# Dividend paying stock



## Savingmoney (Dec 28, 2009)

I'm a new stock investor, just opened my trading account at the beginning of 2009. I have riocan , brookfield properties and algonquin power & utilities in my porfolio which i am happy with and will keep for a long term investement but i'm looking to diversifie my porfolio a little more, i'm only interested in dividend paying stock preferably monthly, does anyone have any suggestion?


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## ssimps (Dec 8, 2009)

Are any of the stocks you mention actionally paying 'dividends', and if so, what % of payout. 

Are you looking for true dividend stocks or any monthly yield stocks (that could be from ROC, interest, capitol gains, dividends, etc). My understanding is that there is a big difference between all these, especially tax wise.

I think MDJ has an article or two explaining the differences:

http://www.milliondollarjourney.com

Thanks.


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## Savingmoney (Dec 28, 2009)

ssimps said:


> Are any of the stocks you mention actionally paying 'dividends', and if so, what % of payout.
> 
> Are you looking for true dividend stocks or any monthly yield stocks (that could be from ROC, interest, capitol gains, dividends, etc). My understanding is that there is a big difference between all these, especially tax wise.
> 
> ...


Well algonquin power(6% when i bought) and brookfield properties(5.5%- 6%) are paying true dividends, i'm looking for dividend paying stocks for tax purposes, i just bought riocan (pay distribution) because it has a really good yield so hopefully it makes up the difference and it looks like a solid companie in my eyes.


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## FrugalTrader (Oct 13, 2008)

Thanks for the plug ssimps. Savingmoney, here are the specific articles:

Top Canadian Dividend Stocks
Top US Dividend Stocks


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## ssimps (Dec 8, 2009)

Check out the 'Dogs of the TSX' if you want a list of the highest dividend paying TSX stocks:

http://canadianmoneyforum.com/showthread.php?t=1599&highlight=dogs+TSX&page=2

I'm not sure how many 'dividend' paying stocks pay monthly though, usually quarterly I think.


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## Savingmoney (Dec 28, 2009)

Thanks guys, i really appreciate the info


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## ssimps (Dec 8, 2009)

Savingmoney said:


> Well algonquin power(6% when i bought) and brookfield properties(5.5%- 6%) are paying true dividends, i'm looking for dividend paying stocks for tax purposes.


Brookfield Properties - thanks for that one, I'm going to look into it and maybe do as you if / when it gets back up to the 5-6% dividend again.

algonquin power - the way I am reading their 2008 T3 PDF, only 0.00104 - 0.004 of the total income per unit was dividends, when the total income was between 0.02 - 0.0766 per unit, so seemingly low dividend %. Could not find income breakdown for 2009 in the quick search I did, so maybe this year they are paying pure div's.

Thanks again.


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## Savingmoney (Dec 28, 2009)

ssimps said:


> Brookfield Properties - thanks for that one, I'm going to look into it and maybe do as you if / when it gets back up to the 5-6% dividend again.
> 
> algonquin power - the way I am reading their 2008 T3 PDF, only 0.00104 - 0.004 of the total income per unit was dividends, when the total income was between 0.02 - 0.0766 per unit, so seemingly low dividend %. Could not find income breakdown for 2009 in the quick search I did, so maybe this year they are paying pure div's.
> 
> Thanks again.


I fear that you'll be waiting a long time before brookfield properties yield goes back up, it's at 4.5% right now so it's still not a bad buy and i think there stock price will go up from here, that's my prediction but what do i know, haha
as for algonquin power & utilities :they use to be monthly dividend but now they're quarterly 0.06$ dividend and for Canadian resident shareholders, dividends declared are considered as “eligible dividends” for purposes of the dividend tax credit rules contained in the Income Tax Act (Canada).


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## ssimps (Dec 8, 2009)

Savingmoney said:


> as for algonquin power & utilities :they use to be monthly dividend but now they're quarterly 0.06$ dividend and for Canadian resident shareholders, dividends declared are considered as “eligible dividends” for purposes of the dividend tax credit rules contained in the Income Tax Act (Canada).


You are correct, they have made changes since 2008. Found this press release from December:

Algonquin Power & Utilities Corp. ("Algonquin") (TSX:AQN) of Oakville, Ontario announced today that its Directors have declared a dividend on its shares. The dividend is$0.02 per share payable on January 15, 2010 to the shareholders of record on December 31, 2009 for the period from December 01, 2009 to December 31, 2009 . For Canadian resident shareholders, dividends declared are considered as "eligible dividends" for purposes of the dividend tax credit rules contained in the Income Tax Act (Canada).

Effective January 1, 2010, Algonquin will change to a quarterly dividend schedule rather than the current monthly dividend schedule, subject to subsequent Board declarations each quarter. As a result, Algonquin anticipates declaring a per share dividend for the first quarter of 2010 of$0.06, which is the equivalent of the current per share dividend of $0.02 per month. The first quarterly record date is expected to be March 31, 2010, with a payment date on or about April 15, 2010.


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## Wim (Jan 5, 2010)

*Dividend Paying Stock Transalta*

Hi, 

Two months ago I wanted a dividend paying stock and I picked Transalta.

At that time, the stock was around $20 per share. It pays $1.16 (4 times $0.29) dividend per year which was around 5.5% of the share price at that time, which is way more than I can get in a savings account or GIC. Also dividends from Canadian companies are tax less than interest income. 

In the summer of 2008 Transalta was around $35 per share but share prices were high at that time. I believe that Transalta will go back to $30 within 2 years. Currently it is at $23.54. If I sell it now, I would make 15% profit plus I received the first dividend payment today. 

But I will wait until it reach $30 and than I will sell. Maybe it takes a year or two, but I will be happy with a 50% increase and receiving 5.5% dividend in the mean time. 

With the current price the dividend percentage is: 4.9%, still not bad. 

Don't listen to me but make your own decisions. Check them out on:
http://www.google.ca/finance?q=TSE:TA

Thanks
Wim.


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