Investment Q&A

Q: I have a small position in Fts and am looking at switching to Npi. Could you please check the debt ratios for each,growth prospects and payout ratios for the dividend? Would you recommend this move for a 2 to 3 year hold in a tfsa? Thanx.

Q: Please rate for 1) Growth 2) Income for 3-5 year hold in RRSP.
Thanks

Q: Regarding utilities falling prices, you have answered in a couple times in the Q&A: "The main issue is that US tax reform is going to reduce earnings due to lower tax recoveries." Can you expand on this? What is the percentage of reduction? I looked for an article and couldn't find one explaining this. I am looking to add to AQN, FTS and BEP.UN for their growing yield, but I can't determine a fair price or if they're under/over valued because of the US tax reform and am hoping you can help me make my decision. Thanks

Q: Can I please have your comments on Fortis recently announced earnings. Thank You.

Q: Could u name four or five Canadian companies that have the ability to raise dividends in a rising interest rate environment, thanks?

Q: Hi Peter any preference between this two co. Are dividends safe.?thanks. Alnoor

Q: can you explain the weakness with Fortis today? (most of my holdings are up)

Q: If you were to buy one of these today, what would you buy and why?
Thanks,
Milan

Q: Though I don't think interest rates can increase very much, can you share which 3 or 4 utilities in Canada have the least amount (and most amount) of debt?
Thanks

Q: Hello team,

Do you think the sell off on these fine dividend payers is done? I want to buy some blue chip dividend payers (I have none) but I wonder if the impact of future rate hikes is already/completely priced in for these types of stocks. What do you recommend: wait a bit longer or just buy now? I am afraid of buying now and watch them go much lower than their current price. At what price(or multiple) each of these would be a pounding-the-table buy? Would you please order them in terms of your preference for a very long-term hold.

Thank you very much indeed!

Q: A general question: Utilities have tanked extremely much out of proportion to the small increase in interest rates.. how must an investor assess whether this can be a continuous downfall or a temporary trend that creates buying opportunity

And how do you rate the chances of comeback for the stocks listed
As well what utility type stocks would be most attractive buys for dividends and price increase

Q: Hello 5i.
I would like to ask about Portfolio Management as an Individual Investor.
This year I was going to implement an action plan that would engage selling at the point of stock chart breakdown......to help avoid 40% losses like Cineplex handed me in 2017/2018.

The Portfolio has been set up to be well diversified with 5i holdings and a host of other Canadian investments through all sectors.
It feels quite silly to just sit and watch individual names break up trends, breach 50 day and 100 day moving averages and continue to decline in price........taking down the Portfolio value each day.

Some of the names have been spoken about as lifetime holds but seem to be getting hit quite hard as some group of investors have decided to exit their positions.

With the cost of only 9.95 to enable a small investor to get out of the way, what is it about investing that sees recommendations implying Hold these names for the longterm?
(BAM.A, BIP.UN, FTS, PPL, IPL, ENB, BCE, PSK)
Watching 2017 gains slip away hardly makes sense to me.

What is 5i perspective on dealing with markets that seem to be taking away gains thru declining stock prices? How and When does an investor decide getting out is the right action (before I get to the point of maximum pain and then sell)?

I have had a few stocks go to zero. Clearly I can not determine the difference between a short term blip and a developing permanent loss.

Thanks for you insights
Dave

Q: Hi 5i Team

I'm interested in reviewing the dividend history of Canadian pipelines, utilities, reits and other income stocks over the long run, namely through recessions and interest rate movements (the tagged companies are representative). I'm trying to determine if the dividends remain fairly stable or tend to fall under these circumstances.
Can you suggest a source that would help by showing dividends for a company over the long run? Ideally, overlaying short/long term interest rates to save time.

Any help greatly appreciated.
Peter

Q: My TFSA Account is primarily made up of the stocks indicated above. In 2017, my net performance was around 2.8%. Would you provide suggestions for a growth stock with reasonable valuations that might help boost performance in 2018 and advise on a reasonable price for point of entry? Also, are there stocks that I hold that you view as a trade at this point with the goal of achieving a reasonable return with moderate risk?

Q: Good evening .Your thoughts on this company , and how will it play out with rising interest rates .Thank you so much

Q: If you had ALA for a five year hold would you keep it or sell and buy Fortis? The difference in yield does not matter. Thanks Bill

Q: Multiple questions:
According to my information 92 percent of Fortis’s revenue is from regulated sources. As such would increases in interest rates only effect the company in the short run as the increases in interest expense would eventually be passed on to the consumer when changes in the rate base are applied for by the company and granted by the regulators? This ignores the maturity date of the company’s debt and the fact that the rate base increase granted may be less than that applied for.
Not in your area of expertise but I would appreciate your opinion on state owned China Mobile (CHL: US) and Omega Healthcare (OHI: US) as to their suitability from a risk perspective for an income oriented retiree.
Thank you for considering these questions.

Q: I am concerned about rising interest rates and the recent performance of utility stocks. Should I sell my Fortis and BEP shares and add to my position in SLF ? Is it possible that the affects of rising rates are already priced into these utility stocks ?

Q: Hello Peter and team, Considering the tax changes going on in the US, in general terms, what kind of impact would you anticipate for above Utility sector stocks

Q: I own about 16% utilities - all have been falling quite a bit recently. Based on my limited knowledge of technicals, it seems that they are all at their support levels (except TRP which appears to be below that level). Is it time to buy into these utility stocks based on technicals, or does it seem that they are going to fall some more based on interest rate hike fears, so it would be best to lighten up on utilities? or just do nothing?