# Highest Yielding ? you hold



## DavidJD (Sep 27, 2009)

I am curious. Many are attracted to dividends and much discussion has been about yields of 'bank, blue chip, artistocrat, champion' etc. stocks. in the 2-5% range.

What is your high flier? What is bringing in your highest yield and what is the yield on cost?

I think (hope) it will invite thoughts about their risk and the sustainability of the dividend.


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## jamesbe (May 8, 2010)

JE is my highest at 9 something.


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## FrugalTrader (Oct 13, 2008)

Mine is Canadian Oil Sands with a current yield of 5.44% but a 6.27% yield on cost. Current payout ratio is around 52%. This stock is a bit riskier as it has cut their dividend in the past when oil prices dropped.


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## peterk (May 16, 2010)

Holding TEF for a while now, to my detriment. yield is 13%, payout is high... I'm worried.


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## al42 (Mar 5, 2011)

The Data Group, DGI.T. I picked this up when it was getting smacked in the fall at an average cost of just over 3 bucks.
Yield at that time was just over 20% now I think it's yielding around 12%. I was thinking of selling but they just came out with some decent numbers and this stock traded over $7.00 some time last year. So I will hold for a bit longer.


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## liquidfinance (Jan 28, 2011)

Just energy, Chemtrade, Boston Pizza and Cominar REIT.

Average yield over 8% Not sure I would add to any of them at current prices though.


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## Zeeshan Hamid (Feb 28, 2012)

I am afraid of stocks with too high a yield and /or too high a payout. I have BP, BIP, LLY that all yield in the 4-5% range (were higher when I bought them, given given me good capital appreciation as well). I hold them in RRSP, so no foreign dividend tax issue.


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## Spudd (Oct 11, 2011)

Mine is INN.UN (InnVest REIT). I think it's paying about 9.5% on my cost, current yield is 7.5%.


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## Nemo2 (Mar 1, 2012)

Highest at cost: BTE @ 20.06% (4.91% at current price), IPL.UN @ 14.52% (5.42% at current price)


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## Eclectic12 (Oct 20, 2010)

DavidJD said:


> I am curious. Many are attracted to dividends and much discussion has been about yields of 'bank, blue chip, artistocrat, champion' etc. stocks. in the 2-5% range.
> 
> What is your high flier? What is bringing in your highest yield and what is the yield on cost?
> 
> I think (hope) it will invite thoughts about their risk and the sustainability of the dividend.


For highest yield against current price, I'm pretty sure it's Pengrowth at 8.5%.

For yield on cost, in my taxable account it's BMO at 10.7% and in my RRSP, it's TRP which is either
at 33.6% or 67.2%. I don't remember off hand whether it's once or twice there's been a 2:1 split since I bought it.


If I get a chance, I'll double-check and if I find anything different, I'll update this post.


Cheers


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## Causalien (Apr 4, 2009)

Visa (V)
Yield 1.5%


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## Eder (Feb 16, 2011)

Haha...My Boston Pizza is yielding around 8% as well, but it has thrown in about a 25% capital gain for me as well.
CargoJet is my highest yielding stock at about 6.7% today.
I'm pretty sure BMO is my highest yielding on cost...I bought most of it in the high 20's but have been adding more twice a year(my last buy was at around $58) and I don't bother tracking stats like that.


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## Assetologist (Apr 19, 2009)

CM: YOC 8%, Current 4.8%
JE: YOC 10%, Current 9.3%
TEF: YOC 10%, Current 12.8%
MX: YOC 6.7%, Current 2.2%
REI.UN: YOC 8.7%, Current 5.1%
TRP: YOC 5.8%, Current 4.0%

The best were bought when fear reigned supreme in 2008/2009.


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## reggie (Jun 7, 2011)

Keg Royalties (KEG.UN) paying %6.98.


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## gibor365 (Apr 1, 2011)

HEE about 13%
EGL.UN 9.75% (YOC 10.5%)


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## bootsnixon (May 10, 2011)

Interesting question. I'll join in.
SLF around 6.85% current approx. YOC 5.5% boohoo
TR.UN around 8.09% current approx YOC 9.5% yah

Congrats to Eclectic for getting BMO above 10%. I think I got some banks around YOC 8.5% back in 08/09 and wish I would have got more.


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## Jon_Snow (May 20, 2009)

Bpf-un, che-un ftw!!!!


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## Financial Cents (Jul 22, 2010)

CLC yielding over 7%. SLF yielding just under 7%. The latter, I'm waiting for a 50% haircut on the dividend. Other than Canadian banks, rest of stocks in portfolio are yielding between 3-4%.


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## Dmoney (Apr 28, 2011)

I'm loving the love shown to Boston Pizza in this thread.

Also my highest yielding at about 7%, yield on cost of 9.8%.

38% capital gain, 57% total return. (25% annualized total return).

Was my first ever individual stock ever, so it holds a special place in my heart. I'm likely to never sell, and hope it never runs into trouble so that it can serve as a reminder of the power of long term buy and hold investing. 

Also, no one mentioned the 6.5% increase in its dividend. Announced today. Congrats on the raise everyone....


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## londoncalling (Sep 17, 2011)

peterk said:


> Holding TEF for a while now, to my detriment. yield is 13%, payout is high... I'm worried.


I recently bought this stock as well... i am not worried as it is a small percentage of my portfolio and am prepared to take a beating. I bought it in the hope that it would be similar to buying US stocks back during the madness in the US a few years back. Maybe I got in to soon just as some did in 08 but I definitely think the extra divs will easily cover those differences. I am currently down just over 4% but am prepared to average down if it gets closer to 10% loss. I have to disclose that this is my most risky play ever and would not be surprised if they cut the divvy. As for more stable high flyers. I own CHE.UN.TO. It is my largest holding, currently yielding 7% but my yield on cost is 8.53%.


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## Spidey (May 11, 2009)

Highest yielders:
NAE 7.65%
CLC 7.01%
SLF 6.85%
CPG 6.04%


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## humble_pie (Jun 7, 2009)

london alas i am the bearer of bad news so i am sorry. TEF has already cut the dividend to 130 euros for 2012, part of which, i believe, will be in kind, ie a share issue.

can easy find the info on tef website. They announced in december 2011.

folks posting here about high current tef yields in the 13% range are getting em from data bases that are backwards looking in the way that data bases are always backwards looking. In tef's case these screeners, dbs etc are looking backwards to the high div days. Alas them days is over.

the above-mentioned 130 euro div generates a current yield around 10%. However folks must take into account that every tef div whether held in rrsp or non-reg'd is subject to a spanish NRT withholding tax of something like 19%. This eats away at the actual yield in real $$ that will be received. (the US 15% nrt will not apply to tef held in rrsp accounts.)

altogether the real current yield gets whittled down to roughly 7-8%, part of which will have to be taken in new tef shares which then incur additional commission if they are to be sold.

there are plenty north american companies that can compete with that.


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## londoncalling (Sep 17, 2011)

I was aware of the Dec cut which would give it a yield of 10% as you mentioned. I bought this stock in the beginning of March. I am prepared for a further cut if it happens this year if things are to head further South. I was also aware of the Spanish NRT withholding tax. I found this info on another forum and checked into it to verify. Regardless 8% is a nice yield IMO as long as it doesn't continue to fall. I bought this stock as I wanted to diversify outside of Canada and consider their growth in South America to be a huge opportunity for growth for TEF while European issue shakes out over the next few weeks, months, years or decades. I plan to hold this one either for 3-5 years till the price climbs like happened in the US after the crash or indefinitely as it had an attractive P/E in comparison to Canadian and US telcos which are reasonably a much safer choice. Hopefully, in this instance risk = reward but you never know. As unwelcome as bad news is to hear, I would much rather hear it then to have a fellow member omit such a post to spare my feelings. I was not aware of the of the additional tef shares as part of the cut. I assume this has already taken place prior to my purchase of Mar. 2nd.


Cheers!

Edit: does the with holding tax apply to NZ stocks held in an RRSP? I am considering adding NZT as well.


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## Canuck (Mar 13, 2012)

*my highest yielders*

che.un
nae
stb
atp (scaring me a bit)
Lw (leisure world)
cus
clc
ba


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## Ethan (Aug 8, 2010)

Petrobakken

13.7% yield on cost
5.6% current yield


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## Soils4Peace (Mar 14, 2010)

Counsel Real Estate Fund=REI.UN YOC somewhere around 50%. CREF was only a couple of years old when I bought it.


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## gibor365 (Apr 1, 2011)

londoncalling said:


> I recently bought this stock as well... i am not worried as it is a small percentage of my portfolio and am prepared to take a beating. I bought it in the hope that it would be similar to buying US stocks back during the madness in the US a few years back. Maybe I got in to soon just as some did in 08 but I definitely think the extra divs will easily cover those differences. I am currently down just over 4% but am prepared to average down if it gets closer to 10% loss. I have to disclose that this is my most risky play ever and would not be surprised if they cut the divvy. As for more stable high flyers. I own CHE.UN.TO. It is my largest holding, currently yielding 7% but my yield on cost is 8.53%.


Why do they cut dividends? Their payout ratio just 36%. 

actually, just read "Brazil Mobile Fees May Fall 80% Through 2018, Regulator Says"
http://www.businessweek.com/news/20...y-fall-80-percent-through-2018-regulator-says
So, won't be a surprice if they cut dividends.

All those ADR telecoms kinda fishy, last year I took losses and sold CEL (also was about 12% dyield) and bought T:NYSE, good think I did it as I'm up on T about 10% (exclude dividends) and if I'd continue to hold CEL, I'd be down more than another 42%

To tell the truth , I'm more confidend with AT&T with current yield 5.6% and mine YOC 6.1%, at least those guys increased div 30+ years..
I was also looking some time ago at NZT and was wondering if they charge withholding taxes or pay "frank" dividend


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## Argonaut (Dec 7, 2010)

Inter Pipeline. Current yield 5.45%, yield on cost 7.6%.


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## doctrine (Sep 30, 2011)

Boston Pizza. Bought in Jan and now 8.2% yield on cost, 7.01% current yield after the latest increase. 12% return in 2 months


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## DavidJD (Sep 27, 2009)

Hmmm it appears that the high flyers scare us but we love them anyway...or their dividend and any gains.

I got hooked on EIF, YOC is about 12.5% and is now at 6.8%

How much are you getting in dividends per month? In my trading account and TFSA only, I am getting $992.50 or $11,910/yr. I am aiming to increase that to $15,000/yr and to move more and more into my TFSA...over time.


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## gibor365 (Apr 1, 2011)

I'd like to ask a little bit different question, which investment you hold that:
- have sustainable yield, 
- was increasing dividends for number of years and potential to increase in future
- have current high yield 
In my potfolio I think those will be MO and T:NYSE

EGL.UN has higher yield about 10%, but I'm not sure how sustainable it is and I don't beleive it will raise dividends at all.
CHE.UN has higher yield about 7%, and probably is sustainable , but again I don't beleive it will raise dividends


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## Canuck (Mar 13, 2012)

i'm averaging approx $4200 a month. I sold a couple of one bedroom apartments last year (that I bought a very long time ago) and piled every dime into dividend paying stocks...i know, probably crazy, but I'm fairly young and most of my stocks are the biggies (trap, enbridge, fortis etc...)







DavidJD said:


> Hmmm it appears that the high flyers scare us but we love them anyway...or their dividend and any gains.
> 
> I got hooked on EIF, YOC is about 12.5% and is now at 6.8%
> 
> How much are you getting in dividends per month? In my trading account and TFSA only, I am getting $992.50 or $11,910/yr. I am aiming to increase that to $15,000/yr and to move more and more into my TFSA...over time.


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## Ihatetaxes (May 5, 2010)

JE for me. Happy that its back up 40% plus from its low point last year.


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## Jungle (Feb 17, 2010)

Wow Canuck and DavidJD you guys have a lot of dividends. I wish I could have that much. We could but I get nervous if all our investments are just in high paying dividend stocks. 

Do you guys have any other investments? Like index or mutual funds, etfs?


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## Cal (Jun 17, 2009)

Currently SLF and REI.UN....not that I really consider them to be high flyers...one is a REIT held in my TFSA, and well....we all know what has happened to the insurers over the past few years, however I don't think SLF is going under so I picked some up.

DavidJD, you arent' too far off of your goal for 15K per annum....almost there. Another dividend increase or two sure does help doesn't it.

And Canuck....isn't it great how the same income from dividends is not taxed as bad as the rental income, and you get to keep/spend/reinvest a little more.


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## KaeJS (Sep 28, 2010)

Spidey said:


> Highest yielders:
> CPG 6.04%


Ditto on the CPG. It's my highest yielder. Yield on cost is 6.9%.


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## PMREdmonton (Apr 6, 2009)

First thing is that YOC is bogus metric. You have a capital gain plus the current dividend yield, not a yield on cost. You may choose to take that capital gain or not in a sale you are yielding the current dividend yield off the current share price and not the share price when you bought.

Having said that my highest yielders are:

VE (Veiolia): 11%

BFR: 18%

TEF: 13%

NLY: 14%

STD: 11%

VOD: 7%

PBN: 6%


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## Dmoney (Apr 28, 2011)

YOC isn't to tell you anything about the stock's current situation. It's a way to evaluate past decisions. If a stock is yielding 5%, but your YOC is 20%, you're making 20% on your original invested capital. A good return, both capital gains and dividends. 

It's a way to keep score, not to evaluate the current situation.


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## londoncalling (Sep 17, 2011)

That is fine and good but what is your YOC on those positions? 

The merits of YOC is up for debate. I would agree that is not a very important metric. How you got to your current yield may vary. It is possible to have incurred a capital loss to achieve the current dividend yield. For example if you purchased NLY when it was only yielding 10% and the share priced dropped so that it is yielding 14% you are still underwater and definitely no better off. In comparison, purchasing PBN with a YOC of 9% with an appreciation to a curent yield of 6% is a much better scenario from a share holder perspective. In that regard YOC is more important than current yield. I would agree that YOC is not a key metric but it does provide some perspective to shareholders in regards to judging held posoitions. One can be able to use YOC to judge return as a method to gauge dividend increases or share appreciation or loss for the position. Personally, I only use current yield as one of several metrics for entering or exiting a position. I use YOC to monitor what the stock has done since I've purchased it. If the current yield is lower than my YOC I hope it is due to stock price appreciation. However, I would not necessarily hold a stock just because I have a high YOC. For example if I purchased RY with a YOC of 5.4% and it is currently yielding 3.9%(not real numbers) I may choose to switch it out with a stock that is yielding 5%.

Cheers!

Edit: Looks like Dmoney beat me to it.  I apologize for being a bit repetitive and long winded.


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## Eclectic12 (Oct 20, 2010)

PMREdmonton said:


> First thing is that YOC is bogus metric.
> 
> You have a capital gain plus the current dividend yield, not a yield on cost. You may choose to take that capital gain or not in a sale you are yielding the current dividend yield off the current share price and not the share price when you bought.
> 
> [ ... ]


IMO, the main place the current dividend yield matters is if one is looking to buy at current prices or one is looking at the overall picture. 


Looking at it from the reverse point of view - the current dividend yield is a bogus metric.

One can choose to take the capital loss or not by selling, where the current dividend yield has gone up. Then say a month later, there's a CG with a current dividend yield which has gone down. Funny enough, the cash paid has been the same. 

Is the higher or lower current dividend "good" or "bad"? 
Will it change if the CL was less than the dividends collected in previous years?


YOC and Yield are nothing more than tools in the toolbox, IMO.


Cheers


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## CashMoney101 (Mar 6, 2012)

Well my four best yields are FAP at 8%, NAE at 7.7%, TA at 6.1% and REI.UN at 5.23%. The rest tend to be around the 2-4% range. How would I calculate the YOC exactly?


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## gibor365 (Apr 1, 2011)

CashMoney101 said:


> Well my four best yields are FAP at 8%, NAE at 7.7%, TA at 6.1% and REI.UN at 5.23%. The rest tend to be around the 2-4% range. How would I calculate the YOC exactly?


I understand YOC as (annual dividend) / (your buying price) . In this case in my US holdings the bigest YOC has MO 6.3%, than T - 6.1% and PM 5.4%


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## CashMoney101 (Mar 6, 2012)

Ah, exactly as it's called then... I wasn't sure if I was to include the compound growth from DRIPped shares. Well that gives me YOC of 7.5% for FAP, 8.5% for NAE, 5.5% for TA and 5.5% for REI.UN. It seems like the YOC is higher than the current yield for the stocks that are up since I bought them.


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