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I've been watching this chart and over the past three days there has been a strong rally, hence the 3 white soldiers pattern, I'm wondering if anyone wants to jump on this with me?
 

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I have been long BAM and BIP.UN (Brookfield Infrastructure Partners) since this past summer. Both are Canadian dividend paying companies but BIP is actually headquarterd in Bermuda to avoid dividend withholding taxes. BIP is meant to be a high yield stock with some potential for dividend growth and capital appreciation and focuses on massive infrastructure projects with monopoly potential in their local markets. BAM is kind of a holding company for all the various Brookfield operating companies and has a decent sized stake in all their ventures and thus is a diversified company engaging in multiple businesses in real estate and infrastructure that has a small dividend with a very low payout ratio but more potential for growth and capital appreciation.

These are high quality, dividend growth companies with only a moderate amount of leverage. They are all managed by Bruce Flett who has done an amazing job turning this company around starting around the turn of the millenium. When the Great Recession hit they were in great fiscal shape and made a bunch of acquisitions whose full impact won't be fully realized until the Great Deleveraging is further advanced.

I'm a big fan of both.
 

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One of the first stocks I owned was these guys, but it was under a different name, back when the Bronfman brothers ran the various holdings.
The story here is actually probably the main reason why I got out of stocks and into mutual funds.(dipping my toe back in the water again now, but with more knowledge as well as free time)

Back then what really disturbed me was what I didn't understand, you see, they were constantly changing shape with 51% ownerships of 51% ownerships and so on, and so on, and changing control of controlling shares (at least that's the way it looked to me at the time)

Just recently I looked into BPO, and saw that they still seem to be up to their old tricks (only then did it click who they were and googled it), so since I don't really get what they're up to, I had to give them a pass, not saying they aren't worth investing in by any means, it's just that the complex lawyery structures they seem to have are beyond my ability to trust, I like stuff that seems reasonably simple, and centrally owned, like Riocan, just my two cents.
 

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I've been following this one for quite some time. A couple of things have been holding me back from purchasing: low dividend payout and net insider-selling.

P/B and other fundamentals look attractive. Probably the type of stock I would buy in a major market sell-off.
 

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BAM.A just keeps running and running

Model Price™ is 34.03 ~50% lower than the current price.

If I owned a full allotment, I'd be taking profits.
As it is, I'm waiting for a pullback to add more.

This graphic taken from ModelPrice Guy on Facebook.

 

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BAM.A pays dividends in USD $ correct?

Asking for clarification from existing shareholders since I believe you can get BAM.A dividends in CDN $ but there is a currency conversion(?)
 

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@MOA

Brookfield pays dividend in USD, so an exchange takes place for the dividend to arrive in CAD.
If I'm not mistaken, the exchange takes place at Brookfield, not at the brokerage.
All very confusing.

Please note that the quarterly dividend payable on Brookfield's Class A Limited Voting Shares is declared in US dollars. Registered shareholders who are U.S. residents receive their dividends in U.S. dollars, unless they request the Cdn. dollar equivalent. Registered shareholders who are Canadian residents receive their dividends in the Cdn. dollar equivalent, unless they request to receive dividends in U.S. dollars. The Canadian dollar equivalent of the quarterly dividend is based on the Bank of Canada noon exchange rate on the record date or, if this falls on a weekend or holiday, on the following business day.
http://www.brookfield.com/content/stock_and_dividend_info/common_shares-26718.html
 

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Very boaring investment, I would get better return in other picks.
If the long-term chart is what boring looks like, then I'll take a serving of boring with a side of hohum.

It looks like an anti-Mandelbrot set--it looks the same at all granularities. It just goes up.
 

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@MOA

Brookfield pays dividend in USD, so an exchange takes place for the dividend to arrive in CAD.
If I'm not mistaken, the exchange takes place at Brookfield, not at the brokerage.
All very confusing.

zylon includes this quote from brookfield's website. If one looks carefully at the quote, one can see how it deals only with dividends paid directly by brookfield to the minority number of registered shareholders. This quote does not treat dividends received at brokers for shares held in street, although these are the majority of shares nowadays.


Please note that the quarterly dividend payable on Brookfield's Class A Limited Voting Shares is declared in US dollars. Registered shareholders who are U.S. residents receive their dividends in U.S. dollars, unless they request the Cdn. dollar equivalent. Registered shareholders who are Canadian residents receive their dividends in the Cdn. dollar equivalent, unless they request to receive dividends in U.S. dollars. The Canadian dollar equivalent of the quarterly dividend is based on the Bank of Canada noon exchange rate on the record date or, if this falls on a weekend or holiday, on the following business day.
http://www.brookfield.com/content/st...res-26718.html



most companies paying USD dividends have set up their websites in similar confusing manner. They write - as does brookfield - only about their registered shareholders, a tiny minority. Typically, they never mention the vast majority of shareholders who hold their shares in street form at brokers.

it is these latter - shareholders holding in street at brokers - who are dinged roughly 1.50% by the brokers, who receive the USD dividends in bulk, convert them into CAD, collect their FX fees, then distribute net amounts into the individual client accounts.

often, these shareholders visit company websites such as brookfield, read the pious language reciting how registered shareholders are converted at bank of canada rates, mistakenly conclude that these rules to them even though they are street shareholders, & fail to understand that their street shares are subject to broker FX.

obviously the companies cannot take it upon themselves to discuss the brokers' practices. And, so far, the brokers have stayed mostly silent & opaque about what they are doing.

returning to brookfield, there are tiny exceptions to the general pattern, that the brokers charge FX without disclosing to the clients. Brookfield may be an exception in that - last i heard - this firm sends out actual US dollar dividend cheques to the broker's cages. This info is 2 years old, may no longer be current.

another exception are the rare brokers who pay dividends according to the settlement currency, ie if you buy your Potash in USD, you will receive your dividend in USD. I believe that Questrade may be one of these brokers. Another exception may be scotia iTrade, which was converting from USD to CAD with no FX for at least some dividends in non-registered, for reasons that could not be explained to the scotia client who tried to investigate.

nearly all brokers offer the opportunity to hold a US dividend-paying canadian stock in US account or on US side of a dual-currency account. But it is always the client who must initiate any journal that has to be done.

if the situation seems confusing, that's because it is. To mix things up even more, i see numerous small signs at TD for example, that they have heard from enough clients about these issues & are genuinely considering what they might do to make things better. One rumour is that their website might be adapted, in future years, so that clients themseles could select the account where they want a particular stock to be stored. This would be an optimal solution.
 

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"nearly all brokers offer the opportunity to hold a US dividend-paying canadian stock in US account or on US side of a dual-currency account. But it is always the client who must initiate any journal that has to be done."

I think you are correct.

I'm going to do some more research until I pull the trigger. I want to get into BAM.A after the split.
 

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advisor could you do me a favour? do you have a handy thumbnail summary of the re-orgs that BAM did to its numerous sub-stocks recently?

brookfield has RE - mostly office buildings? - all over the US & also in south america i believe.

put another way, which is the biggest, baddest bamass mother of them all these days?

as for the dividends, sometimes it's not possible to do any "research" because nobody knows anything for sure. Sometimes one just has to buy the stock & analyze the dividend from scratch, in order to find out who is doing what with it, all along its route from the corporate treasury to your account.
 

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I'll work on that HP and respond to the forum as I get information from the conglomerate. It would be good to have some sort of sticky about this beast. Maybe we should just own all parts of it? :)

I don't have any info. at hand now regarding BAM re-orgs.
 

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All I know about the dividend is that the amount shown in CAD is what I actually received in my account.
It seems that no one is profiting on the exchange process.

 

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So expensive. With a 6% increase, the 1.2% yield becomes 1.27%? I know the P/E looks tempting, but it trades at 22 times cash flow with a 5% year over year increase. It's not cheap. Very high quality assets, but not cheap. In 2007-08, they fell from $47 to $15, so don't think it's a safe haven. The stock has doubled in a couple years with maybe 10% underlying growth.
 

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With a 6% increase, the 1.2% yield becomes 1.27%?
"As a result of the three-for-two stock split, Brookfield will adjust its dividend policy to reflect the additional number of common shares that will be outstanding. Subject to Board determination, the company expects to commence paying a quarterly dividend of US$0.12 per share (representing US$0.48 per annum, or US$0.72 per annum based on the pre-split number of shares outstanding) beginning on June 30, 2015. This would represent an increase of approximately 6% over the current quarterly dividend rate, on a split-adjusted basis."

Yield of 1.27% is about right based on today's close.
 
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