Investment Q&A

Q: Hi group bought MLM Nov 9th so far its down 2% and not acting particularly well. Do you still like it longer term ? also bought BEP (down 6%) same time. These stocks were bought to ride on Joe Biden winning the US election with a bet on a healthy infrastructure spending. Do you still like them both seem to be laggards Thanks for you guidance on this PS they are both full positions

Q: Hi,

I have no utilities exposure at the moment. Looking or a Company with a nice yield that has part of their business in renewables since this is a trend going forward. I will also hold this name outside of my RRSP and TFSA for dividend distribution is ideal rather than other forms of return on investment. I am thinking of a 4% position given record low interest rates and the fact they MAY rise sometime in 2022 or beyond. My questions are: 1- Do you think 4% is a good weighting for the utility sector given current environment? 2- Which is your preferred name among these 3? I am leaning towards AQN for dividend level and the fact that it is paid as a dividend as well as the fact that some of the business is in renewables and they have a nice growth profile.

Thank you so much,
Jason

Q: Yesterday I sold BEPC in my RRSP as the stock had a huge run. Now I am underweight in Utilities. Is it a good idea to buy BEP.UN now as a replacement now or wait for the price to go down. Would you recommend XUT ETF instead? Currently own small position of AQN in utilities. Sincerely appreciate your opinion.

Q: Hi still hold all 4 of these stocks but would like to consolidate them, the BIP shares are in an RRSP of BEP in a non-registered account which is more income oriented. I am mainly concerned with which have more growth.
Thx
Nancy

Q: Hi Peter/Ryan, in one of your answers you said that these two were essentially the same company. Is it then not wise to keep them both in an RRSP and therefore should one be removed or replaced. Thanks

Q: Hi there,
Brookfield Renewable has tumbled faster and farther in the last week or so than at any point since March. Is there a sector reason behind this (ie fears of rising rates) or is it company related?

Q: A recent question was asked to explain the difference between BEP.UN and BEPC. In you answer you stated that in a registered account BEP.UN gets a higher yield, but the tax credit is lost. Could you please explain 1) why BEP.UN would get a higher yield in a registered account and 2) the tax credit being lost, are you referring to the tax dividend credit. Thanks … Cal

Q: I have done well with BEP/BEPC - in a non-registered account - and am now overweight (combined 8.4%). Love the growth and solid dividend. My choices now are: 1) Hold the course 2) Reduce to 5%, take the tax hit, and purchase a stock with similar attributes to BEP/BEPC i.e. stable dividend >1.5% and strong growth prospects.

Would you choose option 1 or 2? And if 2, would TRI be a good candidate? Other candidates you might suggest? (Already own WSP, AQN, BAM, FTS, MSI, NPI, PBH, SIS, T and X.) Thank you.

Q: I am heavily weighted in Brookfield right now (BPY, BEP, BEPC)– across all my accounts they are at 15% of my holdings, largely due to the great run BEP as been on. I'm looking re-balance and am considering two choices: (1) I could dump my entire BPY stock (I'm down roughly 20%) which would reducing my overall Brookfield holdings by 4%, or (2) I could take some profit from BEP to do the same, leaving BPY in the hopes I recover some of that loss.

Which would you recommend?

Q: Hi team,
I am wondering what the difference is between BEP and BEPC. Also, which of the two would you prefer as a play on renewable energy

thanks
Paula

Q: Hi Team:

I just noticed the book value of my BEP.un dropped a lot from August, is it because the free BEPC given to share holders´É. Also, the description of the free shares says non-taxable. Will appreciate your explanation.

Thank you.
LL

Q: I have no utilities exposure. I want to add 1 Company. I was looking at Fortis because I believe they are your favourite given their size and history of dividend increases. They currently are mostly electricity delivery (<90%) with some renewables and fossil fuel. By 2035 they expect to increase renewables from 2% to 7%. That seems like a long time for such a small increase. They are eliminating their fossil fuel generation. If I prefer to invest in a utility with more of a focus on renewables, would AQN or BEP.UN be a better bet. Shouldn't they do better as renewables become 'trendier'? Which do you prefer out of AQN and BEP.UN. BEP.UN has had quite a run recently.

Q: I own shares of Brookfield Renewable Corporation (BEPC) and it just continues to defy gravity and move straight up. This has me thinking that an equity raise might be coming anytime now. What do you think the chances are that they do a share issue before the end of the year? Have they already filed a shelf prospectus?

You mentioned in a previous response that if they were to issue shares it would likely be the corporate shares and not the partnership, implying that this might reduce the current premium on the corporate shares. Can you explain why? Wouldn’t the partnership shares suffer the same earnings dilution if they issue corporate shares?

I own the corporate shares in my non-registered account. Would it make sense to sell them from that account and repurchase the partnership shares in my RRSP? I would incur a taxable gain but I already have carried over loses that I can use to offset. In addition I think that there is a possibility that the Government might soon spring a capital gains tax increase upon us (just one more reason to crystalize the gain now).

I couple of question so please deduct credits as you see fit.

Q: Hi!
Stocks have increased a lot recently and most of the above are well off their lows with stocks like BEP and BIP almost reaching their high of the year. Would you feel comfortable entering new money into the above names for income/growth or wait for a pullback? I know timing the market is next to impossible but do you see this rising market as sustainable and if one waits will the opportunity to enter still at reasonable prices be missed? Also, what are your thoughts on RDVY. It was not listed as a choice on the drop down list.
Thank you!

Q: Hi 5i team,

Can you please rank above renewable energy stocks and provide comments?

thanks,

Q: I don't know how to derive an estimate for the fair value of the difference in share prices for the above Brookfield companies. Since the date of their respective share distributions, BEPC and BIPC have outperformed their economically equivalent LP unit prices by 30% and 39% respectively. When are the price premiums too big to account for the differences in tax treatment and investor access?

Q: I am looking at the above companies highlighted in your recent comments. Could you please rank them in terms of a) highest growth to lowest over 5 year time frame b) least to most risk. If am missing another favourite please let me know. Thanks for all your great advice. Brian

Q: BEP-UN was in the mid 75$ range when they announced a 3 for2 split.Should a new share be worth 50$ or will continued buying keep it much higher than that ?

Q: Hi 5i
BEPC and BEP.UN together represent 8% of my portfolio currently (BEPC=5.6%, BEP.UN=2.4%). Both are doing well and it appears they will continue to provide nice gains over time. I am wondering about trimming BEPC. What would you consider to be a reasonable % holding for BEPC and BEP.UN together? Thanks!

Q: May I have your comment on the November 4 report please.