Investment Q&A

Q: My comments about BPE are: In 2014 we used Turbo Tax (TT) to submit our taxes. TT increased my return twice in price until reaching their "Business Rate" because I had one form T5013 for BPE. My wife's return went through with no problem but when I submitted my return there was a statement issued "We're sorry the Canada Revenue Agency was unable to accept your NETFILE return".After trying to correct and send with no success I contacted CRA who directed me to a Tax Advisor. She tried and was unable to resolve and re-directed me to another Sr. Tax Advisor who also tried to resolve my/their problem with no success. He advised I contact TT.
After a long wait I did chat with someone from TT who gave me some vague answers with no specifics and ended our chat abruptly. At this time I decided to delete form T5013 from my return and file and submit the form later. CRA help desk advised I wait until receiving my Notice Of Assessment which I did. I then sent in form T5013 with a letter of explanation and was re-assessed. I don't need the hassle again and will never again use Turbo Tax. Regards Gord

Q: In an answer today you said that BEP.UN is not eligible for the dividend tax credit but indicated that POT is. I hold bep in a non-registered account. If it is not eligible I would consider it better for my RRSP. Is there a rule of thumb or a resource anywhere that can be used to figure this out.

Q: In my RRSP looking to swap ATCO for another utility. Soon to retire, looking for safety, income and maybe a little growth. My choices are FTS, CU, EMA and BEP.UN. Already have a little EMA. To my eyes it looks like BEP.UN with its juicy yield is the best choice. What do you think?

Q: I have no utiliies in my portfolio. I'd like to add one that is not overvalued and pays a good dividend that I can hold for the next 10-20 years. I've considered Brookfield Renewable or Fortis or Emera. Do you like any of these or prefer something else. I'd really like to only choose one.

Q: Lots of weakness for BEP. Any reason?

Thanks,

Robert

Q: will companies such as BEP.UN and BIP.UN be hurt with any rise in U.S. interest rates or are they safe long term holds for growth and dividend.

Q: Hello 5i:
Very interesting, in-depth article on BEP today. The author has gone into great detail (more detailed than 5i's report), both positive and negative on the company. Yes, he likes it, with high praise for management, execution and target shareholder returns. IF you're thinking of investing in BEP, or if you need a utility, please read this. Here is the link: http://seekingalpha.com/article/3251275-brookfield-renewable-energy-partners-l-p-a-great-mix-of-growth-and-dividends

Q: Hey Guys,

Thanks for the great service. Rising bond yields have recently put pressure on BREP. I agree with your assessment. Just wondering what your thoughts are on the company in a sustained higher rate environment? Would you think the cmpd 12% to 15% targeted return from them is feasible?

Trevor

Q: Hi,

I have a 6.5 % position in this stock and am underwater about 2%. What do you think of it long term? Buy, sell or hold?

Q: BEP.UN - T 0.6 36.15 · 36.22 0.1 36.15 -1.51 -4.0
I HAVE A LITTLE ANS LIKE IT. WOULD YOU ADD A LITTLE OR IS THERE A PROBLEM???? THIS IS (4%) BIGGER DROP THEN THE MARKET ON A BAD DAY ????
THANKS
YOSSI

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.

Q: Q1 2015 - comment please

Q: I have been holding BIP.UN and not BEP.UN. What are the differences between the two? Which is the better one?

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.

Q: Hello 5i:
given that BEP.UN is the favoured utility (and its been a GREAT stock), can you please give me your second and third choices in this sector? Would BIP be a logical choice, or, for the purposes of diversification, is one Brookfield company enough.
thanks
Paul L

Q: Hi guys,

My dad is 62 years old and would like to build a small portfolio of monthly paying dividend stock for income. 30% of the portfolio in XSP for US exposure, 10% in CBO & XHY. Can you please suggest 5 possible CND stocks? We already selected WCP for energy and CHS for financials. Thanks!

Q: Looking at making a position in T.BEP , what would you consider to be a good entry point?

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?

Q: BEP. indicate a p.e. of 156.4 and a 3 years EPS. of -24 could you please elaborate on this issue also the high volatility,i've enjoyed the run so far.Thank You as always for the (comforting)service.
Daniel

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.