Investment Q&A

Q: Hi Peter, Ryan, and Team,

Portfolio Analytics indicated that we had too much Technology, and not enough Utilities. I recently sold XIT, and added more BEP.UN. In the Utilities sector, among our accounts, we own AQN, BEP.UN, and FTS. The Utility weightings are now AQN = 3.65%, BEP.UN = 2.86%, and FTS = 1.49%.

In 5i's answers to questions, I notice that you generally rate BEP.UN higher than AQN.

Recently, John Heinzl wrote in his "Yield Hog" column that he bought more AQN, and gave some good reasons for doing so. I'm now wondering if I did the right thing in adding more BEP.UN, and am asking for some "reassurance".

Finally, I note that PA still shows that we could add more Utilities. I would be doing this in a non-registered account, and am wondering what to add. Please rank AQN, BEPC (better tax advantage than BEP.UN), FTS, and NPI (this would be a new holding).

Thanks in advance for your insight.

Q: what 5 Canadian utility stocks would you currently recommend and why? please rank them in order of highest to lowest recommendation.
thanks

Q: Why does AQN underperform to its peers this year? Because of renewable energy?
Thx.

Q: With proceeds from a recently matured GIC that paid 3% I am thinking about buying 5 Canadian dividend stocks with a current yield focus and that as a mini portfolio gives me the best chance to get my capital back in 5ish years. In effect creating my own market linked GIC that I get income from, not my bank for guaranteeing the capital on a specific day 5 years hence

Categories and top contenders in each to buy today are;

Bank - BNS
Lifeco - SLF
Utility - FTS
Telco - T
Pipeline - ENB

What do you think of the strategy? What would be your top choices today in each category?

Q: In my dividend portfolio, I have half positions in these stocks. Can you put them in order of which you would bring up to a full position first to last in light of their current value? Thanks!

Q: Hi, looking for a steady income with a little growth.
Which sector looks better to you in the next 4 years , with the expectation of rising interest rates and possibly a correction in the market that I would ride out. Anything else you would consider?
Thanks

Q: FTS is at all times highs while BEP is down 33% from the highs. Why the big discoonect?

Q: Hi Peter & 5i,
Wishing you and the staff a joyous holiday season!
Would you see any red flags in this portfolio for a conservative investor needing the dividends for cash flow. The portfolio would be 50% equities and 50% fixed income - 5 year laddered GIC's.
Here are the stocks and their proposed weightings:
Financial Royal Bank RY 5.7%
TD Bank TD 3.6%
Sun Life SLF 4.4%
Power Corp POW 4.0%
Utility Fortis FTS 5.7%
Brookfield Renewable BEPC 4.2%
Algonquin Power AQN 2.2%
Comm TELUS T 4.7%
Bell BCE 4.1%
Cons Staple Costco COST 4.3%
Loblaws L 4.0%
Cons Discr. Magna MG 3.8%
Restaurant Brands QSR 2.4%
Industrial CN Rail CNR 5.2%
Savaria SIS 3.6%
Energy Enbridge ENB 4.6%
Suncor SU 2.9%
Materials Nutrien NTR 4.3%
Real Estate BMO-Equal Weight ZRE 4.2%
Tech Thomson Reuters TRI 4.8%
Health Evolve Global Health LIFE 3.8%
ETF BMO-Low Volatility US ZLU 8.7%
iShares-US Equity-Hedge XSP 4.8%
Thanks so much for the fantastic service.

Q: It's curious that Fortis seems to be thriving in December despite the market being spooked about impending interest rate hikes. None of the other utilities seem to have benefited. To what do you attribute their upward momentum and would you buy a utility today given likely interest rate hikes?

Q: Hi Peter,

In this downtrend market could you please give your three best stocks to buy for 3 to 5 years hold in each sector in canada and US as well ?
Thank you for your best advise on this platform.

KT

Q: I'm replacing ZWU and ZWC since I would prefer to hold stocks at this point. What 5+ stocks would you recommend to replace ZWU and ZWC each. Thank you.

Q: Which one would you choose: fortis or capital power

Q: Thank you for your response to my last question. As a follow-up, do the four utilities stocks that I currently own (BEP, FTS, AQN, NPI) offer adequate diversification within the sector? Just wondering if I should add to these (in the best to worst ranking you provided) or is there another utilities name (Cdn nor US) that you would add to be better diversified and if there is, would you sell one of my current 4 utility stocks or just add the other name?
Your insight much appreciated,
Doris

Q: Hi, I am looking to add to my utilities and currently have partial positions in BEP, FTS, AQN and NPI, none of which have moved much of late. I am looking at adding FLNC as a partial position thinking that it may have more growth potential.
1) Can I get your opinion of FLNC for long-term hold/moderate risk tolerance?
2) Can you rank the 4 stocks currently owned from best to worst, again with a long-term time frame/moderate risk?
Thank you as always for your insight.
Doris

Q: Hi team,

I have the following partial positions (less than 2%) and am looking for guidance on which ones look like good adds. Please rank in order and also provide a target price.
AC, ABNB, ATZ, DOO, CSU, ENB, FTS, KXS, MED, PXT, PINS

Q: I am trying to steer my and my husband's TFSA's more toward growth. The stocks listed are some of the stocks in our TFSA's that I am considering swapping out in favour of growth-oriented stocks on my watchlist. Can I get your opinion? Do you think that any of the listed stocks have enough growth potential to belong in a growth-oriented TFSA?
Thank you, Doris

Q: I know you like all of the above. As you look through2022 (so 12-18 month horizon) how would you rank each of the 3 stocks on a scale of 1-10 - and what relevant significant opportunity/risks do each face.

Thanks,

Terry

Q: Here is the current EV/EBITDA ratios for the following energy producers (lowest to highest): CPX (8.3), BEP.UN (9.3), NPI (11.6), FTS (13.0), H (14.0), AQN (16.5), BLX (17.4), INE (37.1). CPX seems to be a top contender for value, with lowest P/B too at 1.49. Considering all factors, please rank from best to worst, in terms of possible best total return over the next 10 years.
Thanks!

Q: For a longer term (5-10yr) dividend hold we currently own AQN and are wondering if adding or replacing it with another such as EMA, FTS or NPI is prudent given AQN's flaccid performance over the past 18 months.
Thank you for sharing your insight.

Q: Hi 5i,
I currently use my TFSA as my primary investment vehicle. As such, I've been trying to keep it as diversified as possible which has resulted in purchase of both growth stock and dividend stocks across various sectors. Examples of the dividend stocks include: TD, FTS, and T.

I am close to maxing out my contribution for the TFSA and now find myself in a bit of a pickle as I want to move out the dividend stocks in favor of growth names.

My plan now involves:
- selling the dividend positions in the TFSA
- opening a new RRSP account and re-buy these same dividend stocks
- redeploy the 'freed-up' cash within my TFSA into growth names

1.) Are there obvious pitfalls you can see with this strategy? I can't see any issues other than being a little clunky in execution.
2.) What are your current top-5 growth names (regardless of sector)

Thanks,
Kyle