Investment Q&A

Q: Hi 5i team,

I want to start investing in Renewable energy and utility companies. What are the key financial metrics to value if the company's share price is expensive? Ex. I am considering to get BEPC but it seems very pricy comparing with AQN on Fwd P/E basis (193 vs. 20)

Thanks,

Q: Last Friday bepc was trading at 7.2% above bep.un. yet bipc was trading 19.8% above bip.un.
Why such a large price difference in bip.un and bipc and do you think they will narrow as they have done in bepc and bep.un?

Q: I own a half position in BEPC in my TFSA. Should I sell and purchase BEP.UN?

Thanks for your advice

Q: Hi
I also hold BEP/UN and AQN. Being that BEPC is at break even now, I am wondering if I should hold it, or switch it out for BLX if BLX has more potential for growth over time. Would you have a different suggestion than BLX? Your thoughts on this would be appreciated!
Thanks for all your hard work - Dawn

Q: At the time of writing this, BEPC is trading at $50.66 and BEP.UN at $47.49.......their corresponding 52 week highs are $80.30 and $63.39 which means that BEPC is 58.5% off its high and BEP.UN is 33.5% off its market high. First blush would suggest that BEPC may have a much greater upside from here but that of course relies entirely on what the market determines is a fair premium for BEPC. Currently that premium has dropped to 6.7% . Do you feel that this is too low, too high or just about right??

Q: My question is in regards to your information about US$ Dividends. I contacted Questrade where I have an account and they were pretty clear that if I have these stocks with the TSX, then they get paid in CA$. Here is what they said:

"I will like to let you know that we are not exchanging your dividend. We are only depositing the currency we received into your account. And I have double checked with our team and they confirm we can't change the currency of the dividend or choose them.
I am sorry you will need to contact investor relation of the company to help you with this. Please note we only deposit as what we receive from the company."

This is quite different from what the article on your home page says. Am I misunderstanding? Could you please explain. Thanks so much!

Q: I am drastically under invested in utilities. I presently hold the following - each is under a 1% weighting - AQN, ACO, BIPC, BEPC, BEP.UN, CU, and Fortis. Which would you sell? Which would you add to? All are in corporate non reg acct. Also want to increase my US and International exposure. Is there a reason not to do it in this sector?
Would appreciate US and International companies you favour. 5 year hold.
Thank you.

Q: Dear 5i,
If I hold BIPC.CA, BIPC.US, BEPC.CA, or BEPC.US in my non-registered Canadian account. do I have include them if I have to file Form T1135.
If yes what is the country code?

Q: Hi. I’m writing in response to Andrew’s earlier question regarding whether or not he needs to report BEP.UN on his T1135. I’d looked into this earlier this year for BEPC, BIPC, BIP.UN and BEP.UN. Brookfield’s web site addresses this specifically. Below is the link, and direct quote.

https://bep.brookfield.com/stock-and-distribution/tax-information

“Are units considered foreign property for the purposes of the Canada Revenue Agency T-1135 Form – Foreign Income Verification Statement?
No.”

Hope this assists.

Regards

Q: Why are these renewable energy companies down so much from a year ago? Up 54% & 133% respectively incl. dividends. Are they keepers for long-term in RRSP?

Q: I am looking to buy a renewable with a decent dividend for a non-registered account. Please let me know you rationale. Of these 3 , which one would you recommend? I understand that this sector has come down recently. Which one has the best upside in terms of valuation? If there are others that you would recommend please let me know.
Thanks

Q: In a TFSA, which of these two would you buy today? I know you have answered this question in the past - and that you’ve said to focus on yield, but doesn’t BEPC deserve some type of premium even in a registered account?

Q: Are there any catalyst, or catalysts, in insight to lift the renewable energy stocks out of their 2021 humdrum? Names in this sector are all down YTD from BEPC's highest of 33% to RWN's lowest of 7% - with no exception. Would you recommend a name in this group that would have the likeliest chance for a quick rebound / turnaround? Thanks.

Q: What are your thoughts on NPI ? What is the financial situation of the company and future prospect?
Thanks

Q: a) Could you please clarify the advantage of owning bep.un vs bepc.
b) Would you recommend adding either to my current holding of aqn/npi/blx?
c) Please list in order of preference
d) Do you think all four would give greater diversity, or would you prefer owning only 2 or 3 of theses companies and if so which ones!
Ed in Montreal

Q: Regarding your response to John today, I am not sure if you implied that the BEPC distribution is 100% eligible dividend?
Thank you.

Q: Now that Brookfield Renewable has come down so much, how does the valuation compare to Brookfield Infrastructure?

Q: Why are renewable stocks (such as BEPC, AQN, INE, BLX, etc.) so weak of late? Thanks. With all governments promoting renewable energy these stocks should be doing much better.

Q: I currently have loss on bep.un. If I sell bep.un and buy bepc will the loss be disallowed?

Q: With the ongoing slide in share price for these equities, at what point would you recommend increasing one's holdings. Thank you.