Investment Q&A

Q: I sold TRP today at basically a break even price because I do not want to wait out the final outcome of their recent split up plan and to see how their debt is allocated etc. I was in the stock for long term income given I am recently retired. It will be hard to find an equivalent yield, given capital preservation is a prime objective along with the income. TRP was held in a non registered account for tax advantaged dividend income.

With long term capital preservation a goal along with income generation, and that I hold all of the above listed companies already in appropriate proportions and don't wish to add to them or their sectors (no more utilities, financials or telecoms) what other Canadian blue chip dividend companies would you consider for long term hold with decent dividends for income? I also already have enough allocated to bonds, GIC's and cash accounts so I'm not considering these assets either.

Manageable debt levels and ability to maintain dividend growth, hopefully at the rate of inflation or higher is the main criteria I would hope to have in replacing TRP for the long haul. Thank you for your valued insight in giving me suggestions to look at.

Q: I am looking to raise some cash from my RRSP by selling 1 or 2 of the companies named. Please rank the companies from best candidate to sell to best to hold onto with a few supporting comments. Always appreciated. ram

Q: First is Algonquin dividend "safe" and secondly what is an investor to make of the Starboard 5% stake anouncement . Thanks John

Q: Hi Peter and Team
I still hold AQN in a LIF account and would like to replace it with something that pays a decent dividend and will in time recover the more than 40% loss. What do you think of GEI, BEP.un, BIR, TD, or BAM as a replacement? Please rank order. Any other suggestions would be appreciated. Obviously no regard to sector.
Thanks for your guidance, Gary

Q: AQN has not been perforning well recently. Is it a sell or a buy

Q: Retired dividend-income investor. We hold AQN in my wife's RRSP...held it since 2011...bought it at $5.60 and trimmed it several times over the years.

I am debating whether to flush it and take the proceeds and buy ZUT. I also own FTS, TRP and other utility-energy equities contained within ZLB and CDZ.

For the "keep AQN" argument = a) good momentum YTD = +27%, b) great chart, especially with the 50 mda overlay, c) if there is a take-over of AQN, there is a probable premium of "who knows "% (30%?).

For the "flush AQN" argument = a) with other planned cash injections throughout 2023, this would improve my overall sector allocations, b) minor point, but it would simplify my portfolio, by the elimination of a holding (I hold a reasonably concentrated portfolio of 12 blue chip stocks and 10 ETF's, plus fixed income), c) I thought I read that AQN is not expected to have a high rate of growth this year, d) the holdings inside ZUT look appealing, containing both renewable and non-renewable.

I am ok letting it ride for a while longer, but also ok flushing it. Your thoughts? Am I missing anything? I know you can't compare a single stock to a diversified ETF.

Thanks for your help...much appreciated...Steve

Q: Good morning,
May I have 5is opinion (pros and cons) regarding the following please.
I have just rolled my RSP into a RIF and am thinking of selling AQN and SPB and consolidating into ZWU. My thinking is that this will in a simpler more stable way of provide equal to better performance (income with some growth) over time. Do my thoughts have merit? I also hold BEP.UN as well as FTS.

Thank you for your thoughts and opinion.

Q: Hi Folks,
I have decided to sell AQN from my RRSP account. Can you suggest a possible replacement. Looking for something with a good safe growing yield. I also hold BIP.UN and FTS.
Thanks,

Q: hello 5i:
according to TMX Money, insiders have bought, over the last 6 months, 254,360 shares; while not selling any. Even if the average buying price was $10, this is $2.5M worth of stock. What do they know, or see, that we don't? And why would the price have jumped over 2.8% on Wednesday, a day when the S and P was down? Disclosure, we do hold AQN and am thinking of selling and replace with something like ZWU, as we're more interested in income, with lower volatility. But, of course, we don't want to miss out on a higher price (on AQN). That may be a few questions; take as many credits as is needed to properly answer (we're not short on credits lol)
thanks
Paul L

Q: Currently down significantly on these names, especially SHOP

Please confirm whether all are “keep-able” in a long-term (10yrs+) balanced portfolio.

Would you add to any at current valuations, and which one(s)?
Thank you!

Q: Gotta say I’m confused,the reason Aqn dropped so much when it reported the cost to acquire Kentucky with rising interest rates was going to handcuff for future acquisitions and also had to cut their dividend,so when they announced they were not going to proceed I thought probably like others getting out of this deal would be a HUGE break and short term catalyst actually results in a further 5.2 % drop,what am I missing…thanks

Q: AQN seems to be staging a comeback, it looks inexpensive and pays a fair dividend but it seems you are negative on it, why?

Q: Hi Folks,
I have the above Utility companies in various accounts. I am looking to add 1 more to my TFSA ( currently have EMA ) and 1 more to my wife's TFSA ( currently has BEPC ) - can you suggest which one you would recommend that I add to each TFSA, either from the above OR something new.
Thanks

Q: I am 30% down on AQN. Would appreciate your thoughts on AQN. Is it time for me to move on?

Q: Not a surprise: I am seeing news media reporters with income portfolios cutting Algonquin after their recent drop and dividend cut. It is also noteworthy that it has rallied.
Realizing that it apparently made some leadership decisions that weren’t ideal, its cash flow due rate increases was flagged as a major reason for the dividend cut.
Do you see that this continues to justify this drop or should it hopefully rectify itself when rates stabilize or drop again?

Q: hi, in regards AQN Kentucky power transaction- the end of March is the end of comment period, with presumably a decision on whether or not this transaction will go through shortly after? do you have any sense as to this purchase going ahead, or not going ahead ( and AQN paying a penalty ). further, what do you think the potential upside could be with an announcement of the merger NOT going forward; and conversely what do you think the downside in AQN price could be if the merger does go ahead? cheers, chris

Q: hi, AQN is ex-dividend today. does this mean I can sell today ( assuming all dividend hunters have not driven the price down by selling today too) and get the next dividend April 14, 2023? cheers, Chris

Q: Retired, dividend-income investor. Following up on your answer to my earlier question. I hold AQN in an RRSP and am considering replacing it. You suggested the following stocks = PPL, NPI, BEPC, BIP.UN, BLX

I have researched their metrics (P/E, Beta, P/B, P/CF, P/S, ROE, Payout, Market Cap) and technicals. My ranking, based on a desired conservative holding, Is = PPL, NPI, BEPC, BIP.UN, BLX.

My rationale is I hold FTS, TRP and AQN representing 8.6% of my portfolio vs NNRG and NRGI at 7.3%. I am leaning towards adding a more conservative name...such as PPL.

Q#1 = Is there an overlap between TRP and PPL, to the point that I only need one? What % do each of these names have in Nat gas vs oil? I know TRP is heavier to NG, not sure about PPL.

Q#2 = based on my above notes, what would your suggested ranking be?

Thanks....Steve

Q: Retired, dividend-income investor. I hold AQN in my RRSP, bought it in 2011 at $5.60 (not a typo) and have trimmed it multiple times due to asset allocation. Not that it matters, but I am still up 15% over my ACB.

Looking forward is what really matters. AQN is up roughly 20% from it's low of around $9/share. Q#1 = Do you think AQN can continue their short term performance?

I hold AQN, FTS, TRP, NNRG, NRGI, and utility-energy stocks held within CDZ, ZLB, ZWC. Q#2 = What conservative utility or infrastructure stocks should I consider that might "fill the gap" in my current holdings? Please list 4-6 stocks for me to do further research on.

Q#3 = Should a component of "renewables" be a consideration? That was one of the reasons for holding AQN. Ideas?

So the bottom line is = what's done is done. AQN appears to be starting to recover and there is always the chance of being bought out.
1. Hold of sell,
2. Replace with what,
3. Include renewables?

Thanks for your help....Steve

Q: hi, can I get your thoughts on earnings, thoughts on AQN going forward, etc.
I still own large position, suffered the downturn in price/dividend, with a potential good size tax loss advantage if sell. do you see this as a buy, sell or hold for an average investor? and in my case, if selling for the tax advantage, can I get 5 or so names of mid/higher dividend yield/some dividend growth/decent company earnings growth and decent ROE, with lower risk and lower volatility? names do not need to be utilities (I own plenty). further, if you have high conviction on any growth stock (CDN companies) right now I could consider, eg BN?????
cheers, chris