Investment Q&A

Q: What are your top three Canadian utility stocks at the moment?

Q: Hi,looking for a good dividend company for 4+years with,
Good Mngmt
Low or manageable debt
A little growth
Could weather a 20%+ market correction
Could you please rank these companies or add one you feel is better. Sector not a issue
Thanks, doing good following your picks. Brad

Q: Hi
Do you know when ENB plans to buy ENF? And, please advise your favorite Canadian dividend grower that yields over 4.5 %. I, like others, will be overweight ENB when this deal consumates. So I will need a replacement. Thanks Frank

Q: Comment on FERC rulings effect on ENB

Q: Sorry to be so naïve, but why are the pipelines so strong today?

Q: What do you guys think about all the bond proxy stocks that have been beat up due to their high yields? Is it safe to pick away at a few, what are your favorites in the group for yield with growing dividend?

Q: Hi team,
I hold these 4 stocks in my portfolio for my energy sector. Is this too much and if so, which one should I dump? All 4 total about 8% of my portfolio.
Thanks

Q: Trying to get a handle on payout ratios. For example, I go to Enb site and for ACFFO, they have two definitions. Adjustable cash flow from operations and Available cash flow from operations. Which is it please? Also, in which report does one find this, can't find it in Balance Sheet nor Income Statements? Tx.

Q: Thank you in advance for your enlightened advice. Which seem to you the best investments. I am looking for a dividend in a non-registered account as well as growth for a term of 2 to 3 years. The weighting of my interest is 30% towards the dividend and 70% towards the growth. The companies I am looking at are:
AFN, BNS, CM, BIP.UN, CHR, ENB, EIF, FRU, MAXR, SMU.UN
Could you rank them in terms of preference and write down the ones you would avoid. Sector weighting is not a criteria.

thank you very much

Q: I am looking for a good value stock with high yield, min. 5%. Can you add someone more to the two above?
Thanks
Margita

Q: This is a followup question for my question from last week about payout ratios.

I understand your reasons for using cash flow over earnings to calculate payour ratios. Thanks for clarifying. But when I use your posted numbers to calculate it for ENB, I get:

Payout ratio = Dividend / cash flow
= Dividend / (Price / Price to cash flow)
=2.684 / (46.69/9.7)
= 56%

But, in the question I asked previously, you stated 37% was the payou ratio for ENB. It was correct for BCE, however (3.02/(54.57/6.5)=36%). I guess I am not calculating it correctly.

How do you calculate your payour ratios based on cash flow?

Also, since it is such an important number that others don’t use (based on cash flow) could you include it in your company profile?

Thanks again,

Fed

Q: Hi
There are some reports that ENB should/ might sweetened the takeover price for ENF. Any comments? Is adding to an ENF position smart, in view of this possibility? Thx Frank

Q: Payout ratios

I am confused about payout ratios. I have read here several times that you prefer to stick with dividend income stocks that have payout ratios below 50%. You have also suggested recently that the following were good solid choices for dividend income stocks. Your website does not include payout ratios, but I suspect your calculation is different from those I have found elsewhere. Below are the payout ratios I found in other places. As you can see, they are mostly above 50%, and some are above 100%!

Could you please comment on your calculation of payout ratios, that have these below 50%, or why the high ratio is acceptable presently?

Thanks again.

PWF 72%
BCE 97%
CU 116%
TRP 78%
ENB 182%
TRI 169%
QSR 79%
AQN 130%
T 82%

Q: I own both ENB and BIP, although much more of the latter. I would like to get your opinion of the purchase of gas assets by BIP announced today. I realize the benefits to ENB's balance sheet, but is it also accretive to BIP at this price? Are there good growth opportunities provided by this purchase? Also, I believe that a portion of this acquisition does not close until 2019 - how much of the cash flow will be delayed until then?

Q: I rarely ask a question so this is more a general question. ENB today is down 1% in Toronto on above average volume and up 1% in NY on below average volume. I would expect this to sort itself out over the day but I would like your opinion on why? I could I guess transfer my ENB.TO to my US account and get a 2% pop.
Thanks for the great service.

Q: Why the big gain today?

Thanks

Sheldon

Q: Hell 5i Team,
I am planning to cash out mutual fund and invest it in stocks in my wife's RRSP account (75K) which will be around 1/3 od my existing portfolio (150K). I have my TFSA and RRSP invested in stocks (mostly from Balanced Equity portfolio). I am considering these names, which I don't have in my existing portfolio. Do you see any concern with any name? Please suggest a couple of names for growth potential, but not too risky.
Thanks for the great service.
Kuldip

Q: What are your top 3 picks in the utility space and why? Thanks.

Q: Company and dividend as of close
KWH.UN 11.3%, BCE 5.6%, ENB 6.3%, ALA 8.3%, EIF 6.8%, HR.UN 6.8%, RUS 5.5%, BEP.UN 6.2%, GS 6.1%, AQN 5.1%, EMA 5.2%, FTS 4%, H 4.59%
Hi
Could you please choose from the above list (or any additions of your choice) the stocks that you feel would be best suited to be held in an income/dividend non registered account for a long period of time. It would be great if you could also guide me as to whether I should do equal weight or if it is better to invest by a percentage of one company over another. I am interested in trying to have the highest return of dividends but I do not want to reach too far for it (ie 50% KWH.UN). If I could get a blended 6% annually over 10+ years that would be super. Not all the companies need to be included. I know there are some that overlap sectors.
Thank you for all that you do. You are great guides.
Jeremy

Q: I have a question that may be of interest to some of your subscribers who, like me, are relative novices at investment. I've been reviewing my portfolio -- specifically Payout Ratios (I'm using Morningstar data, so there may be some variance when compared to other reporting agencies). I hold the following stocks with payout ratios beginning at 130%; however, two reach into multiple hundreds. VET and AQN are not included in your model portfolios, but ENB and PKI are in the 5i Balanced portfolio; CSH.UN, ECI, and ENB, again, in the 5i Income portfolio; and CLIQ in the 5i Growth portfolio. My question, quite simply, is: Why should we not be concerned about the stability of dividends from these companies? Thanks.