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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: hi folks:

what am i missing here?

time and again, when a dividend company comes under pressure (in this case AQN) all the wags talk about 'soaring and unsustainable dividends'

this clip from today:

Yes – Algonquin’s juicy dividend. The drop in share price has caused Algonquin’s dividend to soar. As of the time of writing, the stock is down over 50% year to date, while the dividend yield has swelled to 10.93%.

That’s an insane, if not unsustainable, dividend yield. Even if Algonquin were to slash its dividend in half, it would still offer a very competitive yield, and still one of the better-paying options on the market.


the dividend $ has NOT changed; only the yield as a % of share price has

either the company can support the dividend or it cannot

my point: a dividend is a reflection of the strength of the balance sheet and the companies cashflow

that the price gets knocked in half is irrelevant to the dividend paid

UNLESS said bal/sht and cashflow will no longer support the divy at that amount

(yes, i understand that the current price reflects people's belief that the balance sheet cannot continue this level of dividend)

so, are these type clips just sensationalizing or am i completely wrong?

again.........

thx

happy new year team
Read Answer Asked by Robert on January 04, 2023
Q: hi, what are your top 5 Canadian large cap growth stocks right now ( focusing on your model portfolio, as well as any others outside the portfolio with high conviction ). and can you provide 5 in small to mid cap range, Canadian, too please...
cheers, Chris
Read Answer Asked by chris on January 04, 2023
Q: The above companies dividend yield is more than 6%. Three of them, BNS, CM, and POW have dropped in price by 20% or higher. BCE has dropped by 8%, and TRP has dropped by 6%. ENB has actually increased in price around 8%. I own all of them. Thinking of adding some Canadian dividend shares. Question is which of these dividends are safe going forward. Can you rank them based on dividend safety. Also, please rank them for potential price gain/loss for 2023. Any other with reasonably good dividend, dividend safety and potential for gain in price.
Read Answer Asked by Naren on January 04, 2023
Q: Hello Peter,

Wishing you and the 5i family a happy Christmas and the very best for the new year.

I wonder if you have an opinion on the Calgary based small cap Exro Technologies. If the 5i research team has looked at this one, would it be possible to have your preference between common shares and the warrant EXRO.WT. The company has closed another round of debentures that would probably be traded on the exchange.
Thank you in advance.
Regards
Rajiv
Read Answer Asked by Rajiv on January 04, 2023
Q: This US REIT has been beaten and sits near its 2022 low with a healthy divvy. It holds quality medical offices located near hospitals which should provide it with some pricing power with doctors wanting to locate close to where they perform surgeries. Is the dividend safe? How would you categorize their debt? Is this one you'd recommend or avoid? Any other concerns? Lastly how does this compare with MPW? Appreciate your views.
Read Answer Asked by Ken on January 04, 2023
Q: I read most of the questions and people asking for the top stocks that are going to do well over the next year or two. Four that are mentioned more than once are FIVE, CVRX, CELH and CPRX. In the case of CVRX, I have a about a 25% profit in less than 2 months. Do you think it has more room to run? Is there anything to worry about the other 3. I have CELH as well which seems to be very volatile. Again, much appreciated.
Read Answer Asked by Dennis on January 04, 2023
Q: Hi, Toumaline stock has come under pressure, over past 2 weeks. Natural Gas prices have also been trending lower for some time, with today's reports about warmer weather forecasts for USA and Europe, through January, 2023. What is your outlook on NG and LNG prices and supply/demand situation, for 2023 and beyond ? Do you believe that despite near term headwinds, stock could continue to outperform and should be part of ownership, in Energy sector ? Thank You
Read Answer Asked by rajeev on January 04, 2023
Q: I have held BEP preferred shares in an RSP for quite awhile and done well with them, but have concern over the potential new US tax implications. Despite the company assurances, I think I would sleep better just being out of BEP. After the dividend this month, my plan is to sell the shares. I am looking at ZPR, which has a somewhat similar yield, and would be much easier to trade. What do you think of ZPR and its dividend sustainability? Recognizing that preferreds have not done too well overall, would you prefer to move into something else?

As an aside, apparently the US attack on limited partnerships includes those held in an RSP. Isn't there a tax treaty that prevents this?

Thank-you, Grant
Read Answer Asked by grant on January 04, 2023
Q: I am interested in learning about trading options and have no experience in the process at all. Can you recommend where I might learn how trade options?
Thank you
Read Answer Asked by Dave on January 04, 2023
Q: Peter; Every week we see oil inventory has risen or fallen - is there a US LNG storage level also announced- with 200million in the US and likely a pro rata number in Canada in freezing mode- surely the level would be dropping yet NG is up barely .12 cents today. What more could we ask for to support NG stocks ? Spring IS coming when demand will drop- would you be trimming or selling gas stocks? Thank and all the best to you and staff - have a safe,healthy and happy. Holidays. Thanks
Rod
Read Answer Asked by Rodney on January 04, 2023
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