Investment Q&A

Q: Thank you to the whole 5I team for your precious help during these difficult times. I am retired and I hold shares in a corporate account of DIR and CAR with losses of approximately 30% each. The company is expected to close within 3 years. Do you think these 2 titles will go back to their paid level by then. If not, would it be appropriate to sell them take a tax loss and migrate to companies with slightly lower dividends but with more growth? I thought of BIP and BEP or BAM. If not, do you have any other suggestions?

Q: What will be your Top 10 stocks in the TXS 60 index to get the highest dividend with the lowest risk reward?
The 10 stocks suggested in BEAT TSX 2020 seem a bit risky.

Q: If we have yet to reach the worst of the virus threat and if the current question mark regarding the direction the price of oil will take in the future poses a problem, I think we have yet to see the lowest prices for these companies. The question is how much further down their prices can go. If my theory is correct, at what price would you take an initial position in these companies?

Q: BIP.UN and BAM.A are down 47-48% over the last month (BEP.UN down 41%), and have been quite volatile intraday. The whole market is getting hit, but would have expected these to be a "little" more defensive. Why would that be? Are there any particular COVID related concerns for these stocks/business models?
Any concern for the dividend? Or is this a good time to add to these positions? Time horizon is long term

Thanks for the great service

Q: Could you please discuss BAM/how it is structured with the other subsidiaries (infra, renewables)? I'm a bit confused as to how it all works.
Would you say it is best to buy BAM, or the infrastructure company or the renewables one and why?
They have all fallen a lot... but are they "cheap"?

Q: I am a buy and hold investor with 5 to 10 years of time horizon.
Have the following 7 stocks in Canadian Utilities in the order of their weights in our portfolio. Utilities makeup roughly 8.5% of the total portfolio including cash positions and like their dividend. FTS, TRP,EMA, AQN, ENB, BEP-UN, BIP-UN. I like to reduce exposure to utilities and also like to reduce number of different shares. Two questions:
1. Is 8.5% a reasonable weight considering the current situation?
2. Which one of these I should sell to reduce utilities weight and to reduce the number of shares in utilities?

Q: How would you rate BIP as an investment for the next couple of years (In comparison to other large caps) and would you put money into it today?

Q: Do we have an ex-dividend date set yet for the Canadian share spin-out/dividend for these two companies?

Thank you............ Paul K

Q: I hold 50 shares of bip.un in myTfsa and am up 50%. What will happen to this holding as of March 31 and what might be your recommendation? Do I have to tender the shares?

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?

Q: Can I get your thoughts on BIP.UN? How’s the valuation? Is the pullback a buying opportunity? Should hard assets fare better in this environment?

Thanks,
Jason

Q: Hello 5i team,
I've held a good number of stocks you hold in your BE portfolio and I've managed to obtain a 14% compound annual total return in the last 11 years.
100% of my portfolio is in equities; I'll be shortly 77 years old and plan to reduce my equity exposure to 30%, with the above stocks in mind.
Your opinion is most valuable
Antoine

Q: I want to buy Brookfield stock, please help me to make my choices and
grade them by order suggesting best choice first .
andrew.

Q: Hello peter, At this time, which would you prefer from total return perspective.
BIP - 1 year high and yield 3.9%
BEP - 1 year high and pay 3.8%
BPY - towards 1 year low and pay 7.2%
Are you concerned with low dividend growth at BPY.
Thanks

Q: Utilities seem to go parabolic since December 2018 with no sign of slowing down. Since interest rates seem to remain low for a foreseeable future, is this a new secular trend emerging from improved interest in green energy. ZUT in particular includes many renewable power generator companies. So I basically have 2 questions: If this is a new secular trend should one increase their utility allocation ? 2: Is there still life for oil and gas companies ?

Q: Hello. I think my queries submitted have gone AWOL! May I have your comments on earning please

Q: Is there any substance to rumors of conversion to corporations? issuing 'free' shares?

Q: Hi, what are the earnings expectations for BIP.UN?

Thanks!

Q: I own way too much of BIP.UN { 22.4% } and will be trimming when I get my free shares. And have a position in BEP.UN which has risen to a 6.3% position which I am okay with size wise. Even though these are two huge winners for me I always look at it as " Would I buy them now ? " .... Not sure that I would. Mr Market seems to be in love with the name Brookfield right now and the forward PE on BEP.UN is 298 { Source Yahoo Finance } which seems astronomical for a utility. And though I cannot find one for BIP.UN the trailing PE is 377. { If you have a forward PE I'd like to know what it is ? } ...I realize there is more to evaluating a company than the PE but I am thinking these two are expensive......Plus I kind of view them in the blue chip category not the wild growth spectrum.......What is your opinion on the fair valuation of these two companies versus " Investors have gone gaga for the name Brookfield right now " ?

Q: With gains over the past year, I'm overweight in these holdings - BAM 7%, BEP 12%, BIP 8%. I'm not uncomfortable with BAM and BIP but BEP is high.
Do you think there is more short-term upside in either BEP or BIP due to the addition of corporate structures?
What overall weighting would you recommend for these 3 companies and do you have a preference for any - these would be long-term holdings (8-10 years) in an income focused portfolio?
If trimming is recommended, what are your top 3 recommendations for reliable and growing dividend paying stocks, sector not being an issue?
Thank you
Ian