# What would be nice to supplement my stocks?



## Kaitlyn (May 13, 2011)

I realize I don't have all the markets covered, but am wondering what stocks you guys think would be good to supplement some of my existing stocks?

Right now I also only have one stock per sector... I'm thinking I'd like at least 2.

Financial: RY
Telco: SJR
Oil/Gas: BP
Insurance: SLF

I'm also holding a few other stocks.. some way down, some way up. Right now I'm thinking that picking up more dividend growth stocks. I'm still young and the growth is enticing and a little safer.

I've also done risk. I'm over +200% on LULU, but I'm like -98% on YLO  lol


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## Sherlock (Apr 18, 2010)

BCE would be a good addition.

For energy/gas, how about BNP, yield of almost 7%, and maybe PGF, yield of almost 9%. Both of these are down in the last few weeks but have good long term potential, in my opinion at least.

Also, I would add a pipeline, such as IPL.UN, currently yielding over 5%. Also add a REIT or two.


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## Kaitlyn (May 13, 2011)

Sherlock said:


> BCE would be a good addition.
> 
> For energy/gas, how about BNP, yield of almost 7%, and maybe PGF, yield of almost 9%. Both of these are down in the last few weeks but have good long term potential, in my opinion at least.
> 
> Also, I would add a pipeline, such as IPL.UN, currently yielding over 5%. Also add a REIT or two.


I don't think I've ever actually heard about any of those energy/gas stocks. Doh. That's another problem I need to LEARN about companies AND their financials 

For pipeline I've been eyeing TRP for a while. I can look at IPL, too. What's it mean that it's a "fund"? Is it like an ETF?

IPL is hoving around their 52wk high


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## doctrine (Sep 30, 2011)

Bank of Nova Scotia, Telus, Husky, Great West Life.

TRP is a good, diversified company. Not just pipeline, but energy production too - they own 1/3 of Bruce Power for example. 

IPL.UN used to be an income trust. It may not have converted to a corp yet, but its effectively the same and will pay eligible dividends as distributions. While at a 52 week high or nearly, it is still cheaper on valuation than many pipelines.


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## PMREdmonton (Apr 6, 2009)

I would suggest any of the other telecommunications companies. Shaw has decided not to enter the wireless space which is a major long-term blunder, IMO.

They can't afford the cap-ex because they keep trying to line the pockets of the family members with the earnings from the company.

You're really much better off with RCI, BCE or T for Canadian telecommunications. If you want cable Cogeco may be better.

Insurers - Power financial or MFC

Bank - TD or BNS are good choices. If you want good yields you could just buy the Cdn bank ETF that sells covered calls to juice the yields. You could also just buy banks and sell the calls yourself.

Energy - PBN, COS. If you enter ECA be prepared for a bumpy ride. If you want to juice returns from covered calls HEE.


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## Ethan (Aug 8, 2010)

Pipelines are very expensive right now, but they have great long-term fundamentals. If you're looking to hold a stock for several years, I see stocks like ENB and TRP growing their dividend for years to come.

Under the same principles, rail is another sector you could consider, either CP or CNR. I prefer CNR.


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## Eclectic12 (Oct 20, 2010)

doctrine said:


> [ ... ]
> 
> IPL.UN used to be an income trust. It may not have converted to a corp yet, but its effectively the same and will pay eligible dividends as distributions. While at a 52 week high or nearly, it is still cheaper on valuation than many pipelines.


Not true. 

The corporate web site says they are a limited partnership and *will not convert to a corporation* as there is not tax advantage for the cost to convert.
http://www.interpipelinefund.com/investor/faq.php#13


It also says in the FAQ that Return of Capital (RoC) will still be part of the distributions. This is confirmed by the 2011 tax info that lists RoC as:


> The 2011 return of capital was $0.39499 per unit or 40.83% of total cash distributions.


http://www.interpipelinefund.com/investor/taxes/2011 Tax Information.php

So if held in a taxable account, make sure to keep track of the ACB. If it hits zero or negative, the RoC portion of the distribution is reported as a capital gain, until the ACB becomes positive.


In the future, if the situation changes so that a conversion from limited partnership to a corporation is favourable, apparently there is not deadline.


Cheers


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## Argonaut (Dec 7, 2010)

One stock per sector is fine, you just have to find the highest quality one. I would sleep easier at night if you switched from Shaw to another telco. Any of the three is fine, though I like Telus best and Rogers is iffy.

Nice job with Lululemon, I am an idiot for losing money on that. Got interested in it at the wrong time. I would think about dumping YLO for tax purposes and offset it with one of your gains.


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## riseofamillionaire (Feb 23, 2012)

Congrats on LuLu. Missed this one. I should have just watched my gfs shopping habits and invested in her stores, she always went to Lulu!


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## liquidfinance (Jan 28, 2011)

Sherlock said:


> BCE would be a good addition.
> 
> For energy/gas, how about BNP, yield of almost 7%, and maybe PGF, yield of almost 9%. Both of these are down in the last few weeks but have good long term potential, in my opinion at least.
> 
> Also, I would add a pipeline, such as IPL.UN, currently yielding over 5%. Also add a REIT or two.


I have held BNP and as my first Canadian stock (income fund at the time) I am probably more attached to them than I should be. 

The only reason the dividend was cut was because of the conversion to the corporation. However with natural gas prices as they are I feel bonavista could still fall some more. I was lucky when I sold and would like to get back into them but being 60% natural gas I just think the price could hurt them and would probably look to getting in over then next quarter or two. 

I may be greedy but I would like at least 8.5% yield to compensate me for the risk in this one.


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## Kaitlyn (May 13, 2011)

liquidfinance said:


> I have held BNP and as my first Canadian stock (income fund at the time) I am probably more attached to them than I should be.
> 
> The only reason the dividend was cut was because of the conversion to the corporation. However with natural gas prices as they are I feel bonavista could still fall some more. I was lucky when I sold and would like to get back into them but being 60% natural gas I just think the price could hurt them and would probably look to getting in over then next quarter or two.
> 
> I may be greedy but I would like at least 8.5% yield to compensate me for the risk in this one.


Many companies at their 52wk high... they're near their 52wk low!


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## Cal (Jun 17, 2009)

Adding anther bank (TD), telecomm (BCE), and oil/energy (ENB) would be good, not sure that I would jump to add a second insurer at this point.

You might want to concentrate on a REIT (REI.UN) position, or a healthcare (JNJ) or conser staple (WMT) at this point too.


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## doctrine (Sep 30, 2011)

BNP is at a 52 week low for a reason. They're talking about selling assets to stay afloat. Because of nat gas prices, it is a speculative play, and you have to really restrict what you bet on a company like this. Certainly less than 5% of any portfolio.


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## Fain (Oct 11, 2009)

Cameco(CCO) - Nuclear is on the rebound and it would diversify your portfolio quite a bit.


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## liquidfinance (Jan 28, 2011)

doctrine said:


> BNP is at a 52 week low for a reason. They're talking about selling assets to stay afloat. Because of nat gas prices, it is a speculative play, and you have to really restrict what you bet on a company like this. Certainly less than 5% of any portfolio.


Yes, I believe that they will possibly cut the divi as to me it doesn't look sustainable. They also have quite a high debt. 

With natural gas prices as they are their stockprice will be dragged down with it. Its also likely that they will issue more stock as a way to raise capital diluting the share price and again increasing the risk of a reduction in divi.

Sit and wait. See what they report in the q1 results.


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## Mall Guy (Sep 14, 2011)

The end of RRSP season is an expensive time to add . . . all the cash that people parked in GIC needs to get deployed . . . not suggesting market timing, but sometimes it good to be on the sidelines . . .


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