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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

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
Read Answer Asked by Antoine on March 02, 2020
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!
Read Answer Asked by Brian on February 26, 2020
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?
Read Answer Asked by John on February 25, 2020
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
Read Answer Asked by Shirley on February 21, 2020
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!
Read Answer Asked by Brian on February 20, 2020
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
Read Answer Asked by RUPINDER on February 20, 2020
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.
Read Answer Asked by David on February 19, 2020
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?
Read Answer Asked by arnold on February 18, 2020
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.
Read Answer Asked by Chris on February 14, 2020
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 ?
Read Answer Asked by Yves on February 13, 2020
Q: Is there any substance to rumors of conversion to corporations? issuing 'free' shares?
Read Answer Asked by OREST on February 09, 2020
Q: I currently have positions in these two companies. (thanks to your guidance) I'm thinking of adding to both positions. Are you aware of any reasons why I shouldn't proceed with the purchases at this time? If you had to pick one investment over the other, which would you choose. Finally, is there another company that pays attention to the environment could have more short term upside? Thanks so much for your respected opinions.
Read Answer Asked by Les on February 06, 2020
Q: In reviewing the 5i responses to questions on these 3 companies you seem to favour BEP. In examing the numbers for the last 5 years through Morningstar I noted the following:
2015 16 17 18 19
AQN .30 .33 .37 .38 .79 EPS
6.53 7.14 7.62 6.40 12.9 ROE%
4.60 4.55 5.10 4.18 6.44 ROIC%
BEP. .01 -.23 -.18 .13 .31 EPS
.05 -1.08 -.81 .53 1.34 ROE%
1.86 1.85 1.70 2.82 3.26 ROIC%
NPI -.07 .64 .85 1.46 1.67 EPS
-1.85 15.7 22.1 35.6 39.6 ROE%
1.7 4.7 5.7 6.3 6.6 ROIC%
Both AQN and NPI would seem to have significantly stronger results (ROE%, ROIC%). What key data points do you look for in this investment sector? Your thoughts on your selection criteria would be appreciated.
Read Answer Asked by Richard on February 06, 2020
Q: Hello Gentlemen,
Are the above listed companies still buyable at this time?
Thank you
Read Answer Asked by Frank on February 04, 2020
Q: I'm looking to invest in one Income stock and I am looking at these three from your model portfolio. I already own BIP but do not own any banks or telcos. Please rank the order these would be considered. Thanks.
Read Answer Asked by Kenneth on February 04, 2020
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