Investment Q&A

Q: Could you comment on the plunge of renewables as RNW and AQN?

Q: I want to drop one of these from my portfolio. Which do you think I should keep (if either)? I have Fortis in another portfolio.

Q: JUST READ RESULTS FOR THE QUARTER. MAY I HAVE YOUR OPINION.

THANKS DONALD.

Q: In view of rising interest rates and Trump which company would you prefer for income and some growth over the next 3 to 5 years?

Q: Both Northland Power and Algonquin Power are down over 3% today.

Is this in reaction to the US election results, or perhaps the interest rate outlook, or some other reason?

Q: Algonquin Power has been week as of late and lost 3% today. Is this something to be concerned with? Would you prefer Fortis ,Emera, or Hydro one instead?

Please feel free to post to everyone.

Antoine

Q: How would you compare SPB and AQN for growth and dividend sustainable going foward ?

Q: I bought SJR.B in Jul. 2015 at $27.36. Today, it's $26.57. BMO Investorline Morningstar Canadian Income portfolio and Canada Core portfolio suggests selling this stock and that the fair value is $24.00. Do you agree? They did not raise their dividend in Mar. 2016. If I sell, what can replace it for a secure very long term hold for growing dividend income in a taxable account? BCE? (No banks/financial; I have plenty.)

Q: What are your favourite Canadian renewable companies for a 5 year investment ? Thanks.

Q: Could I have your recommendations for my dividend growth portfolio. I would like to average 4. to 4.5% yield. (Is that a reasonable target? I will have about $100k to deploy in 4 -6 stocks as I bring down my banking sector exposure. I currently have Agt .8%,AD 4.5%, AQN 1.2%, ALA 4.5%, BCE 6.1%, DIV 4.2%, ENB 5.8%, IPL 6.7%, PUR 2.6%, SPB 1.8%, SYZ 2 %. I am think of adding to AQN , PUR and SYZ maybe adding BAD and Fortis. I look forward to your ideas and thoughts.

ps could please tell me what the lessons learned are from crx I am still smarting and thinking of adding stops and not sure which stocks should have stops and what percentage of the current price to employee. mike

Q: Having an Income portfolio including the above companies, I'm unsure of the effects of a potential increase in US rates in say December 2016 when at the same time the Bank of Canada holds rates or even maintains dovish tone signally near term rate cut. Will holding Canadian interest rates steady offset what would otherwise be negative pressure of a US rate increase on Canadian dividend paying stocks? Thanks

Q: I am looking for yield but also growth, would you suggest Enercare or Algonquin? Thanks for your help,
Pierre

Q: I have about 9% in utilities in an otherwise balanced portfolio. All these companies have dropped from 5 to 10% in value over the last while. Can you explain this. Should I lighten up on utilities, and if so, which one(s) should I sell? Thanks.

Q: Good Morning
Their are rumblings about The Ontario Government tearing up their pricey Renewable Energy contacts (National Post-Solomon). What is the probability of this happening and what renewable companies Transalta, Brookfield, Algonquin etc would be damaged.

An enjoyable Thanksgiving to al

Q: Planning to add 2 of the suggested utilities to a growth portfolio or alternates that you might suggest & the rationale. Thank you.

Q: My portfolio consists of 6-7% Utilities. I would like to add AQN. With everyone targeting Utilities as a sector to suffer under higher rates, is this a good idea? If so would you suggest the common or the Investment receipts and how big a position.

Thanks to the Team


.

Q: I am looking to crystallize gains in PPL, and seeking an alternative in the pipeline/utility sector. I currently own ENB and TRP as well as FTS. What do you recommend for diversification in combination with those three?

Q: I have zero exposure to utilities at the present time. I believe that you advocate having exposure to all sectors of the market because you never can know for certain what the market will do. While most people expect interest rates to rise and utilities to under perform, the same could have been said in 2013. Which is your favourite utility and which utility offers the best dividend growth to potentially offset future interest rate increases. I am looking for low volatility, good dividend yield and good dividend growth.

Thank you,
Jason

Q: Regarding Richard's question re AQN. I think he was asking about the instalment receipts in particular. They were recommended on BNN Market Call.
I participated in the EMA and FTS instalment receipt deals with their large USacquisitions. In both cases things worked out well. Of course it has been a hot market for utilities so the underlying shares increased in value while I was holding the receipts, which obviously helps.
Two comments 1) These deals make sense only if you would be comfortable owning the shares when the call for funds comes (when you have to put up the other 2/3 of cash). It is kind of like selling a put. The income is nice, but you have to be ready to buy the security if things go wrong. 2) best not to buy in a registered account, unless you have room to add the additional 2/3 cash to buy the shares. You don't want to be forced to sell the receipts at a bad time just because you are trapped by your RRSP or TFSA limit.
Hope this was useful.
Cheers
John

Q: can you look at the investment receipt for Algonquin Power. is it worthwhile at this value?