Investment Q&A

Q: You recently answered another question in the following words.
you may be best served by a well-diversified conservative (or even balanced) portfolio. For your equity component (what ever allocation you decide) stay focused on large-cap dividend payers and weight defensive sectors generously.

If I want to stay with Canadian stocks only, please name your top 10 stocks that would fit this bill.

Thanks.

Q: I am overweight energy & wish to reduce to 5%.
For a conservative investor what weight would you apply to each
of Enbridge & ZEO or would you go 5% in one or the other?

Q: Good morning Peter and Team,
Congratulations on the revamped website which is a pleasure to use.
I recently sold ZCL which is in my TFSA. I want to invest the proceeds into another energy stock, but also want to reduce my total number of holdings since I have too many stocks for the portfolio size. Given that we own these energy stocks: ENB, PKI, and TOG, which of these would you invest the proceeds today? BTW, in your answer to another member, you suggested he sell TOG (we're also down, and I'm frustrated in general with the oil producers) so am considering selling it as well. It's in my wife's RRSP but the loss would be offset by the stellar results received from a majority of your suggestions. (Portfolio approach!)
As always, thanks for the valued advice.

Q: I have a position in ENB at $48. If you were selling a covered call on this security, what strike price and expiry date would you select?. The goal would be not to have the position called away. The pending clarification relative to future dividend increase rates is one element that needs to be considered.
Thanks!

Q: Hello Peter and Ryan,
Nice article in the Globe about ENB
https://www.theglobeandmail.com/globe-investor/inside-the-market/bmo-sees-once-in-a-multi-year-buying-opportunity-for-enbridge/article37015852/

I have a question on the last part of the paragraph. The analyst does a good job explaining why the target price would increase in the long run, but the sense is better to do an equity issue than adjusting the dividend. Do you agree with this? Crescent Point kept issuing equity and did not bode well for the stock. I know the stocks are not the same, but would you expect a drop in share price if ENB does an equity issue? I have 7 percent weighting and am down. Is it best to keep that weight for now or take some loss and move it to TransCanada. Thanks very much.

We see strong rationale for ENB to reaffirm the 10-12-per-cent dividend growth guidance. While we found it surprising that management did not reiterate its 10-12-per-cent dividend growth guidance on the Q3/17 call, deferring the details to the December investor day, we believe it is a prudent exercise for ENB to continue to revisit its payout policy in the context of the record-high 5.5-per-cent dividend yield and credit rating overhang. In the end, we believe ENB will reaffirm the current dividend guidance: we believe issuing equity is less value destructive than tempering dividend growth given the material market valuation compression."

Q: Here is a link to an article in the Globe & Mail that puts a pretty positive spin on Enbridge.

https://www.theglobeandmail.com/globe-investor/inside-the-market/bmo-sees-once-in-a-multi-year-buying-opportunity-for-enbridge/article37015852/

Q: Hi 5i,
Just a comment. You are fond of pointing out that there are two sides to every trade but I don’t know if many people really think about what that means. Frustrated holders of ENB (how could we be anything else?) might want to take a look at a 5-year chart for TRP. TRP went through a period where it had some issues and not everything was working out perfectly for it. Even though there was never any real concern that its dividend was in danger or that its business enterprise was at significant risk, the market sold it down from $60 to $40. Sound familiar? But a quick glance now will confirm that over the most recent several months TRP has spent most of its time over $60 again and the people who bought it near $40 have made out like bandits. Do you think maybe some of them were buying ENB this week? Thanks!

Q: What comments do you have on Enbridge? It is not performing well. Sunoco has improved. What outlook do you see for the energy sector?

Q: I'm looking at adding two stocks; one for dividend and the other for growth. My hold would be up to 5 years. What do you think of adding enbridge and canopy growth corp. Thanks.

Q: Good afternoon. I had 1030 shares of Ebb in 2 registered accounts. I sold them today after the current slide. I would like to know of a dividend paying water play for a long term hold. Either pure water, pumping equipment or desalination. What would you advise at this time? David

Q: If one sold say Enbridge Income fund and purchased Enbridge, within the 30 day period, would this be disallowed as a loss? Thank you.

Q: Going forward, I’d appreciate your advice as to the potential to recover on these stocks. I’m down 16% on PKI, 17% KWH.UN, 18% on VET and 23% on ENB. I appreciate the dividends, am well diversified, have a half position in all but Crius (full position) and willing to hold for an extended period of time. What do you see for each of these in the next 1 - 2 year period. I guess I’m now questioning if being well diversified (energy) will continue to work against me given that it is 9% of my portfolio and I believe you’ve recently suggested 5% is adequate at this time. Subtract as many credits as warranted. Thanks!

Q: Im with Frank, I only want stock picks that go up ;)

Q: Hi
Would a switch from the ALA.R to ENB be a good idea at this time?
Thanks
J

Q: I am puzzled ! ENB was okay for income at $ 58 at 52 at 48 at 46 now down at less than 44. Lost already 4 years of Dividend!
How far has it to go down to become a sell ??????? Shouldn't you people have more foresight ?
Frank

Q: I currently hold a very small position in Enbridge (1.5%) and a very large position in CDIC-guaranteed High Interest Savings Accounts (HISA's). I am retired and capital preservation has become important to me. HISA yields are about 1% while ENB yield is more than 5%. However, ENB dipped below $44 briefly this morning, which represents a 20% drop over the past year. Would you recommend switching some of my HISA's to ENB at this time to obtain a better yield?

Q: From your screeners/sources can you advise who is selling (conversely who is buying) Enbridge in its current downward trend. Is it large fund owners versus retail investors and are foreign investors selling off?

Q: PBH is down bigtime today but I am far more concerned about ENB. PBH is still very much in an uptrend as it has been since 2009. ENB on the other hand, is in a downtrend and has been for a year now. And, very, very rare for a Balanced Equity stock, has been showing up in the 52 week low column a number of times in the past while. What do you see for ENB. Are you considering any changes?

Q: My objective is income and preservation of capital. I have a 2 % high risk portion (fun).
I have a 6.4 % position in Enb . 40% cash. Given the attractive dividend. Should I had to my position ie average down.

Q: ENB's xd is Nov 14.If I sell on Nov 14,I still get the dividend.Please advise Thanks for u usual great services & views