Portfolio Updates / Energy Sector

Hi Dan,

You mentioned in a SU post that you are looking to phase out from the oil and gas industry and would be looking at phasing out SUN and CNQ. I have CNQ as I’m following the Millennial Moderate Portfolio and was wondering which stock you would recommend allocating this portion to?

I know you state that the Portfolio’s are updated twice a year but would you add any more updates in the year if there is a strong opinion/market change such as the current poor performance of late from the energy sector?

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Asked on September 30, 2020 3:35 pm

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Private answer

Keep in mind, it doesn't look like the Millennial Moderate portfolio contains any CNQ. It only contains Suncor.

I don't mind CNQ, I don't mean to give people a strong sense that I'm THAT bearish on the oil and gas sector. As long as they maintain the dividend, its a strong company. It's the best performing producer by a country mile (even thought over the last 15 years has left investors with a a loss).

In terms of the allocation with Suncor, as you can see in the portfolio it only makes up 1.5% of the portfolio. It's so miniscule that it's worth us simply holding the stock and waiting for a recovery.

If I personally were to take that 1.5% and go elsewhere inside of that portfolio? I'd be OTEX. It balances the portfolio even more, and gets more exposure to a strong tech dividend growth play.

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Posted by Dan Kent

Answered on September 30, 2020 6:17 pm

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