Dividend stock list opinions?

[kyboch]

Inter Pipeline IPL.UN
Crescent Point Energy Crp CPG
AG GROWTH INTERNATIONAL INC . AFN
BANK OF NOVA SCOTIA BNS
BCE BCE
Exchange Income Corp EIF
Chemtrade Logistics Inc CHE.UN
Veresen Inc. VSN
Atlantic Power ATP
ENBRIDGE INCOME FD HLDGS INC . ENF

I'm torn between getting a dividend ETF such as CDZ XDV or ZDV and just buying my own stocks. These stocks have a weighted yeild of 6.24% with of course no MER. The ETFs yield from 3.5 - 4.6% and MERS from .35 - .62%.
I have 60,000 to put into dividend stocks so I would put 6K into each of the above. What do you think? I'm also thinking of doing the same thing for my REITS allocation (40,000)

Riocan REI.UN 12000
Dundee Real Estate Investment D.UN 12000
InnVest Real Estate Investment Trust INN.UN 8000
Artis REIT AX.UN 8000

The rest of my portfolio is in XBB, XSB, CHB, XRB on the fixed income side and XIC, and VUS on the equity side. I'm using a combination of index and dividend investing. Just North America for now Europe is too crazy for me.
Thanks everyone

[gibor]

I PREFER FOR DIVIDEND INVESTMENTS INDIVIDUAL STOCKS, FOR REIT - ETFs, FOR INTERNATIONAL ETF (VEA)

[doctrine]

Do the math: $60k at an average MER of 0.5% would be $300/year. If you were on questrade, that would be about 60 trades a year.

CDZ, XDV and ZDV will perform differently than those stocks however, because the contents are different. Even with $60k though, you could purchase the top 10 holdings in each of those three, plus 30 additional trades throughout the year, and come out ahead on fees.

Plus, you wouldn't be forced to sell them if for some reason one of the stocks fell off the index methodology for whatever reason.

[humble_pie]

er, why 3 pipelines ?

one is enuf for a 60k portf, don't you think.

i'd be buying argonaut's ready-to-go 5-alive prepack, though.

[Financial Cents]

With $60 K...

Buy a couple of banks.
Buy a couple of pipelines.
Buy a couple of REITs.
Buy a couple of telecommunications cos.
Buy a couple of energy or utility companies.

That would be a fine start.

[humble_pie]

fin cents' list is coming to you with the compliments of cmf forum member argonaut, its original creator.

[Ethan]

I prefer to buy dividend stocks over ETF's because you pay commissions up front, then collect the growing dividend for several years. That is presuming you are a buy and hold investor.

[gibor]

Many of the stocks OP listed are close to 52 weeks high, not sure if it's a good time to buy right now.

[donald]

I'm more curious how your going to implement the list.Are you just going to "plunge"?The easy part is picking a best of breed in each sector like is mentioned but where the hard part comes in is the individual timing,im just curious if you have a plan in place for that?Or does it matter if you got 20+ yrs.....banks might be a good buy-but teleco's are expensive,some pipeline's are expensive ie:enb same with riets....Id be curious what some of the seasoned investors think,how important is looking for the "best" entry on the ready-to go pack or is it more insulated?also could one not include a insurance co?(even thou there in the basement,but won't always be the case going foward)How safe is ''plunging"?.....or you going to drawout your purchases the best you can.

[gibor]

donald, it's is exactly what I meant :) agree that banks maybe OK now, as well as BCE (after last small pull back) and some oil/energe (but definetely not CPG)

[Argonaut]

Entry points aren't super important for this kind of strategy. The idea is to get the dividend snowball started and rolling, adding to it every year. If one waits too long, the snow may start to melt.

Diversification takes out some of the market risk, and I would be looking to do this with one's own logic screener and not a stock screener from the broker website. What companies do you want to be an owner of now and ten years in the future?

As per humble, multiple pipelines in a smaller list may not serve one's purpose. Consider something like a CNR, which would add a counterbalance to a pipeline if the Obama and Native blocking starts to set a precedent. Example:

Inter Pipeline + Veresen + Enbridge Income = 5.84% yield
Inter Pipeline + CN Rail + BCE = 4.31% yield

Would you rather own set one or set two? I would say the protection and variety of set two is well worth the opportunity cost of giving up a mere 1.5% in yield.

I've gone with a more theoretical approach this time rather than just posting the 5-pack. Teach a man to fish, perhaps.

[donald]

Thanks argo.I was thinking the dividend "machine"was more important but was'nt 100% sure.

[AltaRed]

The dividend stream is more important as you approach retirement. In the early years, cap appreciation is your friend.

[humble_pie]

The dividend stream is more important as you approach retirement. In the early years, cap appreciation is your friend.

there are always so many qualifiers to everything in investing. A quality dividend stream is a thousand times easier to set up than a surefire stream of capital gains, this latter being a notion that exists mostly in fiction.

a youngish or middle-aged person whose tfsas & rrsps are filled can benefit from dividend tax credits to reduce income tax. He can arrange his investments to capture both capital gains & dividend tax credits.

on the other hand (more exceptions) large dividend streams as retirement looms can trigger AMT, not to speak of clawbacks of various old age benefits.

[Financial Cents]

I learned a ton in this forum humble, including folks like you. I always try and tap into the experience of others...personal finance is no exception!

[gibor]

Inter Pipeline + Veresen + Enbridge Income = 5.84% yield
Inter Pipeline + CN Rail + BCE = 4.31% yield



I'd rater own set: TA + MO + T.N = 5.63% yield :)

why would you buy pipeline that practically at 52 weeks high?

[gibor]

on the other hand (more exceptions) large dividend streams as retirement looms can trigger AMT, not to speak of clawbacks of various old age benefits.

what is at AMT?
from what I understand TFSA income won't affect your CPP/OAS.
Not sure about RIF...

[humble_pie]

alternative minimum tax

[Argonaut]

I'd rater own set: TA + MO + T.N = 5.63% yield :)

why would you buy pipeline that practically at 52 weeks high?
The set was just an example, different folks grab different stuff at the buffet.

Why did I buy a pipeline at a 52-week (all-time) high back in Oct '10? Because I liked the company and the stable income stream. And now in Feb '12 it is still hitting an all-time high.

Everybody goes to the buffet with the same plate; they can choose different things, but best to fill the plate up quick.

[riseofamillionaire]

Some of my fave dividend stocks - KBL SAP CCS.PR.C WTE.UN ACQ BDT BDI ARX SRV.UN CHL.A T BA THI BPF.UN AW.UN