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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: After analysis of my portfolio, and finally realizing that building a diversified portfolio is key to limiting risk as much as possible I've discovered that I need to add to the following sectors. Would you please suggest 2-3 companies that I could add to these sectors to help my diversification. Since I'm retired some yield and a company's ability to sustain and increase it would be helpful.
1. Utilities (currently 5% of portfolio) Already own BEP.UN
2. Industrials (currently 7% of portfolio) Already own BIN and WSP
3. Info Tech (currently 5% of portfolio) Already own ESL and XLK.US
4. Energy (currently 4% of portfolio)Already own HSE
5. Materials (currently 0% of portfolio) I own no companies
Thanks again for your guidance.
Read Answer Asked by Les on May 29, 2015
Q: "Start shedding the deflationary plays such as utilities, consumer staples and telecommunications because that story has become as old and tired as the bond rally." So writes David Rosenberg in a basically anti-bond pro stock piece in the March 27 Financial Post where he assesses the impact on bonds and income stocks of interest rates rising even slightly. Do you think the 5%+ (growing) yield on BEP would offer a sufficient cushion over most other utilities in the face of rising rates or should profits be trimmed as Mr. R. suggests? Thanks, J.
Read Answer Asked by Jeff on March 30, 2015
Q: Peter and team,

I have a couple follow up questions from the January 8 report on BEP.UN. The debt is high... if interest rates rise, will it sink the company or can the company continue to fund their operations without worry? Is there big margins there to absorb increased cost of debt? Are you concerned abou the debt at all?

Next question is around oil prices. You stated that oil prices shouldn't affect them at all but wouldn't low fossil fuel prices lead to cheaper energy production from fossil fuel burning plants and therefore BEP.UN would see even further decline of power production from existing assets and therefor decline in earnings due to more economic power coming on first?
Read Answer Asked by Marc on January 15, 2015
Q: Thank you for today's updated report; and of course for drawing my attention to BEP in your original model portfolio.

I intend to add more BEP to my holdings now and would like to know if there is any benefit to buying the US version (BEP-N)? And if the dividend in the US would likely be return of capital, as you pointed out that it is here in Canada?

Thank you.
Read Answer Asked by Donald on January 08, 2015
Q: Hi guys,

I have a decent gain on BEP.UN of approximately 15%. It is touching 52 week highs and I'm trying to raise a bit of cash given that the market has done very well since the correction. With interest rates rising in 2015 (possibly) and the realization that interest rate sensitive stocks would get hurt before rates actually rise, do you think its a good idea to sell BEP.UN and move up the ranks to Brookfield Asset Management on a pullback?

Thanks for your advice,
Jason
Read Answer Asked by Jason on November 26, 2014
Q: To add to our income portfolio we are looking at purchasing BEP.UN and have read your favourable comments and 2013 report. We look at Google Finance, Morningstar and the TMX site and are a little confused by the very different numbers for eps, P/E,etc. Google Finance has a P/E of 102.27 and an eps of .31. The quarterly dividend is .42. ie not a very good payout ratio? Morningstar publishes a P/E TTM of 17.5. What is P/E TTM? Are you still favourable toward owning Bep.un.as a long term hold for income? Many thanks, Len
Read Answer Asked by Len on September 08, 2014
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