Investment Q&A

Q: Which of these companies do you consider to be a better buy at this time. Clearly I'm looking for sustainable dividends but also some growth over the next few years. Do you have better suggestions in the utility sector?

Q: Clarification please on the Sept 19 question on "valuation" of these 3. It was stated "AQN's valuation at 12.4x (ACOX at 8.3x and CPX at 7.6x)"

What measure do these numbers refer to and are they forward or TTM?

Q: Hi, AQN stock has languished over past years and shares have been testing investors' patience. Even a recent large acquisition has failed to reignite the stock price. Based on your recent comments, you consider AQN fine for income but not much is expected in terms of capital appreciation. For a quick comparison of share price performance, I pulled the charts of these four utilities over 12 months and noted that while CPX and ACO.X outperformed by a wide margin, AQN was a complete laggard with FTS in the middle of the pack. We are retired investors and looking for ( In Non Regd account ) stability of income ( with increasing dividends) and some growth potential. We have owned FTS and AQN for many years, but are considering to switch out of AQN ( fully or partially ) to CPX or ACO.X. What are your thoughts about this plan and how are the current valuations of CPX and ACO.X for the switch ? How would you rate these four companies, in order of preference ? Thank You

Q: These four stocks that I have an equal weighting in came to my attention because of the insider buying. Could you please comment on if this insider buying and overall ownership is significant and rank them from best to worst based on that information only. Then please rank them on which would have the best overall return based on dividends and capital gains for the next 3 years from best to worst and explain why (the pros) for the one you ranked first overall and why(the cons) why you ranked the fourth stock last.

And lastly is there any of the four you just wouldn’t buy today. Thank you.

Q: Hi, This week's sharp decline in Pipeline ( ENB/TRP and Others) and Utility (FTS etc ) stocks - Do you think, it is a result of market's renewed fear of continued rate hikes into 2022/2023, as suggested by FED Chair on Friday and re-iterated by other FED Presidents over course of this week including Cleveland FED President, Mester, Today. Pipelines and Utilies sector has performed well this year, but may be, due to its higher yield, is causing some worry to investors. Your comments, co relation of high rates and other factors, impacting these sectors will be much appreciated. Would it be prudent to underweight the sectors, in near term. Thank You

Q: What would account for ATCO's lackluster performance over the last 10 years? Lumpy earnings? The chart looks quite good in the years prior to 2012, and the dividend appears to have been raised fairly regularly.

As a retired dividend stock investor, I am interested in it's diversification. I do have exposure to the Brookfields, but do you think there is enough difference between ATCO and BIP/BEP to warrant an investment in this company?

Q: Hi, There seems to be a systematic decline in equity values, for past two days, in sectors like Utilities and Telcos, which are considered proxy to bonds, due to their higher yields. They held on better than the market, in general, during past few months. Do you think, the fear of rising rates has finally caught up with these sectors and these stocks might come under pressure, even more, in near term, as Fed and BOC continue with their plans to hike interest rates. What's your advice ? We have about 10% weighting in each of the two sectors. Thank You

Q: Could you explain the divergence in stock price between these two classes of Atco? According to the Globe, Y is up 9% over 52 weeks, while X is only up 5. YTD, X is up 7.31% while Y is up 15.56%. In the last 5 days X is down 4.2% while Y is up 9.81%

Q: Please rank the above 7 stocks in terms of the negative impact a recession-based bear market would have on their price, and also on their ability to maintain their dividend.

Thank you!

Q: Hi guys
could you please give me your evaluation of this stock and whether it is a good play in this sector or if you feel there is a better choice thx as always

Q: Can you name 5-6 Canadian dividend stocks that you think might be a good spot to ride out higher interest rates for a while? Thank you

Q: Hi 5i,

Which one would you choose between ACO.X and CU for an RRSP?
Can you help explain your reasoning?
What would be a good price to pay for your choice today?

Q: Could you please explain your logic for your answer to "Greyhairs".
It seems counterintuitive.
Thanks.

Q: Hello Peter and team,
If given a choice, would you choose Hydro one over Atco? Any idea why Atco has not done well over the last 5 years and if one is to invest , is this a good time? Thanks very much.

Q: Hi Peter
Can you please explain the rationale in adding Atco to the income portfolio? If 80% of its income comes from Canadian utilities, why not purchase CU directly? How is Atco better than other canadian utilities?

Thanks

Q: Hi 5i,

Is there value in swapping EMA for ACO.x in my portfolio with all things being equal. Its in your div. port. so one of your favorites.

Thanks!

Q: In my RRIF account I hold NTR which has broke two of my sell/trim thresholds. It has grown by 100% and is now over 7% holding in this account, so I may trim back to a 5% holding. My short list to replace with a higher dividend income in mind are ACO.X, EIF, NWC, and PKI. Could I please get your ranking and if any should be removed from short list.

Q: I might be finding out I'm less comfortable with volatility than I thought I was <g>. Or am I losing sight of longer-term trends and overreacting to isolated daily extremes?
Two of my holdings are down quite a bit more today than the general market and my other (mostly relatively conservative? - communications/banks/utilities) holdings.
Anything going on sector-related (CT REIT down almost 5%) or company-specific (Atco / utilities down over 3%)? None of my other utility holdings are nearly this bad today.

Q: I am trying to steer my and my husband's TFSA's more toward growth. The stocks listed are some of the stocks in our TFSA's that I am considering swapping out in favour of growth-oriented stocks on my watchlist. Can I get your opinion? Do you think that any of the listed stocks have enough growth potential to belong in a growth-oriented TFSA?
Thank you, Doris

Q: I am drastically under invested in utilities. I presently hold the following - each is under a 1% weighting - AQN, ACO, BIPC, BEPC, BEP.UN, CU, and Fortis. Which would you sell? Which would you add to? All are in corporate non reg acct. Also want to increase my US and International exposure. Is there a reason not to do it in this sector?
Would appreciate US and International companies you favour. 5 year hold.
Thank you.