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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: It looks as though utilities, and renewable utilities in particular, have taken off, while Canadian pipelines, which are also traditionally stable investments, are either flat or dropping.
Do you have any comments on whether:
1. this is a short term disparity or a fundamental shift,
2. whether one group is better than the others at current prices, and
3. If the recent drop now otherwise creates a good point of entry for any or all?
Read Answer Asked by Peter on March 09, 2020
Q: The valuations on companies with a favourable ESG component are lofty at best. Do you see any in this sector that are still reasonably priced? A dividend would be preferable.
Thanks for your consideration.
Read Answer Asked by Denis on February 21, 2020
Q: These companies represent 17% of my portfolio, with ENB and NPI positions being 3.5% each and the remaining approx 2 % each. Recently stock prices of several of these have increased 10 % or so.

Should I adjust any of these positions?

Without really knowing the remainder of my account, what percent in utilties would be suitable for a ten year horizon?
Read Answer Asked by Richard on February 11, 2020
Q: In reviewing the 5i responses to questions on these 3 companies you seem to favour BEP. In examing the numbers for the last 5 years through Morningstar I noted the following:
2015 16 17 18 19
AQN .30 .33 .37 .38 .79 EPS
6.53 7.14 7.62 6.40 12.9 ROE%
4.60 4.55 5.10 4.18 6.44 ROIC%
BEP. .01 -.23 -.18 .13 .31 EPS
.05 -1.08 -.81 .53 1.34 ROE%
1.86 1.85 1.70 2.82 3.26 ROIC%
NPI -.07 .64 .85 1.46 1.67 EPS
-1.85 15.7 22.1 35.6 39.6 ROE%
1.7 4.7 5.7 6.3 6.6 ROIC%
Both AQN and NPI would seem to have significantly stronger results (ROE%, ROIC%). What key data points do you look for in this investment sector? Your thoughts on your selection criteria would be appreciated.
Read Answer Asked by Richard on February 06, 2020
Q: Please rank these companies with a long term hold in mind.
Thanks
Read Answer Asked by EVAN on December 06, 2019
Q: I have small positions in the above,except for npi. I am considering selling some of bep.un,which is up close to 80% and purchasing some npi. I also have bam.a and bip.un. In my portfolios. Would you please comment on this proposed adjustment and your rationale? If yes,would you wait for a pullback in bep.un. Thank you.
Read Answer Asked by Steve on November 28, 2019
Q: Hi,

Looking for a long term hold, preferably lo-volatility and some growth. I own the banks, AQN, BAM, and ZQQ. Can you recommend your top two picks and why?
Read Answer Asked by Graeme on November 13, 2019
Q: Hi, could you please rank the preferred shares of the above companies best to worst in order of dividend sustainability only going forward. Are there any you would avoid. Thanks.
Read Answer Asked by Gary on November 12, 2019
Q: My Reit and Utilities have become underweight in my portfolio (not because they haven't done well - other stocks have just done better). What would be your top three value investments in these sectors today (they all seem a bit expensive right now) in both the US and Canada. i am looking for both income and a bit of growth.
Read Answer Asked by kelly on October 23, 2019
Q: I already own BAM, RY, T, BOYD Income, and ZLU, but I'm looking for another lo -volatility dividend stock with some growth. What do you think of my adding NPI or BEP? Is there another choice you like?
Read Answer Asked by Graeme on October 18, 2019
Q: I have a 6% position in NPI and am happy with what the company is doing. But I am interested in any comments you may have regarding this article. Do you see this as a net negative for companies trying to raise money in Canada or for us retail investors?
Thank You

"The Globe and Mail reports in its Monday edition that Northland Power ($25.26) raised $346-million in a stock sale this month to pay for an acquisition in Colombia. The Globe's Andrew Willis writes that Northland plans to spend $1.05-billion on an electrical distribution network that serves 1.3 million South American customers. Northland's portfolio already includes wind farms and solar-power facilities in Canada, Germany, Taiwan and Mexico. To pay for the acquisition, Northland sold $346-million of subscription receipts and will borrow the balance to buy the business from Brookfield Asset Management. A string of equity offerings of late have been poorly received. Banks struggled to sell shares of New Gold, Corus Entertainment and Green Organic Dutchman Holdings. The lack of investor appetite for what Corporate Canada is serving up feeds into a larger debate over the relevance of ordinary, retail shareholders in a market that is increasingly dominated by passive investors, such as index funds, and private sources of capital. Mr. Willis says investment bankers are wringing their hands over a steady slide in public market offerings. The value and volume of equity financing in Canada is dropping steadily".
Read Answer Asked by Robert on October 02, 2019
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