Investment Q&A

Q: I track my asset allocation in detail...retired, lots of time and interest to do so. I break out ETFs and my few mutual funds by sector. A few of my stocks are split into a pair of sectors. As an example, TRP is sometimes referred to as a Utility, but seems to track the Energy sector...so I split it 50-50. Ditto for CSH...I split it 50-50 between REITs and Healthcare.

Both NFI and TCL are listed on the Company Profile as being in the Consumer sector, but I have seen them both in the Industrial sector as well. Using my TRP and CSH examples above (to be consistent in my tracking methodology), where should NFI and TCL be allocated...solely to one sector or 50-50?

Thanks,
Steve

Q: 10:34 AM 11/7/2018
In this morning's answer to Grant you said ; "TRP debt is about 7X cash flow; PPL about 3.5%.[I presume you meant 3.5X].

In any event when I look at the Companies search pages for these companies which metrics should I look at to find out the level of debt for each. I see no numbers that might correspond to 7X for TRP or 3.5X for PPL.

Thanks........... Paul K

Q: Will the Keystone project be in danger now that the Democrats have regained control of the House?

Q: I am considering a purchase of either TRP or PPL, with dividend and stock price stability being more important than growth. Which do you prefer, and please also comment on the payout, debt levels, and exposure to the oilsands.
Thanks, Grant

Q: would you buy any of these pipeline? and which ones for which reason?

Q: If you have to pick one of these companies for income and bit of growth over long term, which one will it be and why?
Thanks

Q: I am a retired, conservative, dividend income investor and have 1/2 to 2/3 positions in each of these securities. I trim-add to my stocks when my asset allocation needs adjusting (recently topped up BCE, BNS). I am considering topping up these 4 stocks, but am fully aware that Tax Loss Selling Season will soon be in full swing. Having said that, all 4 of these stocks have already been beaten up a fair bit.

I know you are NOT a market timer, but does your crystal ball foresee further downside as we work our way through the next 2 months of Tax Loss Selling? Using TCL as an example, you just added 1% to your position. I am sure you must have had quite an internal 5iR discussion about "when" to add that position vs. your 10% cash position at that time and the need to deploy some of it. OR...is it as simple as...this stock has been beaten up so much, it has excellent value now, we know we can't time the bottom, so let's just buy it now?

Thanks...Steve

Q: Hi 5i team.

I'm primarily an income oriented investor and have over half of my portfolio in cash right now due to selling a house. I have a full position (which is 4% for me) of ENB (through ENB and ENF). I'm thinking of adding gradually building a full position in TRP as well. Do you see enough difference in the two pipeline companies to justify owning both and is 8% too heavy for that sector.

Thanks
Peter

Q: With the price of WCS oil at record lows , if the producers cut back production will these pipeline companies be hurt. Besides rising interest rates are there any other headwinds with these two companies?

Q: I want to consolidate my utility sector as I have too many.I currently own the below in my non registered account. Which would you sell and which would you add to? Below are the weightings:
EMA 5.7, BEP 3.4, ENB 5.2, FTS 5.10 , AQN 3.0, BCE 7.5, TRP 3.3
Looking for income
Thanks for your great service,

Q: Which 5 companies stand to benefit the most assuming Shell's Canada LNG Project goes ahead? Thank you.

Q: Need to choose between TRP and AQN. Your advice?? Thanks

Q: Can I have your opinion on TRP. It’s share price seems to be struggling lately.
Thanks: Jerry

Q: Can I please have your opinion on the windfarm sale from trp to ine? Which of these 2 companies would you prefer now? Thank you.

Q: Hello 5i, Thanks very much for all you do for your members. I look at your organization as the "Robin Hood" of the Canadian financial industry. My question today is: I sold my ECI this last week and decided to capture the gain and redistribute to one new position with the proceeds. I'm looking for another dividend aristocrat (as identified by the S&P index or one that could be as CIX will be getting the boot) I'm closing in on retirement but still like to stay in the growing type names. Not terribly worried about maximizing my income at this point. Which of my choices do you think has the most upside over the next 5 years.

Q: Hi all at 5i, I have about 45k invested with only 5k in cash. I own all of the above names and was wondering if you were to free up some cash which of these stocks would you trim. If you think 5k in cash is enough, do you think any of these names would be good to trade for another name? Do you have any concerns over any of these names at this moment in time.

Feel free to deduct as many points as necessary.

Thanks,
Dan

Q: I have the above securities as well as RBC Cdn Equity Inc-D shares, Sentry Cdn Income, Sentry Global REIT. I am a retired conservative dividend income investor with a company pension, CPP, annuities and Fisgard Capital for fixed income.

I currently own ECI and will sell and look for a Consumer stock to replace it (not interested in BIP...I have a full slate of Utilities). I filtered several candidates using fundamental metrics (P/E, beta, P/BV, P/CF, P/S) and technical metrics (200 dma, etc), as well as yield and price targets (for what they are worth).

I will keep my CGX and PBH. I'm looking for a long term hold (conservative, liquid stock with a good and growing dividend). My short list of candidates include CLIQ, CTC.a, PLC, TCL.A. I already flushed ADW.A, KBL, RSI and since I already have 1 food stock, I flushed L and NWC.

Please provide your insights into the appropriateness of these Consumer stocks (CLIQ, CTC.A, PLC, TCL.A) for my portfolio, given my circumstances and existing stock positions.

Are there other securities I should consider, even those that I have flushed?

Thanks for your help...Steve

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

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%