Investment Q&A

Q: I believe the next payment is .485 on June 30.
Is that amount in Cdn or U.S.$?
.

Q: There is news that Brookfield Infrastructure LP reduced the dividend by 10%. I suspect this simply reflects the dividends declared on Brookfield Infrastructure Corp, not a real reduction for the enterprise as a whole. Is this correct?

Q: I was surprised and now curious as to how come BIP. UN is listed as a utility and BIPC.CA is listed as a financial services? I thought that they were identical except for the structure.
Your comments would be appreciated.

Ron

Q: The current price differential is ~$4. How wide do you think it will become and over what period of time? Thanks.

Q: I am looking to invest in Brookfield Infrastructure for a non-registered account. Which is best considering I want to take advantage of the Dividend Tax Credit?

Q: Received some BIPC shares from my holding in BIP.un. At the beginning both were equivalent in $ but now the spread is between $3 and $4. Although both are in my TSFA, should a consolidated all in BIPC before the spread get bigger?

Q: Since BIPC and BIP.UN own the same assets, have the same dividend, and BIPC is convertible to BIP.UN on a 1:1 basis, then why does BIPC trade at about $1.50 more than BIP.UN?

Q: I currently have full positions in BEP.UN, AQN and NPI in a non-reg account. I'm thinking of selling one to buy either BCE or BIPC.

This is a portfolio move. I don't currently own BCE or T so this might be a good time to add. I actually prefer BIPC for the more global exposure. I'm retired and looking for reliable dividends with a side of growth. I think owning all three utilities may be too much (I also own ALA in my RRSP) but selling any of the three would result in a taxable event.
forgot to mention that selling any of AQN, NPI or BEP.UN would result in a taxable gain. I also intended to ask which of the three would you sell?

Do think this would be a worthwhile move? If so, which would to buy, BCE or BIPC?

Thanks as always.
Peter

Q: Hello, you say that in a RRSP or RIF both BIP.UN and BIPC are economically equivalent. When one looks at the company profile of both, only BIP.UN shows a dividend yield of 5.1%. The company profile of BIPC does not show any dividend. Is it because BIPC is a new company that has just been listed? Will the dividend of BIPC be the exact same of BIP.UN? Regards, Gervais

Q: After the BIP.UN spinoff I now own shares of both of these. For simplicity, I only want to hold one. Selling BIP.UN and buying BIPC in non-registered account will have tax consequences so, on the surface, it seems I should sell BIPC and buy more BIP.UN. Do you see any reason in a long term hold to own one vs the other?

Q: Good day, 5i. I was given a small # of shares of BIPC by their spinoff; also have shares of BIP.UN. If I consolidate these shares in a Canadian RIF, which way should I go - all BIPC or all BIP.UN? Are their any advantages either way?

Q: I talked to a RBC adviser and he told me that I can exchange new BIPC shares into BIP.UN but don't have any information on exchanging of BIP.UN units into BIPC shares. Do you have any information whether BIP.UN units can be exchanged into BIPC shares?

Q: When will you start having the intraday price on your portfolio analysis page?
You can publish if you wish.

Ron

Q: I have a position in BIP.UN in my Cash account at a loss and a small position on BIPC in the same account. If I sell BIP.UN and buy BIPC would the loss be considered a superficial loss for tax purposes?

Q: I am a Canadian citizen/resident. I use my non-registered investment accounts to hold dividend-paying Canadian companies as well as U.S. companies that pay no/small dividends. I use RSPs for U.S. companies that pay larger dividends. I use TFSAs to hold securities such as Canadian REITs and companies with unusual dividends such as BEP.UN and BIP.UN. My understanding is that BIPC is essentially “equivalent” to BIP.UN, but that BIPC will pay fully eligible dividends for which T5s will be issued (not sure if the BIPC distribution will be paid in CA$ or US$). Here are my questions: (a) given the above considerations, would it make sense for me to sell BIP.UN/BIPC within my TFSA, using the cash to acquire more of Canadian REITS and/or similar types of securities (with unusual dividends), and to reacquire the same value (of BIP.UN/BIPC shares sold) through purchase of shares of BIPC in a non-registered account? And (b) do you know whether it is known yet in which currency the future BIPC distributions will be paid?

Ted

Q: While Brookfields’s limited partnership companies such as BIP and BIP.UN “declare” their dividends in US dollars these are actually paid to Canadian brokers such as Scotia iTrade in the Canadian dollar equivalent as of the record date.
If an investor holds those units in the US dollar side of their brokerage account, they can be charged a conversion fee by the brokerage to convert back to USD. In the case of Scotia iTrade this has been in excess of 2% in the past.
Do you know if this will be the situation with future dividends paid by BIPC?
Thank you for all your due diligence on our behalf.

Q: I have a little Brookfield Infrastrucure, and was thinking of buying more. I'm concerned, though, about short and medium-term risk given they have holdings such as timber (the demand for which has fallen), gas transmission lines (the value of which rises and falls with price), toll roads (which aren't getting much use), and rail lines that require coal demand. Do you think their next quarterly report will show a drastic downturn beyond what most people are expecting?

Q: Hi,
I received shares of BIPC as a spinoff from BIP.UN. Can you five some information about the new company? How similar or different are they from each other? I am holding it in RRSP. Should I sell one and acquired the other for equivalent $ amount.
Thanks

Q: Hi 5i,

All other things being equal, wouldn't BIPC be superior over BIP.UN because of tax implications and greater accessibility by a wider range of investors?

I ask because I noticed over the last few trading days, BIP.UN has traded at a slight premium over BIPC. I would think it would be the opposite. Maybe some investors are doing portfolio clean up after the split and selling the small amounts of BIPC they have?

Personally I think BIPC is the better one to own?

TIA!
Wayne

Q: From my previous question on owing BIPC in a TFSA you state that it's better to own BIPC in a non registered account because of the dividend tax credit (that I understand)...but is that dividend tax credit really applicable or needed for a TFSA? I currently hold BIP.UN in my TFSA and I'm still trying to find the reason for switching to BIPC. Would it be withholding taxes?