Investment Q&A

Q: Can you give me your thoughts on the following 3 companies, PPL, ALA, ENF, do you think this a good time to add 5% position for each of these 3. I currently hold KWH.UN (5%), BCE (5%), BEP.UN (5%), ZDV (25%), ZPR (35%), and ZRE (25%), I am up currently up 26% on ZPR, thinking of reducing my exposure to ZPR znd add these 3 names.

Q: Two Questions:

1. I am overweight in these 3 pipeline/utilties due to run of share prices, ala,ipl and ppl should I trimm back all 3 or sell one, if you were to sell one which would it be?

2, With the recent sell off in energy stocks Vermillion is holding up better than most especially compared to similar companies such as Esso and Exxon, is this another sign of what a good core position Vermillion is or should we expect Vermillion to decline?

Thanks again for the great valuable source 5i provides.

Q: My only energy holdings are equal positions of ALA, ENF and PPL. These total 7% of my equity portfolio and are held in a registered account (RRIF). In your view does this represent an over-concentration in the energy sub-sector, and if so which of the three would you sell? I could sell ENF or PPL at a profit, but would incur a loss by selling ALA. Thank you.

Q: Morningstar just downgraded PPL from 2 stars to 1 star. What is your take on the downgrade? Is there cause for concern? I hold it for Stable and hopefully rising income and possibly some growth.

Q: Hello 5i Team....Would you prefer IPL or PPL in the present market environment? Also, could you elaborate on your reasoning? Many thanks for the awesome job that you do in answering all the member questions.

Q: Hello 5i, between these energy companies, TRP, ENB, PPL.un , and IPL.un, KEY, which of the following companies would you recommend buying now for a long term hold?
Please advise from best to least liked, or please advise if you would have a different recommendation of the energy sector companies? Thank You.

Q: I would like to increase my holdings in pipeline stocks. My interest is a combination of dividends and capital gains. Which of the following would give the me the largest return over a 3 + year period - ALA, ENB, IPL, or PPL. My only current pipeline holding is TRP.

Q: Other than TransCanada. would Keystone's approval benefit Interpipeline, Pembina, Enbridge and Altagas and, of so, would it be significant. Who else would benefit?
Thanks.

Q: Hi 5i,

L-o-v-e your service.

Question. I somehow ended up with 2 pipeline holdings in my TSFA. I still wish to stay in the sector. They are PPL and IIP and looking a a PERF chart, have very similar growth performance.

If I wanted to consolidate to one, which would you prefer (looking for long term growth + dividend).

Thanks !

Q: What a difference a month makes! Last questions on PPY were about the fall off in price. It has jumped 20% since. I saw Pembina got a mighty upgrade today. What's going on with these Monteny plays? All about LNG?

Q: Hi 5i Team:
I’m sold on the need to maintain sector diversification and use your suggested weightings for an income portfolio as my guide. It is how to classify pipelines that always gives me difficulty. I hold Algonquin, Fortis and Innergex to the tune of 10% classified as Utilities. I hold Canadian Natural Resources and Parkland Fuels which make up 7.0% as Energy. Now the problem, I also own Pembina and TransCanada to a total of another 6%. If I go against the TSX and say they are Utilities then I am pretty much in line with where I want to be. If I say they are Energy, suddenly I am overweight Energy and underweight Utilities. My question is do you have any data that would suggest which sector the pipelines are actually more strongly correlated to historically? My feeling is that they have probably moved down with Energy when the oil and gas sector gets beaten up, but also move down with Utilities when interest rates go up so not sure it really matters that much unless one has a crystal ball? But I try not to invest by feelings, would love to know if there is any hard data to support a decision? Alternatively, if you just look at the above and say “too much energy exposure for proper diversification” that’s good enough for me. Appreciate your guidance as always, thanks!

Q: 5i I need help in Rebalancing my RRIF. Maybe I am too attached to my stocks. I asked about BIP and BEP and you indicated my energy sector at 22% of my RRIF was high and I agree. I need less volatility but do require income. Of the 22% CPG-T =10%, FRU-T =30%, PPL=35%,SGY=8%, VSN=12% and WCP=5%.I like everyone, require your wisdom.

W

Q: I am looking to crystallize gains in PPL, and seeking an alternative in the pipeline/utility sector. I currently own ENB and TRP as well as FTS. What do you recommend for diversification in combination with those three?

Q: I was allocated some subscription receipts with IPL's recent deal. I am looking to add another pipeline company with a strong and growing dividend that is fairly value or under valued if you can find one. What would you suggest? Also, do you believe that energy infrastructure should be included in our energy sector exposure or utility exposure or other?

Thanks,
Jason

Q: I am a senior who needs dividends. Currently preferred shares are 20% of my taxable account(10% overall). I hold PPL.PR.M and ALA.PR.I. Could you recommend 2-3 other minimum rate resets?
I held and sold my Concordia shares the day before you took them out of the growth portfolio. Your advice has been great and very consistent. I wish 5i was around 50 years ago.

Thanks, Jim

Q: The share price of PPL has been dropping in 10 of the last 11 trading days (about 5% so far). Any reason for this daily SP walk down?

Q: Hello,

Two part question. What news is there to explain why PPL is down 2% today and IPL up 2% (as of 2:50pm)?

Also, if we assume that the sector moves largely as a group with occasional daily fluctuations, would it not make sense to SELL holdings of IPL on a day like today to replace it with PPL given the roughly 4% gap in their daily movement? I watch these two and it seems that this approach could yield small but consistent growth.

Thanks!

Q: Hello Peter and team: I am looking at the above rate reset preferred shares, both of which have a minimum reset rate of 5.75% at maturity and are currnetly yielding approx. 5.7%.
Assuming that interest rates are not set to rise substantially in the next few years, what other factors and risks may cause these preferred shares to drop in price and do you think that these are safe to hold for the yield for a 5 year+ hold in a TFSA. Is there any difference between the M & K series and which would be preferable to hold at this time.

Thank you for your advise.
Joseph

Q: Could I please have your opinion on Pembina's recently announced earnings. Thanks Brian

Q: Hello 5i Team,
Utilities and pipeline companies are counted as 'blue chips' in many retirees' portfolio due to 'safe' dividends and some growth opportunities.
With the current thesis of the decline of fossil fuel in the context of low carbon future, what are your thoughts on these companies? Would there be a change of guards with these industries being replaced by renewable energy and clean tech energy in the next decade?
I have the following names which I am concerned about where they will stand few years from now? Which are the weaker ones that I should sell?
PPL, KEY, AQN, TRP, FTS, ENB.
Are there Cdn or US companies that you can suggest as future 'blue chip' in the renewable energy and clean tech energy industries? I already owned BEP.UN. Thanks.