Investment Q&A

Q: Hello Peter, Should have sold DH Corp sooner but will take a loss and deploy the cash to these three companies also some to TIO networks. Do these choices sound suitable to you? Herb

Q: Hi. I was wondering what your opinion is about Fortis? Perhaps for the next year or so. Thanks Sean

Q: Good afternoon:
I am underweight in pure utility equities and would like to add. My primary holding is AQN with a lesser position in EMA. Would you recommend switching EMA to FTS and then adding to that position. Or do you consider that unnecessary?
Thank you for your advice.

Q: 5i Team:
thanks for all the help in 2016 !!.
The idea is to capture the electrification process of our society. It is a slow, but secure process/trend, in particular if use of electric cars increases, and robots and so on. This means more elect power will be required. Are Fortis (despite increase in interes rates) and Stella Jones good candidates ??. If not, are there other safe companies to capture the trend.
Also, if interest rates go up, would not ECI benefit more ?, as more people would preffer to rent than buy due to increase cost of capital.
thanks again ! Should I start buying now ?

Q: WORKING ON GETTING THE SECTORS BALANCED--HAVE 3 UTILITIES AND ONLY ONE TEL COM--WANT TO ADD SEVERAL THOUSAND TO EACH SECTOR---WHAT DO YOU SUGGEST?
THANKS AND HAPPY NEW YEAR

Q: Hi, I want to purchase a good dividend paying stock. I am thinking of either BCE or FTS. What are your thoughts on BCE and/or FTS maintaining & growing their dividend yield. Thanks.
… Cal

Q: With interest rates rising (in the US) the ongoing babble from so many 'experts' has been to stay away from 'bond proxies', namely utilities, telcos, pipelines, etc. However, those stocks have been performing quite well since the fed raised rates. Today Desjardins came out with top picks for 2017 (in the G&M which suggested Algonquin's forecasted returns would grow by 39% next year and Fortis by 17%. Do you think they're being too optimistic? And are these forecasted results already baked into the stock prices?

Q: Hi Peter and Team,

I find that we need to buy some more in the Utilities sector, to keep to a 10% weighting. We presently have about a three-quarter position in each of AQN, BEP.UN, and FTS. Do you think that INE would be a good addition to this mix or is it too similar to AQN and BEP.UN? We can buy and sell XUT commission-free, but I notice that ZUT (not commission-free) has a better chart. Should I increase our positions in each of the three we already have, buy a new one, or top up with XUT/ZUT? Or is there a US ETF in this sector that looks compelling? Or perhaps in the present "climate", could the utilities sector weighting be reduced below 10%? What sector should take up the slack?

Thanks for all your great advice which has been and continues to be very valuable. A Merry Christmas and Happy New Year to all of you at 5i and the members as well.

Q: Hi Peter
I have 8stocks average amount 250shares with a div of $12 per month Ifeel I should
Sell and buy some other single stock ie fts with a better monthly return most are small energy ie tog wcp etc your opinion please
Happy Xmas. Pat

Q: Your response to Brian on Dec 15 included the following comment: "if you own 85% of your portfolio in high dividend stocks, then this is more of a concern".

I am a retired, conservative, dividend-income investor, with a pension, CPP, annuities, the above listed stocks and 3 income producing MFs (RBC Cdn Equity Income, Sentry Cdn Income, Sentry Global REIT).

I fit the 85% easily. I believe my portfolio is diversified by sector and by security. I also believe the securities have, for the most part, sustainable and growing dividends. I am a "buy-and-hold investor with reasonable tolerance for volatility.

Your comments and concerns please, along with any recommended improvements. Thanks...Steve

Q: I need two names in the Utilities sector to bring my total % to 10. Already hold VNR and AQN. Thanks.

Q: Good Day FTS,AQN and NPI what has the best growth in the next two years?Which one has the safest dividend? What is 5i favourite?

Q: In terms of valuation,which of the aforementioned 4 companies is the best buy.Please list your preference in order of 1 to 4 with 1 being the best.Appreciate your normal great services & views

Q: Hello,

The current theme is that REITS and utilities will be drifting lower now with Trump spending announcements and higher interest rates on the horizon. Yet, yesterday (some) REITS had a good jump up. My questions are:
1. Would you hold buying REITS and utilities until there is clear direction of the market?
2. If you wanting to deploy 50K for each (REITS and utilities) what would be your preferred names?

Thank you
M

Q: Hi,

I have 1/2 positions in FTS & AQN now. I'm considering adding another 1/2 position to utilities. I could get a 1/2 position in BEP.un or add to FTS and/or AQN.

Your thoughts?

Thanks,

Gord

Q: With FTS exiting SOT.UN at such a substantial discount rate, is it a good opportunity for us small retails to do an average down? I'm currently down about 10%, but if the company is operationally sound, it may be the chance to add more. Your advice?

Q: Are these stocks worth adding to at these levels. Have the higher rates been priced in or is this just the start of the rotation out of the sector if rates indeed go up

Q: I am a retired, conservative dividend-income buy-and-hold investor, with a pension, CPP, and annuities. I am looking to top up a half position in Fortis. Even though I am not a "market timer", I am looking at different options:

1. Just top up now
2. Wait for the Fed to raise USA interest rates in December. Theoretically, this would cause FTS to sell off, so I could buy it cheaper. However, roughly 45% of FTS is non-Canadian. So in this scenario, wouldn't the USA dollar increase relative to the CDN $, effectively making it more expensive to buy FTS (I am buying it on the TSX)?

What are the interest rate and exchange rate impacts and are they significant enough to cause me to avoid option #1, above?

The FTS metrics look really good right now (P/BV = 1.3, P/E = 16.2, P/S = 1.7, P/CF = 6.4). I'm tempted to ignore the interest and exchange rate issues and just top it up.

Your thoughts?

Thanks, Steve

Q: Good Day. Great service. FTS-T or AQN-T for a 4 to 6 year hold. Which one will have the most growth and dividend increase? And why

Q: Anything to account for the drop in FTS?