# Update since selling my home last October and starting to rent



## newfoundlander61 (Feb 6, 2011)

Well its been 9 months since we sold the house and started renting. The apt is going great and we both are liking it alot with no regrets at all. As for investing the proceeds of the sale it is still on going. Since that time we have put together a decent portfolio of stocks with *$143k cash *to deploy. One thing I have *learned *is trying to figure out when to purchase a stock is a loosing battle. I have been wanting to pickup some BCE over the past few months waiting for a drop in the share price but it just keeps slowly edging upwards. My thinking was it was close to being fully valued but with the market uncertaintly and volatility it looks like part of the reason for it slowly going up is investors looking for a place to put some money until things settle down. I believe BCE is a good core holding for the long term in just about anyones portfolio. See below for my current holdings, as I will not need to draw any money for a few years to come my plan is not to sell anything I currently have and keep collecting the dividends. The holdings are held in a non-reg account and 2 TFSA's (one for me and the wife). 

TD Bank
Royal Bank
Scotia Bank
Fortis
Enbridge
Telus (TFSA)
Suncor (TFSA)
Choice Properties REIT – Retail (TFSA)
Magna – Auto Supplier (TFSA)
Algonquin Power & Utilities Corp (TFSA)


Dividends to date for 2019 from 1 Jan: $3,080 up to including the end of June this month. Most of these are not a full year of dividends due to purchase date but next year that will be different.

$143k cash to use


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## humble_pie (Jun 7, 2009)

newfoundlander61 said:


> I have been wanting to pickup some BCE over the past few months waiting for a drop in the share price but it just keeps slowly edging upwards. My thinking was it was close to being fully valued but with the market uncertaintly and volatility it looks like part of the reason for it slowly going up is investors looking for a place to put some money until things settle down. I believe BCE is a good core holding for the long term in just about anyones portfolio.



money has been rotating into quality high dividend stocks even more in recent months than was the fashion (hi divs have been a marked trend this entire past decade). The rotation has driven BCE & others in the category to the moon. 





> TD Bank
> Royal Bank
> Scotia Bank
> Fortis
> ...


good-looking list





> Dividends to date for 2019 from 1 Jan: $3,080 up to including the end of June this month.


you will be so happy when you see that nice eligible dividend tax credit next february, for tax year 2019. Comes straight off income tax otherwise payable.

only dividends received in non-registered accounts count for the tax credit, though. Dividends from shares held in TFSA or RRSP do not generate tax credits.





> $143k cash to use


me i am being a bit miserly w cash these days because i think the investment times are unsettled. Not selling but continuing to stick extra cash into HISA.


.


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## OptsyEagle (Nov 29, 2009)

I think the nice move in dividend stocks was solely the result of the "about face" change in interest rates. From everyone being absolutely convinced that interest rates were going to rise for quite a while to the recent change of them actually declining. A lot of investors dumped these stocks with their concrete opinion that they would suffer from the almost confirmed future rise in interest rates.

Lesson from this: 

No one knows where interest rates will be, even 3 months from now, including the Governor of the Bank of Canada. Why investors keep thinking they can foresee these things, is beyond me. This move must have been a little costly for those that still maintain that delusion.


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## Beaver101 (Nov 14, 2011)

^ Won't history repeats itself? If so, you can hardly blame your fellow investors from trying to predict where interest rates are going. Afterall, they don't set the interest rates like the experts do.


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## OptsyEagle (Nov 29, 2009)

Beaver101 said:


> ^ Won't history repeats itself? If so, you can hardly blame your fellow investors from trying to predict where interest rates are going. Afterall, they don't set the interest rates like the experts do.


I put blame on investors every time they make investment decisions on things they think they know, but logic says they cannot possibly ever know. I am not sure why blame should not go to a person who is making mistakes.

All that said, I am sure there are a few of them that made money on this mistake, by being more nimble, but the majority of people that believe one thing usually tend to be slow at reversing those beliefs. If they snoozed on this one, the whipsaw most likely costs them something, provided they are deducting loss of gain as a loss, which it is.


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## humble_pie (Jun 7, 2009)

back to the issue of whether or not to buy sky-high BCE: if one already has been holding BCE & one has a strong notional/paper gain, imho it's a good idea to deploy extra cash into small number of additional BCE shares in order to jack up the cost base (estate planning purposes) (also option assignment control purposes)

but the OP here is planning a brand-new BCE position. It would be a pity to buy at the peak. What i would do here is sell OTM puts, in the good old dMoney style, ie set out to earn a few $$ cash while seeking to acquire BCE a few $$ below its current market price. DMoney was a hands-down pro at this strategy. However as best i can recall this particular OP is not into options.

another mild hedging practice would be to cut down on the quantity of initial BCE purchases. For example if one had been planning to buy 500 shares, then cut the quantity down to 300 or even 200 shares. Save the cash.

my own fingers have minds of their own when it comes to halving or quartering buy orders. I can't think of the number of times i've set out in nervous or ambivalent markets to buy 500 or 1000 shares; but at the very last minute what happens is that the order my fingers insist on tapping out is only for 200 or 400 shares.


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