Investment Q&A

Q: all of these holdings are between 1-3%...financials i hold 13% with energy next largest at 6%...yet all of these are hitting 52 week lows...which would you consider dumping if any...yours truly dazed and confused...

Q: Hi 5i Team,
I own positions in IPL, ENF, KEY, ALA, and PPL. I am a long-term income investor who (like many) is a bit disappointed with the relative (to the market) decline in the share prices of these companies. All of them have been good at growing their businesses, earnings, and cash flows, and dividends - cornerstones of my investment strategy. On a fundamental basis, I don't see anything wrong with any of them, and am inclined to stay the course, thinking the market will eventually reward these companies. I recognize that many of these companies carry significant debt (at low, long-term rates I would think, and not variable rates), and the current Canadian regulatory environment is a negative for the industry.
Can you poke any holes in my investment strategy with respect to these names?

Q: If you were to buy one of these today, what would you buy and why?
Thanks,
Milan

Q: hi
Joe asked about your top ten juicy dividend payers. Some are barely in the 3% zone.
Are you preferring these because of safety? Growth?
Are the higher yields from the names I listed at risk of cuts? There are quite a few out there yielding 5% +
Thoughts on these higher yield names?
Thank you!!

Q: Now that ENF is at a 52 week low, is it considered a bargain, and decent, safe stock for dividend income, and dividend growth? The yield is now 8.07% with a price of $27.98. Or, can you suggest other stocks with a similar yield?

Q: I am considering buying ENF. I know 5I prefers ENB but my reasoning is that...
1} ENF has a higher dividend and is committed to the same 10% annual increase
2} Though ENF has shown related volatility it hasn't been as extreme as ENB
3} ENF is well off it's highs and offers a 7% yield while I wait. So I don't really see it as solely income.
My questions are
1} How if any does the debt of ENB which seems to have investors spooked effect ENF and does ENF have debt investors may or should be concerned with ?
2} ENF is issuing shares. Why should I pay a premium now rather than waiting til the shares hit the market and buying after investors digest the dilution ?
Thanks Garth

Q: Can you comment on the stability of both these investments

Q: What is your opinion of this stock...is the dividend safe ...I know enbridge has a lot of debt could this affect ENF...

Q: Which would be better for growth and safety of dividend.

Q: continue to hold or sell?

Q: Please explain the difference between ENB and ENF.
Thanks for your ongoing excellent service.
Frank

Q: Six questions regarding pipelines:
(1) I understand that Enbridge finances most capital expenditures by way of debt or new equity, not retained earnings. I am thinking that this would be OK if its GAAP earnings per share are keeping pace with dividend increases and its debt service coverage is stable. Do you agree with these comments?
(2) I assume that the prospects for ENF are tied to ENB. Do you agree?
(3) Do PPL and IPL have the same policy as ENB regarding the financing of capital expenditures?
(4) Do you have preferences among ENB, IPL and PPL and, if so, why?
(5) If I am correct, ENB is mostly pipelines, PPL is mostly other midstream and IPL is somewhere in between. I have this idea that pipelines are more stable than other midstream activities. Is this simply wrong or an over-simplication?
(6) ENF, IPL and PPL represent 10% of my portfolio. Would you suggest lightening up? (I am retired and my portfolio is geared to income.)

Q: Further to a question asked by Clarence this morning I too am reaching for dividend income. Would you consider any of these high dividend paying companies an unacceptable risk today? I guess in terms of capital loss or dividend cuts? Understanding that obviously things could change in the future.
Artis 7.68%
Crius Energy 9.38%
Diversified Royalty 6.37%
Dream Global 6.66%
Enbridge Income 7.08%

Q: I have to cash in some of my RIF and wondering which company would be preferable to invest in. Both dividends seem to be safe with a good pay-out history.

Q: Good Day Great service. Looking to buy ENF or ENB for dividend and growth. What is your choice and why.

Q: I presently hold ENF in an income portfolio. And before I make any change I would just like to verify my understanding of what I read yesterday. I take it that you would favour ALA over ENF for income. Here is the quote from yesterday's Q&A's comparing ENF to ALA:
"We would prefer ALA, for its dividend growth potential and expected growth from its acquisition strategy. We would not be too concerned on either dividend, but would consider ALA also a bit safer. It raised its dividend in October."

Q: What do you think of the 500 million dollar offering of common shares at $27.80, almost a 4% discount at this price the yield will be about 7.40% look pretty good to me
Would you recommend to participate on this deal?

Q: Peter, Maybe I’m not seeing this correctly but it seems to me the double financing by ENF and ENB today are a excellent opportunity to buy great companies at a discount - and get paid very well at the same time. Is there a value trap here ? Thanks. Rod

Q: I have held ALA in the past(2 months ago) and sold it at a loss which I can use to offset some gains. I currently hold ENF but am considering selling ENF and buying back ALA. What are your thoughts on the dividend safety of the two stocks and their growth prospects?

Thanks Ken

Q: If one sold say Enbridge Income fund and purchased Enbridge, within the 30 day period, would this be disallowed as a loss? Thank you.