Investment Q&A

Q: How many utilities are enough and where? I have AQN in TFSA and , BEP, BIP, FTS in cash account (along with BAM.A and BBU.UN - total Brookfield is 8.91%). My spreadsheet indicates I have 3% space left in utilities sector to add but your PA says I am over. Sold all of H (was largest utility holding) due to political risk of current chaotic provincial government. Looking at a replacement for H. Don't really need the income for living , looking more for safety and some growth. Looking for your view on how you would rank above prospects or should I add to existing, or stand pat?

Q: How would you rank these based on valuation, growth and management. Market seemed to yawn at CPX results, it isn’t as high profile as FTS but seems to have gotten more shareholder friendly, sixth consecutive annual dividend increase, wondering if this one and NPI are flying under the radar, Thank-you.

Q: Hi Peter, Ryan and Team,

In my TFSA, I have FTS, KXS, PBH, PHO, SIS and WPK. Currently I am down on PHO (30 %) and SIS (20%) and the others are doing ok. Do you think the mix is right for a long term outlook? If not, could you recommend what to swap out and replace?

Thanks again for all your great work.

Marvin

Q: I currently have $115 K saved in my children's RESP with the chikdren’s ages almost 14 (grade 9) and 12 (grade 7).

Currently I have $46,600 in 1-2 year GICs
$9K in Fortis
$25k in VDY
$35k in VFV

Considering cashing in Fortis or $10K of gains out of VFV for another GICs as I am concerned about markets and will need this money in the next 4-6 years for both children. Should I stay at 60/40 or reduce to 50/50 at this point?

Q: Hi, I currently have $11,500 to add to my TFSA with a long term horizon. I currently hold CNR (2.53%), NTR (2.88%), PLC (5.04%) PPL (2.98%), TD (4.21%), V (4.71), WCN (6.15%), XLV (3.31%) MAW 104 (25.11%). I am wondering if I should add to the current companies or might you have any other suggestions?

Q: Can you tell me what companies operate electricity generation facilities in Manitoba, Alberta, and northern Quebec? If possible please indicate which facilities are renewable in nature. Thank you.

Q: I have about 3/4 positions in the above utility stocks in my non-registered portfolio. I also have some money to add to this sector. Would you suggest I top up one or more of these stocks or open a new position in ACI? Thanks for your advice.

Q: In your portfolio analysis you have recommended for the utilities sector that I purchase either ZUT or XUT.
I own Fortis now.Do you recommend that I sell this now and purchase 100% ETFs for the suggested Utilities sector?
Since I also need additional US investments.which of the following US ETFs would you recommend RYU or XLU?
Thanks again for your guidance.

Q: Hi Guys;
Do you see the recent acquisition by Fortis of a label technology company as a good fit for the business, if so what is the potential to boost earnings and share price.
Best Regards,
Tom

Q: Hello, Within a long term hold rsp account, would there be a benefit to adding FTS to a portfolio with ENB and AQN already owned? Thanks

Q: I have pipelines but no generating utilities. Looking for some growth plus steady dividends. Which would you prefer, or have you other recommendations?

Q: How much growth (price + dividend growth) are you expecting individually from these dividend stocks in the next 3-5 years? Please arrange these stocks with the most growth to the least growth.

Q: 10:15 AM 5/16/2019
1. Could you please provide the numbers for, and compare and comment on : debt levels, financial leverage, debt to cashflow, and payout ratios for EMA, FTS, AQN, BIP.UN, BEP.UN.
2. You seem to always rate EMA at the bottom of the list [Why?] but I believe EMA has sold off some significant assets [Emera Maine and others?, more to come?] so debt levels should be lower, so is it a secure buy now for long-term dividend income?
3. I worry that BIP and BEP both have extremely high payout ratios. You have suggested that a total of 15% of one's portfolio in these two would be acceptable. Are you still of that opinion?
Thank you........ Paul K

Q: 3:44 PM 5/8/2019
I really apreciated the TSX60 list with US revenue percent for each company. I do however have some questions. Several of the numbers were a surprise.

1. We are told that TD Bank is 50% or more American with a branch on almost every corner in many large US cities but your list shows only 26% of revenue is derived from the US. Can you confirm this number as it makes a big difference to my investing decision.

2. I see Emera has 70% of income from the US which seems a little high to me as I understood that Emera was about evenly balanced between Canada and the US.

3. Fortis with huge investments in ITC in Michigan and 6 adjacent states [the largest independent electricity transmission company in the United States], in Central Hudson Gas and Electric and in UNS in Arizona shows just 9% US income. Surely this figure is sadly out of date.

Can we trust the rest of the figures in the list?

Thank you.............. Paul K

Q: Could you share your thoughts on Earnings Report. Adjusted earnings +5.7% and debt repayment looked positive. Now a 99% regulated utility, is this a good thing in your opinion?

Q: I have all these stocks in my non-registered account, I have some money to deploy. My two smallest holdings are CP and WCN, should I add to either one or would you suggest a new stock?

Q: Hydro one or Fortis? Which one would you buy today and why?
Thank you.

Q: I am looking to increase my Utilities sector to 10% ;currently have BEP.UN at 5% and FTS at 3%. I just reviewed both companies 2018 Annual Reports and noted FTS 's Revenue Growth ,Earnings and ROE are all lower relative to 2017 whereas BEP.UN(although a smaller company ) increased in all areas relative to 2017. With this information I am not inclined to invest further in FTS and in fact I am wondering if I should take profit from my Fortis (in RRSP) and then diversify in a third utlity. Second question -what other utility would you recommend at this time? Thank you for your time.

Q: Hello Team,
after VNR takeout what would be the best replacements choices (similar profile) for this stock in a Portfolio.

Thanks in advance

Q: I have the above securities, as well as RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry Global REIT, and fixed income via Fisgard Capital, Annuities, a company pension, CPP and soon-to-be OAS.

I really focus on asset allocation and am a little light on Consumer stocks, holding CGX, PBH and TCL (although some consider TCL to be in the Industrial sector). I am normally a buy-and-hold investor who trims-adds around core positions.

Question 1 = I am looking to add 1 more consumer stock and am looking for a dividend ideally > 3%. Based on my stock-ETF-MF mix, are there a few stocks you could suggest that would fit in my above set of securities.

Q2 = if I was to consider ideas from the Income Portfolio, is there an issue with having multiple food stocks....like PBH and A&W and NWC. Why have more than one food stock?

Q# = because A&W is a ".UN" company, how are their dividends treated for tax purposes? Are they eligible for the dividend tax credit?

Deduct as many credits as you deem appropriate....got loads and will never use them all up.

Thanks as always...Steve