Investment Q&A

Q: I currently own Bep.un and want to buy BEPC.

1) If I sell BEP.UN for a loss can I replace it with BEPC right away or are they consider same stocks.

2) If they are same stocks and I buy BEPC do I need to average stock price for BEP.UN and BEPC.

3) Which one is more dividend Tax credit benefits.

4) If they are same stocks why BEPC has outperformed BEP.UN.

Thanks for your great service

I wish your team a Merry Christmas and Happy New Year.

Q: I am considering increasing my half position to a full one for BEP.UN. Could you comment on this company given it's decline. I would like to know its payout ratio (based on cash flow, of course) and if you consider it a buy/sell/hold at the moment. Also, do you see any potential headwinds for it in the future?
Any insights are appreciated!
Thanks!
Paul

Q: Just curious as to whether you have any insight on the slide of over 6% in the last 7 days? Last news I can see was the 19th, and seemed positive.
Thanks!
Paul

Q: Yesterday I asked you about a group of stocks with respect to trimming our positions to reduce our overall stock exposure.

Now I would appreciate it if you could categorize these stocks with respect to your opinion on the impact of Trump's election. Perhaps the categories could be: positive, negative, neutral, or not sure.

The stocks are:
BAM
BEP.UN
BIP.UN
BCE
EMA
FTS
NA
RY
SLF
TD

Q: My wife and I are mainly dividend investors. We tend to hold our stocks for many years. Due to the significant increase in the value of our stocks this year, we are considering reducing the percentage of some stocks in our portfolio by about 10%.

Could you please give your opinion as to which of the following stocks you would reduce. Would you reduce one or two selected stocks, or perhaps reduce across the board? All of the reductions would be in registered accounts. You can assume the stocks are all about the same percentage of our portfolio.

The stocks are:
BAM
BEP.UN
BIP.UN
BCE
EMA
FTS
NA
RY
SLF
TD

Q: If you own BN is there any particular reason to also own BEP.UN and BEPC?

Q: Hello. What are some Cdn list companies that pay dividends in USD? Any with decent yields (above 5%) and/or with solid dividend growth? Thanks!

Q: May I have your comments on earnings

Q: I believe all of the companies have reported. May I have your comments please.

Q: Hi 5i Guys,
We have generated some cash and I would like your thoughts about parking the extra cash in BCE or Telus and at least getting paid a nice dividend which greatly exceeds the interest that we're getting.
Any thoughts or suggestions are appreciated.
Thanks

Q: Good morning,

If you could pick just one, would it be BIP or BEP. And why?

Thanks

Q: Where do you think this might bottom out? I sold half around 11. It’s in my rif so no tax issue. Just blow it out??

Q: We are planning to set up a separate investment account for our grandkids. Assume a 10 year hold. There are a few sectors we would want to overweight - 3 stocks, CAD or US, in Financials, Industrials, Technology and 1-2 stocks in the others. What would you look for and how would that translate into individual stock selections.

Q: Your top 5 Dividend stocks in order please for CND and US? Long term holds

Thanks you

Q: Capital Power has performed extremely well this year, for a utility stock especially. I am wondering how much more room it might have to run. I also hold AQN at a loss large enough to eliminate my gain on selling CPX, so tax considerations are not an issue. I am pondering the wisdom of selling both AQN and CPX and replacing with another utility such as BEP.UN. I am looking at capturing a yield >5%. Any other suggestions would be welcome.

Q: Following these recent QA regarding BN.

Sep30 “ As per the latest annual financials, BN holds a 25.0% interest in Brookfield Asset Management (BAM), a 54.6% interest in Brookfield Renewable Partners (BEP.UN), a 73.9% interest in Brookfield Infrastructure Partners (BIP), and a 34.5% interest in Brookfield Business Partners (BBU)”

Oct01: “Owning the three noted will provide higher income and somewhat similar exposure. But BN will prove the 'private equity' component of its businesses that the others have less of.”

I own BN since BAM-reorg and it did very well this year. If we look at it’s underlying assets : in the last year BAM/BBU did OK but not as much, but both BEP and BIP did poorly. May be a stupid question, why did BN do so well? Market speaking? “private equity” or other assets heavier than we think? Thanks ++

Q: I am assuming that the recent increase in weight of BEP.UN (Income Portfolio) is also an endorsement to accumulate BEPC since they are supposedly “equivalent”. EPS forecasts for BEPC appear as grim as for BEP.UN, with increasing losses forecast for ’24 and ’25. In a recent Q&A on BEP.UN it was stated EBITDA is more relevant than EPS since it’s a limited partnership. BEPC is not a limited partnership so should it be valued differently? I don’t recall ever seeing a stock begin to trend up in the face of falling 2-year EPS forecasts. 5i has cited the expected decline in rates as a catalyst, but there must be other factors contributing to the rising stock price - perhaps rising revenue, confidence in management, …?

Q: The information provided to Tom on September 23 made me wonder about this company, specifically that it’s operating earnings has not covered its dividend for the last 12 months.

I am not a fan of EBITDA which you consider to be a better indicator of the financial situation. Does not INTEREST affect cash flow and the ability to pay dividends ?

You indicate that cash flow varies widely with water levels and electrical generation. With climate change ( drought and floods ) being a significant factor to operating cash flow, should I not be concerned ?

BEP.UN is close to 10 % weighting across my different accounts.

Thanks. Derek

Q: For BEP.UN, I read that the earnings are forecast to decline by an average of 7.2% per year for the foreseeable future. Also the dividend is not well covered by earnings and cash flows. Are these reasons to sell BEP.UN now???......Tom

Q: According to my Portfolio Analytics, I should raise my investment in the areas of Consumer cyclical and utilities.

Can you recommend your top 3 picks in both Cdn and US stocks for these sectors?

Thank as always.