Investment Q&A

Q: I see there are stocks with an RSI near 30 and at a 52 week low; BNS, TRP, BEPC, and BCE. Also, WCN is not at a 52 week low but has an RSI at 30. I am very tempted to add to my positions at these levels. How much weight would you place on a stock's RSI and 52 week level?
Many thanks, Dennis.

Q: I am thinking of selling enb.pr.f ,i have a large loss on it and buying trp .I could use this for a tax loss also.What would you advise?

Q: Hi 5i
I think Peter has been around long enough to remember December 1999 when TRP cut its dividend from 1.20 to .80 and the stock tanked to under $10. More recently ALA made a deal to buy WGL and issued shares at $31 ( I think Caisse depot or other big guys were in for $400 million). ALA went down to around $11 and recoverd to over $28 recently. So my question is: do you see any similarities to TRP or ALA turnarounds to think that AQN ($9.50) could follow a similar chart?
Thanks, Greg

Q: Do you prefer one pipeline over the other? Is there any point in owning both? Should I consider any other pipelines that deliver oil and gas to the U.S.A.?

Q: Hi Peter

There was news today that TC energy's spills have become more intense in the past decade. Is it possible this report may result in some serious repercussions for the company?
It has been many days since the recent spill and yet the root cause has not been identified.
Is there a quality issue with TC energy?
Overall, is it safe to continue holding TC stock ?

Q: Are TRP and ENB dividends sustainable? With a 3 year hold in mind, which do you prefer today?

Q: Are any of these worth buying now, especially before a potential recession: CU-T, CPX-T, EMA-T, ENB-T, FTS-T, TRP-T and DGRO-A?
Thank you. Ron L

Q: Retired, dividend-income investor. I own AQN and TRP for the very long term. I started buying AQN at $5.60 way back and I have trimmed for asset allocation targets on the way up.

I have cash available to add to both of these positions. When I look at the technicals, it looks to my amateur eyes that $49 and $56 respectively look to be good re-entry positions. Would you agree that adding is appropriate and at what levels would you add? Thanks...Steve

Q: I'm wondering about all sanctioned projects TRP has on the books ($30 billion worth I think).

Given the second round of cost overruns on the construction of the Coastal Link Pipeline, I expect actual costs to exceed the estimates used to FID these projects, probably also by significant amounts. Do you have any info on if each project will be re-assessed with a higher cost estimates to determine if they still meet their return on investment hurdle?

Q: Hello, Im assuming you will get a few questions on TC Energy. What is your opinion on this company with its 6% loss today and huge increase in spending for its pipeline project? Is it time to get out? Would Enbridge be better now?

Q: I wish to add more energy stocks to my portfolio for diversification. I have ENB and SU. I am thinking of adding GXE, PXT & TOU, all three seem to have very low or no debt, and either PPL or TRP. All for a 5-year hold. I do enjoy the high dividend yield but would still wish to have some growth and safety. Please feel free to add or remove any from my list of your choice, rank them from the best to the least, and each with a reasonable entry price. How long of a time frame would you recommend to spread over the additions?

Thank you again for your insight.
Roger

Q: Hello 5i Team,
I'm helping my son build a dividend portfolio with stocks to hold long term. Would like to add a couple of pipeline names, with ENB, TRP, and PPL at the top of the list. I've read most of your previous comments on these companies, and most money managers I see on BNN speak favourably on these names in terms of sustainability of the dividends. What I don't hear mentioned often, however, is just how full these pipelines are - are they fully contracted, with no spare capacity to transport more oil and gas, or is there "slack" in the system? What's the outlook looking forward for just how full these pipeline networks will be? It would seem to me that cash flow and dividend sustainability in the future will largely depend on how full the pipeline networks are. How would you rank these companies on that basis?

Q: I'm in the process of building a dividend portfolio. Should I have both or on these stocks. Leaning towards Enbridge if only one. Planning on have a diversified portfolio of 10 stocks .

Q: Hi, Higher yielding equities, like Utilities, Pipelines and Telcos seem to be hit more and more, everyday. Do you see these sectors to come under more pressure, as FED/BOC is not likely to relent and continue with the rate hiking cycle, may be even into 2023. We are sitting with 15-20% capital loss situation, for above two companies bought in Aug/Sep, this year. Would it make sense to sell/harvest the capital loss and buy back later with the assumption that there is more downside to come ? Thank You

Q: Hi team,
I have been a long term holder of ADW and overall with dividend and trimming at prior highs will come out just above par with this holding, which is not desired for multi year, but a nice learning experience for me.
I am thinking of selling and splitting between tc energy, sun life and alphabet. The first two for greater yield play, and all three on the belief that on positive macro news all will perform better relative to ADW (small cap, debt level, your B rating, consumer lag on discretionary).

Thanks for your thoughts.

Q: Enbridge is the only pipeline stock that I currently own. I am looking to buy more. Before I do, do you think the TC Energy involvement in the Kitimat LNG project makes it a better investment right now? Would you consider owning both?

Thanks,

Mike

Q: Hi, Could you please confirm the Ex-Dividend Dates for these two companies. The company investor relations website says Ex-Dividend Date - Sep 29, 2022 and Record Date - Sep 30, 2022. But the TMX as well as our CIBC Brokerage shows Ex-Dividend Date as Sep 28, 2022. Could you please confirm. Thank You

Q: What is your opinion about TRP? Why? How do you rate the three big pipeline companies in Canada? Thanks very much

Q: I've been curious about the Buffett Indicator (the ratio of total stock market valuation to GDP) for Canada. Am I correct in saying that it is about 1.7X or so, whereas it should be closer to 1:1 ? If so, what TSX stocks / sectors are pushing it up so high? I grabbed three large caps from different sectors to have a look at their present valuations...

You mentioned that BNS is historically cheap with a P/B of 1.2, so I'm guessing this one is fine.

If one looks at BCE's present P/E ratio it would be approximately brought back to 2012 levels if today's BCE stock valuation was reduced by "today's Buffet indicator overshoot".

TRP's present P/Cash Flow appears to be fairly high compared to some metrics in the past decade. Again, if the stock price was reduced by that 1.7 factor, maybe the valuation becomes more realistic.

I am only able to compare to metrics going back the past 10 years, so this may be part of the problem. Or perhaps I'm analyzing things wrong here and you have a different way at looking at this (?)

Q: Hi, This week's sharp decline in Pipeline ( ENB/TRP and Others) and Utility (FTS etc ) stocks - Do you think, it is a result of market's renewed fear of continued rate hikes into 2022/2023, as suggested by FED Chair on Friday and re-iterated by other FED Presidents over course of this week including Cleveland FED President, Mester, Today. Pipelines and Utilies sector has performed well this year, but may be, due to its higher yield, is causing some worry to investors. Your comments, co relation of high rates and other factors, impacting these sectors will be much appreciated. Would it be prudent to underweight the sectors, in near term. Thank You