Investment Q&A

Q: For someone looking for income, what dividend stocks, in any sector, would you find most appealing?

Q: Do we have an ex-dividend date set yet for the Canadian share spin-out/dividend for these two companies?

Thank you............ Paul K

Q: I'm holding the following since I thought they would be considered safe stocks, however they are going down with all the rest.

1) I made the big mistake that gold miners would actually do well in the current situation, however I know see my mistake that I should have purchased gold directly. Would you, given the situation today, sell the miners and buy gold directly - what has the past crises shown about gold versus gold miners?
2) Do you think the utilities above will stabalize near current levels, or do you see that there will be a reset in all P/E and P/C levels down to lower levels?

Q: Hi 5i - Im looking at adding top quaity companies at "fire sale" prices. Do you see these 2 companies much higher 5-10 years from now? If not these 2, which companies from your balanced portfolio look most attractive right now? Thanks, Neil

Q: Hello Peter and Co,
My 20 year old grandson has opened a TFSA with $22000 in cash, and is asking for advice how to start investing. Our suggestion is that he put a fairly large amount into an index fund ETF, such as VFV, and then buy several individual stocks with the rest. They would be small positions (~$2500 per stock) but a good way for him to start learning, and with markets down, the timing seems quite fortuitous.
He is considering the following:
100 shares VFV: ~$7500
40 shares GSY: ~$2500
35 shares BEP.UN: ~$2500
1 share AMZN: ~$2500 (CAD)
7 shares NVDA: ~$2500 (CAD)
200 shares VET: ~$2500
-------------------------------
TOTAL: ~$20000

We had also suggested CSU, SHOP, KXS, PKI, TTD, GOOG, AAPL, ROKU, FB

What do you think of the above approach, and what changes might you suggest? I realize VET stands out as quite risky, but should probably do well long term.
Are there any sectors or stocks or ETF that you would suggest adding/replacing? Obviously he has a multi-decade time horizon.
Thanks for your sage advice!

Q: I have a question, are there any socially responsible companies paying a dividend listed on the TSX that are good candidates to own in a portfolio?

Q: Hello Peter
I want to open new position in my portfolio AQN or BEP.UN, which one would you prefer and why.
Andrew

Q: Hello 5i team,
I've held a good number of stocks you hold in your BE portfolio and I've managed to obtain a 14% compound annual total return in the last 11 years.
100% of my portfolio is in equities; I'll be shortly 77 years old and plan to reduce my equity exposure to 30%, with the above stocks in mind.
Your opinion is most valuable
Antoine

Q: Hi 5i,

In my non-reg account I prefer to hold stocks that I can hold onto for a minimum of 3 to 5 years and possibly 10 to 20, that have a yield of around 3% to 5% with the stock price growing +/-5% annually.

Having said that, I am looking to add a stock that would be equal to approx. 1% of total portfolio value.

I am considering adding to my renewable utility stocks (BEP, AQN, INE and BLX which currently total 7.5% of total portfolio value), bank stocks (TD and RY currently 6% of total portfolio value) or telecommunications (Telus or BCE currently 0% of total portfolio). My concern with T and BCE are the current CRTC talks and what may be the market reaction to any deemed negative outcome.

Other than the above listed stocks do any others come to mind that you would recommend at this time?

Please deduct for multiple questions as you see fit.
Thanks!

Q: The markets have taken a hammering the last three days due to fears of the corona virus. The Utilities have been hit too, but far less so than other areas. The exception seems to be Brookfield Renewable, which has taken a hammering three straight days and is down over 5% today. It's acting like a high priced tech stock with heavy business in China, not a utility. Is there anything you can think of which explains this?

Q: In reply to Brian's question regarding Bep.un and the form they send for income tax. I do my own tax. I received the tax form from my broker and they send them now by e-mail , the numbers and even the box number was so blurred I could not read it. It was a long form with many boxes, even the box number I could not read. So I phoned the broker and he couldnt even read his copy, he had to go elsewhere to get them. It also come very late in April with not much time to finish my tax. I just sold Bep.un so I wouldnt have to go through that again, but by that time I still got to do it all over the next year!! If you use a tax preparer then that would be their problem. FYI.
Shirley

Q: Hi 5i,

Thank you for answering my question regarding BEP.UN.
I have to admit that I still do not fully understand the problem with holding BEP in a non-reg account. If I simply receive something from my broker (T3 or whatever the form is) telling me what amount I received from BEP the following year and I pass that on to the person doing my taxes what is the "pain" that you refer to with regards to limited partnership tax accounting? Is there some convoluted time-consuming calculation that the accountant must do? Or is there some other complication once the stock is sold? I am fine with some portion of the flow-through being withheld in regards to the US portion of the income from the stock.
Thanks for your patience!
Love your service!

Q: Hello peter, At this time, which would you prefer from total return perspective.
BIP - 1 year high and yield 3.9%
BEP - 1 year high and pay 3.8%
BPY - towards 1 year low and pay 7.2%
Are you concerned with low dividend growth at BPY.
Thanks

Q: Hi 5i Team. Thanks for your great service.
With all the renewed hype with regards to green/ESG companies, is there a need to own all of the above companies or do their services overlap? Which ones would you own?

Thanks

Dave.

Q: Brookfield Renewable Partners plans to create a Canadian corporation. Any idea when this might occur ? Thanks.

Q: Hi 5i

What is the reason for not wanting to hold BEP.UN in a cash account as opposed to an RRSP or TFSA? Is it just because BEP issues a T3 late in the tax season? Or is there another reason?
Thanks 5i!!

Q: BEP's share price is up almost 4% today and it has been very strong over the past month or so. I know other alternative energy stocks have also been strong (e.g. NPI), but not as strong as BEP. What is causing the huge move in BEP again today? Any news or ideas? Are the l likely to have a share offering at these prices?

Q: I want to buy BEP. For tax efficiency, should I be holding this in my RRSP or TFSA or is a cash account OK? Is this holding converting to a conventional stock in 2020?
Thanks for your reply.
Grant

Q: Your last report on this company had FWD EV/EBITDA at about 13. What is that ratio now? I am concerned the stock has appreciated well past its fair value and is due for a sharp correction.

The 5 year chart shows an incredible change in trend starting in 2019. I have rarely seen this type of chart continue higher.

I am considering selling the position and buying back in $5 or $10 lower. Is this getting too cute or prudent profit taking.

Q: Utilities seem to go parabolic since December 2018 with no sign of slowing down. Since interest rates seem to remain low for a foreseeable future, is this a new secular trend emerging from improved interest in green energy. ZUT in particular includes many renewable power generator companies. So I basically have 2 questions: If this is a new secular trend should one increase their utility allocation ? 2: Is there still life for oil and gas companies ?