Q: In pursuing my goal to maintain a well-diversified portfolio, I am trying to decide how and even why to differentiate between pipelines and utilities. Both sectors operate in regulated sectors (at least in Canada), both sectors will be adversely affected by higher interest rates due to debt levels and both sectors generally pay reasonably attractive dividends. As for their differences, I see utilities potentially performing better as the economy improves and the pipelines more affected by politics.
Should these sectors be treated as different when composing a portfolio or can companies be "mixed and matched" under a more generic "regulated" or quasi "fixed income" part of the portfolio and thereby treated as almost the same?
If your answer is "yes" would you endorse a switch from IPL to AQN for better long term growth with less volatility? (taxes not an issue)
Appreciate your insight.
Paul F.
Should these sectors be treated as different when composing a portfolio or can companies be "mixed and matched" under a more generic "regulated" or quasi "fixed income" part of the portfolio and thereby treated as almost the same?
If your answer is "yes" would you endorse a switch from IPL to AQN for better long term growth with less volatility? (taxes not an issue)
Appreciate your insight.
Paul F.