# $1300, Low Beta, Dividends, Blue Chip, USD/CAD



## KaeJS (Sep 28, 2010)

Alright, folks.

I've got $1300 to blow, as this is what's left of my cash account. Just like my low calorie diet, I am also trying to place my portfolio on a margin restricted diet. 

With that said, I don't want $1300 sitting in cash being eaten away by inflation. I would prefer to invest it into a safe, blue chip, dividend paying company with a low beta. Essentially, I want to park this $1300 and forget I even have it.

The hard part: 

I don't want any energy companies. No oil. No gas.
No financials, either.

I would prefer the stock price to be under $26 so I can at least grab 50 shares and would like the yield to be above 3%.

I am not opposed to buying something in USD, however, I would like to stay away from purchasing at a 52wk high, such as PFE. Pfizer would have been the perfect candidate if it wasn't bouncing off the rev limiter on the 52wk high.

Anyone have any suggestions?


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## KaeJS (Sep 28, 2010)

Please let it be known that I already hold the following:

BCE
BMO
CPG
ECA
FTS
MT
TA
TRP

Also, I'd like to stay away from REITs as well, because this is a non-registered account. I don't want any "distributions". Dividends only.

I would like to try and diversify further, if possible. A different sector (transportation, pharmaceutical, etc) if possible.


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## rknigh2 (Jun 5, 2012)

RIM is a few points off its 52 week high. 


Also depends on how long you want to lock up the cash for. A lot of communications are good buys right now, but so are a lot of energy and financials you don't want. RCI.B is a decent candidate for what you're looking for.


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## Spidey (May 11, 2009)

Perhaps FCR. Low beta, rated as a "strong buy", 4.4% yield.


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## webber22 (Mar 6, 2011)

The dividend tax credit for CAD stocks adds up to big savings over time
CLC -  8% yield
BPF.UN - 6.7% yield
KEG.UN - 6.8% yield
FCR - 4.4% yield


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## KaeJS (Sep 28, 2010)

Spidey said:


> Perhaps FCR. Low beta, rated as a "strong buy", 4.4% yield.





webber22 said:


> The dividend tax credit for CAD stocks adds up to big savings over time
> 
> FCR - 4.4% yield


This is why I love this forum. Thank you Spidey and webber.

I'll purchase 50 shares of FCR tomorrow if I can get in below $18.50.

If I purchase and it drops down a bit, I'll just add $500 to my account and buy another 50 shares to get a nice, clean even amount of 100 shares at a lower ACB.

Just what I was looking for:

4.4% Yield, low share price, dividend payouts, and a different sector.

Perfect.


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## indexxx (Oct 31, 2011)

Sunlife? Staples? Intel?


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## HaroldCrump (Jun 10, 2009)

Did you say no REITs because of the distributions issue, or is there a sectoral reason?
If the latter, then FCR is in the same business and subject to the same market forces, just not structured as a REIT.

It is also at a 52 week high, in fact, an all-time high.


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## KaeJS (Sep 28, 2010)

I didn't want REITs just because of the distribution factor.

I currently have an order set for 50 FCR at $18.40, but it's not filling.

Volume is extremely low.

Don't mind buying at a 52wk high so much for a growing REIT. Just don't want to buy something like an energy company or KO at it's all time high...


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## Beaver101 (Nov 14, 2011)

My favourite set-and-forget-it stock is RSI - may not be a big "blue" stock but it pays sweet dividends ($.09 every quarter for x? past years held or ~6% yield) - and refines sugar and so it's not on your exclusion list. each: Will get you more than 200 shares even at its high end.


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## gibor365 (Apr 1, 2011)

KaeJS, what about PG? Got hammered today on lowered guidance... dividend chapion and aristocrat, yield about 3.7-3.8%, beta 0.44. I'm planning to add to existing position if yield will be closer to 3.9-4%

On our side check: GH and KEG.UN


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## Toronto.gal (Jan 8, 2010)

PG is a good stock, but not hammered enough IMO.

Kae, how about a biotech stock? J/K. :biggrin:

I would pick a potential takeover company under $10.


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> PG is a good stock, but not hammered enough IMO.


Just wondering what do you mean by "not hammered enough"? 5%? 10%?

Couple of months ago similar story was with PEP , was down as far as I remember 6-8%, but sinse very nicely rebounded


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## Toronto.gal (Jan 8, 2010)

I meant that it's down only 3% since yesterday. 

If I buy a stock simply due to its bad earnings, even a solid one, I would typically do so if it fell higher than 5%, but that is just me, still a great stock. At any rate, I think KaeJS is looking for something cheaper & preferably undervalued.


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## rusty23 (Jan 25, 2012)

LIQ ? only problem is the 52wk high doubt they keep this yield but worth further look


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## HaroldCrump (Jun 10, 2009)

Kae, why not look beyond common shares?
Such as Prefs or convertibles.
You can find prefs or convertibles to meet all the criteria you listed above.

I am seeing quite a few new issues coming through the IPO channel at my brokerage.
Just in the last 3 weeks, I have seen prefs or convertibles from CU, Timbercreek, Crombie, PBH, ALA and so on.
Most of these are well established companies in no immediate danger of going bankrupt.

Pref. dividends are eligible Canadian dividends, which is what you want.
You get a higher yield, less volatality, and a different type of risk than equity markets (which you have enough of).

Just some food for thought.


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## KaeJS (Sep 28, 2010)

I cannot believe the amount of times FCR bounced off $18.40 and my 50 share order was never filled. :rolleyes2:

Lower guidance isn't what I'm looking for, and webber made a good point about the US dividends vs. Canadian dividends.

PG is out. Don't like GH. RSI looks pricey and the financials are not among the strongest.

I don't like the KEG as a consumer, so I won't buy the stock. That restaurant is too expensive.

Boston Pizza is near a huge high..

LIQ made a new high, financials also aren't the greatest.

FCR was actually a really awesome pick. I just might wait and hope that FCR comes back down a little.

I will leave my order at $18.40 and _may_ bump it to $18.50.

Anyone else have any suggestions? T.Gal? (And please, no TLM). :biggrin:

Thank you to everyone, thus far.


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## Toronto.gal (Jan 8, 2010)

KaeJS said:


> Anyone else have any suggestions? T.Gal? (And please, no TLM). :biggrin:


I suggested something under $10, so TLM no longer qualifies [it did last month]. 

I know you said no energy, but what stocks have been beaten the most? If you want a bargain & wish to double your investment, that's where you should look IMHO.

Agriculture stocks are another good option, though the ones I like are pricey.


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## gibor365 (Apr 1, 2011)

toronto.gal said:


> i suggested something under $10


bbd.b


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## Toronto.gal (Jan 8, 2010)

Nope because I remembered that he said once that he 'wouldn't personally buy it'. 

Speaking of which, gibor, did you read that they are going to open shop in Morocco? Reason: "Bombardier Aerospace selected Morocco for a number of reasons, including the internationally competitive manufacturing costs, low shipping and transportation costs and proximity to Europe."


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## AMABILE (Apr 3, 2009)

what about BELL ALIANT (BA) or SHAW (SJR.B) ?


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## Ihatetaxes (May 5, 2010)

KaeJS said:


> I don't like the KEG as a consumer, so I won't buy the stock. That restaurant is too expensive.


I took a few clients to the Keg last week and it was the worst $500 dinner I have ever paid for other than the cold beers before we ate. I vow to never eat at a Keg EVER again!


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## donald (Apr 18, 2011)

Nwc-North west company-smaller cap(soild co and great dividend)former hudson bay co-i own some.yeilding over 4 1/2 %(i own some shares,wide moat,soild northern canadian play)
Little risker(beta is slightly high)chl-canadian helio co.Yeilding over 4%
I know you dont want a bank and it's a bit below a 3% but cwb-canadian western looks like a soild div grower.(i own some shares-catching sask/manitoba/alberta,small business boom)


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## donald (Apr 18, 2011)

Almost at a 52 week high but another good play-Mlt-mullen-


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> Speaking of which, gibor, did you read that they are going to open shop in Morocco?


 maybe it's a good thing.

Kae, what do you think abount another dividend champion MO ? It's a bit expensive , but still 5% yield is pretty good.
Buffet once said: "I like the tobacco business. It costs a penny to make. You sell it for a dollar. It's addictive and there's fantastic brand loyalty."


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## gibor365 (Apr 1, 2011)

rusty23 said:


> LIQ ? only problem is the 52wk high doubt they keep this yield but worth further look


Where this doubt are coming from?! yield now less than 6% and payout ratio less than 100%.... and this is just alcohol utility  vodka in pipes instead of oil


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## marina628 (Dec 14, 2010)

Went to the Keg last night and was best steak I had in a while ,king crab legs too and of course escargot.I have notice not all Keg are the same ,I do not like the fact they changed the mushrooms though.


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## KaeJS (Sep 28, 2010)

gibor said:


> bbd.b


No. Freakin. Way. I hate the chart and I hate the business model.

I don't ever want to own BBD. Thank you, though. As it does fit the criteria. 



Toronto.gal said:


> Nope because I remembered that he said once that he 'wouldn't personally buy it'.
> 
> ^ That's why. I just don't like BBD.B. The chart doesn't look that appealing, and neither does their business. I'm out on Bombardier. Always have been. Always will be."





AMABILE said:


> what about BELL ALIANT (BA) or SHAW (SJR.B) ?


I wanted to stay away from Telecoms because I own BCE.

BA actually looks like it could be a candidate. SJR, I owned it before. Sold it. It looks like it's in a slow downtrend...



Ihatetaxes said:


> I took a few clients to the Keg last week and it was the worst $500 dinner I have ever paid for other than the cold beers before we ate. I vow to never eat at a Keg EVER again!


Jesus. That's just reconfirming why I won't touch that stock.



gibor said:


> maybe it's a good thing.
> 
> Kae, what do you think abount another dividend champion MO ? It's a bit expensive , but still 5% yield is pretty good.
> Buffet once said: "I like the tobacco business. It costs a penny to make. You sell it for a dollar. It's addictive and there's fantastic brand loyalty."


I looked into the tobacco's already. But you know what... Unlike Buffet, I think it's a bad business.

I love tobacco myself. However, it's a dying business.

Everyone is on this health kick now. No smoking laws. Package changes. Behind the counter. etc. etc. In 10 years, nobody is going to smoke anymore and profits will dwindle.

I know I said "no financials", but what does everyone think about MFC at these levels? (T.Gal?)

I could buy 100 shares at $11... 4+% yield. Sell it at $12?


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## Eder (Feb 16, 2011)

marina628 said:


> Went to the Keg last night and was best steak I had in a while ,king crab legs too and of course escargot.I have notice not all Keg are the same ,I do not like the fact they changed the mushrooms though.


Ya...the Keg in Banff is great but the Keg in Niagra Falls is bad. OTOH almost all Boston Pizzas are grrrrrrrreat!


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## gibor365 (Apr 1, 2011)

KEG is expensive , but good.... who want cheap stuff is wellcome to MCD )


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## gibor365 (Apr 1, 2011)

KaeJS said:


> I love tobacco myself. However, it's a dying business.
> 
> Everyone is on this health kick now. No smoking laws. Package changes. Behind the counter. etc. etc. In 10 years, nobody is going to smoke anymore and profits will dwindle.


I doubt your doubts  OK, behind the counter,.... and check gains MO and PM produced sinse it's behind the counter....
Everyome at my work who quit smoking, started again in couple of months.... I'm not quiting too  
btw, Cuba started to sell Marlboro this year


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## KaeJS (Sep 28, 2010)

gibor said:


> Cuba started to sell Marlboro this year


That's a surprise!

I'm leaning towards purchasing MFC, even though it breaks my rule of "no financials".

But, it really has the perfect share price, a nice dividend, and it's not expensive. Plus, if I want to use margin (....) it won't cost that much to DCA.


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## londoncalling (Sep 17, 2011)

rusty23 said:


> LIQ ? only problem is the 52wk high doubt they keep this yield but worth further look


I am up 25% on LIQ currently in less than 6 months. I am considering getting rid of it but I have difficulty dumping my winners... perhaps if Kaejs is interested I could sell it to him provided if I ever want it back he says sure NP....:tongue-new:


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## Sampson (Apr 3, 2009)

KaeJS said:


> and it's not expensive


Looking back over the past couple years, this company has barely made a profit. A company that cannot make a profit with a trailing P/E over 100 seems pretty expensive.


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## KaeJS (Sep 28, 2010)

Sampson said:


> Looking back over the past couple years, this company has barely made a profit. A company that cannot make a profit with a trailing P/E over 100 seems pretty expensive.


By expensive, I meant the current share price relative to what the share price has been recently.

As I've said on this forum before, P/E is a poor metric for short term trading. Upthread, I said I am looking to sell it at $12. 

"Manulife’s first quarter net income was $1,206 million or 66 cents a share."

The company is profitable, but they have had some hard times recently.

Interest rates will soon be on the rise and the company will make a slow, but steady, comeback.

There is no doubt in my mind this stock will hit $12 again.


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## Young&Ambitious (Aug 11, 2010)

Well it sounds like you have found your next stock pick! Goodluck and I guess we will see how this turns out for you


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## HaroldCrump (Jun 10, 2009)

KaeJS said:


> There is no doubt in my mind this stock will hit $12 again.


That's barely a 7% gain - are you sure that's all you need to justify the risk?
To buy this, you must hope for at least $15 this year, and upwards of $20 in a year or so.


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## KaeJS (Sep 28, 2010)

HaroldCrump said:


> That's barely a 7% gain - are you sure that's all you need to justify the risk?
> To buy this, you must hope for at least $15 this year, and upwards of $20 in a year or so.


From $11 to $12? That's a 9% gain. I'm not going to buy it at $11.20 (the current price), and sell at $12, which would be a 7% gain.

It's not much risk, if you ask me. Markets are volatile. This thing will go up/down +/- $1 within a few months. In the past 5 days, it has gone up 3.99%.

As it stands right now, I have a GTC order for 100 shares at $10.75 and another GTC order for 200 shares at $10.00. That's only $3grand to put on the line, assuming all orders fill (which is more than likely not going to happen). I anticipate only the first order at $10.75 will fill, which is $1000 to risk. Peanuts.

The next dividend record date isn't for another 7 weeks, so I am not in the biggest rush.


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## Sampson (Apr 3, 2009)

Seems like you should be careful of what you are after.

Volatility is not exactly the hallmark of a "low beta, dividend paying, blue-chip". I personally think MFC will come off these levels at some point, but probably not in the near future. The company has not demonstrated that they can generate significant earnings without the benefits of large market gains. Their true insurance component of the business is not good enough.


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## Soils4Peace (Mar 14, 2010)

CCL.B is solid, a dividend aristocrat, but the yield is lower, the price is higher than you want.


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## Toronto.gal (Jan 8, 2010)

gibor said:


> who want cheap stuff is wellcome to MCD )


Do you own MCD shares? I think not.


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## Toronto.gal (Jan 8, 2010)

KaeJS said:


> 1. I don't ever want to own BBD.
> 2. I know I said "no financials", but what does everyone think about MFC at these levels? (T.Gal?)


1. We shall see how you'll feel when it goes back to $7. 
2. You said you wanted to 'park & forget'; for how long can you forget? If I were you, I would forget about the dividend since the amount involved is so small, rather, try to double your money instead with coal/gas/oil/uranium, etc.

At the moment, MFC is a great stock for trading and/or if you have patience to hold long-term, but with the amount in question, you'll only receive about $13. At any rate, you can't go very wrong with any severely undervalued stock [I mean you can't lose much more].

Now let me get back to ARNA. :biggrin:


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## peterk (May 16, 2010)

Check out Corning. Great profit margin, low price, and a growth industry. A bit low yield but low payout as well. Might be too volatile for your tastes though..


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> Do you own MCD shares? I think not.


No, I'm not  I don't hold KEG either, even though it was close to fill one time my order


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## rusty23 (Jan 25, 2012)

KaeJS said:


> From $11 to $12? That's a 9% gain. I'm not going to buy it at $11.20 (the current price), and sell at $12, which would be a 7% gain.
> 
> It's not much risk, if you ask me. Markets are volatile. This thing will go up/down +/- $1 within a few months. In the past 5 days, it has gone up 3.99%.
> 
> ...



I thought this was to park set and forget! (i'm in the same cause as you looking to park the similar amount of cash in an rrsp account learning towards PM/MO)


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## HaroldCrump (Jun 10, 2009)

If you are looking for stable, blue chip, etc. and don't have exposure to utilities, infrastructure, etc. look into Atco (ACO).
It's nominal value is higher than what you are looking for (around $76) but a smaller overall market cap than some of the other names you are considering (such as MFC).
The yield is lower than MFC as well, but so is the risk profile.

If the nominal value is a real issue for you, then in the infrastructure and construction sector consider Aecon (ARE), Genivar (GNV).
For a more global and large scale coverage, there is always SNC Lavalin (keeping in mind the brewing corruption and potential bribery allegations).
Both ARE and SNC have yields in the 2% - 3% range, Genivar is a high yield stock (6% or so), but then it is smaller cap and less diversified as well.
If you want engineering and consulting, but don't want to go with SNC, there is Stantec (STN).

Plenty of cherries to pick.


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## Toronto.gal (Jan 8, 2010)

gibor said:


> No, I'm not
> 
> I don't hold KEG either, even though it was close to fill one time my order


I thought so chaver! :biggrin:

I don't own KEG either, so I don't care, but I do ask for a lil respect for stellar performing MCD [since I bought anyway]. :biggrin:

KaeJS' investment is $1,300 [not $13,000], so I don't think emphasis on dividends is important IMHO.


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## gibor365 (Apr 1, 2011)

Toronto.gal said:


> 1. If I were you, I would forget about the dividend since the amount involved is so small, rather, try to double your money instead with coal/gas/oil/uranium, etc.


T. you have a point , considering Kae time horizont!
! Stocks like in thread title more suitable to belguy or who is close to retirement.
Just look at CNQ....dirt cheap, low yield but increasing dividends more than 20% per year for 12 consistent years


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## KaeJS (Sep 28, 2010)

Harold, thank you for all the suggestions.

I will look into those.

Currently, I have limit orders set on MFC, SJR and FCR. Prices are low, so they are not filling today. (maybe tomorrow or monday, if things keep sliding).

This originally was for money I did not want to "touch" and wanted to "set and forget". But.... my "trading" fever is coming back and there's so many good deals?

I feel like if I spend $5k instead of $1300, I can just throw more cash into my stock account to cover up the margin. 

I'm going to be picky, though, as I need some stabilization. Right now, I've got way too much energy and my portfolio is getting ruined due to days like today!! I know energy is cheap right now, but I have too much.

gibor, CNQ is also an excellent buy. I've been watching this for a week now.


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## Argonaut (Dec 7, 2010)

Keep it in cash! A cash allocation and patience are overlooked virtues of investing.


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