Investment Q&A

Q: Hi, purely in terms of relative dividend security could you please rank the above blue chips companies over the next 5-10 years.Thanks.

Q: Is Emera a good long term hold for growing income? Or do you prefer another company in this sector for a long term income investor. thanks.

Q: Could you please rank the following companies for expected dividend growth over the next decade: AQN, EMA, CU, FTS

Q: Hello 5i team,

What do you guys think are the "worst" companies currently in the TSX60 index that you think will under-perform in the coming years? Why?

Are there any fundamental/financial metrics that you think are the most predictive of poor future performance that investors should look out for?

Thanks!

Q: Hello
It appears all the utilities with the word "renewable" in the their name have gone gangbusters after the blue wave US election.
I am looking to invest in a utility that more reasonably priced and maybe running under the radar.
Does your terminal show the % of renewables for the following utilities.
Fortis, Canadian Utilities, Algonquin Power, Emera.
Thank you.
Stephane

Q: EMA and FTS are both trading below their 200 dma and at their support prices.
Is there anything fundamentally wrong with either company to account for the drop? Or is money just rotating out of utilities?
I have 1/2 position in each and am thinking to add to them on this dip.
Would you suggest to add now at these prices? Or wait for them to turn up and over the 200 dma as they may just drop further?

Q: top 2 choices, 1-2 or possibly 3 year term, and why? Thanks

Q: Hi Guys
I have owned Atco in the past, and at one point replaced it with Emera that I have done well with too. I noticed today that although they have approx. the same PE, and dividend yield (both yielding about 4.7%) the payout ratio on Atco is only 36% versus 85% for Emera. I was thinking if there was an opportunity to capture a bit of value, and stock appreciation going forward I might swap my Emera for Atco. Your thoughts? Which company do you favour at this time?

Thanks
Stuart

Q: 10:55 AM 12/19/2020
According to the Globe&Mail Dec 18, 2020 the Muskrat Falls hydroelectric project "With full power delayed until September, 2021, the project isn’t generating revenue from ratepayers and payments are coming due."

Both Fortis and Emera will have access to this electricity when it arrives [likely delayed]. How will this affect their businesses? Will they buy electricity and sell it locally and will they transmit to Northeastern US states?

Can or will they charge for transmission through the two undersea cables?

Can we expect this to be a positive event for the two utilities? Is this likely to increase their businesses and income and profit and dividends. I would appreciate your analysis on what to expect for Fortis and Emera
Thank you......... Paul K

Q: Does Emera have exposure on the Muskrat Falls project? I see the regulator has asked Emera to "adjust" for slow / non-existent benefit from The Link between NS and NL. Emera remains up 30%-40% from my purchase but would suggest a pivot to FTS or a Brookfield company here? Or anything other non-oil utility?

Thank you.

Q: I hold all of these utilities and would like to consolidate into one as a reliable dividend stream with some potential for a small amount of growth over 10-15 years (I hold in a RRSP). Which utility would you recommend to achieve this objective?

Q: Good day,
I have built my daughter's RRSP with your wise direction. She is up 15 to 25% on BAM;EMA;FTS;L;OTEX;RY; BEP and RBF 1030.(My choice) Wonderful. Thank you. We are down in descending order on ENB;CSH;BCE and MFC.

Overweight in Utilities and Financials but okay with that.

Would you add to the latter group? Add any new ones.

Looking forward to Peter on BBN Tuesday.

Long term 25 years+. Many thanks!

Q: Good day,
I hold BEP.UN;BEPC;BBU;CCL.B;ENB;EMA;H;FTS;CTC; and BAM in a non registered account and thanks to you I have done very well following your Q & A and portfolios. I am down 43% in SU; down 23% in CPD; down 16% in IPL and 6% in POW. Would you add to the winners? Add to the temporary losers or ADD new ones. After today, am tempted to add to SU for sure. Have RRIF and TFSA with pretty balanced sectors. Overall, Overweight in Utilities, Financials and okay with that. Many thanks, Paul

Q: All of these stocks seem to be favourites and pay good dividends. Am having a hard time differentiating between them as regards to those involved in renewable energy ( I think NPI, BEP and Aqn ) and those involved in transmission only of electricity and natural gas (I think FTS, and EMA). Could you please comment on the differences, if there is any and how you would rank them.

Thanks

W

Q: Hello, which is your order of preference for long term hold, future price and dividend appreciation. Thanks.

Q: Peter,

I own Atco, Algonquin Power, Fortis, Canadian Utilities , Emara and Brookfield Infrastructure. My concern is I am missing out on the renewables / green space companies. In the utility space what other recommendations you would give to ensure I am covered.

Thank you
Paul

Q: HI, There seems to be a growing consensus among market watchers and strategists, that Utilities are likely to shine in coming months and years. In this sector, specially the companies which have more exposure to Renewable and Green energy seem to be the favorites. One of the reasons cited for this view is a possible Biden win in coming US elections. We presently have about 9% sector weighting, equally divided between AQN and FTS, but wish increase to may be 15%. Over recent weeks, rising valuations have also reflected this optimism, although, for some more than others.( e.g.,Boralex from $27 to now $41). Which of above companies, in your view, have best potential for growth and prospects for consolidating their position in Green energy ? Also, from valuation perspective, which ones will be your favorites, for more capital appreciation over next few years ? It would help, if you could rank them in preference and explain your reasoning. Thank you for your great insight, as always.

Q: This is actually a followup question to your answer to Steve's question from earlier this morning.

I also hold a core position in TRP. Dividend investor. Intended to hold 'forever'. I'm 43.

I couldn't tell from your answer to Steve's question whether you view TRP as a 'BUY', 'SELL', 'HOLD' or 'GRADUALLY TRIM UNTIL DIVESTED'. You had previously opined that oil will likely subsist as a fuel source in demand for 20+ years. That would take me to age 63. What do you think is the likelihood that TRP continues to pay and grow its dividend for say, 50 years? I know given the time frame, this is a very difficult, speculative, predictive question, but your guess is better than mine. I don't want to hang on to this position only to have to sell it at a massive loss 20 years from now, but that is the scenario that appears to be gradually unfolding now.

I hold a fairly concentrated portfolio of 20 companies, equally-weighted, and each is selected with the intention of holding for their sustained, rising dividend payments in perpetuity. When this is threatened, either imminently or in the medium to long-term, I sell. I sold SU when they cut their dividend and am glad I did.

Given this context, should I exit TRP? If so, should I use the proceeds to start a new position in AQN? I already own FTS and EMA, would this be too much overlap or too much utilities exposure? If so, I am relatively light on Consumer Discretionary (only hold CTC.A in this sector and have been eyeing QSR - do you think a switch from TRP to QSR would make more sense?

Please deduct as many credits as necessary, this was actually *many* questions in one.

Q: Can you rate the following companies in order of expected dividend growth over the next 5-10 years: CU, EMA, FTS. How do they rate in respect to their renewable energy prospects and growth?

Q: Looking to deploy excess cash, mainly for dividends and some growth. I have room in both utilities and telecom sectors. If I compare the Utilities and Telecoms listed, it would seem from current valuations (Fwd PE versus historical PE average) and looking at share appreciation the past 5 years ( history of generating shareholder value) , 5yr dividend growth rates and expected revenue growth, the utilities group easily wins on all counts. Based on this analysis, I should be buying from my list of utilities before I start buying from the Telecom list. Do you agree with my conclusion? Should I add any additional analysis? Thank-you.