skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

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

Q: With just about every car manufacturer bringing out electric cars in the near future, how is the increase in electricity going to be produced? In Alberta 45% of their energy is produced by coal; 10% of energy in Canada is produced by coal and it is around 40% for the US. Hydro and nuclear plants are very expensive and time consuming to build; and getting new ones built are extremely difficult. Are any of these existing plants under utilized? Wind or solar power - I don't think so. So, does that leave fossil fuels to take up the increased demand? If that is correct, which existing energy companies would you think are best positioned?
Read Answer Asked by stephen on February 16, 2018
Q: Hello Peter,

I am a long time 5i Member and happily own the Balanced portfolio and 5 names from the growth portfolio across my TFSA, RRSP, LIRA and Non-Registered accounts.

Recently I have taken on a small business loan and excess cash to invest. Given that the business loan is tax deductible, I am looking to invest the excess cash in my Non-Registered account.

Can you recommend 5 steady blue-chip Canadian dividend payers to help mitigate the interest costs on the loan? I already had T, ENB, SLF and BNS in mind.

Given that I would only be leveraged 10% in equity, and the latest sector rotation away from non-cyclical stocks (Telco's, pipelines) should I consider more growthier names for my equity picks? That would mean adding to my already owned positions in the 5i Balanced portfolio.

Of course, the last option is to pay the business loan and call it a day. I will however be in equites for the next 30 years and know that in the long-run it is a equity markets is a great wealth creator.

Lastly, great foresight and homework done (not luck) on the AVO selection!

Thanks for your continued support and wisdom!
Read Answer Asked by Angelo on February 05, 2018
Q: together these 5 stocks make up 10% of my portfolio. not a terribly large weighting but enough that i have felt the recent decline. I understand the correlation between interest rates and these companies that are viewed as bond proxies. Since Jan 1 2018 BCE is down 5.5%, BEP is down 7%, BIP is down 8%, TRP down over 9%, ENB down over 10% (all return % are excluding dividends). ENB is now yielding over 6% if their Q1 2018 dividend is extrapolated for the FY 2018. my question is at what point does one consider the decline overdone and step into one or a few of these? a 6% yield on ENB is looking attractive to me but do you think there is still more downside risk in these names?
Read Answer Asked by Richard on February 02, 2018
Q: What's your favourite Canadian value stock that yields at least 4% ? Thanks
Read Answer Asked by Norman on February 01, 2018
Q: Greetings 5i,

I would like to ask your advice regarding my exposure to the Brookfield group of companies.
I currently own both BAM.A and BEP.UN (each at roughly a 3% weighting). I am aware that BEP offers a significantly higher yield, and realize that renewable energy is almost certainly the long-term future of the sector. However, given BAM's "parent company" status over BEP, as well as it's obvious diversification advantage (I consider BAM to be among the best long-term investments on the TSX), I am not sure that holding both is necessary for my overall goals.

My Canadian utilities exposure also includes a full position in FTS.

I am 36 years old, debt-free, conservative, and greatly prefer long-term holds that do not require constant monitoring. I am also making a effort to simplify my portfolio, and am not adverse to slightly reducing my number of overall holdings (currently at 34). My investment portfolio is strictly for the purpose of expediting my retirement, and I have no need of its funds for the foreseeable future.

Given my goals, do you feel as if my current Brookfield exposure is appropriate, or would a consolidated, 5% position in BAM (5% is generally my limit for a single holding) be more conducive with my long-term strategy?

Thank you.
Read Answer Asked by Lucas on January 22, 2018
Q: I am concerned about rising interest rates and the recent performance of utility stocks. Should I sell my Fortis and BEP shares and add to my position in SLF ? Is it possible that the affects of rising rates are already priced into these utility stocks ?
Read Answer Asked by Christopher on January 17, 2018
Q: I am fairly new at this and of the companies mentioned above I want to set up a Dividend portfolio using 3 to 4 of them. Suggestions would be very much appreciated as I am not well schooled in this area.
Thank you
Read Answer Asked by Ron on January 16, 2018
Q: While I know BEP is a larger company, could you please compare these two in terms of debt, safety of dividend and stock price and potential problems?

What would be the effect of a 1% rise in interest rates for these and other utility companies?
Thanks for your thoughts.
Read Answer Asked by Pat on January 15, 2018
Q: Hi,
I am a long term growth investor, with no need of the invested money right now. Do you think I am better off long term with BEP and using a DRIP program or moving to a different utility company? The only other utility I have is AQN. Or can you think of a different place to put the money to work (maybe a few suggestions in case i already own what you suggest).
Read Answer Asked by david on January 12, 2018
Q: Good morning Peter:
Being a senior over 65 , I treat my TFSA as an extension of my RRSP.
With the market being so high and preservation of capital being important, can you give me three (3 ) dividend stocks that I can add to my TFSA for a secure retirement.
Can you also add your reason for choosing these ( 3 ) dividend stocks.
I presently have only banks in my TFSA and I have done well.
Thank You


Read Answer Asked by Jean on January 09, 2018
Q: i already have full positions (4%) in bip and bep. i have been looking at bbu but after going through some documents on the bbu website it appears that bbu is engaged in some similar businesses as the other 2. what would you recommend as another option besides bbu?
Read Answer Asked by Richard on December 26, 2017
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!