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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: Peter and Team,

I am 30 years old. I currently have 14.6% of invested funds in cash and the remainder is all equities. Of the total portfolio, I have 10.7% in utilities split between IPL.UN (3.2%)and TransCanada TRP (7.5%). With TRP hitting $50 today, I was thinking about switching some of that common stock into the Preferred stock. Can you please give some guidance on the quality of this move and if you recommend a particular TransCanada Preferred or if there is some other vehicle you'd recommend totally?

I am thinking I could use some diversification from common equities but in a general sense, I am scared of buying bonds for a few reasons: I worry that while you may get your coupon, you may get hurt by either significant capital losses or by devaluation of currencies. Because Bonds are typically priced against US Treasuries, I am scared a run on the government credits could put pretty much any bond at risk of big capital losses. Is preferred stock a good way to go?

Read Answer Asked by Marc on April 24, 2013

Q: Hi Peter any thoughts on Obama passing the northern leg of the Keystone Pipeline and the impact on TRP either way? I have significant gains on my TRP and thinking of booking profits in case Obama plays politics and doesn't pass or delays the pipeline once again. If I do sell any other names you would suggest I switch into with similar attributes,i.e stability, nice dividend etc..thanks.

Read Answer Asked by Chris on February 19, 2013

Q: As someone approaching retirement I am looking at tilting my portfolio towards income. What metrics would you use in evaluating an income stock for a long term hold? In particular is it a red flag if the dividend is not covered by the free cash flow? Even if its well covered by earnings. This appears to be the case for Trans Canada (TRP).

Read Answer Asked by Andrew on December 30, 2012

Q: Hi Peter,
I just became a memeber this week but I am very impressed by what I have read on the site so far. So here is my first question.
My broker called me today recommending that I sell trans canada pipeline and buy huskey. He has suggested this several times over the last year or so but I've been relunctant to sell trp given that i bought it at a low price so it pays me a 6% dividend. i have the cash to buy huskey without selling trp but I'm not sure it is a growth stock and I don't want to buy it just for the dividend as I prefer capital gains. can you give me an opionion on these two companies given the current market conditions?
Thanks Peter.

Read Answer Asked by Maggie on October 04, 2012