Investment Q&A

Q: Could you advise on what 5I would consider to be one of your most secure 6% dividend with the most share price stability? Tks. Larry

Q: Hello 5i:
I am thinking of replacing AQN in my TFSA as I feel the company has become stagnate lately and I have a 50% profit from owning it since 2014. I have been thinking AQN and buying either PPL or TRP.
Can you rate which pipeline you like best and why? Or, would you stay with AQN?

Q: The yield on CDZ is 3.0%, if I buy equal amounts of the top ten stocks, the average yield is 5.48%. What accounts for the 1.48% difference in yield and is the risk proportionally higher buying the individual stocks than buying the EFT

Q: Would you consider these two energy/pipeline stocks as a reasonable holding in one portfolio for several years? With the trends to devalue energy stocks due to climate changes and relevant government policies some investors or investment firms would start exiting such stocks. I myself , despite the all negative sentiment for energy stocks cannot see that combustion powered engines will disappear from roadways of North America ,Europe, Asia or Africa any time soon. Will they all be replaced by " inexpensive" electric engine driven vehicles? I can hardly see it. Perhaps in 50 years? What is your opinion on this matter?

Q: I have a small profit on KEY but I've been disappointed in the lack of growth recently and I was wondering if I could do better with PPL. Yields are about the same but I would prefer more growth. I already have lots of ENB and TRP in a well diversified portfolio. Appreciate your thoughts.

Q: Thinking of selling TRP and picking up PPL as I'm thinking it may have more opportunity for growth. Your thoughts on this are very much appreciated. I already have a full position of ENB

Q: I am looking to lock in some profits and hold a little more cash at the moment. The above stocks are ones I've done well on but are feeling a bit stagnant at the moment. I still like them but looking for ones to sell that have the least FOMO. BNS is probably already a for sure as I am overweight on it a lot at the moment. I have losses from the market downturn so taxes are not a major concern. What of these would you consider selling first if raising cash? I don't worry about sector weights.

Q: between these 3 pipelines, how would you rank them for adding to my investments, on a capital and dividend increase over time.
Thanks

Q: hello 5i:
We have about a 2% position in ENB. While looking to add to our present position, I did a quick comparison with TRP and PPL. Using P/S, PE, P/CF, P/B, P/FE and Earnings Yield, it appears that PPL is the cheapest when current valuation is compared to 5 year averages. I know that you've recommended ENB as your favourite in this space and am wondering why, assuming my numbers are correct (derived from Morningstar). Can you enlighten me, as I know the future is more important than past metrics? Also, Morningstar has a -2.09 Earnings Yield for PPL. Is this correct and how is that possible?
I am willing to sell ENB and invest in only one of these companies (have held ENB for approximately 12 years, so obviously favour buy and hold).
thanks
Paul L

Q: Good Morning: I own some shares of ppl.pr.e and am thinking that I would like to sell them and buy ppl. At the moment the yield on ppl is actually higher than that for the preferred. Granted that the preferred offers, theoretically, more security, while the common shares offer more opportunity for share price growth, do you have an opinion on a course of action here. What is your opinion on ppl at the moment. As always, thanks.

Q: Hi 5i
Gibson Energy (GEI) has been quoted as being open to a sale and Keyera (KEY) has been mentioned as the next midstream target for a consolidation in the industry. Now that Pembina Pipelines (PPL) has walked away from the IPL takeover, do you see PPL looking at Keyera and/or Gibson Energy (GEI) as potential takeover targets? Thanks

Q: Hi Team,
I am currently holding PPL in a cash account for energy exposure and as one of my few dividend plays. I like the company, but I am also looking at buying either of or all 3 of MG, BAM, BEP but I would need to raise cash to do so. Over the long term (10yrs), even though PPL div is much higher, which of the names listed do you believe to have the highest potential total return? Would it be advisable to sell some PPl and diversify into one of the other names listed? If so which would you buy today, or all of them? Thanks again

Q: Now that the IPL,PPL combo is off the table which of the three has the best prospects going forward? Thanks Ron

Q: Hello 5i Team,

If interest rates were too rise, how would you rank these pipeline companies in regards to their debt levels and their potential future growth.

I appreciate you response as all ways.

Ed

Q: Hello 5i Team

With respect to the ongoing take-over/merger of IPL by BIPC/PPL, I have the following questions:

1 – There appears there is a time lag of 22 days from the filing date of BIPC “Notice of Variation” to the meeting date (i.e. third Notice of Variation filed July 15 to proposed meeting date of August 06). Is this a stipulated regulatory
requirement?

2 – If the required notice period is 21 or 22 days, then is it correct that PPL would NOT be able to revise its offer of 0.5 shares of PPL for each IPL share prior to BIPC meeting date?

3 – At current prices, for BIPC/IPL/PPL, who is buying/selling IPL in the market?

If an IPL purchaser would want to vote for the BIPC offer, they could buy shares of BIPC cheaper than the equivalent amount of BIPC they would receive in the BIPC offer.

If an IPL purchaser would want to vote for the PPL offer, they could buy shares of PPL cheaper than they could buy equivalent amount of IPL shares.

It would make sense for existing shareholders (from prior to announcement) to hold and wait for the results of the bidding war unless one wants cash from either proposal.

4 – What are 5i thoughts on who will ultimately win this takeover battle?

Thanks

Q: Peter; If PPL loses the IPL fight what do you think the stock would do ? Thanks. Rod

Q: I have heard we can expect to pay more to fill up at the pumps. Are you more bullish on oil or gasoline? If you are more bullish on gas oriented companies, what companies would you recommend?

Q: is ppl still interested taking control of ipl

Q: The Dividend Updates section of your website indicates that Pembina Pipeline raised their dividend by 4.7% on June 1st. I cannot find any other reference to this dividend increase anywhere. Is your website correct? If it is, do you have the exact dollar amount of the new dividend? Thank you!

Q: I own both PPL and BIP.UN. It seems that IPL wants a deal with PPL having rejected BIP.UN's latest offer.
My question is the "potential deals" that PPL is chasing down. They are looking to partner with indigenous groups for TMX and of course the IPL deal.

Will their balance sheet be able to handle this if they are successful with both?
What are your thoughts on the management team's ability to combine these businesses into 1 large company?
Does that change your opinion about PPL as an "income" stock to an income stock with growth potential?

Thanks for your comments