Investment Q&A

Q: Hello 5i. Please list the best Brookfield Groups in order of preference for growth in a TFSA.

Thanks
Dave

Q: I am holding BEP.UN and now BEPC also.
Will the BEPC dividend continue to be in U.S. $ ?
If the dividend on BEPC will be $0.4340 per share, payable Sept. 30 and the previous dividend on BEP.UN was $0.5425 on June 30, I would expect the future dividend on BEP.UN to drop, like the share price approx 25%, correct?
If so this seems to represent an overall dividend increase of about 6% in terms of total holdings, right?

Q: Any explanation for the 20% drop today?

Q: I have in my portfolio AQN with with -6% down. Im thinking of selling AQN and buy BEP.UN as a better performer. My question is when is better time to buy BEP.UN now or after close of the spin out , and why?.
Andrew

Q: Hi folks
Today the 28th Arnold asked if shares of Bip.un will drop and you said yes by 20 to 25 percent. Should I sell my shares today and buy back after the drop? When do you expect the drop? All within my RRIF..
Thankyou

Q: Hello and thanks for your insights. I'm looking at these three as long-term (~5years) paid-to-wait plays on demographics/pandemics/energy respectively. Collectively, 10% of my portfolio. I'm retired and 55 and could manage nicely if all three went to $0.

Question: Do you consider this move to be on the lower end of the risk meter?

Q: To clarify further my question about a 20 or 25% drop in price after the stock distribution, and in order to remove the issue of demand, could you instead tell me how much the future dividends will decline - 20% or 25%.

Q: Will the shares of BIP.un drop 20% or 25% because of the stock distribution?

Q: Hi 5i Team:

I have owned 1300 shares of BEP.un for a number of years and having a good gain. I also, own 300 BIPC for a short while with a small loss. Is there any advantage to buy more BIPC now. I don't really need the monthly income. Thank you.

L

Q: Hello,

On what date can I sell my BEP.UN shares and still receive the split shares from BEPC?

Thanks

Q: why was bep.un down 6.14% last week while the tsx utililities sector index was down only 3.00% ?

Q: Hello 5i Team
I currently own TransAlta Renewables (RNW) in a taxable account with a capital gain.
The current yield on RNW is 6.2% and the current yield for BEP.UN is 3.9 %.
The five year dividend growth for BEP.UN is approximately 5.5 % and the five year dividend growth for RNW is 3.0 % (with no dividend increases in the past two years).
1 - When BEP.UN spins out BEPC and BEPC starts trading, does it make sense to sell my RNW and purchase BEPC? Essentially I am trading dividend income for future capital gains and dividend growth.
2 - What date does BEPC commence trading, the BEP.UN press release July 16, gives a date of July 24 for BEPC.WI/BEPC (NYSE/TSX) and July 31 for BEPC/BEPC (NYSE/TSX)?
Thank you for all the clarifications posted for the BEP/BEPC spin out.

Q: More of a comment then a question - I would think that the market is well aware from what happened with BIP.UN / BIPC, that BEPC will trade at a premium and that premium will be priced in is as soon as it begins to trade and selling your BEP.UN to buy BEPC may not result in any advantage.

Q: After doing quite well selling my BIP and replacing it with BIPC after receiving the "free" BIPC, I intend to do the same with BEP.UN and BEPC. Right now BEP.UN is "overbought" according to its daily RSI and I would expect a minor correction to get the RSI down but should the price of BEP.UN dip on the day this "special dividend" is effective all other things being equal?

Q: Hi 5i Team,
I have to step on my pride here and ask a question as I'm still confused.
If I understand correctly:
1 - If I hold 100 shares of BEP.UN as of July 27, on July 30 I'll hold 100 shares of BEP.UN AND 25 shares of BEPC? Is this correct?
2- If I hold in RRSP or TFSA I should sell the 100 BEP.UN and buy BEPC shares? Should this be done right away? Wait a few days/weeks?
3- If I hold in unregistered margin account I should keep everything as is? 100 BEP.UN and 25 BEPC?

Thanks for you patience.

Q: There have been a few questions related to an upcoming change for BEP.UN. I am not clear on what is actually happening or why.
I hold BEP.un, and would appreciate it if you could please explain what is going on, what you are recommending and why as well as timing of implementing your recommendations. As always, many thanks for your help.

Q: Regarding the share split, is there any indication as to what the initial trading price of BEPC shares will be. Would you expect any initial decline in the value of the BEP.UN units after the split.

Thanks for the good service
Clarence

Q: Is there any advantage in any scenario to holding BEP.UN units over holding BEPC shares going forward, or any scenarios where one would want to convert the BEPC shares to BEP.UN units as they offer? Will investors just stop buying BEP.UN and just buy BEPC instead?
This deal will be quite dilutive to BEP will it not by fundamentally diluting the share count by 25%?
Thank You

Q: Hi folks
I own all 3 in my RRIF. I'm confused with the split for BEP.UN coming on the 26th. Should I switch BEP.UN to BEPC now? Or do nothing. should I switch my BIP TO BIPC? are the Cs better?
Much thanks as always

Q: I'm short out of the money covered calls for August expiry for some of my shares in BEP.UN. Given the BEPC shares dividend, I expect the BEP.UN shares to drop after the July 24th expiry date but I'm a bit confused as to whether the BEPC shares will follow the option or remain with me after July 24th. In other words, will the option be priced for just the BEP.UN shares or the BEP.UN + BEPC shares after that date.
Thanks
Peter