# Pick one stock to DRiP



## indexxx (Oct 31, 2011)

If you were to pick a single stock to DRiP in your TFSA, which would it be and why? I just got a cash infusion and am considering buying enough of one stock to DRiP a new share on each dividend date.

Cheers!


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## Synergy (Mar 18, 2013)

CSH works well in a TFSA. I believe they offer a 3% DRIP discount. Under $10 it's a good long term hold in my opion. The share price being on the low side will allow one do DRIP multiple shares monthly - that is for purchases of 500+ shares. REIT's are interest rate sensitive so buyer beware. However, if you're DRIPing and holding long term, corrections can help you pick up additonal shares at a discount.

I'd never pick just one stock, but CSH would be one of my top picks for my TFSA. Long term - demographics (aging population).


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## My Own Advisor (Sep 24, 2012)

RioCan. 

Canada's largest real estate investment trust, owns and manages Canada's largest portfolio of shopping centres.

As long as people need to buy stuff, RioCan should do well.

Steady 5%+ yield.


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## gibor365 (Apr 1, 2011)

Synergy said:


> CSH works well in a TFSA.
> I'd never pick just one stock, but CSH would be one of my top picks for my TFSA. Long term - demographics (aging population).


 what is so good with this stock.É Negative EPS, no increase in dividends and pretty modest yield for such kind of stock.... so what àging population`....than buy big pharma stock - they will benefit even more....
I`d go with BCE or RY ... REI.UN is OK too


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## daddybigbucks (Jan 30, 2011)

royal dutch shell RDS.b 
because the word is that people will need oil in the coming years.


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## Synergy (Mar 18, 2013)

gibor said:


> what is so good with this stock.É Negative EPS, no increase in dividends and pretty modest yield for such kind of stock.... so what àging population`....than buy big pharma stock.


Management has / is making some positive changes and I think some of the fundamental will improve over the next few yrs. According to one of the analysts, CSH has a growth rate of around 8% versus 5% for the REIT sector in general. It's simply one way to play the aging demographics - I never said it's the only way! And, I'd never hold just one REIT nor would I try to play the aging demographics in just one sector (housing). Yield should increase as the fundamentals come around and as growth outlook improves. Who knows, they may even be an acquisition target at some point. I'm holding and I'm happy to DRIP this one at these levels - with an ACB of $9.69. I don't need the income at this point so I'm not chasing stocks for their current yield.


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## DividendLuvr (Mar 5, 2014)

I like DI.UN. Not in it for capital appreciation - solely for the yield. As the ACB calculations for REITs can be complex in non-registered accounts, it also saves me time and effort to hold in my TFSA.


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## Killer Z (Oct 25, 2013)

I currently have BTE and IPL DRIPping monthly. Quarterly DRIPs are great, but monthly DRIPs are even better. I also have TD, RY, BPF, FTS and BPF all DRIPping.


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## My Own Advisor (Sep 24, 2012)

Nice stuff Killer. Love the DRIPs, especially the monthly DRIPs!


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## indexxx (Oct 31, 2011)

Much food for thought here- thanks everyone. I hadn't considered a monthly drip stock as the initial outlay is higher to get that full share per month but longer-term thinking shows it's a great option.


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## My Own Advisor (Sep 24, 2012)

REITs are priced not too bad indexxx....might be worth a look for you and you can DRIP most of them, with a discount, in registered accounts to avoid any ROC and other math


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## Killer Z (Oct 25, 2013)

Another consideration you may wish to make is that some companies provide a small discount on their DRIPs. Some of these include FTS (2%), CU (2%), CWB (2%), ENB (2%), REF (4%), CJR-B (2%), SJR-B (2%), MKP (2%), EMA (5%), CAE (2%), LB (2%), IPL (5%).

One thing about the above companies too, is that they all have strong dividend growth. I pulled them off of the Canadian Dividend All Star List if you want to check it out:

http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/


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## Butters (Apr 20, 2012)

Yeah Fortis is great, Banks are fine... but they are quarterly is that what you want?
How large is your sum?

You can also check out Doctrine here on the forums site,
http://www.dividendblogger.com/the_list/
click around to his front page, he talks about some of them

CHW.TO has potential growth, fell recently because CEO cashed out some profit ... a 5% yield....... monthly dividends

KMP.TO could be a good price

CFN.TO just had some mixed numbers and fell Friday, maybe a good entry point

ACQ.TO everyones favourite stock has something like 13 quarters of dividend increases in a row (although expensive)


BPF.UN is super low right now, and should hopefully turn it around when the patios open, they got killed over winter, you won't get much growth, but a 6% yield, should stay constant


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## donald (Apr 18, 2011)

Mullen is a good little mthly dirp(mtl)d-yield-4.33%-oilfield services with some hands in trucking/bulk/cement ect,somewhere aroun 27 bucks,seldom talked about company tied to to energy sector(I own it,good little performer)


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## gibor365 (Apr 1, 2011)

Killer Z said:


> Another consideration you may wish to make is that some companies provide a small discount on their DRIPs. Some of these include FTS (2%), CU (2%), CWB (2%), ENB (2%), REF (4%), CJR-B (2%), SJR-B (2%), MKP (2%), EMA (5%), CAE (2%), LB (2%), IPL (5%).
> 
> One thing about the above companies too, is that they all have strong dividend growth. I pulled them off of the Canadian Dividend All Star List if you want to check it out:
> 
> http://www.dividendgrowthinvestingandretirement.com/canadian-dividend-all-star-list/


If you consider stock with reasonable yield, anuual growth in dividend and DRIP discount - definetely FTS and EMA make this list


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## humble_pie (Jun 7, 2009)

daddybigbucks said:


> royal dutch shell RDS.b
> because the word is that people will need oil in the coming years.



daddy, could i ask you to please confirm, is there a NR withholding tax on this ADR dividend?

theoretically speaking - to judge from numerous threads in cmf - there should not be. Because it's a british ADR & the sceptred isle does not charge withholding tax.

the way i see it, the royal dutch dot B dividend is fairly hefty - USD 3.60 a year, says reuters, although only 3.44 says yahoo finance - plus the options are decent. Together these are suggesting a current return of 8.30%.

the bonus is that, if there is no withholding tax, it's a way to hold USD in a TFSA that is, well, tax-free, just like the name says.


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## liquidfinance (Jan 28, 2011)

humble_pie said:


> daddy, could i ask you to please confirm, is there a NR withholding tax on this ADR dividend?
> 
> theoretically speaking - to judge from numerous threads in cmf - there should not be. Because it's a british ADR & the sceptred isle does not charge withholding tax.
> 
> ...


RDS.a will have Dutch withholding tax RDS.b does not.

http://www.shell.com/global/aboutshell/investor/share-price-information/difference-a-b.html


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## humble_pie (Jun 7, 2009)

liquidfinance said:


> RDS.a will have Dutch withholding tax RDS.b does not.
> 
> http://www.shell.com/global/aboutshell/investor/share-price-information/difference-a-b.html


i know. You'll remember haroldCrump's message detailing all this.

what i was hoping to hear from was somebody who does hold the shares & who can confirm that yes, his broker does respect what is supposed to happen. 

liquid, do you happen to hold RDS dot B? is you broker withholding anything? also if you could mention whether you are receiving the dividend at USD $.90 as reuters says or a lesser amount as yahoo says ...

not that all brokers are going to act the same but some of em have gone a little peculiar with some of these more exotic products lately, so it can be a good idea to sniff out the norm ...


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## liquidfinance (Jan 28, 2011)

They are currently paying 0.90c us on the ADR shares. I still hold in my UK portfolio though. Stupid as I'm paying tax when I file my Canadian return but then I have to factor in selling, capital gains tax, transferring of £ to CAD to US and repurchase.


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## humble_pie (Jun 7, 2009)

liquidfinance said:


> I still hold in my UK portfolio though. Stupid as I'm paying tax when I file my Canadian return but then I have to factor in selling, capital gains tax, transferring of £ to CAD to US and repurchase.


i stumbled a little on this until i saw how your mind is thinking. Yes ideally speaking, in the best of all possible worlds, now that you are living in canada, those RDS dot Bs would do best in your TFSA ... but immigration is such a gigantic & disruptive event, nobody could ever get all the t's crossed & all the i's dotted perfectly ...

what would be wrong with doing both. Keep the old going in the UK portf but start up a new position in the TFSA. Yes it's double commish, but it's fairly common for folks to hold a favoured security in both registered & non-registered accounts.

i have to say i wouldn't touch dot B if it were not for the options. I was looking for a collar possibility but the puts are extremely expensive, as is normal with collars these days


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## My Own Advisor (Sep 24, 2012)

To clarify what I read above, no Dutch withholding tax on RDS.B only U.S. withholding tax?
http://web.tmxmoney.com/quote.php?qm_symbol=RDS.B:US


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## humble_pie (Jun 7, 2009)

My Own Advisor said:


> To clarify what I read above, no Dutch withholding tax on RDS.B only U.S. withholding tax?
> http://web.tmxmoney.com/quote.php?qm_symbol=RDS.B:US


as liquid says, RDS dot B is a british company, not a dutch company (same company but its shares are split.)

britain has no withholding tax, therefore no british withholding.

so far so good. In the stub of your question, why should there be US withholding tax? in my limited experience, US does not impose its own NR withholding tax on ADR dividends, on top of whatever NR tax the host countries might charge.

that's why i asked daddyB what all is going on in his own account. Because not all brokers are getting it 100% straight.

liquidfinance is not quite the right example prototype because his dividends are flowing directly from the stock itself, which he holds in a UK account, to him. They are not flowing through an intervening ADR organized in NY city.


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## My Own Advisor (Sep 24, 2012)

I always thought RDS was a British company....thanks HP.


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## daddybigbucks (Jan 30, 2011)

no withholding tax on rds.b. 
I hold them in 2 registered accounts.
I was looking thru my transaction history to give you the exact CAD fund for each dividend but my history only goes back 2 months.
I will update when i get my next dividend.

That withholding tax is a big deal. I held TOT:us and the french government was taking almost 30% of the dividend. I traded my TOT for RDS.b.


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## indexxx (Oct 31, 2011)

Synergy said:


> CSH works well in a TFSA. I believe they offer a 3% DRIP discount. Under $10 it's a good long term hold in my opion. The share price being on the low side will allow one do DRIP multiple shares monthly - that is for purchases of 500+ shares. REIT's are interest rate sensitive so buyer beware. However, if you're DRIPing and holding long term, corrections can help you pick up additonal shares at a discount.
> 
> I'd never pick just one stock, but CSH would be one of my top picks for my TFSA. Long term - demographics (aging population).



Not that interested in CSH but this begs a question. Someone correct me if I am mistaken- you do NOT get the DRIP discount in a brokerage, correct? I deal through Questrade.


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## Synergy (Mar 18, 2013)

indexxx said:


> Not that interested in CSH but this begs a question. Someone correct me if I am mistaken- you do NOT get the DRIP discount in a brokerage, correct? I deal through Questrade.


I'm not sure about Questrade but TDW passing the discount on to it's clients. I'm holding CSH in a brokerage account and receiving a discount of 3%. I think there may be a DRIP discount chart somewhere online that outlines which stocks pays a discount and whether it will apply within a brokerage account. Perhaps someone else will chime in on that.


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## Edgar (Mar 24, 2014)

So, I don't feel like starting a new thread and polluting the board. I guess Im new and dont want to ruffle any feathers .

Anyway, I've been browsing this board for about a week and decided to sign-up while knowing very little (only 21 years old) and trying to learn things from reading this. Im looking at DRIPing and thinking that maybe this is a good starting point for me. With that said, Im also thinking of using a TFSA that way any generated revenue would be mine, and I could leave it for 20-40 years and then turn it off then, and so, I have a few questions.

I have anywhere from $5,000-$10,000 that Im willing to spend (not tied up in school/rent/other things). First, is it worth DRIPing with only that much cash? Is a synthetic DRIP a smart idea based on what I stated above, or should I keep it out of a TFSA and just do a traditional DRIP? If Synthetic, any recommendations who to use and do any offer fractional shares? And potentially the most important question, where should I spend it? I've noticed many banks dont honour a discount, and origianlly that was something that I was looking for, and Im also uncertain (once again lack of experience I guess) whether a monthly dividend is significantly better (if at all) than a quarterly dividend, and thus whether I should limit myself to them. Any input is appreciated. Thanks,


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## Synergy (Mar 18, 2013)

indexxx said:


> Not that interested in CSH but this begs a question. Someone correct me if I am mistaken- you do NOT get the DRIP discount in a brokerage, correct? I deal through Questrade.


Here's a DRIP Discount list for you: http://www.dripprimer.ca/canadiandriplist

Also note:


> * Regarding DRIP discounts offered by companies noted in the DRIP LIST, contact your broker if they pass along the discount when Synthetically DRIPping a particular company. The above notes regarding honouring DRIP discount is incomplete.


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## fatcat (Nov 11, 2009)

Edgar said:


> So, I don't feel like starting a new thread and polluting the board. I guess Im new and dont want to ruffle any feathers .
> 
> Anyway, I've been browsing this board for about a week and decided to sign-up while knowing very little (only 21 years old) and trying to learn things from reading this. Im looking at DRIPing and thinking that maybe this is a good starting point for me. With that said, Im also thinking of using a TFSA that way any generated revenue would be mine, and I could leave it for 20-40 years and then turn it off then, and so, I have a few questions.
> 
> I have anywhere from $5,000-$10,000 that Im willing to spend (not tied up in school/rent/other things). First, is it worth DRIPing with only that much cash? Is a synthetic DRIP a smart idea based on what I stated above, or should I keep it out of a TFSA and just do a traditional DRIP? If Synthetic, any recommendations who to use and do any offer fractional shares? And potentially the most important question, where should I spend it? I've noticed many banks dont honour a discount, and origianlly that was something that I was looking for, and Im also uncertain (once again lack of experience I guess) whether a monthly dividend is significantly better (if at all) than a quarterly dividend, and thus whether I should limit myself to them. Any input is appreciated. Thanks,


even though you pay slightly higher fees than etf's i would recommend td e-series funds

they are relatively low cost and distributions are no cost in the form of more shares, they truly are a set and forget way to accumulate shares

you can buy usa, canada, and international shares and a small allocation to bonds maybe

you can add money any time, at some point when you reach critical mass, you can sell them and move to etf's or dripping

i am not a drip expert, i take my distributions in cash so i have the cash to do what i want with

at 21, i would say that you need to pay attention to the _cost_ of trading which will really add up over the next 50 years of your life

good luck


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## indexxx (Oct 31, 2011)

Synergy said:


> Here's a DRIP Discount list for you: http://www.dripprimer.ca/canadiandriplist
> 
> Also note:


thanks Syn- I have that page bookmarked somewhere but had forgotten about it.


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## Cal (Jun 17, 2009)

My Own Advisor said:


> RioCan.
> 
> Canada's largest real estate investment trust, owns and manages Canada's largest portfolio of shopping centres.
> 
> ...


Same, if for the simplicity of tax/accounting convenience.


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## indexxx (Oct 31, 2011)

fatcat said:


> even though you pay slightly higher fees than etf's i would recommend td e-series funds
> 
> they are relatively low cost and distributions are no cost in the form of more shares, they truly are a set and forget way to accumulate shares
> 
> ...


A fair portion of my allocation is in eSeries funds and I have an bi-weekly automatic purchase set up.


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## indexxx (Oct 31, 2011)

Cal said:


> Same, if for the simplicity of tax/accounting convenience.


My concern with Reits is that if there is a real estate crunch or an interest rate hike, the SP can get hit. Also regarding RioCan, more and more people are using online shopping- although RioCan has an advantage by their market positioning in the major centres. For that matter, why not TN.UN-T ? It's trading at close to its 52-week low. Very high divvy payout though.


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## indexxx (Oct 31, 2011)

Thanks for the input- put in an order for a tranche of FTS and TN.UN-T to DRIP as well as a 1/2 tranche of BPF.


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## daddybigbucks (Jan 30, 2011)

Royal Dutch Shell. B dividends

I just got my q4 dividend so here is the scoop.
The posted Q4 dividend was 0.90c US per ADR.
I was deposited .98c CAD for each share in my registered accounts.
This seems about right with the current exchange rate.
I had no extra charges (ie withholding tax or exchange rate charges)

So the RDS.B is a good ADR to hold if you want a good dividend without any extra charges.

I also found out when i acquired to DRIP the shares, that we cannot DRIP RDS.b. 
I assumed you could because i get the mailer every quarter and they ask if i want cash or shares for each dividend. 
Maybe you can get shares for each dividend but you would have to call it in every quarter?


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## Homerhomer (Oct 18, 2010)

indexxx said:


> My concern with Reits is that if there is a real estate crunch or an interest rate hike, the SP can get hit. Also regarding RioCan, more and more people are using online shopping- although RioCan has an advantage by their market positioning in the major centres. For that matter, why not TN.UN-T ? It's trading at close to its 52-week low. Very high divvy payout though.


All good concerns, however I say buy them when they are on sale.
Interest rates are not going up in the short term, and if they do usually reits will adjust the rents for inflation. Also specific to riocan the online shopping is for sure a factor, and that is why they are moving towards mixed-use properties with plans of building 3000-4000 residential rental units as part of their mall, which in turn should drive traffic to the stores and makes the locations more desirable to the retail tenants. The company has a fantastic management team, and is my largest holding (lil bias here ;-). I am happy with 5% yield, if I get 2-3% annual capital gain appreciation I would be very content. Not trying to sway anyone toward reit ownership, just providing some info.

http://www.bloomberg.com/news/2014-02-18/riocan-s-darth-vader-ceo-sees-apartements-atop-retail.html


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## indexxx (Oct 31, 2011)

Thanks Homer- I've definitely considered RioCan in the past and will again in the future- I went with a tranche of Fortis and TN.UN-T this time. Got in just below $8 on TN so figured it has some room to grow at this level.


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## Karlhungus (Oct 4, 2013)

indexxx said:


> My concern with Reits is that if there is a real estate crunch or an interest rate hike, the SP can get hit. Also regarding RioCan, more and more people are using online shopping- although RioCan has an advantage by their market positioning in the major centres. For that matter, why not TN.UN-T ? It's trading at close to its 52-week low. Very high divvy payout though.


Are you gonna go to the dentist online? Fill up your car with gas online? There are many, many business' that are in riocan owned centres.


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## Homerhomer (Oct 18, 2010)

Karlhungus said:


> Are you gonna go to the dentist online? Fill up your car with gas online? There are many, many business' that are in riocan owned centres.


Indexxx does have a point, there is a reason for concern in retails reits, please take a look at 25 top riocan tenants and many of them may be or are already affected negatively by online shopping or new technologies.

http://www.riocan.com/Document/Details/15

With that said the company has proven over the years that is has a top notch management, they sill own top notch properties, they have moved away from non core properties and concentrate on major areas like GTA, Montreal and Calgary, and are shifting towards multipurpose properties with 3-4K rental unit projects.


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## indexxx (Oct 31, 2011)

Karlhungus said:


> Are you gonna go to the dentist online? Fill up your car with gas online? There are many, many business' that are in riocan owned centres.


As I say in the post following that one, I have definitely considered RioCan in the past and will again in the future.

Looking at the list Harold posted (thx BTW...), two names strike me at a casual glance- first is Staples whose SP has dropped from about $26-27 to $12 in about 4 years, and the second is Target, who have lost 2 billion dollars in Canada since their foray into our country. There are others on there I don't care for as well (mostly due to changing shopping models), but I just picked two for a quick post.


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## Feruk (Aug 15, 2012)

I'll add a stock, but I'd only DRIP this one in RRSP. TCAP:US (Triangle Capital Corp). Held it for years and I'm a buyer again at this price. Strong sustainable yield, two special dividends this year, and unlike most US stocks it's set to "auto DRIP" so my broker DRIPs it where they won't most US stocks. Witholding tax means RRSP though.


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## gibor365 (Apr 1, 2011)

Feruk said:


> I'll add a stock, but I'd only DRIP this one in RRSP. TCAP:US (Triangle Capital Corp). Held it for years and I'm a buyer again at this price. Strong sustainable yield, two special dividends this year, and unlike most US stocks it's set to "auto DRIP" so my broker DRIPs it where they won't most US stocks. Witholding tax means RRSP though.


Hmm ... .. never heard of it, interesting stock..... will do more research....


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## gibor365 (Apr 1, 2011)

jacofan said:


> I've been watching TCAP for quite a few months. Be sure to read up the Yahoo message board about it to get some more (albeit maybe questionable) info. I'm don't overly like the chart trend lately with the US bull market it hasn't participated much. I would be a buyer if it breaks below $25 thought likely. The special dividend it just paid wasn't a regular thing though and the stock dropped more than the special divy combined with the regular one so one still could have got in and artificially not missed the two divys. But it seems to hit lower highs and lower lows lately... again waiting for $25 - it may not get there...


$25.47 is 52 weeks low , don't think it breaks below $25 any time soon unless there is a big correction, but than other stocks maybe preferable on big dips....
anyway, TCAP looks like incresed dividends for 7 years, P/E is low, Payout is still not bad , about 70%.... gonna read some articles about TCAP on seekingalpha


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## gibor365 (Apr 1, 2011)

TCAP is wierd stock  It's covered by many analysts , but there is no reports AT ALL nither from S&P nor from Thompson Reuter.... looking at fundamentals , I couldn't find any red flags....


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## Feruk (Aug 15, 2012)

TCAP's a pretty solid company. High dividend payer that was sustainable even during the recession. I think the reason it's moved back is an expectation that the BV would grow faster and that Q4 didn't come in as strong. I seem to recall they had exited positions Q3 (been paid back) and were re-investing that money Q3/Q4/Q1, hence the lag. For an income vehicle, I'd rather buy something that is trading near BV, always makes more than they pay out, and I don't have to pay 30X P/E for. Another company in the same category is PNNT:US. I used to be a shareholder, but this one scares me more so I dumped it.


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## crabstampede (Feb 28, 2014)

I bought CUF.UN (Cominar REIT) with the intention of setting up a DRIP to get the bonus 5%. What I didn't understand at the time was what a REGISTERED shareholder is. Costs $50 to get the certificate from iTrade and all other brokers as far as I can tell. Cost prohibitive for now. Lesson learned: have more money.


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## Edgar (Mar 24, 2014)

If you intend on setting up a true DRIP rather than a synthetic DRIP (Which it sounds like you are intending to do since you want the 5% discount), you can use share-exchange boards to cut the costs of acquiring your first share significantly. Traditionally, the cost is market value + $10 as a thank you, though this one might have taken a bit longer to find compared to, for instance, a big-5 Bank. If you DRIP in the future, I recommend these boards though!


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## Toronto.gal (Jan 8, 2010)

crabstampede said:


> What I didn't understand at the time was what a REGISTERED shareholder is. Costs $50 to get the certificate from iTrade and all other brokers as far as I can tell.


Yes, most charge that much, except for Questrade, the fee is $300. 

If you want more information on the private exchange that Edgar mentioned, here is the link: 
http://www.dripprimer.ca/

Also note that you can receive discounts with synthetic DRIPs as well. To find out which investments qualify, call your broker.


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## gibor365 (Apr 1, 2011)

crabstampede said:


> I bought CUF.UN (Cominar REIT) with the intention of setting up a DRIP to get the bonus 5%. What I didn't understand at the time was what a REGISTERED shareholder is. Costs $50 to get the certificate from iTrade and all other brokers as far as I can tell. Cost prohibitive for now. Lesson learned: have more money.


I CIBC Investor Edge (and before in TDW) i get DRIP discounr without any registration on CUF.UN and some other stocks: AX.UN, REI.UN, EGL.UN, FC, DI.UN and some others


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