Investment Q&A

Q: What do you think about the recent acquisition of the Bermuda assets? Do you see a dividend raise in the near future as a result?

Q: My wife only wants to invest in environmentally friendly companies ( eg renewable energy sector etc). I have bought for her QST. I would like to put her in solid larger companies that pay a dividend. Could you recommend your top 5 picks?

Q: Hello 5i,

We are looking for advice on stocks that should be held in a US account rather than a CDN account. Our RBC RRSP has both CDN and US funds available. After reading several questions and answers it is clear that we are very confused about this topic. We are hoping questions below can help us grasp a general rule of thumb on which currency should we purchase and hold stocks for our RRSP's.
e.g.
1. should stocks that pay dividends in US funds be held in the US account or CDN account if they can be purchased in either currency? i.e. AQN, BAM
2. if we buy a stock such as Google (no dividend) to hold for a long time should this be purchased with US funds or CDN funds. Is this a stock that should be in a TFSA instead of an RRSP?
3. if we buy and sell lows and highs on stocks without dividends such as AMZN, and BABA, (2-3 transactions per year) should this be purchased on the US or CDN side of our RRSP.
4. if we are to purchase an ETF that pays a dividend in US funds should this be purchased and held in US funds?

Thank you for your help.
Debbie and Jerry

Q: Good Afternoon,

I am looking at raising some cash. Of the above, which 3 would be your sell preference, in order of 1st, 2nd & 3rd.


Thank you.

Q: 10:15 AM 5/16/2019
1. Could you please provide the numbers for, and compare and comment on : debt levels, financial leverage, debt to cashflow, and payout ratios for EMA, FTS, AQN, BIP.UN, BEP.UN.
2. You seem to always rate EMA at the bottom of the list [Why?] but I believe EMA has sold off some significant assets [Emera Maine and others?, more to come?] so debt levels should be lower, so is it a secure buy now for long-term dividend income?
3. I worry that BIP and BEP both have extremely high payout ratios. You have suggested that a total of 15% of one's portfolio in these two would be acceptable. Are you still of that opinion?
Thank you........ Paul K

Q: You answered Francesco on May 16 that to reduce currency conversion fees on dividends one should sell the stock in Canadian funds and rebuy in American. I have been told by my broker that I am able to journal over a stock such as BIP.UN to the American side of my account without sale and purchase fees. It is in my LIRA but I have yet to call to move the stock so it is an untested strategy. I have moved DLR/DLR.UN this way successfully.

Q: I'm looking to add to my Utilities. Could you order ANQN CPX WCN CSH.UN on risk and Capital Growth potential.Are any of these too expensive to consider for buying at this time. If you have a better suggestion please name.
Thanks for all you do

Erhie

Q: Good morning,

I understand from a recent 5i article that BAM and AQN pay out their dividends in US$ and that for a number of very good reasons, it is advantageous to have the US$ dividends from these two companies journaled to the US side of my account.

At present I have a 500 shares of BAM.A.CA and 500 shares of AQN:CA in my Cdn Non Registered account that pay out their dividends in Cdn $. Given that I have a US$ Non Registered account and that I need US$ from time to time to either purchase US stocks or for travel in the US, it would make sense for me to request from my brokerage firm that dividends from these two companies be journaled to my US$ Non Registered account.

Question 1. With the dividends now being paid in US$ and showing up in my US Non Registered account, would the BAM and AQN shares themselves be shown in the US$ account or would they remain in my Cdn$ Non Registered account with the dividends from these two companies, paid out in US$ and showing up in my US$ account?

Question 2. I also have a number of BAM and AQN in my TFSA. Would it make sense to move these two stocks to my Cdn$ Non Registered account and have the brokerage firm journal the dividends as well to my US Non Registered account and with the proceeds of the sale in my TFSA, purchase other stocks/ETFs within the TFSA?
Thank you for your team's sage advice and I look forward to hearing your response.

Q: Hi. Im currently overweight in consumer cyclicals and looking to diversify by adding some utilities and tele comm. Recommendations in those sectors? Some growth would be great but ultimately want good companies with strong fundamentals. Buying to hold long term.

Q: Could you provide what you see as the best 3 investable stocks that should benefit from continued growth in the renewable energy sector and the move away from carbon based fuels. I am not looking for high risk new technology but rather companies that look like a good bet to grow profitably over the next 10 years.

Thank You

Q: Your opinion on aqn's upcoming earnings

Q: I have about a 2% position in AQN. I am thinking about bringing it to a full position(4%) or taking a 2% position in either NPI or CPX. What would be your recommendation and why.

Thanks Ken

Q: Hello,

Time to deploy some cash. Do I add to AQN ( up 20% on existing position) or initiate a position is SIS. Looking at 2 year time frame, not worried about diversification, just relative upside.
Thanks

Q: I am looking to increase my Utilities sector to 10% ;currently have BEP.UN at 5% and FTS at 3%. I just reviewed both companies 2018 Annual Reports and noted FTS 's Revenue Growth ,Earnings and ROE are all lower relative to 2017 whereas BEP.UN(although a smaller company ) increased in all areas relative to 2017. With this information I am not inclined to invest further in FTS and in fact I am wondering if I should take profit from my Fortis (in RRSP) and then diversify in a third utlity. Second question -what other utility would you recommend at this time? Thank you for your time.

Q: I own several Canadian stocks in my TFSA that pay dividends in USD. Are the dividends eligible for the Canadian dividend tax credit?

Q: I hold a half position of AQN and wish to add further renewable energy holdings. I am considering increasing AQN or initiating positions in NPI, BLX or BEP.UN
Would you please rank these four. Should I consider others?
Thank you,
Werner

Q: CAN YOU TELL ME THE NAME OF RENEWABLE ENERGY STOCKS I CAN PURCHASE

Q: Hello Team,
after VNR takeout what would be the best replacements choices (similar profile) for this stock in a Portfolio.

Thanks in advance

Q: Hello 5i,
I’ve changed my investment goals for my children’s resp. It will be spent within the next 6 years, so after the December correction I plan to liquidate. At this point, I have $5 k more than I promised them. The stocks listed above are those that remain in the account.
Going forward should I:
1) sell all the stocks and buy an etf for 5k?
2) if an etf, which one for max growth?
3) if one were to keep only one or two stocks, which would be kept for most potential for gains? (This would be instead of the etf).

I would not have grown the resp to its current value had it not been for 5i. Thank you for helping me fund my kids education!

Q: Looking at investing in these Canadian companies paying US $ dividends for a non registered account to help with my snowbird expenses.
Would be 15% of total stock/bond portfolio of mainly banks, utilities, reits, pipelines. Age 69.
Appreciate your opinion on these. Any others?
Would you equal weight or what individual % would you allocate? Any other thoughts?
Thanks. Derek