# Which dividend stocks are you buying?



## warp (Sep 4, 2010)

I prefer to buy solid dividend stocks witha history og growing dividends over time.

I'm interested in hearing about what dividend stocks anyone on the board would recommend /buy at this time.

Canadian stocks ....as well as US stocks and International stocks 
Etf's as well.

You don't get the dividend tax credit with dividends outside of Canada,,,but their diversification value can't be overlooked.

Any thoughts, names or lists, which we can discuss here would be appreciated.

Anthony


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## DavidJD (Sep 27, 2009)

EIF hit a 52 Week High today. Still over 9% yield?


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## Jungle (Feb 17, 2010)

I have several on my watch list, just for my dividend portfolio when the price is right:

BCE
CU
TRP
REI.UN
BMO
CU

I've been thinking of setting up a drip with REI.UN in my TFSA. 3% discount on dripping share price, I believe.


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## patmanz (Jul 26, 2010)

Jungle said:


> I've been thinking of setting up a drip with REI.UN in my TFSA. 3% discount on dripping share price, I believe.


Very good move ! I use XRE myself for more diversity and i love my TSFA-REIT


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## Jungle (Feb 17, 2010)

patmanz said:


> Very good move ! I use XRE myself for more diversity and i love my TSFA-REIT


Yes I believe most or all of the dividend is non-eligible for the tax credit?


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## Jon_Snow (May 20, 2009)

You guys speak an entirely different language... I need to learn this stuff... badly.  

Can I just buy CDZ and have my dividend investments covered?


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## Jungle (Feb 17, 2010)

Jon_Snow said:


> You guys speak an entirely different language... I need to learn this stuff... badly.
> 
> Can I just buy CDZ and have my dividend investments covered?


Yes, but CDZ has lots of non-tax friendly income, keep this in your TFSA if possible.


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## humble_pie (Jun 7, 2009)

i might be interested in Valener, but only if an options market develops.

gaz metro announced earlier this week it's converting to a corporation called valener that will hold the majority interest in the gaz metro gas & energy distribution partnership, which will continue to exist. This triangular sidestep will permit gaz to top up the projected dividend to 1.00, which it promises to maintain for the next 3 years. (it's not unusual for gas transmission businesses to make these kinds of long-term commitments, because the businesses are based upon long-term contracts.)

a $1 dividend will yield about 6% on today's price which is still based on the obsolete trust unit. Option sales would push the return higher than 8%, although there would be a delay before the montreal exchange would accept a new listing for option trading. If i were considering just buying for what is a 6% dividend today, i'd wait to buy until trading in the new shares stabilizes, because there is likely to be confusion that could lower the price further.

a kicker is gaz' participation as partner together with boralex in the huge seigneurie de beaupré wind farm being built on the north shore of the st-lawrence river. Boralex, a spinoff from cascades paper, has wind farms in france plus a network of gas co-gen stations across quebec & northern new england, as well as some in ontario. The entire hydroelectric output from the 2 beaupré wind farms has been pre-sold to hydro-quebec.


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## Cal (Jun 17, 2009)

Been watching JNJ and LMT on the NYSE.

I guess it depends upon your current positions as to what anyone might be currently watching to add and/or if you are looking to add in your RRSP/TFSA or non registered account.

I would like to add some TD personally, but am not interested in it at its current price.

I read BMO is discontinuing their 2% discount later this year.


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## Jungle (Feb 17, 2010)

Cal said:


> Been watching JNJ and LMT on the NYSE.
> 
> I guess it depends upon your current positions as to what anyone might be currently watching to add and/or if you are looking to add in your RRSP/TFSA or non registered account.
> 
> ...


BNN was saying the TD might be the first big 5 to raise dividend early next year.


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## m3s (Apr 3, 2010)

Watching so many of the telcos, defense, finance and consumer goods. I've limited myself to my registered accts so it's a matter of having the cash available at the right time

Bought BCE after the dip when they announced Wind mobile. Also hold TEF and SJR and I will try to add others

Owned LMT but it tripped my stop limit in May. I'd like to own it again but I'm anticipating more bad news for the F35/F22 to get in. Bought GD to switch it up but there are several defense stocks I watch

Wish I owned all the cdn banks last year but I only caught BNS on the way up

I could use some medical and consumer goods such as JNJ, PFE, UN, PG, KO

Also hold dividend payers such as AAH, EXC, TM, SC, HSE, SU but only time will tell


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## Soils4Peace (Mar 14, 2010)

I am holding a lot of Canadian Dividend Aristocrats. Looking to add CCL.B on a price dip. Dividend growth, low beta, want more small and mid caps. It would improve the Riskgrade rating of my portfolio.


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## hboy43 (May 10, 2009)

Hi:

Outside all the usual suspects, give consideration to Methanex, currently yielding 2.5%. Had it for years and it is currently my largest holding on account I bought more during the panic. Must admit I am thinking of converting 1000 MX into 400 JNJ.

hboy43


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## Square Root (Jan 30, 2010)

Of the banks I would favor TD and BNS. BMO and CM have lower growth prospects and will take longer to raise their dividends. RY needs to juice their trading results before they will raise divs. Agree with TRP, BCE, also Enbridge. Don't bother with dividend ETF's. There are only 20-30 CDn div stocks you would consider anyway so why pay .5% away in fees for diversification?


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## warp (Sep 4, 2010)

Thanks for all the replies so far to this thread I started yesterday.

It's great to be able to have some intelligent discourse on here.

I feel the canadian banks are a bit pricey right now, and perhaps the entire canadian market might be in for a slight pull back, so I'm kind of waiting.

In the US I already own JNJ, PFE, T, VZ, LLY, EXC, HCBK, VOD and several more.

All are divivend payers..

I have been looking at LMT too as another poster suggested.
I like CINF, and CB, and ABT, but all three made a run over the last month , ( which I missed by being too hesitant ), so again I'm waiting for a pull back

Its a lesson hard learned,,,,when you get your price on something you are happy to own , after doing your research, you should buy it, rather than waiting for the price to go lower, which might never happen.

Anyway I am looking at BCE, CPG, SU, in Canada.

Also , on the assumption tht you should buy whats unloved, and what everyone is selling , I am going to buy some Europe big value, dividend ETF.

Anthony


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## mario 1 (Nov 6, 2009)

I just bought 2400 shares of the ultimate dividend stock Sears Canada .
Probably won't be laughing come Monday


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## Ethan (Aug 8, 2010)

I currently hold TD and ALA.un. Looking to potentially add some IPL.un in the short-term.


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## Square Root (Jan 30, 2010)

If you are a long term investor, the price going in isn't that important.


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## HaroldCrump (Jun 10, 2009)

Square Root said:


> If you are a long term investor, the price going in isn't that important.


hmm...where have I heard that before? 

Make no mistake, your entry price is _very_ important.
Your entry price is your risk tolerance.
Compare the stuff you may have bought during 2006 - 2007 against the stuff you may have bought between 2008 and early 2009 and tell me which one makes you sleep/feel better


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## Belguy (May 24, 2010)

Here are the so-called 'dividend darlings' from page 47 of the September/October MoneySense magazine with their yields:

TransAlta (TA) 5.46%
Sun Life Financial (SLF) 5.00%
CIBC (CM) 4.92%
TELUS (T) 4.89%
Husky Energy (HSE) 4.67%
Bank of Montreal (BMO) 4.47%
TransCanada (TRP) 4.37%
Shaw Communications (SJR.B) 4.33%
Power Corp. of Canada (POW) 4.30%
National Bank of Canada (NA) 4.16%
Bank of Nova Scotia (BNS) 3.81%
Fortis (FTS) 3.81%

Consider these for a great core for a dividend portfolio but you should round it out with stocks from other sectors according to MoneySense

Any thoughts?


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## Financial Cents (Jul 22, 2010)

Those Canadian stocks are a great start!

I would add JNJ, ABT, KO, PG and WTR for the US stocks.


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## Cal (Jun 17, 2009)

Belguy said:


> Here are the so-called 'dividend darlings' from page 47 of the September/October MoneySense magazine with their yields:
> 
> TransAlta (TA) 5.46%
> Sun Life Financial (SLF) 5.00%
> ...


Thoughts....don't make your investment decisions based on yield alone.

And I agree with Harold above...I think that the purchase price for a stock is very important. Setting a target buy price, and buying on a dip, can make quite a difference in your return. And the longer you hold a dividend stock the greater the difference will be.


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## warp (Sep 4, 2010)

Thats not a bad list.

I already own Transalta , Telus, and Transcanada, 

I also bought Great West Life over Sunlife, recently......then again I did buy Manulife last year, and you can guess how thats doing.

Many of the income trusts are/will be converting to corps by jan, 2011 and some will become part of the didividend universe in Canada.

I was lucky to get a bunch of good trusts last year which have come back nicely, and pay me a nice yield as well.

It will be interesting to see what Ishares will do with its "income trust" ETF,
(sorry the symbol escapes me right now).
Will they just add it into XDV, their dividend ETF, or will they start a whole new high yield ETF?
I read where they are wondering and working on what to do themselves.

Those US stocks listed by "financial cents" are a great staring point...all graet names, and funny enough , all on my watchlist. I somehow prefer PEP over KO at the moment though.
The US has so many great dividend ETF's with low mer's, that even though I already own about 18 US div stocks, I'm wondering if maybe I should judt go tht route.

My basic strategy is to buy stocks that have a 
1) "high yield", ( mimimum3.5% although I prefer min 4%)
2) low payout ratio, ( pref below 50%, although I will accept up to 60%)
3) reasonable debt levels. ( D/E below 1 is preferable)

Then I look at P/E at least below market and historical average...around 16 right now
And reasonable ROE, and growth rates.

You seldom get all these together, but you can get a good feel by looking at these numbers,

"HIGH YIELD and LOW PAYOUT" as described above are a MUST for me though.


I also agree with Cal and Harold , above.
Your entry point is important, and I do try and set an entry price and stick to it.
My point was that sometimes I personally make the mistake of getting to that entry price, then hold off for another hour, or another day etc, to pull the trigger in case the price drops further, and of course the price rebounds, and you miss buying the stock you wanted in the first place.

The problem today is that you are making almost NOTHING with cash....so it would be nice to start getting those div and distribution payments coming in sooner rather than later.

I console myself with the knowledge that "preservation of assets", is more important than "increasing of assets", over any term, short or long.

thanls for all the great posts...please keep posting your thoughts.

Anthony


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## scomac (Aug 22, 2009)

warp said:


> It will be interesting to see what Ishares will do with its "income trust" ETF,
> (sorry the symbol escapes me right now).
> Will they just add it into XDV, their dividend ETF, or will they start a whole new high yield ETF?
> I read where they are wondering and working on what to do themselves.


They've already done it. XTR has become a fund of funds.


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## warp (Sep 4, 2010)

Thanks for the info on XTR, Scomac

Interesting to see that their holdings are already 60% other etf's

I always wonder, and do know, that some ETF's that own other ETF's, charge a mer to the investor, but also pay out a mer to the ETf they themselves own.

In effect the investor pays two mer's.

I read the press release, and it seems to say that the mer on XTR of .55% will include advisor fees and mer's of the other ETF's it holds.

I will call Ishares on monday to get a concrete answer on this.
Can you confirm this yourself Scomac?

again thanks for the info.

As a side note I tried to look up the holdings for HAL....Alphapro "managed" dividend ETF, run by a manger at Leon Frazier, and their website only gives the top 10 holdings.
This was surprising as they are selling themselves as a product with the best from both worlds as it is a "managed ETF", but an ETF nontheless.
However they give you details about it as if it were a mutual fun..top 10 holdings only as of august 31, where ETF's will give you ALL holdings any day.

Any idea if and where I can find all their holdings??

thanks 

Anthony


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## scomac (Aug 22, 2009)

warp said:


> I read the press release, and it seems to say that the mer on XTR of .55% will include advisor fees and mer's of the other ETF's it holds.
> 
> I will call Ishares on monday to get a concrete answer on this.
> Can you confirm this yourself Scomac?


No, I can't confirm.



> Any idea if and where I can find all their holdings??


Just look at all the underlying funds to get an idea of what it holds. Personally, if I owned this ETF, I would sell it and then construct what I wanted using the underlying funds. It's likely to be a bit cheaper and eliminates any overlap that you might otherwise have.


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## m3s (Apr 3, 2010)

warp said:


> I also agree with Cal and Harold , above.
> Your entry point is important, and I do try and set an entry price and stick to it.
> My point was that sometimes I personally make the mistake of getting to that entry price, then hold off for another hour, or another day etc, to pull the trigger in case the price drops further, and of course the price rebounds, and you miss buying the stock you wanted in the first place.
> 
> ...


Yea sometimes I regret waiting too long for an entry point. I had a limit order on TRP over a year ago that came within .25 cents and I kept waiting but now it's gone upwards by 25%

After seeing what happened in 2008 I figure I would rather have cash on hand for such an opportunity than starting the dividends early

I find I have missed opportunities by limiting myself to a certain amount of stocks but it is preservation of capital


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## bean438 (Jul 18, 2009)

HaroldCrump said:


> hmm...where have I heard that before?
> 
> Make no mistake, your entry price is _very_ important.
> Your entry price is your risk tolerance.
> Compare the stuff you may have bought during 2006 - 2007 against the stuff you may have bought between 2008 and early 2009 and tell me which one makes you sleep/feel better


Agreed. The lower the price, the higher your return, and also the lower the price the greater your margin of safety.

A fantastic company is not always a great investment.


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## humble_pie (Jun 7, 2009)

warp re the alphapro dividend fund ... this was only issued a couple of months ago. Therefore there are no annual or semi-annual financial statements yet.

it's in these statements that one has to look for a complete list of holdings. Regulators require that these be published. Mutual funds the same. Otherwise quarterly updates from fundcos show only top 10, top 25, etc.

if alphapro div is running on a calendar year basis the first fin statement will be dated as of 31 dec/10 (partial year) but won't be published until late feb/11 or early march. Until then i don't believe there's any way to know exactly what-all is in this fund. One could contact them, i suppose, but imho they should not pre-release critical information privately to one unitholder.

when i used to own a few mutual funds i'd always look at the full list of holdings. The really interesting information is among the minor holdings. These show the managers' losses, their mistakes, their derivatives & futures tradings and so on. One can get a good sense of how the managers actually think by looking at the total range of where they are putting their money.

i have noticed, with respect to the few etfs i've researched, that their full list of holdings appear on their websites. I don't know how often these are updated, so i don't know whether they are the required 2 per annum as with mutual funds, and therefore are out-of-date, or whether these full lists for etfs are updated more frequently, and if so, how often.

as for MERs embedded within MERs for funds that own funds, or etfs that own etfs, i would always personally check this out with respect to any etf i might consider buying. I would want to read how a fund is treating is treating this issue in the fund prospectus and I would pay no attention to what any salesperson or representative might say. The few canadian etfs i know that are largely clones of US origin etfs, often with a currency hedge slappd on the CAD but no other amendment, certainly do make adjustments to their canadian mers so that the retail investor does not wind up paying fees on top of fees.


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## rassmy (May 7, 2010)

Beside my core holdings of canadian dividend stocks, list made of (BCE, FTS, BNS, RY, PWF, TRP, SLF, REI.UN, FCR, CPG). All these stocks bought them a year and half ago, made 20% capital gain and still collecting juicy dividends.

Recently I decided to increase my energy holdings, I added Encana (ECA at $28.85) and CNQ ($33.85).

For international, last week I jumped on VISA at 66$ and Microsoft 24.80, these 2 stocks are value stocks for long term dividend growth.


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## Square Root (Jan 30, 2010)

HaroldCrump said:


> hmm...where have I heard that before?
> 
> Make no mistake, your entry price is _very_ important.
> Your entry price is your risk tolerance.
> Compare the stuff you may have bought during 2006 - 2007 against the stuff you may have bought between 2008 and early 2009 and tell me which one makes you sleep/feel better


Sure , it's always betterr to buy it cheaper but if you buy good quality dividend paying companies it tends to wash out over time. For example I bought RY around $42 in Oct/08 looked bad for 6 months and I would have been a genius to by it at $29 in Feb/09 but I'm not complaining now. Also my first stock purchase was TD in Sept/97 paid around $21 split adjusted. Could have gotten it cheaper subsequently but in the long run it worked out. Final example-TD peaked at around $76 in Oct/07. You could have gotten it for $32 and change in Feb/09 back to $76 now. Paid good dividends all along. My view is that if you buy good companies and hold them for a while things will work out over time. Obviously good companies are sometimes hard to identify and so called good companies can still screw up (MFC). but for dividend investors like myself, the entry point is less important than identifying a good prospect in the first place. I think I sound a bit like Mr Buffet?


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## Belguy (May 24, 2010)

The first stock that I ever bought was MMM many, many years ago. I held it for about ten long years and it went nowhere is that time although I did receive the dividend cheques all along. Despite that, I felt that I would have done better with money in the bank as interest rates were much higher then than they are now and so I just got tired of waiting and sold most of my shares. How I would have done over the long haul had I held on, I never took the time to figure out but ten long years of no gains--much like the S&P 500 index over the past ten years--takes one heck of a lot of patience despite the dividends. I recognize that things are a bit different now with interest rates so low and dividend yield often better but that was my experience with one blue chip, dividend paying stock many years ago.


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## Square Root (Jan 30, 2010)

Belguy said:


> The first stock that I ever bought was MMM many, many years ago. I held it for about ten long years and it went nowhere is that time although I did receive the dividend cheques all along. Despite that, I felt that I would have done better with money in the bank as interest rates were much higher then than they are now and so I just got tired of waiting and sold most of my shares. How I would have done over the long haul had I held on, I never took the time to figure out but ten long years of no gains--much like the S&P 500 index over the past ten years--takes one heck of a lot of patience despite the dividends. I recognize that things are a bit different now with interest rates so low and dividend yield often better but that was my experience with one blue chip, dividend paying stock many years ago.


I understand your point. My view is probably biased by the fact I have been overweight Bank stocks and they have done so well over such a long period.


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## alphatrader2000 (Aug 18, 2010)

warp said:


> I prefer to buy solid dividend stocks witha history og growing dividends over time.
> 
> I'm interested in hearing about what dividend stocks anyone on the board would recommend /buy at this time.
> 
> ...


With dividend stocks, I suggest the following 3 criteria in your filter:

1. Ones that they increase their dividend 
2. Can cover the dividend payment and more (there is a lot of articles on payout ratio)
3. growing earnings

then choose among the list. You sometimes find some very good gem.

If cannot buy few of them to diversify your portfolio and sector then you might want to choose close end funds or etfs that do that very thing. Be aware that Canadian concentrated etfs might be heavely into financials.


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## warp (Sep 4, 2010)

Thanks for the thoughts Alphatrader.

If you read a few post ago, I did mention my personal, criteria for dividend stocks, and they mush like the ones you suggest.

I started this thread to ask what specific div stocks or ETF"s other posters here would suggest or buy at this time.

Right now I am looking to buy Crescent Point,,,and actually thinking of Royal Bank, due to the fact that it hasnt held up lately, and may come back stronger over the next few years.

Canadian dividend ETF's are indeed heavy on fiancial, as is the TSX itself.
One of the problems with investing only in Canada is that we are concentrated in energy and financials.

Any other thoughts out there as to the best dividend buys in Canada, US, or International , right now?


Anthony


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## Jungle (Feb 17, 2010)

Not easy, the rally we've had over the last 4 weeks has moved prices up on some that were good buys or close. I hope the market comes down a little then I may go shopping.


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## Belguy (May 24, 2010)

Two foreign dividend ETF's to consider are the iShares Dow Jones Select Dividend Index ETF (DVY) and the SPDR S&P International Dividend ETF (DWX) which both provide better sector diversification than Canadian dividend funds.


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## jason26 (Apr 6, 2009)

Bought RPI.UN about 6 months ago in my TFSA. Just wish I had bought more.


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## Square Root (Jan 30, 2010)

Belguy- I just realized that MMM is 3M (duh). Checked it's chart and the only way you wouldn't make good money was selling during the crisis or measuring in CDN$ as the stock is traded in US$? Seems like a pretty good company?


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## warp (Sep 4, 2010)

I was looking at 3M, (MMM), during the market collapse, as well as a lot of other blue chips , like CAT, PG, KO , CL, CLX, KMB, etc

Of course fear overtook greed and I waited and didnt get all these great 
stocks at those wonderfull prices.

I missed MMM under $ 50 !!!

Thinking back I can't beleive I did not jump in,,,as per Buffets advice,,,,

"buy when others are cautious, (selling), sell when others are greedy, (buying)"

It seems so simple,,,yet when real money is on the line...its hard as hell to do.

Back to MMM...its a great company and I kick myself for not buying it.

Right now , this revcent 1 month rally has me wondering if a slight pullback isnt in the works,,,,,and maybe some deals will become availiable.

Anthony


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## funinagg (Jun 10, 2010)

warp said:


> It seems so simple,,,yet when real money is on the line...its hard as hell to do.


it is hard. i opened the discount brokerage account. deposited money. but can not bring myself to buy. it is just difficult to be sure if the price is fair when it comes to spending hard earned money.


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## Belguy (May 24, 2010)

If you wait, the stock(s), that you have been looking at, may continue to get more expensive and you may miss your best buying opportunity.

On the other hand, if they drop a little after you purchase them, I wouldn't lose any sleep over it.

If you have done your 'due diligence' and determined that the stocks are currently a decent buy, then I would generally go for it.


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## Cal (Jun 17, 2009)

Belguy said:


> If you have done your 'due diligence' and determined that the stocks are currently a decent buy, then I would generally go for it.



Exactly. Take your time. Soak up as much as you can. You will know when it is a good time to buy. Until then...


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## Toronto.gal (Jan 8, 2010)

Belguy said:


> 1. If you wait, the stock(s), that you have been looking at, may continue to get more expensive and you may miss your best buying opportunity.
> 
> 2. On the other hand, if they drop a little after you purchase them, I wouldn't lose any sleep over it.


1. How true, a perfect example (for me) was MCD. 
2. Exactly right! However, if they drop drastically lower as for example was the case with MFC, I buy additional shares to bring the average price down [if I believe in company's recovery] even when I hated to look at the stock!.


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## Jungle (Feb 17, 2010)

Deleted previous quote of slander from another poster.


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## Belguy (May 24, 2010)

How did the previous quote ever get posted?


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## Jungle (Feb 17, 2010)

Belguy said:


> How did the previous quote ever get posted?


Mods deleted both posts. I had quoted it and mods never deleted the quote.


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## Belguy (May 24, 2010)

Why would you have quoted it in the first place??


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## Jungle (Feb 17, 2010)

Belguy said:


> Why would you have quoted it in the first place??


So the poster could be pointed out for writing that. Inappropriate. I edited the quote now, it's done. Move on..


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## DavidJD (Sep 27, 2009)

funinagg said:


> it is hard. i opened the discount brokerage account. deposited money. but can not bring myself to buy. it is just difficult to be sure if the price is fair when it comes to spending hard earned money.


Ooops buying is fun. An investor buddy always says, "Its easy to buy - hard to sell" For some stocks they are hard to let go of. Too often we buy on emotion and when you are enamoured with a stock it is hard to let it go. Regardless of how abusive the relationship is to your portfolio! I will admit that I have held onto a few as they went down the toilet...too scared to make the loss real. Or not selling soon enough - too scared the high has not been met.

I need to buy less volume of a only few stocks (more diversification) This is hard for me because the few I have bought in high volumes have done very well.


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## warp (Sep 4, 2010)

*we seem to be getting a litle off target here.....*

This thread started as a forum for posters to give some ideas of good dividend stocks to consider buying.

Im going to try and get it back on course.

Tom Connally,,of the "Connally Report" newsletter, ( I am not a subscriber)admits to buying/holding only 5 dividend stocks.....I think he owns Power Corp, Fortis, Transcan, and at least one of the food companies, (maybe Metro, or loblaw), and he might be holding CNR

He basically buys ...holds them long long term and enjoys the growing dividends for income.
However he does not beleive in diversifying further and buys only canadian companies...thats a bit questionable, but it has worked out for him over the last 30 years.

Going forward may be different.

Sometimes, I think of just buying the canadian dividend ETF's...ZDV, and the Claymore one, I think its CDZ., but I must admit I hate paying fees since the candian dividend univers is relatively small, and the fees relatively
high at .55%

heres one stock i would ask about here.....Power Financial

Any thoughts on it or other div plays you guys would recommend looking into?

All the trusts I owm...Pembina, Interpipe, Fort ChIcago, CML Health, Parkland,
NAL Oil and Gas, Atlantic Power, Altagas, Armtec, and several others will also become good div stocks after converting and/or paying out only dividends next year

Anthony


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## warp (Sep 4, 2010)

Sorry about the typo....Ishares candian dividend ETF symbol is XDV,
(not ZDV)


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## Cal (Jun 17, 2009)

I don't subscribe to the Connolly Report either, I do periodically go to the library to read it though. I thought he had about 16-20 dividend paying stocks last I read, I could be wrong....if anyone here subscribes (Jon202?), could you post Tom Connolly's holdings?


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## bean438 (Jul 18, 2009)

Connolly personally owns a few stocks, maybe 5 or so? Not sure. He talks about them periodically, and other stocks that familly owns.
His report currently tracks 23 stocks on "the list", but he also follows others. He is always gathering info on all dividend paying stocks.
One of the companies he owns is power, so he considers himself an owner of Investors group, power financial, great west life as well since power onws those as well.

I believe he is, or will be shortly, online based only and plans to phase out the print edition.


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## bean438 (Jul 18, 2009)

Warp, you are correct in that Tom does not diversify per say, but if one company owns several others than he too owns them (as posted above).
He tracks and owns only CDN companies.

I agree with his concentration, but I do own U companies. Canada simply does not have any Cokes, or McDonalds, etc.

Since many companies derive revenue globally, I let them diversify for me.

WHy invest directly all over the world when Coke, Pepsi, Proctor Gamble will do it for me, and likely much better than I could.

I invest primarily in non cyclical consumer staples with a solid history of dividend growth.

AM I worried about not being diversified? Nope. Not as long as people need electricity, natural gas, cigarettes, soap, deodorant, etc.

I diversify among industries and companies to a point which has served me well. Had I invested in only GE, and PFE I would have been decimated since both companies cut the dividend.

Tom has a lot of free useful info on his web site.


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## warp (Sep 4, 2010)

*BEAN438.........thanks for the reply....*

You wrote:


"I invest primarily in non cyclical consumer staples with a solid history of 
dividend growth"

Thats also what I try to do! We think alike!

I own some of the stocks that you do, plus I bought NESTLE, (worldwide food), ABB, ( worldwide elctrical grid), JNJ, (worldwide health), VOD, worldwide telco), as well as several more US div stocks.

One problem is that US divs are treated as regular income for tax purposes, and there is always that withholding tax that you have to keep track of and try to use as a credit on your yearly returns,( unless held in an RRSP)

( Good US/INTL div stocks would also be nice to hear about.)

This is why I am asking for peoples thoughts here as to Canadian dividend stocks,,,,,,with the dividend tax credit, that are treated betted tax wise.


Thats exactly why Connally buys ONLY Canadian Dividend common stocks, and says he will never buy bonds, preferred, ETF's or anything else.

His concentrated portfolio would be worrying to me, but as he started around 1980, ( an estimate)....and was invested during that long bull run, he has done pretty well. 
He always talks about Fortis, and how the dividend growth has now meant a great yield on cost, added to a nice capital gain to boot.

I must admit that I do agree with the basic premise though.....which is how I now try to invest....buy solid dividend stocks, with a history of raising dividends, hold for the long term, and let the stock price appreciate along with the appreciating dividend for a capital gain.

You gotta be patient though, as this takes years to pay off.
Then again you are being paid every quarter,,which I love!

To finish,,,, what CANADIAN dividend growth stocks do you guys like right now??

Anthony


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## Square Root (Jan 30, 2010)

Surprised Connolly doesn't have any Bank stocks. RY/ TD/ BNS have all outperformed Fortis over the last 15 years by a wide margin. CM and BMO about equal over the same period.


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## bean438 (Jul 18, 2009)

Tom or his wife owns BNS bought back in 90, so he does own banks.


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## Cal (Jun 17, 2009)

If we are going to talk about him, I figured a link may help some members with who Tom Connolly is. The Connolly Report:

http://www.dividendgrowth.ca/dividendgrowth/


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## Square Root (Jan 30, 2010)

Thanks for the link. I pretty much agree with this guy (if not his self satisfied writing style). Looks like BNS is one of his big successes. My TD yields 11.62% on a cost basis.


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## humble_pie (Jun 7, 2009)

root haven't you heard. Yields on cost are not certified or licensed on this forum. The only certified, licensed yield calculation is yield on today's market price. And you know who sezzat.


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## bean438 (Jul 18, 2009)

Wasn't it Leslie or something? Some chick, or guy with a chicks name would snap whenever yield on cost was mentioned.

Connolly's web site is excellent,I am glad I am a member.


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## warp (Sep 4, 2010)

I've already read pretty much everything on Tom Connally's site

http://www.dividendgrowth.ca/dividendgrowth/

He makes some good points,,,especially about not buying mutual funds.

I have read several of his newsletters as well...they are an ok read,
but he does not exactly tell you what he owns/buys

Does anyone on here know what his holdings are? 
Bean...if you are a member, can you give us a small look?
I know he loves Fortis.

I keep looking at Fortis....but it always seems a bit overpriced, and the yield is really not that high for me.

This rally we have had over the last month or so just seems to never end.
I have patiently been waiting for the pullback that never seems to happen!

Its a two edged sword.....on the one hand I am making money on the stocks I own.....but am waiting for a pullback to get the large cash position I am holding.

The banks seem a bit over extended.....but I am looking at BCE, ( wish I had of bought it a while back, but i got Telus, which has done ok too.)

There is always that money piling up as people got nervous last year, and eventually investors will have to start looking for some yield someplace, especially seniors who need income!

SO: what do we buy????

Anthony


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## Belguy (May 24, 2010)

You can't catch the train after it has left the station!!!


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## bean438 (Jul 18, 2009)

Tom does not list his personal holdings, but he lists 23 stocks he tracks.

He basis his portfolio on his personal views on diversification, pricing, dividend growth, etc.

I know he or his wife owns POW, BNS, FTS for sure. While he doesn't list his holdings per say, he will refer to them in his newsletters, and various snippets on his web site.

He uses them as examples on how and why dividend investing works. He has also mentioned what he has sold in the past, and why.

He has never actually made any buy or sell recommendations.

I can tell you that he owns stocks that are on his list. WHen he bought them, for how much, and for why is not published in the list. You will have to dig through his past reports, and web site and figure it out.

I think he purposely does this so people dont simply buy what he does, but rather take the info and make your own choices.

You are not comfortable with CDN investing only for example.


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## bean438 (Jul 18, 2009)

Further to what do you buy?

Non cyclical companies with a solid history of dividend growth, at a price that you feel is value priced. A recent dividend increase is a safer purchase as well.

He has conceded in the past that you could simply buy a basket of these stocks without regard to price and hold for the long term, and you would "probably" do better than most investors, including "pros".

However, the lower the price, the greater your return, and more importantly the larger your margin of safety.

Read The Investment Zoo by Stephen Jarislosky, and The Single Best Investment by Lowell Miller.

These are the only 2 books you will ever have to read if you want to pursue dividend growth investing.


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## Jungle (Feb 17, 2010)

Anyone else finding it buy with current prices?


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## m3s (Apr 3, 2010)

bean438 said:


> I think he purposely does this so people dont simply buy what he does, but rather take the info and make your own choices.


That's what I was gonna say. The great deals he found in the 90's are long gone. You have to find what is good to buy on your own not what was

I like what his site says and I will share it with people I have half convinced to ditch mutual funds. One of them went out and bought Derek Foster's book after talking to me, which I don't think is really necessary and I didn't recommend it. Connally's site is short and to the point


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## bean438 (Jul 18, 2009)

Sure Tom got some great prices but those days are not long gone. We just had a great buying opportunity not that long ago

And there will be others. Dividend stocks fluctuate like all other stock. Once the "next thing" comes around dividends will be boring and prices will drop. Tom's stock will be stable or even go up in bad times because people flock to them for safety, hence the overvaluation. 
Personally I am holding cash. I hope for a second wave of sub prime defaults or another sky is falling panic, but there are a few good buys out there.


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## Square Root (Jan 30, 2010)

Humble-I agree that dividend yields on a cost basis make no sense. Got carried away a bit I guess reading Connolly and all. If any of RY/BNS/TD pull back by 5% I would go for it.


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## warp (Sep 4, 2010)

BEAN:

Thanks for the replies....

I have , in fact, already read the two books you recommeneded, several years ago. Both are exellent

The Single Best Investment, by Lowell Miller.

And , The Investment Zoo, by Stephen Jaroslowski

In fact I had a meeting at Jaroslowski, Fraser.

I must confess that I did like what Jaroslowski had to say, and how he thinks.

Solid non-clyclical companies with a history of dividend increases
He also rants and rants about "corporate goverance", and the buying of only companies that look after the interests of their shareholders first...( extravagant salaries, ans stock options drive him nuts.)

He can get in and talk to management as his firm runs huge amounts of institutional money and pension money,,,but WE cant!

I am going to start another thread on here to ask where everyone goes to get solid financial info, and ratios etc, on Canadian companies.....I find this info is SO easy to get for US companies from multiple sources, but harder to get for canadian comapnies.

Like you I do have cash positions, and looking to get the money working......
but as Belguy said,,you cant get on the train after it has left the station,

Perhaps we were/are, being too cautious!

So again...what should we buy??

Anthony


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## Belguy (May 24, 2010)

I heard Larry Berman say on BNN that, with everybody chasing yield these days, that he is concerned that many high yielding stocks are entering a bubble stage with many buyers pushing up the prices on these high yielders often beyond their real worth.

Buy low!!


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## warp (Sep 4, 2010)

Larry Berman, although I'm sure a nice guy, is just another of the endless stream of talking heads on BNN trying to build up his business.

Why would anyone pay to have someone else buy ETFs for them??

And his constant use of thoser charts is really funny at times.
For my money charting is useless.
Buy , hey, what do I know?

t least I know that I dont know...which is more than can be said about half these guys on BNN, who are just looking to get more money flowing into their funds/ houses to earn management fees on. Simple.

That being said I do watch BNN at times, and do learn things there.

I have thought of this yield chasing myself, long before Larry Berman said it.

I have wondered if some things are not being bid up due to their yields.
However if the comapnies have the cash flows to keep paying the dividends/distributions, what other choices exist in the markets today?

Where are investors going to put their money?
Remenber that the institutional , pension fund, and mutual fund money dwarfs the reatail investor money....so these smart guys are bidding up these equities too.

Cash makes very little,,,Bonds make even less, unless you are willing to go further out ..3+ years, then risk interest rates rising, which will hurt your holdings.

Now Im going to have some lunch,,,a fun endeavour I do know something about!!

Anthony


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## humble_pie (Jun 7, 2009)

root i was hoping to launch a joke, that's all. Bean got it. There's another member of this forum who insists yield must only be calculated on today's market price. No it wasn't the late lamented leslie. In addition there's also another joke running in the forum about who & what is certified & licensed.

however re yield, i for one believe that yield-on-cost is also a metric to consider. So, i notice, does Connolly.

the reasoning applies more to portfolios with lucrative yield-on-cost holdings. What i find is that successful companies, whose shares have generated large capital gains plus dividend growth over many years, are the best candidates to continue the same trajectory. This is especially true in canada where there are relatively few of these companies in the first place. I am speaking of eligible dividend-paying corporations only, not unit trusts with their mixed distributions.

so when an investor holding these oldie-but-goldies looks over the canadian field from a current yield-on-market perspective, he generally finds few alternatives. There may be higher dividend or distribution payors, but their future growth prospects may be more clouded than the shares he already owns. In short, the alternatives may include weaker prospects.

plus common sense dictates that investor won't want to trigger big capital gains by selling all of his oldie-but-goldies at once. Even our fervent yield-on-market-price proselytizer understands this.


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## Square Root (Jan 30, 2010)

Sorry I missed the joke. I don't look at cost yield much. To me it's more about the dollar amount in dividends I receive. Current yield helps me manage the portfolio. The banks have been very good to me over the years in this regard.


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## warp (Sep 4, 2010)

*HUMBLE: you said:*

[the reasoning applies more to portfolios with lucrative yield-on-cost holdings. What i find is that successful companies, whose shares have generated large capital gains plus dividend growth over many years, are the best candidates to continue the same trajectory. This is especially true in canada where there are relatively few of these companies in the first place. I am speaking of eligible dividend-paying corporations only, not unit trusts with their mixed distributions.

Humble_pie,

which Canadian Companies would you include?

Keep in mind that all trusts will be converting and paying eligible dividends next year,,,( no more mixed distributions)

I also like what square root said,,,,,I too am more interested in the dollar amount of dividends im receiving

So , which Canadian companies do you think will continue that "trajectory" as you said..raising divs, with raising stock price= great long term returns

Anthony

As an afterthought,,to any of you guys out there...in your experience , where is the best place, website , etc, to get reliable fiancial info and ratios on canadian companies? Thanks


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## NLOIL (Jan 28, 2011)

*CDN/US Dividend Stocks*

OK, so here is my two cents.....feel free to reply.....IMO, currently I believe *POW* and *PWF* are solid buys as they are both undervalued right now......I am also eyeing *REF.UN * and *REI.UN* especially with the annoucement that _Target_ is coming to town, and _Walmart_ expanding into SuperCentres....

Other then that, I am waiting on pullbacks to purchase *RY*, *BNS*, *TRP*, *CU*, *ENB*.

I currently hold *PWF*, *BCE* and *FTS*. I also have a basket of uranium stocks, but those aren't divi payers (URE, URC, UUU, DML) as well as a potash junior AAA.V. I'm hoping these all do well in the next year or two as I will switch whatever gains into Divi stocks depending on where I hold these companies...ie, I hold URE and AAA in my TFSA, and the rest in my RRSP account.

As for American stocks, I am currently adding to my position in *ABT* and *JNJ* specifically. I currently hold *GE*, *PFE*, *INTC*, *MDT*, *XOM* and as mentioned *ABT* and *JNJ*.

The problem I am finding as a Canadian investor, is that I could be purchasing more *POW* or *PWF* or *MFC* even *SLF*, as they are a beaten down sector with strong potential for SP appreciation in the coming years, especially as interest rates increase.....however, many blue chip US stocks are still selling at huge historical value...ie, *ABT*, *MDT*, *JNJ*.


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## Argonaut (Dec 7, 2010)

NLOIL said:


> As for American stocks, I am currently adding to my position in *ABT* and *JNJ* specifically. I currently hold *GE*, *PFE*, *INTC*, *MDT*, *XOM* and as mentioned *ABT* and *JNJ*.


There's something to be said for finding bargains, but as a former shareholder I would not recommend JNJ. There are way too many recalls, and they just announced a bad quarter too. The thing is, the share price hasn't been hit too hard. I find this dangerous, because the stock deserves a hit and only then would it be a value buy. I personally wouldn't touch it until William Weldon, one of the worst CEO's today, is put to pasture.

You already have Abbott Labs as a health care company so why not pick up something else instead of Johnson & Johnson? CN Rail is probably the best defensive stock on the planet.


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## HaroldCrump (Jun 10, 2009)

NLOIL said:


> OK, so here is my two cents.....feel free to reply.....IMO, currently I believe *POW* and *PWF* are solid buys as they are both undervalued right now


PWF is undervalued? Seriously?
I have been a shareholder for almost 3+ years now, and other than the big buying opportunity between Jan 2009 - Mar 2009, when the stock dropped to $15 or so, this stock has gone nowwhere.
$15 was undervalued and if you bought in then, yes, this has given you thumping returns.
But other than that, it's done nothing.

The dividend yield is nothing to write home about either.
The IGM side of the business faces challenges.
The print media side faces serious challenges.
The only thing it's got going for it is GWH.

I'm not saying it's a bad stock....it'll hold its own I'm sure.
But on what basis are you saying it's undervalued?
Please share your thoughts.

On another note, TA got thrown under the bus today after some suit from RBC downgraded it.
Took a haircut of over 3%.
Wish these analysts would just sit on some beach and smoke Cuban cigars and drink single malt whiskey and leave the markets alone.
Or just smoke pot with Charlie Sheen, but leave us alone.


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## Eclectic12 (Oct 20, 2010)

warp;33046
which Canadian Companies would you include?
Keep in mind that all trusts will be converting and paying eligible dividends next year said:


> As an afterthought,,to any of you guys out there...in your experience , where is the best place, website , etc, to get reliable fiancial info and ratios on canadian companies? Thanks


Actually not all trusts are converting. 

Some are delaying until later in 2011 to use up their tax pools and some have said that when they compare the change in their taxes versus the cost to convert, they decided it wasn't worth converting.


As for web sites, I'm not sure it is an exact match but I've always found that www.sedar.com makes getting the company announcements, annual reports, prospectus etc. fast and easy.


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## LOST (Aug 30, 2010)

Don't you just hate it when someone on business tv ( insert host) spouts condescending nuggets about your stock and it tanks. Had that happen to me when I was daytrading nasdaq and that figarino woman came on. All the daytraders were watching the show and I lost 1000's of dollars in a matter of minutes. Power of the media. Gotta love it, when people you don't know, have no interest in the stock, just reading cue cards, can hurt people financially worlds away.


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## NLOIL (Jan 28, 2011)

*Divi Stocks*

I do like *CNR*, and with a beta of .55 it is safe....but it also trades at $67.74....an all time high, and the divi is less then 3%, which for many divi stock investors is a cut off......I would love to add it to my portfolio, especially if it drops due to an unforseen economic outlier.

I personally feel *POW* and *PWF* are undervalued....yes if one was luckly enough to buy at $15, then that was a steal, but I personally feel that once interest rates begin to rise, you will see a descent rebound. People need insurance, that's life. At the same time, yes they face challenges...but what company doesn't? And that's assuming that they in no way adapt to these challenges.....these companies hire smart people for a reason, to respond to changing economic times....*JNJ*for example isn't going to disappear tomorrow, neither is *PFE*, and as Warren would say, buy when there is blood on the streets......When *GE* was trading at $6, people said, don't touch it....well guess what, I did.....and with a stop loss firmly in place, I realize a cap gain of +200%, and I get to sit on the dividend....

Regardless, in my opinion, to answer the original post enquiry...the best divi stocks in Canada are; POW, PWF, CNR, CP, FTS, ENB, TRP, BCE, T, and the big 6 banks.....the trick is buying when they are cheap......


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## Financial Cents (Jul 22, 2010)

@NLOIL - I like your selections.

I go back and forth between POW and PWF, but I think the latter is better for the lifeco. exposure.


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## warp (Sep 4, 2010)

NLOIL said:


> Regardless, in my opinion, to answer the original post enquiry...the best divi stocks in Canada are; POW, PWF, CNR, CP, FTS, ENB, TRP, BCE, T, and the big 6 banks.....the trick is buying when they are cheap......


This is a good list...but NO KIDDING about the trick you mention.

Trying to buy them "when they are cheap" is the whole game!

Now ...the question is who is going to tell us when they are cheap...and then buy?

I have posted on here several times recently,,there just don't seem to be any stocks that I would deem "cheap" in Canada right now, and this creates quite a dilema if you have cash to put to work.

Other posters are welcome to mention any stocks they would consider cheap right now.


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## beans (Jan 25, 2011)

*Sears.*

what are your thoughts on sears? its below twenty, showing decent support and pays a decent divident...? or should i be staying clear...


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## Homerhomer (Oct 18, 2010)

warp said:


> This is a good list...but NO KIDDING about the trick you mention.
> 
> Trying to buy them "when they are cheap" is the whole game!
> 
> ...


I am watching many stocks to add to my long term dividend portfolio and IMO there is absolutely nothing I would add right now, the markets have been on fire as of late and I am hoping for at least 10-20% correction over the next few months to make some additions.

I think US may have more to offer in that respect, health care is cheap if one is interested in the sector ( I have purchased ABT in the last few months), US dollar weakness imo provides further incentives.

In Canada some banks were ok valued until the recent run up, some insurance companies still may look attractive but then Japan happens and it makes me want to never touch insurance companies again (I was looking at adding SNL if it dips around 29 or less).

BCE imo wouldn't have to correct all that much for me to be interested again, but then again they have raised their dividends so much and already have high payout ratio, with the competition and some of the expenditures telcos may have to occur to handle increased traffic in the next few years, the growth may be limited.

ENB - I want in around $50, FTS around $27, CU below $45, CNR around $60, CVE below $30, TRP around $30, not holding my breath but let's see what next 6 months or so brings us, summer is usually better for buying.


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## AMABILE (Apr 3, 2009)

Does anyone think Rogers - RCI.B - cheap right now...I do.


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## m3s (Apr 3, 2010)

Homerhomer said:


> ENB - I want in around $50, FTS around $27, CU below $45, CNR around $60, CVE below $30, TRP around $30, not holding my breath but let's see what next 6 months or so brings us, summer is usually better for buying.


I've been broadening my investing horizons so to speak, and wondering if someone like this should sell put options on reliable stocks like this? You get paid to wait for the price you want



AMABILE said:


> Does anyone think Rogers - RCI.B - cheap right now...I do.


I recently bought Rogers, I think they'll make a lot as everyone moves to mobile computing in the near future


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## Argonaut (Dec 7, 2010)

Homerhomer said:


> ENB - I want in around $50, FTS around $27, CU below $45, CNR around $60, CVE below $30, TRP around $30, not holding my breath but let's see what next 6 months or so brings us, summer is usually better for buying.


That's a pretty wishful list. I don't think CNR will ever hit $60 again, barring a share split or a massive market crash. It's one of those stocks that you can buy without worrying what the current price is.

Sears I would stay very far away from. Rogers does look like an interesting value play for sure. I own BCE for the better dividend.


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## Eder (Feb 16, 2011)

I already own 1000 Rogers but think I will add some more. I also own Shaw and think it is beginning to look better as well... I'll pull the trigger at $20


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## hboy43 (May 10, 2009)

SNC?

It is never cheap, but the dividend is up 24% recently to 1.5%, and the price is beaten down a bit with the Libya issues.

It is yielding about 10.6% on what I paid for it 10 or 15 years ago, so if you want 3% on cost, give it a few years.

hboy43


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## Financial Cents (Jul 22, 2010)

RCI.B is not cheap right now, but a decent deal, trading near 52-week low.

I need to scrounge up some cash and get a few shares for the TFSA.


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## Eder (Feb 16, 2011)

I added 500 more Rogers, the dividend is too juicy. 

Also grabbed 500 LE CHATEAU INC CTU.A . My daughter loves their stuff as do her friends, trades on low volume, but 6.5% div, payout ratio I think is 50% or so.


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## KaeJS (Sep 28, 2010)

Added 50 shares of TD.TO to my already existing position. Got in today at $82.29. 

Can't wait for that April dividend!

I also bought GE this morning. Felt bad about it and sold almost immediately for a $9.60 profit after commissions. What a waste...


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## KaeJS (Sep 28, 2010)

Eder said:


> I added 500 more Rogers, the dividend is too juicy.
> 
> Also grabbed 500 LE CHATEAU INC CTU.A . My daughter loves their stuff as do her friends, trades on low volume, but 6.5% div, payout ratio I think is 50% or so.


You current market value of RCI.B is $51,000. 
Impressive.

May I ask, what is your age?


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## Eder (Feb 16, 2011)

KaeJS said:


> You current market value of RCI.B is $51,000.
> Impressive.
> 
> May I ask, what is your age?


Hi Kae

I'm 54 and retired for about 18 months now. My investment portfolio is close to 7 figures now and our only source of income.


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## Financial Cents (Jul 22, 2010)

@Eder - wow, close to 7 figures, very, very nice. 

I'm trying to "get there"!

If you don't mind me asking, what are the stocks you own?

Instead of buying RCI.B this week, I got HSE for my TFSA. I had no direct oil play in my portfolio yet and this one seemed right to me.

Eventually I'll get some Rogers or Telus in my portfolio.


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## I'm Howard (Oct 13, 2010)

Std/nyse

mo/nyse/

vz/nyse

jnk/nyse


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## Toronto.gal (Jan 8, 2010)

Bch - adr


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## Eder (Feb 16, 2011)

Financial Cents said:


> @Eder
> 
> If you don't mind me asking, what are the stocks you own?


My significant equity positions are XIU, XRE, Canadian Banks, Canadian wireless providers.


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## Financial Cents (Jul 22, 2010)

@Eder - great stuff.

We've got mostly ETFs in our RRSPs (like XIU and XBB) and our TFSAs are becoming home to a bunch of dividend-paying stocks. 

The rest of our dividend-payings stocks are unregistered to get that CDN divi-tax credit. 

I just hope to be in a position like yours someday, to buy 500 shares of something when it's priced right


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## KaeJS (Sep 28, 2010)

Eder said:


> Hi Kae
> 
> I'm 54 and retired for about 18 months now. My investment portfolio is close to 7 figures now and our only source of income.


Thank you for disclosing that personal information.

I am definitely impressed and encouraged.

I'm only 20 years old, so hearing something like that is quite inspiring for me.


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## Betzy (Feb 7, 2011)

I'm only 20 years old, so hearing something like that is quite inspiring for me. [/QUOTE]

KayJS, I wish I was 20, make any of the many sound investment choices on this board and you'll be in same boat by 54! You've got 18 yrs of compounding on me that is about $500k with a $10k TFSA with average growth!!


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## zylon (Oct 27, 2010)

*Bird Construction (BDT)*

My only purchase this past week was 100 shares of BDT

At Friday's close of $37.18 the $0.4950 quarterly dividend yields 5.3%

Next ex-dividend date is March 29

Bird's home ...


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## warp (Sep 4, 2010)

KaeJS said:


> Thank you for disclosing that personal information.
> 
> I am definitely impressed and encouraged.
> 
> I'm only 20 years old, so hearing something like that is quite inspiring for me.


KaeJS :

I will make you the same offer I have made to many of my son's and nephew's friends without success:

I will trade you everything I own for what you own ..., you will trade me your age, for my age.

In other words we will trade places! Would you agree to this trade?

It is GREAT that you are interested in investments, and taking an interest in your future.
Might I suggest a few broad etfs, and some solid dividend payers and dividend growers....look at the US and Canadian dividend Aristocrats list.
Do your homework....try to buy when your picks, and the broad markets are at a low to reasonable valuation
Keep costs to a minimum, and do not overly trade.
Let compounding work for you over the long term..( 20 years +)

I started this reply with that trade offer to remind you that you will be 20 only ONCE and believe me , I can tell you from experience that the years go by fast.
So, as well as thinking about your future..ENJOY your youth NOW!

Sorry if this sounds like I'm adopting you....just a few thoughts is all.

Good luck.


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## Financial Cents (Jul 22, 2010)

Well said Warp.

I'm 37 now, 20 seems like forever ago. 

I imagine how much better off (financially) I'd be if I bought a few bank stocks like RY, TD, CM, BMO or BNS back then and simply forgot about them...

Oh the possibilities from 17 years of stock price, stock split and dividend growth....


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## phrenk (Mar 14, 2011)

If you wish to have exposure to the real estate sector (and not buy an ETF with a 4% weighted yield), i highly recommend either of the following REITs that are currently yielding an 8% + yield.

Artis REIT : AX.UN
Whiterock REIT : Wrk.UN

I personally own Whiterock and their DRIP plan is attractive (4% discount).


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## kid5022 (Nov 14, 2010)

phrenk said:


> If you wish to have exposure to the real estate sector (and not buy an ETF with a 4% weighted yield), i highly recommend either of the following REITs that are currently yielding an 8% + yield.
> 
> Artis REIT : AX.UN
> Whiterock REIT : Wrk.UN
> ...


hey phrenk
both reit looks attractive, i was wondering if you have anymore Canadian REIT's that you think is good?
I have my eye on BTB.UN and TR.UN, also i think WRK.UN DRIP plan is attractive too
how do i found information on DRIP plans in REITS?


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## Siciliano698 (Nov 29, 2010)

Hi,

What are your thoughts on Potash corp since the 3/1 spilt, do guys think it’s a good buying opportunity at 54-55$ range?


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## FrugalTrader (Oct 13, 2008)

Picked up a small position of PG (Procter & Gamble).


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## J3ff (Mar 20, 2011)

*Wrk.un*

Just picked up WRK.UN today. Thanks for the pick phrenk. Looks like a decent REIT to have in the portfolio.

I also picked up TD today as well.

I'm looking into KBL.UN - not a very sexy business they are in but super stable. Long term contracts, consistent revenues, ...good place to park some cash. Will pick some up on dips...


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## Cal (Jun 17, 2009)

http://seekingalpha.com/article/259300-9-dividend-stocks-on-the-radar

I had been watching JNJ...but not convinced of HSE.


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## HaroldCrump (Jun 10, 2009)

J3ff said:


> Just picked up WRK.UN today. Thanks for the pick phrenk. Looks like a decent REIT to have in the portfolio.


Have you guys looked at WRK's financial statements?
There were some rumblings a while around cooking the books.
I haven't, so simply asking....


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## J3ff (Mar 20, 2011)

Where have you read that WRK.UN is cooking its books or where there is evidence of this happening? Please kindly post where you've seen this...


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## HaroldCrump (Jun 10, 2009)

J3ff said:


> Where have you read that WRK.UN is cooking its books or where there is evidence of this happening? Please kindly post where you've seen this...


I recall a few analysts saying this on TV (BNN, most likely).
There was more than one and I don't recall all the names, but one of them was Charles Dillingham (of Morguard Financial).
I also recall (at that time) their payout ratio was higher than AFFO and they had way more debt that other similar REITs.
As I said, I've not researched them personally because there were several red flags straight off the bat.
Maybe things have changed or are changing for the better, but you should do some DD of your own.


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## Financial Cents (Jul 22, 2010)

There are much better REITs to own, I prefer REI.UN, HR.UN or REF.UN.


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## phrenk (Mar 14, 2011)

Regarding WRK.UN, it's true that in the past some analysts expressed reserve regarding their financial statements - primarily on the AFFO payout ratio, but with the latest financials released 2 days ago, they are at about an 80% recurring AFFO payout ratio. The comments from Dillinger et al were back in 2007 i believe. 

They were highly leveraged in 2008-2009 but have since then deleveraged and refinanced alot of their debt with lower rates. The refinancing has alot allowed them to purchase additional properties which are accretive to shareholders without diluting shares outstanding.

The reason for the 8% yield is because the company is young, high leverage vs peers and the low coverage by analysts for this REIT.

It is a good risk adjusted return stock for an 8% yield, where 40% of revenue are from government / investment grade tenants. And according to the latest conference call, they will be releasing details on IFRS values (fair market values) in the next few week - which might provide additional upside.

A good resource regarding WRK is the forum on stockhouse.ca : http://www.stockhouse.com/Bullboards/SymbolList.aspx?s=WRK.UN&t=LIST

For drip plans, you can try this site : http://cdndrips.blogspot.com/

I consider BTB.UN and TR.UN 2 or 3x times riskier than WRK.UN, with the same dividend yield (approx) but with a market cap under 80 M. Not worth the risk.

But as HaroldCrump mentions, do you own due diligence.


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## kid5022 (Nov 14, 2010)

HaroldCrump said:


> I recall a few analysts saying this on TV (BNN, most likely).
> There was more than one and I don't recall all the names, but one of them was Charles Dillingham (of Morguard Financial).
> I also recall (at that time) their payout ratio was higher than AFFO and they had way more debt that other similar REITs.
> As I said, I've not researched them personally because there were several red flags straight off the bat.
> Maybe things have changed or are changing for the better, but you should do some DD of your own.


hmmm to me all or almost all books are being cook by management
except for those that management is also the majority shareholder, and have lots to lose, but still they could be cooking it for liquidity or something, but at least they are less likely to

i do think WRK.UN do have some attractive assets, and are spread around Canada...for people who believe in diversification...but if housing go south in Canada, basically what they own also go down no matter which province its in. 

Beside asset value more importantly would be tenants being able to rent and paid their rent on time


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## greeny (Jan 31, 2011)

I´m also buying TFSA and really profitable for HSE.


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