Investment Q&A

Q: Hi 5i:
A previous question asked by Joseph today about the newly issued Series 21 Preferred Shares. I have that issue and it is currently listed as PPL.PF.A with my Scotia iTrade account. Hope this helps.
A previous question asked by Roy today, you listed PPL.PR.U as a minimum preferred to consider. That symbol I cannot find. Do you know what issue you are referring to?
Thanks so much.

Q: I am unable to find this pref share on the TSX website or in TD Waterhouse. Any suggestions ? Thanks. Joe

Q: I presently hold this reset preferred which I bought at $16. I see the chances of interest rates rising not great. So I’m cashing in this investment to buy a minimum rate reset preferred. My object is to supplement my income with reasonable preservation of capital. I’ve had a good run on equities, the market is expensive, I don’t want to be caught offside. My portfolio is a dividend portfolio.

Q: Six questions regarding pipelines:
(1) I understand that Enbridge finances most capital expenditures by way of debt or new equity, not retained earnings. I am thinking that this would be OK if its GAAP earnings per share are keeping pace with dividend increases and its debt service coverage is stable. Do you agree with these comments?
(2) I assume that the prospects for ENF are tied to ENB. Do you agree?
(3) Do PPL and IPL have the same policy as ENB regarding the financing of capital expenditures?
(4) Do you have preferences among ENB, IPL and PPL and, if so, why?
(5) If I am correct, ENB is mostly pipelines, PPL is mostly other midstream and IPL is somewhere in between. I have this idea that pipelines are more stable than other midstream activities. Is this simply wrong or an over-simplication?
(6) ENF, IPL and PPL represent 10% of my portfolio. Would you suggest lightening up? (I am retired and my portfolio is geared to income.)

Q: Do you when this preferred share is going to begin trading?

Q: Hi Peter
Can you give me your views on the new PPL preferred 4.90% . Is it worth an investment for my RRSP .

Q: Buy, hold or sell Pembina Pipeline? Also what is the status of the Pembina/Versen LNG plant on the Oregon coast? Tx

Q: I would appreciate your take on - The cracks in the Enbridge dividend story by David Milstead in the G&M dated Dec 3, 2017. Some of the key points in the article include (all CAPS from the article):

- ENBRIDGE EMPHASIZES 'AVAILABLE CASH FLOW FROM OPERATIONS' TO INVESTORS WHEN IT TALKS ABOUT THE SUSTAINABILITY OF ITS DIVIDEND. IN CALCULATING THIS MEASURE, IT IGNORES MOST OF ITS CAPITAL EXPENDITURES, DEDUCTING ONLY 'MAINTENANCE' CAPEX TO ARRIVE AT THE NUMBER. THAT HAS LEFT BILLIONS OF DOLLARS OF CAPEX OUT OF THE MEASURE OVER TIME. WHEN ALL OF THE COMPANY'S CAPITAL EXPENDITURES ARE DEDUCTED FROM OPERATING CASH FLOW, ENBRIDGE POSTS NEGATIVE FREE CASH FLOW IN NEARLY EVERY YEAR. STILL, THE COMPANY PAYS DIVIDENDS — AND ISSUES DEBT, AS WELL.
- For the third quarter, Enbridge reported $360-million in maintenance capital expenditures. Total capex was $1.95-billion. Depreciation, a measure of how much of the company's property, plant and equipment was "used up" in the period, was $848-million.
- In the last 10 years, from 2007 on, it was only in 2016 that Enbridge actually posted positive free cash flow, a paltry $83-million. The 10-year total is a staggering $24.1-billion in negative free cash flow. That's before paying out $7.4-billion in dividends. Perhaps not coincidentally, the company issued almost $25.6-billion in net debt over that decade. It now has $65-billion in debt on its books, including the tens of billions it took on in the merger with Spectra Energy Corp. this year.
- https://www.theglobeandmail.com/globe-investor/inside-the-market/the-cracks-in-the-enbridge-dividend-story/article37172663/

I would have expected that maintenance capex would be inline with the depreciation expense. Is Milstead highlighting one of the risks in ENB - ie., that the dividend is solid as long as the market has confidence in the Company and it can raise additional capital each year.

What mid/large-cap companies in this sector would you would recommend that have more conservative financials?

Thank you.

Q: I own both IPL and PPL and as I rebalance my portfolio I am thinking of selling one. Based on balance sheet, revenue and dividend "risk" which of the two would you keep?
Many thanks
John

Q: I see Pembina is offering preferred shares at $25.00 and yielding 4.9%. Would this be good for the fixed income part of a persons portfolio. How safe is it.



w

Q: HI, what would be your top 5, monthly dividened stocks or reits, for my TFSA. Longterm hold. Thanks.

Q: I have owned these stock in substantial amounts for approx 3 years. I like the dividends. Last Jan/Feb they peaked at approx the same value oil is today.
Today oils up but as a group they are down. Am I crazy to think these companies are going to rebound even to levels of early 2017?
Is there an explanation for these stock prices? The dividends are attractive enough to keep me in - but better stock valuations seem elusive.

Q: Hi peter and Team,
I have some ENF in my RIF A/C and loosing about 10%, am thinking to replace with a similar stock. Can you suggest one or two ?
Thanks as always,
Regards,
Tak

Q: Have held both KEY & PPL for 5+ years & enjoyed substantial gains & excellent dividends from both. However, major changes have taken place in this sector and I have decided to move on. In our principal Cash acct we hold KWH.UN, DRG.UN, WSP, PKI, LNR, RY, WPK, SIS, & CHW - all dividend paying. Would appreciate your suggestions for 2 or 3 CDN. replacements. My RIFF investments cover USA, Asia & Europe. Thank you.

Q: Looking down the road, I am uneasy about oil and gas, including pipelines, and I am wondering whether I should plan on easing out most of my investment in this sector over the next 5 years.

Am I being unduly pessimistic?

Can you recommend a good resource to help me become more knowledgeable on this sector?

Q: Why did energy infrastructure companies drop this week? Is this now a buying opportunity?

Q: If you could buy one or the other right now - which of the two pipeline stocks Pembina Pipeline - PPL and Interpipeline -IPL would you choose? thanks

Q: Oil.  Is it making a rebound? 

If so where to invest. Companies that specialize in drilling , distribution or refineries?? 

Thanks. Barry

Q: I am holding a full position (5%+) in each of ALA in a non registered account, PPL in a RRIF account, and ENF in a TFSA. I have decided that I am overexposed to the sector and
must reduce my positions. In your opinion which companies should be held for the long term and which should be sold? I also hold ALA.R in my RRIF as per your suggested opportunity, should the pending transaction be consummated.
Thank you for considering my question.

Q: I own equal amounts of Veresen and Pembina. I do not want to double my shares in Pembina. Should I sell Veresen now (it is above the agreed selling price) or should I wait until the closing and sell off my additional Pembina shares at that time?