# Dividend stock?



## herrM (Jan 1, 2012)

if you had to buy a Canadian dividend stock now , what would it be?


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## KaeJS (Sep 28, 2010)

Bmo


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## gibor365 (Apr 1, 2011)

BCE or RCI.B


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## KaeJS (Sep 28, 2010)

^ These are so highly priced right now????


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## Ethan (Aug 8, 2010)

Canadian Oil Sands - TSE:COS


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## bootsie (Aug 30, 2010)

Thanks for these so far , According to google the dividends and PE are 

BMO -4.81% PE 11.08
BCE - 5.19% PE 14.76
RCI.B - 3.67% PE 14.1
COS -5.06% PE 9.4

I had my eye on BMO, any other suggestion?


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## gibor365 (Apr 1, 2011)

bootsie said:


> Thanks for these so far , According to google the dividends and PE are
> 
> BMO -4.81% PE 11.08
> BCE - 5.19% PE 14.76
> ...


LIQ P/E 11, yield 7%

and .... here is the killer EGL.UN Dividend Yield	10.46%


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## jamesbe (May 8, 2010)

Liq is pretty stable.

I asked this question to myself last week and bought clc so far 2% gain and the div!


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## daddybigbucks (Jan 30, 2011)

one of my favorites

WFI

Waterfurnace inc. 
They just increased the dividend again (.24c US per quarter) in nov 11.
P/e of 16 i believe. 
Been buying all the way down the last year, and looking to sell on the way up again.


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## gibor365 (Apr 1, 2011)

daddybigbucks said:


> one of my favorites
> 
> WFI
> 
> ...


But after 40% drop I year and 25% gain in last 10 days, I doubt that this is a good dividend play right now


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## daddybigbucks (Jan 30, 2011)

gibor said:


> But after 40% drop I year and 25% gain in last 10 days, I doubt that this is a good dividend play right now


Why is that?

Because you think the 25% gain is unrealistic?
Probably as much as i see the 40% drop unrealistic.

if the stock is $15 or $25, the dividend yield is 6-4%. 
So if im buying a yielder, i would prefer to buy when the stock is upticking.

the stock has an unusually low amount of trading stock (avg 3,000 per day)
so it has wild flucuations.

i appreciate you looking and giving your opinion on the stock but a bit confused on your post.


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## Dibs (May 26, 2011)

I think TransAlta (TA) may be worth a look. It is very stable, low beta, i.e. it hardly budged during 2008-2009. The downside is that it has pretty much zero dividend growth.


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## gibor365 (Apr 1, 2011)

daddybigbucks said:


> Why is that?
> 
> Because you think the 25% gain is unrealistic?
> Probably as much as i see the 40% drop unrealistic.
> ...


I just think that after such run in a short time, it's not the best time to buy stock right now


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## KaeJS (Sep 28, 2010)

Dibs said:


> I think TransAlta (TA) may be worth a look. It is very stable, low beta, i.e. it hardly budged during 2008-2009. The downside is that it has pretty much zero dividend growth.


I'm actually watching this right now - but not really for the dividend. More for trading purposes.


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## doctrine (Sep 30, 2011)

I bought TA last year at 20.48. Would only buy more if it I could get it around that price.


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## KaeJS (Sep 28, 2010)

^ Could get somewhat close to that tomorrow


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## HaroldCrump (Jun 10, 2009)

I have held and sold this in the past.
I don't see too much upside at these levels.
Might buy in again at or below $19 but certainly not at or above $21.


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## Eder (Feb 16, 2011)

Dibs said:


> I think TransAlta (TA) may be worth a look. It is very stable, low beta, i.e. it hardly budged during 2008-2009. The downside is that it has pretty much zero dividend growth.


10 year return for TA is -8.33%
!0 year return for BMO is 60.52%
10 year for Fortis is 192.8%

TA should fire their board or sell their business...


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## doctrine (Sep 30, 2011)

Where do you get -8.33%?

The charts I've seen has TA at between 20 and 22 for most of January 2001, although its fluctuated quite a bit. Assuming you got in around 21, then your capital return was 0%, but you made 50% in dividends.

That's not really great either, but your results vary depending if you bought TA at 22.15 or you bought at 19.60. Then again, you would have had ample opportunity to sell at > $35 in 2008.


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## Eder (Feb 16, 2011)

Sorry the above figures are without dividends. 

I just used Morningstar quickly for charts, but I owned TA many years listening to their idiot CEO's telling me I should be happy with 5% div and no growth over the years. Then this company that often can't generate enough cash to pay their dividends decides to set money on fire with wind farm dreams in a land of coal,oil & nat gas and hydro power.

I think this company wont be around in 10 years, they are inept and have no interest in the wishes of their shareholders.

(falls off pulpit!)

plop


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## Dibs (May 26, 2011)

I've been contemplating using TA as a place to park some cash with a nice dividend while I wait for better opportunities to arise. During a market downturn and TA's low beta, I could sell the stock for a smallish loss and then invest in stocks that took a larger hit for the eventual rebound.

This of course is based on the assumption that TA would remain stable..


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## b_foot (Dec 16, 2010)

I loaded up a lot of bank common and prefs after the credit crunch. It turned out to be a good move on that front (yes, I lose money on something else). If you're looking for dividends, may want to look into the big 5 prefs. If the market tanks again, I will sure load up a lot more


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## Nitrodog (Jan 1, 2012)

Canadian banks, pipelines and utilities.


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## Financial Cents (Jul 22, 2010)

AGF.B or MFC. Lifecos have been beaten up.


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## tendim (Nov 18, 2010)

KaeJS said:


> Bmo


When they start raising dividends again, maybe.


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## londoncalling (Sep 17, 2011)

If BMO raised their div to or yield was at or over 5% I would definitely buy this one. For the time being I don't see either happening. Although I can see a div increase in the next few quarters. I would be even more sure if Kaejs would corroborate my prediction


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## Jungle (Feb 17, 2010)

Yea lets get some insider information already. 
Good thing bmo stock is up cause otherwise it was really underperforming. And I regret not adding during the dip.


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## KaeJS (Sep 28, 2010)

tendim said:


> When they start raising dividends again, maybe.


The key is to buy _before_ they raise the dividend, or else the dividend increase is useless when the share price rises, no? 

BMO's payout ratio is still too high to increase the dividend. Going to have to wait until they can turn over $1B in profit each quarter, which is probably 3 quarters away. But, what do I know? I know as much as you guys/gals.


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## bpither (Apr 27, 2009)

CN Rail raised their dividend 15% today and the stock tanked 4.7%. Reason ... well that's another story.


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## HaroldCrump (Jun 10, 2009)

I wouldn't call a 4% down move a "tanking".
These days, a +/- 5% move in a day is like turning over and going back to sleep.
Tanking is what has happened to RIM in last 2 years, for example.


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## gibor365 (Apr 1, 2011)

HaroldCrump said:


> I wouldn't call a 4% down move a "tanking".
> These days, a +/- 5% move in a day is like turning over and going back to sleep.
> Tanking is what has happened to RIM in last 2 years, for example.


All depends on beta, if beta is very low, 4% can be considered "tanking"


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