Investment Q&A

Q: I have a relatively small RESP portfolio that will have to change to an RRIF. I would like the RRIF to be able to generate enough dividends to cover the required withdrawals. If that is possible. Can you tell me your top ten highest dividend-paying Canadian companies or maybe even better ETFs or a combination that you would be comfortable owning?

Thank you.
David

Q: What are your favorite Canadian utilities. Criteria: maintenance of dividend with some possibility of growth.
Thank you.

Q: I want to sell bep.un and bepc in my tfsa and repurchase in my cash account.
Which one should should I purchase. No sense having 2 is there?
Thank you

Q: What are your five favourite dividend stocks with growth possibilities at the moment? Please include one in the utility sector (perhaps a renewable). Thank you as always, Pete in Calgary.

Q: What's lit a fire under the renewables all of a sudden? The market has suddenly fallen in love with them again? Is this a temporary fling or likely to last?

Q: Hi,
I just saw a question on the percentage of renewable energy sources versus hydrocarbons for a number of companies, including BEPC, NPI, AQN and FTS. You said there was no material exposure to renewables for FTS. You may be right of course but what is the definition of renewables? Is it only wind and solar, or is hydro considered a form of renewable energy? If so, FTS has plenty of hydro power sources.
Thanks for clarification.

Q: Do you know anything about this company? Debating if I should take a chance. I see they are doing a private placement.

Q: Hi,
Inflation came in hot again today in the U.S. Do you guys have a view of the dot plot? Some economists see the Fed hiking rates 5-6 times this year with a 50 BPS thrown in for good measure. Others see a less aggressive FED with 3-4 rate hikes.

Also, the renewable energy names all seem to be making a nice bottom in the past month or so. Could they be signaling that the rate hikes may now be baked into these names?
Thanks again.

Q: Of these three, which do you prefer and why?

Q: I would like more USD for travelling to the US. I hold all of the above stocks at Questrade, in both registered and unregistered accts. I asked Questrade to please pay the dividend directly in USD (as paid by the companies), but they said "We would have to journal your positions over to the USD equivalent in order to receive the dividends in USD." Should I journal over the CAN shares to the US equivalent; eg AQN.TO to AQN.US? It would involve a very large amount of money, could I expect a better USD exchange rate with greater volume or would they simply use the day's spot rate?

Q: I have a cash account set up that I draw from when needed. I am looking for dividends, safety and a bit of growth. I have all of the above in nearly all the same amounts but would like to add one more. Ignore diversity as I have all that covered by other accounts.

Q: Do you see this as a reasonable entry point for a long-term hold of BEPC, for increasing dividend income and some capital growth? I hold BEPC in a taxable account, so I prefer BEPC over BEP.UN for tax reasons. Thank you!

Q: This is a follow-up to our question from last week (see: https://www.5iresearch.ca/questions/140708).

Based on your response that nothing in the list gives you much cause for concern, we would understand this to imply none of the 30 stocks would be considered a "sell" today.

Please divide the 30 stocks into a pair of ranked (best to worst) lists, one of "buys" and the other of "holds". As well, for each of the "holds" indicate the principal rationale for caution.

Q: I just read that Hydro Quebec has signed a forty year deal with Brookfield. Is this big news or just ho hum. thanks al

Q: About 1 year ago we created an equal-weighted 'balanced' portfolio of 30 Canadian companies in a non-registered account. Most were chosen from companies either covered by a 5i research report or included in a 5i model portfolio. The remainder were chosen, based on the 5i Q&A section, from what appear to be 5i sector favourites. All purchases are made with the intent to be long-term holds (10+ years). As well, we intend to increase our investments over the next 2-3 years, and then adjust over time as needed. Currently the amount invested represents ~40% of the eventual total.

Although a goal is to keep the portfolio roughly equal weighted, of the 30 companies, the following 14 were acquired in 3 purchases (full position) and currently have weights in the 2.31% (SHOP) to 5.00% (ATA) range for an average of 3.71%: CSU, MG, GSY, WSP, LNF, ATD, ATA, SLF, BAM.A, BIPC, FTS, DOO, SHOP and TFII. The remainder were acquired in 2 purchases (2/3 position) and currently have weights in the 1.98% (BEPC) to 3.17% (TCN) range for an average of 2.56%. So, overall, the weightings currently range from ~2% to ~5%.

Over the next 6 months we will invest another ~25% of the eventual total. As we make additional purchases, we need to strike a balance between keeping the weights roughly equal while taking advantage of market opportunities. Please provide some broad guidance/wisdom.

Of the 30 companies in the portfolio, which 10 would you have the highest conviction in today? Please rank them.

Are there any of the 30 that you might consider as candidates to be replaced because there are better options, and if so, what replacements would you suggest and why (disregard tax considerations)?

What additional 3 Canadian companies might you consider adding to the portfolio and why?

As always, thanks for the great service!

Q: I would like to sell BEPC to lock in a loss and then rebuy in 30 days. Do you see anything from the company or the market that might result in an increased price in that time period. Can you recommend a similar company to purchase for the 30 days that would reflect any market fluctuations. I already own AQN in this space.

Q: This maybe a silly question. I am currently owning BEP.UN in a non-registered account. Can I claim capital loss if I switched to BECP?

Thanks,

Q: Hi 5i Team - I'm quite sure this has been covered more than once in previous questions but could you summarize the differences between BEP.UN and BEPC. Also do you favorite one over the other for an investment in renewable energy and fundamentals in general. Thank you.

Q: A year ago both BIPC and BEPC traded at a 25-30% premium to BIP.UN and BEP.UN respectively.  Today BIPC still trades at a considerable premium to BIP.UN whereas the BEPC to BEP.UN premium is now less than 2%.  Why is that?
Also if you were to establish a Brookfield Renewable Partners position today in a registered account, would you go with BEPC anticipating that a premium may return?  Other than a nominally higher dividend, is there any other advantage of going with BEP.UN instead of BEPC in a registered account?
Thanks...Glenn 

Q: Renewable energy has been beaten up over the last year and seems to be fairly cheap at the moment. With quantitative tightening and raising interest rates on the horizon, would it be prudent to wait to see what happens with inflation before moving into this sector? Which of these names do you prefer? Thanks.