# TFSA High Divend stocks advice



## Siciliano698 (Nov 29, 2010)

Hello,

I plan to buy $5000 worth of dividend stock/s into my TFSA account within the next 2 months (February/March), Here are some of the stocks I'm looking at:

RioCan rei.un
Encana eca.to
Royal Bank ry.to
Bombardier, Inc. bbd.b
Canadian oil sands cos.to

What long-term investing strategy would you recommend? 

I was thinking of putting buying 2 of these stocks and putting $2,500 for each company, ie.. $2500 RioCan + $2500 Encana = $5000 or split up the the initial $5000 investment into all 4 companys ($1250). 

or

Should I put my eggs into 1 basket ? (pick one of these stocks)

Thanks.


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## HaroldCrump (Jun 10, 2009)

It is not worth splitting $5,000 into 4 stocks or even 2.
I suggest two alternatives - either buy a dividend ETF such as the XDV or CDZ that includes all of these and several other companies.
Or buy just one company and hold.
Next year, you could either buy another company or continue with the same one.
Attempting to diversify with $5,000 on your own will simply waste commissions.


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## marina628 (Dec 14, 2010)

I agree with Harold on this as well.I think EFT is way to start then as you accumulate more wealth buy individual stocks.


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## Oldroe (Sep 18, 2009)

I do agree with the advice that $5000 is a very small amount to purchase stocks. But you need to start some where.

And having your own etf is much more fun.

RY and Encana or Oil Sands would be my picks and I do own all and many more.

Rio isn't a stock but a reit, very important to know difference.


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## liquidfinance (Jan 28, 2011)

I would say if you split your purchases down then look to it that comissions do not take more than 1% of your trades value. So for Questrade this would effectively make a $500 minimum trade value. 

Seeing as you seem to be looking for income I would probably go


FIE Claym Cdn Fin Month Inc E.T.F.
REI.UN
Then go for a solid dividend paying stock such as BCE.


Or put $3k into CDZ and $2k into FIE so you can capture growth and income.


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## Freedom45 (Jan 29, 2011)

As mentioned above, I'd consider either XDV or CDZ.

If you're set on individual stocks, of your choices, I'd lean towards RY, and ECA. Might also want to have a look at CPG. I may be biased, as I bought it quite some time ago, but it's provided me with a healthy monthly dividend, and some growth.


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## Toronto.gal (Jan 8, 2010)

I agree with others, if you're new to stocks, ETF sounds more logical until you have learned more & feel more confident. 

I like most of your picks though; Bombardier is a great company, but it will not make your TFSA account grow very fast, so just be aware of that.

If what you want is stocks, with the amount of money available to you, I would pick two: Royal is a great buy, but for a newbie, I like BNS better as it is less volatile & is Canada's most international bank. I would put $3000 in a bank and $2,000 in a pipeline, I personally like Enbridge, but TransCanada is also good & more affordable for now. 

Good luck!


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## peterk (May 16, 2010)

I'd buy all of them. You'll pay 25-50 bucks in commission, but you'll learn a lot by holding your own stocks. I just started investing for the first time back in the summer. I hold 6 stock position and I find it immensely educational and enjoyable to monitor my portfolio through the ups and down. 
You can learn a lot along the way, reading the news, always with an ear for information about your companies.
Indexing is great, but I feel I wouldn't have been driven to learn more about investing if I just stuck it all in an index.
Of course all of stock pickers have aspirations (delusions?) of beating the index. I'd say sooner rather than later would be the time to try out stock picking and seeing if it's for you - while you have a small amount to play with. Better to learn now than index successfully for 10 years and then get an "itch" to start buying stock and lose your half million!

FYI - if you're looking for high dividend stocks COS doesn't really fit the bill anymore. It yielded 8% back in the fall but after conversion and some upgrader issues the div. was cut significantly and is now only yielding 2.8% Might no longer be worth holding over the other oil sands operators. I'm certainly considering selling my position and moving to Suncor or CNRL, maybe..


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

I have been investing for almost fifty years, I have a large Net Worth account, I am not that smart so I buy the ETF's.

One wrong stock pick can wipe out a lot of profit.

TRP is now almost $40, not that long ago it was $18, stocks do not always go up in a staright line.

Personally, I am parking money in one year GIC's and will wait to see how much and When rate increases happen, these will drive down NAV of Div stocks and Bonds.


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## 412driver (Apr 30, 2010)

TNK pays a better dividend, close to 10%....Bombadier is at 2-3%...


I would not put anything that pays a div less than 4-5%....

Banks for example.... BMO ect....

But then my TFSA is full of high risk junior mining....and mine is worth over 30k now...


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## olivaw (Nov 21, 2010)

My vote is for ETFs for stability, efficiency and instant diversification. Possibilities, aside from those mentionned above, are XIC, XIU and XCV. They aren't dividend funds per se but they do pay a modest dividend. 

Individual stock holdings can become stressful in a bear market. I learned that when my supposedly safe British bank stocks tanked.


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## Financial Cents (Jul 22, 2010)

I vote for REI.UN (or something similar, like HR.UN). You could likely buy a couple hundred shares of either (with your $5 K) and get a tidy yield of 5% or 4% respectively. Besides, HR.UN is raising their dividend this year:

http://tmx.quotemedia.com/article.php?newsid=35651588&qm_symbol=HR.UN

Other than a REIT, I'd own a bank or a pipeline.


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## Cal (Jun 17, 2009)

It is really hard to offer advice on what stocks would work in your TFSA for you without knowing any of your other holdings.


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## CanadianCapitalist (Mar 31, 2009)

Cal said:


> It is really hard to offer advice on what stocks would work in your TFSA for you without knowing any of your other holdings.


+1. You should first work out your overall asset allocation. You then put some components of it within a TFSA. Unless you have a very good reason why compartmentalize your portfolio into TFSA holdings, RRSP holdings etc.?


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## Siciliano698 (Nov 29, 2010)

Thanks for the help and advice guys, I decided to invest in TransCanada Corp stock, I bought it at 38.46$ yesterday and have drip setup on my tfsa.

Have a nice day to all


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## Cal (Jun 17, 2009)

Not sure I would call all of those high yield dividend stocks...

I would take some of your other investments into consideration when figuring out how to balance your tfsa too.


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## daddybigbucks (Jan 30, 2011)

Siciliano698 said:


> Thanks for the help and advice guys, I decided to invest in TransCanada Corp stock, I bought it at 38.46$ yesterday and have drip setup on my tfsa.
> 
> Have a nice day to all


You cant go wrong with transcanada and every quarter you will be gaining a drip share.
hard part now is just to forget about it.


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## Betzy (Feb 7, 2011)

Is anyone trying a dividend strategy that involves buying a stock just before the qualifying date, then selling it at equal or greater(in perfect world) a short time later??
I know this is more trading than investing.
Does one have to hold the share a minimum amount of time before they will pay the div?
Could one actually by the stock a few days before the ex div date then sell a day or so after and still get the div amount at the payout date even if at that time they no longer own the stock?
As an Ex: BCE this last div
Ex-Div date 3/11/11-so buy 1000shares on or before 3/07/11 Aprox $35.51/share(Div amount is $0.4925/share)
Sell all shares on 3/21/11 for $35.51
Pay date 4/15/11 Receive amount of 1000x$0.4925=$492.50 - trading costs 2x$9.99= $472.52

Has anyone done anything like this? Obviously only quarterly paid dividends would be viable for this type of trading since the amount per share is more than monthly payers.


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## Cal (Jun 17, 2009)

This has been discussed in a few threads....

Basically the price of the share will be reflected in the proximity to the dates/payout and such....


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