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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: 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
Read Answer Asked by Paul on May 21, 2019
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.
Read Answer Asked by J on May 17, 2019
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.



Read Answer Asked by Francesco on May 16, 2019
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
Read Answer Asked by Morgan on May 08, 2019
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.
Read Answer Asked by Elizabeth on April 23, 2019
Q: I own several Canadian stocks in my TFSA that pay dividends in USD. Are the dividends eligible for the Canadian dividend tax credit?
Read Answer Asked by Camille on April 17, 2019
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
Read Answer Asked by Werner on April 15, 2019
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!
Read Answer Asked by Kat on March 28, 2019
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
Read Answer Asked by Derek on March 25, 2019
Q: I have the above securities, as well as RBC Cdn Equity Inc, Sentry Cdn Inc, Sentry Global REIT, and fixed income via Fisgard Capital, Annuities, a company pension, CPP and soon-to-be OAS.

I really focus on asset allocation and am a little light on Consumer stocks, holding CGX, PBH and TCL (although some consider TCL to be in the Industrial sector). I am normally a buy-and-hold investor who trims-adds around core positions.

Question 1 = I am looking to add 1 more consumer stock and am looking for a dividend ideally > 3%. Based on my stock-ETF-MF mix, are there a few stocks you could suggest that would fit in my above set of securities.

Q2 = if I was to consider ideas from the Income Portfolio, is there an issue with having multiple food stocks....like PBH and A&W and NWC. Why have more than one food stock?

Q# = because A&W is a ".UN" company, how are their dividends treated for tax purposes? Are they eligible for the dividend tax credit?

Deduct as many credits as you deem appropriate....got loads and will never use them all up.

Thanks as always...Steve
Read Answer Asked by Stephen on March 21, 2019
Q: Has a dividend investor I hold shares of the above in in my registered and non registered accounts.
I have cash over and above my fixed income position. This extra cash is earmarked for a new position in a dividend stock paying a 4 to 7% div with growth prospects and at fare value and tax efficient. Might be a tall order , appreciate your help.
Read Answer Asked by Roy on March 14, 2019
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