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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: top 2 choices, 1-2 or possibly 3 year term, and why? Thanks
Read Answer Asked by Ziaad on December 24, 2020
Q: Hello I have accumulated about 27% of my cash portfolio in ENB and TRP combined due to DRIP and the fact that I have held the shares for about 20 years. The also make up about 10% of my total investments. If I sell, the tax will be like a kick in the pants and so I have never sold. The dividends have always been good too. But with Trudeau looking for areas to raise some cash, I feel capital gains might get worse. If I were to sell some of this, would you suggest some renewable energy issues such as AGN or BEPC to replace?
Read Answer Asked by Ken on December 07, 2020
Q: Retired, dividend-income investor. I own AQN, FTS, TRP.

I am trying to put into perspective the relative market share (whatever the appropriate metric is?) of Renewable Energy vs Traditional Energy. The recent surge in renewables has, I'm sure, accelerated the transition from traditional to renewable. I am wondering how far into the future the oil industry has (20 years?)?

While I have no data, I suspect if we broke down the various energy subsectors into Renewables (solar, hydro, tidal, wind) vs Gas vs Oil, that Renewables would currently make up roughly 10-20%? Can you please give me the current breakdown vs where we are forecast to be in 5-10-20 years?

Thanks...Steve
Read Answer Asked by Stephen on November 13, 2020
Q: Retired dividend-income investor. With the dust trying to settle on the USA election, where do you see the Canadian Energy sector sitting over the next year or two? I understand Renewables are taking off (I own AQN, FTS), but Renewables are very expensive right now and it is going to be a long way off before the oil industry is going to be extinct. My own feeling is we have at least a 20 year runway in front of us.

Having said that, TRP's Keystone XL is potentially in Biden's crosshairs. The research I have done is a) if KXL is constructed, then good for TRP, as it is apparently not priced in to its stock price; b) if KXL is flushed, then also good for TRP as the uncertainty is removed and TRP has plenty of other growth projects in the process of being approved/constructed; c) also if KXL is flushed, TRP would have so much free cash flow, that it would be a "cash cow".

The reason for my question is I have a almost full position in TRP and I view TRP as very cheap right now and was going to top it up. Your thoughts please?

Thanks...Steve
Read Answer Asked by Stephen on November 09, 2020
Q: Retired, dividend-income investor. I focus a lot on asset allocation...by sector and by security. I break out my ETFs into their various sectors (ex. ZLB, ZRE, ZWC, XIT, CDZ, LIFE) and then add in my individual securities (ex. AQN, BCE, NWC, NTR, PBH, PLC, RY, TRP, WSP, etc). Up until now I have lumped Telecoms, Utilities and Pipelines into one category and Energy is a stand-alone sector. The only "adjustment" I make is for TRP. I would normally assign it to Utilities, but because it seems to trade more like the Energy sector I assign it 50-50 to Utilities-Energy.

Fast forward to now with the increasing amount of "Renewable Energy". When researching individual companies for potential inclusion into my portfolio, they seem to all come up "Utilities" (ex. BEP, BIP, NPI). It appears Renewable Energy is not a subset of Energy.

So my question is...how do we deal with the asset allocation? Is Renewable Energy assigned to Utilities or Energy or is it a Hybrid?

Thanks...Steve
Read Answer Asked by Stephen on November 03, 2020
Q: ENB. SU,TRP and PPL are my current energy holdings and I am down on all four. I have held for a long time and I am concerned energy is not coming back quickly. What would you suggest.? Reduce in all, cut 1 or 2 , if so which would you suggest I sell. As usual your input is respected.
Read Answer Asked by John on October 13, 2020
Q: For renewable energy, I already have BEPC and AQN. For pipeline and utilities, I've ENB and TRP. I can harvest a small tax loss by selling ENB. Should I use the sale proceeds to add to TRP or buy back ENB after 30 days? Which would you prefer and why? Or would I get much better future growth and financial strength by using the proceeds to buy another renewable energy company like NPI? Thanks.
Read Answer Asked by Willie on October 07, 2020
Q: Retired dividend-income investor. Long term holder of TRP. Would the recent decline in share price be attributable to the Biden-Trump debate #1, which analysts say Biden won (therefore putting Keystone XL at further risk) and/or the movement towards the change in sentiment (carbon-based vs renewable energy)?

I normally am a long term holder of core positions, with trimming/adding when rebalancing is required. I was due to add, once TRP came back down to $58. Now it is at $55 and I have adjusted my "adding" target to $50. I am not too far below a full position (at roughly 85%).

I do not plan to sell TRP believing that as the pandemic subsides, the oil & gas industry will recover. However, I am beginning to wonder that I may be better served to allocate these "top-up" funds to the renewable part of the energy sector instead. I also own AQN and FTS.

Your thoughts? Thanks for your help...Steve

Read Answer Asked by Stephen on October 02, 2020
Q: Retired, dividend income investor. Currently own AQN, FTS and TRP. If I wanted to add a 4th name (with a focus on renewables), what would you recommend? It would be mostly in a taxable account, with possibly some in a TFSA account. Or if AQN and FTS are enough names, should I just add funds to them? If AQN-FTS are not enough names, would you consider BEPC or BIPC? I like utilizing the dividend tax credit.
Thanks for your help...Steve
Read Answer Asked by Stephen on September 29, 2020
Q: hi. in regards these pipelines: 1) how much are these stocks dependent on the price of oil, on the volumes of oil through their pipes, and where that oil is being shipped from (eg Canada) to ( eg Canada or the US ). 2) do these stocks need growth in the tar sands for their growth? 3) how long a runway do they have with our weaning off oil?
Read Answer Asked by chris on September 15, 2020
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