potential for capital appreciation. I would like to allocate my capital to companies where there is growth and some income generation ( and dividend growth potential).
I have ENB, KWH.un and ECI in my portfolio. Enbridge has been out of favour for past year due to concerns about high debt and questions about sustaining/supporting its dividend growth. But, still there seems to be some growth potential. Crius management recently indicated their preference to reallocate their cash flow to growth and pay down debts rather continue to increase dividends. Enercare still seems to enjoy consistent cash flow but not sure where growth will come from.

With this view, I have done a bit of capital reallocation and reduced my KWH.un and ECI position to less than 2%, over past few days and started to deploy towards solid companies with higher growth potential, like, SJ, CSU, AFN etc.

What are your thoughts about this strategy ? Thanks
Read Answer Asked by rajeev on February 12, 2018
Q: Because I cannot contribute new funds to my LIRA, I have a number of high-yield stocks to generate income that can be reinvested in growth. Full position in PDC for diversification and smoothing effect, half position in everything else. How safe are these utility and REITs dividends with 7-9.5 % yields? Alternative suggestions for 10 year plus strategy? (Please deduct as many credits as required)
Read Answer Asked by Stephen on February 01, 2018
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