Investment Q&A

Q: I was doing a high level look at my portfolio in terms of recent vs 3, 5, and 10 yr CAGR and saw what I expected from stellar performers like CSU, TRI, WSP, IFC and DSG. What surprised me was seemingly declining longer term performance (ie pre-dating interest rate changes) from FTS, QSR, GIB.A, and EIF. The balance of the portfolio is holding it’s own or is cyclical or I can see a path to renewed growth/performance. Are the four named really lagging or am I looking at the wrong metrics? If you agree they might be considered to be faltering versus past performance can you suggest “growthier” replacements without going too far out the risk scale? Thank you.

Q: I want to consolidate my holdings in ENB to FOR or vice-versa. I would like to get your comments.

Q: I presently have these underwater stocks in a RESP. BCE, BEP.UN, ENB, FTS, LMN, XIC, ZEB, ZRE. The RESP will not be need for the next 10 years. I would like to sell some of these underwater stocks. Which stocks would you recommend keeping & which stocks would you recommend selling. Thanks … Cal

Q: Would you please suggest your 3 top Income dividend stocks, high yield , some growth but not required, capital preservation a must.
Already have ENB, VDY, XDIV , any other suggestion ?
Please and thanks 5i

Q: Retired, dividend income investor. From a value point of view, which has more rebound potential....FTS or ZUT? Ya, I know...single company vs ETF, so tough to compare. I own both and have mostly full positions, with a top up in mind for both. Just wondering which one to do first...I am leaning towards ZUT.

When I look at the charts over various timeframes, it looks to my amateur eyes, that ZUT is much more closely tied to interest rate changes. It looks like ZUT started to really take it on the chin during 2022 when interest rates were being cranked up. Also, I am hearing/reading that the worst might be over for the renewables and they might start to rebound...which would benefit ZUT (for the record, I am overweight Eric's NNRG, so I have that end of the Utility-Energy spectrum covered).

Your thoughts?

Q: What would be your top 5 picks for Cdn dividend paying companies that have a safe and growing dividend? No financials please. Thank you.

Q: Hi team. I have ZWU as my main utilities holding @ 11% and I also have positions in BCE and ENB on their own. ZWU has both BCE and ENB in their top 10 holdings. In your opinion am I participating in "di-worsification" by holding BCE and ENB outside of ZWU. Would you sell both BCE and ENB and fold the funds back into ZWU? I'm ok letting ZWU go to +/- 15% of my portfolio. Appreciate your thoughts. Bill.

Q: I hold the above in a taxable account focused on dividend income. I also hold FTS separately. Increasingly I believe that there will be increased demand for renewable power to drive AI, electric charging cars etc... Do you have any recommendations that are dividend payers that would play into this theme of increased power demand?
Would you add to or remove any of the above based upon company fundamentals?

Thanks

Q: A question on a company's such as Fortis. ,I was wondering if they would have the same risk and liability as in the US in the case of a fire attributed to them.

Q: Hi, with the relatively attractive PE ratio of Utilities and the proxy play of increased energy consumption demands of AI, can you recommend 3 Canadian Utilities and 3 US Utilities with a growth focus for a 2-3 year hold, and your thoughts on each.

Q: Thank you for your ranking of Canadian utilities last week-our investment club had a lengthy discussion yesterday afternoon over the rankings. I found it difficult to defend BIP.UN as first pick with 6:1 debt, meagre/erratic EPS, and growing share dilution vs CPX having similar posted growth rates, 1.5:1 debt, decent EPS and slower share dilution. Any assistance and clarification on this greatly appreciated. Thank you

Q: Of these three utilities, BEPC’s share price has suffered significantly more than the other two over the past year. Is there a specific reason why?

Q: Hello,

Thank you for all you do.

For a 5-10 yr hold, could you rank the above on total shareholder return vs risk (I am thinking debt exposure/interest rate risk), but there may be others.

Thank you

Q: Why is the Asset Class of Boralex classified as Energy and Fortis is classified as Utilities. Why the difference? Thanks.

Q: Which would have a safer dividend for the longer term FTS or BEP.PR.R or both.

Q: Hi,
Today (April 04) you answered Jacques' question by suggesting a switch from EMA to FTS. Would you suggest the same for BEPC/and H? I am trying to "replicate" the performance of an ETF by holding some of the utility companies. Hence this question.

Q: Good morning,

Thinking of selling BCE for a capital loss, and replacing with FTS. Hold FTS until ex-dividend date of May 16th, and then buy back BCE in time for their June ex-dividend date.

Reasonable strategy if no immediate near term price catalysts - good or bad - for either BCE/FTS?

Q: I'd like to invest a substantial inheritance in solid, relatively safe dividend stocks in a non-registered account for a stream of tax-efficient income. Can you suggest 7-8 stocks for me to consider and do you consider that number enough for diversification? Would you buy in gradually over the year or invest all at once? Is it unwise to invest in Canadian stocks only ( have geographic diversification in my registered accounts)? I won't need the income for 2-3 years and will probably hang on to them for life, whatever that may be (I'm in my late 50s). Thanks. I have tons of credits - use as many as needed.

Q: Do you have a preference between these stocks for a long term hold? Or split funds between both of them?

Q: You responded to a March 21st question by Esther confirming that, in your view, Canadian rates are fully expected to drop faster, sooner than US interest rates - leaving a positive outlook for the US$ and stocks.

My question is in 2 parts;

- What are 3 interest sensitive Canadian investments would you recommend that take advantage of a faster/sooner drop in Canadian rates (and why they may be good investments), and

- Should one hold off on investing in US investments such as TLT short term, or not try too hard to time the buy and invest now?

Thanks as always.