Investment Q&A

Q: Hi 5i Team:

I have a substantial gain in WSP thanks to your advice. Would you swap it for BIP.UN? WSP currently represents about 2.5% of my portfolio. Is having both a better move and bring my infrastructure holdings up to 5%?
I am a conservative and retired investor. Dividends are good!
Thank you as always,

Dr. T

Q: I would like to get both these stocks up to 5% levels within my portfolio. I'm quite sure you are fine with these two businesses. However, being aware that the Brookfield accounting methods sometimes get negative comments, would owning a total of 10% weighting within the Brookfield family concern you?

Thanks.

Q: I am looking to add BIP as a core long term hold in my USD RRSP account, $39USD seems like a good entry point for half position. Should I be concerned about the recent weakness and sit tight, any thoughts as to why it’s been coming off recently?

Q: For a 8/10 year time period and about $20,000 what 4/5 stocks would you recommend for high dividend and security, including banks and others in order of preference.
Many thanks as always.
Harold

Q: Hi Team,
Given BIP is a Bermuda-based limited partnership with income from many jurisdictions do you know if for tax purposes it would be better placed in an RRSP account vs. a TFSA account (both in US dollars to collect the US dividend).

Thank you.

Michael

Q: What are your top 10 defensive canadian stocks that, in your opinion, will best weather a significant economic downturn and/or market correction.
Thanks

Q: I own both Eci and Bip.un in a registered account.
I am curious how you see the shares of Bip.un reacting to the tender. Will this not be diluting Bip.un shares forcing them lower. Would it be wise to sell and repurchase later or purchase another company you recommend.( please give examples)
Thanks Drew

Q: which would be your choice today Thanks

Q: Hi Peter. Seems like a good idea to let my shares of ECI roll over into BIP.UN. It's in a TFSA. Keep collecting the ECI dividend, pay no fees, and have roughly the same dividend when converted to BIP.UN. What could go wrong? Deal not going through, not all my shares being converted, anything else? As to sector allocation, does it really matter that I go underweight Consumer and overweight utilities?
Thanks so much for this and PUR!

Q: May I please have your comments on BIP’s results.
Thank you very much

Q: Hello Peter,
What do you think about the joint venture between Hydropothecary and Molson's? Does this put Hydropothecary in the same category with Canopy (with Constellation equity) in terms of market perception? Aphria's results look fine, but why is the stock down? Is Brookfield Infrastructure a good buy given its takeover over of Enercare? Also, i noticed from BNN guests who are considered value investors that all of them had vary different views on Enercare from dont buy to hold to top pick. Can you shed some light as to why the views are so different given they all look at fundamentals? Lastly, what is happening with Grande West. It goes up and than back down again. Thanks.

Q: Thanks for the advice on ECI. Nice premium today.
What % of Brookfield Group would 5i be comfortable with in one's portfolio?

Q: Hello 5i,
We too have ECI stock. Thank you. Tendering is new to me. After a Google search we have enough information to be dangerous. Our portfolio is with RB. We only see an option to sell. Can you help by explaining how we tender our stocks? Is it easier just to sell? With FTS and AQN at 5% weighting we are not sure converting to 100% BIP shares is the best plan for our portfolios. Any help is appreciated.
Thank you
Debbie and Jerry

Q: Hello, like many other investors I have an happy problem today, thank you. I have read all the questions on ECI today. Let's say I have 1000 ECI shares and I choose to tender my shares, does this mean that 750 ECI shares (75%) will be sold for a cash deposit in my account and that 250 ECI shares (25%) will be rollover in BIP shares at takeover date? The ECI price on TMX Money is $28.88 right now, do you think this price can fluctuate significantly in the meantime of deal completion? Thanks, Gervais

Q: hello
would you suggest I purchase these companies in my RRIF

Q: Why the seemingly large premium?
Thanks

Q: Hello 5i,
Sorry for another ECI/BIP question, but the questions to date that I have seen haven't addressed my question.
Given the dividend that ECI currently pays out of cash flow, and that BIP will ultimately receive that cash flow, and the nature of the funding, might it be reasonable to expect that BIP would increase their dividend in one of the first two quarters of 2019? Or, would their acquisition make debt re-payment a priority do you think?
Obviously, I know you cannot read the minds of BIP's Board and Executive team, but given their financial ratios, I though you might have some insight.
Thanks!!
Cheers,
Mike

Q: Hi 5i,
Just a comment in relation to BIP.UN’s buy-out of ECI. I have held both of the securities for a number of years. ECI shareholders who have not previously held BIP.UN should take a careful look at it to determine if it is appropriate for their needs. ECI pays a fully eligible Canadian dividend on a monthly basis at a higher yield, relative to the recent past price range of ECI. It may be that the takeover premium makes BIP’s yield higher but only by dramatically lowering ECI’s. In contrast, BIP pays a quarterly distribution that is not an eligible dividend, is broken into three categories for tax purposes, and is paid in $US. Depending on one’s brokerage account set-up, some people may find that they are paying a currency transaction fee on each BIP distribution. It is important to be sure that BIP is really the kind of vehicle one wants to own. I hold BIP in an RSP account and it works well for me in that context but I would probably not want to have it in another kind of account. In regard to tendering to the cash and shares offer, people may want to consider how many BIP shares they would expect to end up with. If one’s ECI holding is relatively modest in the first place and one is likely to receive only 25% or less of the value in shares, a person could end up with a BIP holding that 5i would advise selling as “too small to have a meaningful impact on the portfolio.” If that is the case, it may be better to go for all cash (or sell it all at once in the meantime) and avoid paying a transaction fee later on an unnecessary tag end.
Cheers!

Q: Hello,

Currently a very happy ECI shareholder. Some questions on the transaction.
1. Based on $29 eci share and current bip.un price, if you accept the rollover there would be a bump up in yield as well, correct?
2. Do we know how the distributions from the rollover security would be taxed?
3. Which option (cash or rollover) would you prefer?

Appreciate your service. Regards.

Robert

Q: I just heard about the takeover. As a buy-and-hold, longterm dividend investor, I was very happy owning ECI, but wouldn't mind owning BIP.UN, either.

What should I do with my ECI shares? Will they get 'converted' into BIP.UN shares? If I were to sell my ECI shares and buy another consumer stock, which would you recommend? Either similar dividend as ECI or can accept slightly lower yield if stronger dividend growth is anticipated (maybe CTC.A?). This is for extremely long-term hold (hopefully forever), please do not include any suggestions from your Balanced and Income Portfolios.

Thank you.