Investment Q&A

Q: My only energy holdings are ALA, ENB and PPL, representing 11% of my equity portfolio. I am considering SU or CNQ as an addition. Which do you prefer at this time, or would you view my energy holdings okay as is?

Q: A graph comparing ENF and ENB ( TMXmoney.com) shows that they have tracked
each other very closely for every time period for the last ten years.Is there really any advantage in owning one over the other? Joe

Q: Greetings 5i,

I currently hold a half position in both ENB and SU, and, like many others I assume, am getting somewhat discouraged with the performance of the Canadian energy sector this year. I am more than willing to be patient, as I am only 35, and feel that both are good companies with strong fundamentals. More than anything however, I do not want to give in to panic selling.

Could you please provide your assessment of each as a long term hold (5 years plus)?

Please deduct a credit for each if you deem it appropriate.

Thank you.

Q: Hi, I am looking to add some income and was leaning towards Endbridge. I would be interested to hear which of these you prefer?

Q: Trading quite weak recently. Oil has come off a few bucks, the market a bit weak too but.....feels like the solid fundamentals everyone refers too aren't reflected in the stock price. Value trap or opportunity? Best guess as to why its trading weak?

Q: Can you tell my why someone would not be a buyer of enbridge right now. In an earlier question I had you mentioned with my time horizon it may be more prudent to by something "growthier" but with ENB dividend, growth and current valuation how can you go wrong? Can you give me the sell side thought?

Q: I am retired and living on dividend income. I going to initiate a position in PKI based on your outlook and now consider PKI a Strong Buy after another 4% drop since your Aug 1 comment:
Aug1- "The $3 decline in July seems a bit much to us, and its prospects remain good with its recent acquisitions. We would view it as a BUY up to a reasonable portfolio position."
Aug 3-"Analysts expect lower earnings for 2017 and very strong growth in 2018. We continue to like its long term prospects."

I'm really attracted to investing in companies like this. Companies that are financially strong and fair/under-valued. But impatient investors aren't willing to hold for the long term prospects and are selling off because the strong growth won't be realised for 6-12 months.
Can you identify other dividend paying companies in a similar situation, that are undervalued but should realise strong growth and therefore share price in the next 6-12 months.

Q: Hi, can you rank these companies for long term holds considering currrent valuation. Thanks

Q: Hi, can you rank the following companies as long term hold potential taking into account current valuations. I am looking to start positions in all companies I am just not sure which ones to start with.

Also, I feel like there is so much noise about moving away from oil that buying ENB long term can be a bad portfolio decision. Can you also comment on this. I am 30 and don't plan on selling anything any time soon.

Q: Please help me understand this.Recently when oil price declines,Enb & other pipelines generally decline,& when oil price increased these 3 days,ENB et al is more or less moving sideways or down.Yesterday the LNG project in B.C. led by Petrons of Malaysia was cancelled at this point.This coincide with the ascension of a new government(NDP & GREEN) who openly oppose the project.Poor B.C.Does this has a negative impact.Thanks for your usual great services & views

Q: Good morning,
I recently (last 2 weeks) added BCE, Enbridge and Goeasy to my kids' accounts with a 2-3 years investment horizon. Last night's guest on Market Call had nothing but bad things to say about these three companies as long term investments. I rely a lot on what I hear on market call is that a mistake and do you think my entry points were ok?
Thank you,
Chantal

Q: Hi. I currently hold a 5% weighting in each of the above companies. I would like to reduce my exposure in this sector to 10%. Which would you think best to unload... or would you suggest reducing bits of each.

Thanks in advance.

Q: I am 68 years young and presently have ENB and am looking into more dividend stock and wondering if I would be better to sell and buy ENF? If you think I shouldn't sell ENB then I have cash to buy ENF.

Q: I'm (still) planning an income portfolio and have decided on the above companies. I think they are solid and the income is attractive. I expect to hold them 5 years.

My concern about all of them is the electric car overhang. I see the trend to E-cars as a long term annual dissipation of the energy sector. Think of a successful 20 year short on the energy sector. There will not likely be a major event, just a gradual decline in earning etc. You have mentioned in another reply that PKI and ATB can use their locations for other purposes, but there's not a lot of uses for an oil refinery or pipelines.

Please provide your views on my conundrum. Thanks.

Q: Want to refine my pipeline/processor holdings consisting of ALA,ENB,ENF,IPL,KEY,PPL,VSN.
Looking for yield plus growth of ~7%. Have held all for over three years and some seem range bound,Not sure which have the most castalyst for growth.
Your thoughts on best to own and which to drop. Would likely convert the proceeds of disposed ones into more of the holds to maintain same total $ position in the group.

Q: Morning-I am a retiree whom is dependent on monthly income to survive.I have 60K to invest in my cash account hoping to create some income. I am thinking of T,BNS,and ENB (alternating 4% monthly returns)...or would 5i think that monthly incomes from CSH.UN , AD and EIF (better tax break) be an OK strategy. I have both BE and Income portfolios covered in registered accounts , full up in TFSA ... what to do with cash??? Thanks for all you do.

Q: I have IPL 2.3% and PPL 3.9% in a taxable account. Held them for years and I am about breakeven not counting the dividend. I am thinking of selling IPL and buying ENB. Would this be good idea for the long term?

Q: Hi,
Further to your reply: "ENB pays its dividend in Canadian dollars. You could buy it in the US, in a US account, and dividends would be converted, but you would incur exchange fees.
Rather than looking at this strategy, we might instead holding some US exposure in general, for general diversification, and avoid trying to predict currency movements"

Since I'm seeking USD income, I'm looking for the biggest bang for my buck (so the Dividend Tax Credit is something I would want to take advantage of). Would my strategy work with something like a ENB.PR.U (USD preferred)? Or does the same currency conversion issue occur. Thanks again.

Q: Dear 5i,
If I wanted USD income from a company like Enbridge, would I need to buy the stock on the NYSE and hold it in my USD trading account?
Would it pay the quarterly dividend in USD? With the CAD strengthening, is this a good strategy?
Thank you.

Q: I hold ENF. I recall that, in the past, you have expressed a preference for ENB - perhaps the former being more for income and the latter being more for growth. Is this correct? Is there any other reason to prefer one over the other? (Perhaps I should consider switching.)