Investment Q&A

Q: Hello Peter,

I am a long time 5i Member and happily own the Balanced portfolio and 5 names from the growth portfolio across my TFSA, RRSP, LIRA and Non-Registered accounts.

Recently I have taken on a small business loan and excess cash to invest. Given that the business loan is tax deductible, I am looking to invest the excess cash in my Non-Registered account.

Can you recommend 5 steady blue-chip Canadian dividend payers to help mitigate the interest costs on the loan? I already had T, ENB, SLF and BNS in mind.

Given that I would only be leveraged 10% in equity, and the latest sector rotation away from non-cyclical stocks (Telco's, pipelines) should I consider more growthier names for my equity picks? That would mean adding to my already owned positions in the 5i Balanced portfolio.

Of course, the last option is to pay the business loan and call it a day. I will however be in equites for the next 30 years and know that in the long-run it is a equity markets is a great wealth creator.

Lastly, great foresight and homework done (not luck) on the AVO selection!

Thanks for your continued support and wisdom!

Q: together these 5 stocks make up 10% of my portfolio. not a terribly large weighting but enough that i have felt the recent decline. I understand the correlation between interest rates and these companies that are viewed as bond proxies. Since Jan 1 2018 BCE is down 5.5%, BEP is down 7%, BIP is down 8%, TRP down over 9%, ENB down over 10% (all return % are excluding dividends). ENB is now yielding over 6% if their Q1 2018 dividend is extrapolated for the FY 2018. my question is at what point does one consider the decline overdone and step into one or a few of these? a 6% yield on ENB is looking attractive to me but do you think there is still more downside risk in these names?

Q: What's your favourite Canadian value stock that yields at least 4% ? Thanks

Q: Greetings 5i,

I would like to ask your advice regarding my exposure to the Brookfield group of companies.
I currently own both BAM.A and BEP.UN (each at roughly a 3% weighting). I am aware that BEP offers a significantly higher yield, and realize that renewable energy is almost certainly the long-term future of the sector. However, given BAM's "parent company" status over BEP, as well as it's obvious diversification advantage (I consider BAM to be among the best long-term investments on the TSX), I am not sure that holding both is necessary for my overall goals.

My Canadian utilities exposure also includes a full position in FTS.

I am 36 years old, debt-free, conservative, and greatly prefer long-term holds that do not require constant monitoring. I am also making a effort to simplify my portfolio, and am not adverse to slightly reducing my number of overall holdings (currently at 34). My investment portfolio is strictly for the purpose of expediting my retirement, and I have no need of its funds for the foreseeable future.

Given my goals, do you feel as if my current Brookfield exposure is appropriate, or would a consolidated, 5% position in BAM (5% is generally my limit for a single holding) be more conducive with my long-term strategy?

Thank you.

Q: These utilities seems to have taken a deep correction that looks like a buy opportunity.
Am I missing something?

Q: I am concerned about rising interest rates and the recent performance of utility stocks. Should I sell my Fortis and BEP shares and add to my position in SLF ? Is it possible that the affects of rising rates are already priced into these utility stocks ?

Q: I am fairly new at this and of the companies mentioned above I want to set up a Dividend portfolio using 3 to 4 of them. Suggestions would be very much appreciated as I am not well schooled in this area.
Thank you

Q: While I know BEP is a larger company, could you please compare these two in terms of debt, safety of dividend and stock price and potential problems?

What would be the effect of a 1% rise in interest rates for these and other utility companies?
Thanks for your thoughts.

Q: Would you be able to offer any insight to the sudden drop in utility company valuations?

Q: Hi,
I am a long term growth investor, with no need of the invested money right now. Do you think I am better off long term with BEP and using a DRIP program or moving to a different utility company? The only other utility I have is AQN. Or can you think of a different place to put the money to work (maybe a few suggestions in case i already own what you suggest).

Q: What do you think of this new issue?

Q: Good morning Peter:
Being a senior over 65 , I treat my TFSA as an extension of my RRSP.
With the market being so high and preservation of capital being important, can you give me three (3 ) dividend stocks that I can add to my TFSA for a secure retirement.
Can you also add your reason for choosing these ( 3 ) dividend stocks.
I presently have only banks in my TFSA and I have done well.
Thank You

Q: Looking for a security for long term stable income in my TFSA. Which you recommend between ZRE and BEP.UN?

Q: What would your choice be between ZRE and BEP.UN. It would be held in a TFSA for income and growth and stability.

Q: i already have full positions (4%) in bip and bep. i have been looking at bbu but after going through some documents on the bbu website it appears that bbu is engaged in some similar businesses as the other 2. what would you recommend as another option besides bbu?

Q: I am surprised that you favour this company I hve held it for some time and has done little eg another down day today I am contemplating cutting my loss
Stan

Q: Which of the above stocks would you consider having the greatest growth potential within the next one to two years with the least amount of downside risk? Can you please provide your rationale for your choice.
Thanks

Q: Peter I have 100'000inus funds I want to invest it in Canadian companies who pay dividens in us could you suggest say 8 to 10 stocks that you would consider for this I am retired and it is for income should we go south at any time
Thank you for your advice Pat

Q: Ignoring sector considerations, which of the following would you look to take a position in today in a RESP with a 6 year time frame and an objective of achieving the greatest total return: BEP.UN, CSH.UN, BCI, ECI, DOL?

Q: Hello Peter
As a recent new member, I am both impressed and a little overwhelmed with all the information. I started making a lists of potential companies to invest with, but decided to cut to the chase and just ask you....I am looking for your recommendation for both income and growth companies.... perhaps 4 or 5 of each. I am fully invested in TD, which has done well for me this last year, as well as a couple energy stocks.... Spartan and Ring. I am retired but have a steady income flow with pensions and dividends from an ongoing business. Thank you for offering such a great service and look forward to a bright and lucrative future. Brian