Investment Q&A

Q: Could you comment on the recent weakness in these units/stock and whether or not any are nearing what you would consider good entry points?

Thanks

Q: Hi,
I saw a Morningstar article in January about BEP, mentioning this:

Big picture: Management announced plans to address the widening relative premium of BEPC to BEP shares. The firm launched an at-the-market equity program for BEPC shares, which it plans to use to repurchase shares of BEP, given the outsize relative premium.

YTD both BEP.UN and BIP.UN ouperformed their counterparts, BEPC and BIPC. Would it be the reason?

Do you have any knowledge of this Brookfield’ plan. Thanks.

Q: Can you give me an idea of the relative value of the two Brookfield Infrastructures? Seems like BIPC is somewhat expensive and buying focus should be on the units (bearing in mind the tax issues)? Thanks

Q: Why the sizeable price drop today?
Thanks

Q: Hello, I have these 3 pipeline cos plus BIPC and I would like to reduce these to 2 stocks (should be sufficient to cover the sector) among ENB, PPL and KEY. I want to keep BIPC. Which ones should I keep and why? I have held these 3 stocks for over 20 years and plan to hold 2 of these for at least another 5 years, possibly 10. Thanks

Q: Happy New Year 5i team,
Could I please have your opinion on Brookfield Infrastructure for a 3-5 year hold and also if you could explain the difference between BIP.UN and BIPC and which you think is the better to hold.

Thanks as always,
Paula

Q: On an up day, virtually every Brookfield stock was in negative territory today. That seems odd. What are your thoughts on this somewhat unlikely event?
Thanks,
Philip

Q: Brookfield and related entities. What percentage of total portfolio would YOU be comfortable holding. Right now I am at about 13% including BN, BAM, BEP, BIP and BIPC all held in a USD non-reg account. BN is largest holding in Portfolio.

Q: Hello 5i Team

Further to the reader’s question about US$ denominated dividend deposited into US$ denominated accounts at RBC Direct Investing.

I experienced the same issue with RBC Direct Investing and they explained as follows. I will use Brookfield Infrastructure
Partners (BIP) which I hold in a US$ denominated account.

BIP transfers the total dividend to Canadian Depositary for Securities (CDS) for all the BIP shares held by CDS (in excess of 100 million shares) on behalf of Canadian Brokers. This dividend payment (in US $) is converted to C$ (unclear whether its BIP or CDS) at “wholesale” rates.

CDS then transfers to each Canadian Broker (i.e. RBCDI) the Canadian dollar equivalent of BIP dividends held by the individual brokers (i.e. RBCDI). RBCDI then buys US dollars for dividends deposited into US$ denominated accounts. There is a difference in the exchange rate between the dividends received from CDS and the transfer to individual accounts. This results in the small discrepancy between dividends declared and dividends received.

The result is for 1,000 shares of BIP

BIP declared dividend = US$0.43 x 1,000 shares = US$430.00

RBCDI deposited $0.429544 x 1,000 shares = US$429.54 a difference of $0.46

Sometimes it works the other way and RBCDI deposits a slightly greater amount of US$ than the equivalent original dividend amount.

Other US $ stocks do not seem to have this issue, as I mostly hold US domiciled companies in my US $ accounts. It may also be a result of how the dividend issuing company transfers funds to CDS.

It is annoying as I originally purchased BIP on the NYSE and expected to receive the declared dividend amount.

I hope this explains the matter to the reader.

Q: Good morning,
I own a 3% position in BIPC and smaller positions in BBUC and BBU.UN. I was thinking of selling all three and adding to BN before the split. I also own BEP.UN.,BAM, BEPC and BN. This is in non -reg account. Since they are relatively small gains, taxes are not an issue. Thanks, Paul

Q: When looking at portfolio weightings and the Brookfield companies - do you consider each incarnation of the brookfield empire as a different company or do you consider them the same? Trying to figure out if I should trim or not, given their connections.

Q: What are your thoughts on BIPC earnings. Please advise if I should add on weakness today or what price do you consider as great buy.

Thanks for the great service

Q: Good afternoon - I have several Brookfield positions. My BN and BAM positions have more than doubled. My BEPC and BIPC positions have done well but nowhere close to a double. I do get higher dividends in BEPC and BIPC but BAM pays almost 3% at current prices. I'm thinking of selling BEPC and BIPC and putting the proceeds into BAM. The tax consequences are manageable. Your thoughts, please.

Q: I have all three of these positions.

I'm happy to keep my capital invested in the Brookfield empire, but it feels inefficient and not thought out the way it sits in my portfolio, almost like a series of afterthoughts.

The breakdown of the three (as a % of their cumulative totals in my portfolio)

BN = 57%
BEPC = 8%
BEP.UN = 35%

(Ignoring the whole tax schmozzle with reg vs NR accounts),

Would you recommend any changes? That could include adding another Brookfield entity as a possibility.

Q: Hi, can you rank these stocks for best to worst expected total return over the next 3 years in a non-registered account. Also, rank them for the lowest to highest risk.

Thanks for the great service!

Q: What’s your opinion on the BIP’s Q1 result? It seams the 6% increase in dividends is above the increase in AFFO. What is now the payout ratio of the AFFO? I like this dividend increase but are they getting agressive given the AFFO results?

Q: Good morning: Which of the brookfield companies you think will be most benefitted in the next 12-18 months. Could u listed them in order of preference?
Secondly, How much does each of these companies contributed into the parent BN's bottom line. Thank you.

Q: This is not a question, just a comment so I'm not sure what other forum there is for me to do that

I see that you recommend BEP and BIP for income investors . I think you should highlight that because these are partnerships, the income is a combination of dividends , interest and foreign income . So a form t5013 will have to be filed and not all the income from the partnership is taxed with the favourable dividend tax treatment . Luckily, neither of these has $US business , therefor are not subject to the 10% withholding
cheers
Tim

Q: Can BIPC be owned along with TRP, ENB & BEPC in a non-registered account? Not too much overlap? Good to receive dividends in US dollars in this crazy period.

Thanks for your input.

Q: Hi Folks,
May I have your thoughts on BEPC and BIPC. I am thinking of selling my shares in BEPC (breaking even) and buying BIPC which seems to be doing better. This would be in my TFSA.
Thanks