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Discussion Starter · #1 ·
Hello, I'm looking to hold a few Canadian dividend paying stocks. I'm a pretty passive investor and will likely hold these stocks indefinitely. My initial investment will be about $15k, likely split evenly between 5 stocks (so about 3k each). I just want to get an opinion for the following stocks and if anyone has any better suggestions (other stocks? should I look at ETFs? are the below stocks I have listed diversified enough?)

BCE Inc.
Corus Entertainment
Husky Energy
IGM Financial
TransAlta Corporation

Thanks!
 

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I think a better question is why did you choose these 5? Not trying to be rude but if you offer insight into why you selected those 5 stocks others will be able to confirm/refute your hypothesis. At first glance they seem like decent picks. However, what makes those 5 better than any others? I haven't studied your selections and cannot comment as I don't hold any of those stocks myself.
I'm certain if you try to explain why you think those are the stocks for you you will receive many replies. More importantly, you will learn lots about yourself as an investor(what you know, what you do not know and what you need to know) and your picks.

Cheers! and welcome to the forum.
 

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I would not buy IGM while their net sales of new mutual funds are negative, which they currently are by about $1B/year. They are buying back stock so you won't see a big effect on their per share earnings or dividends, but there is not a lot of room for growth and risk if low cost ETFs take off. Would take a bank like BNS or BMO over them - similar yield but less risk and likely better capital appreciation long term.
 

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I think a better question is why did you choose these 5? Not trying to be rude but if you offer insight into why you selected those 5 stocks others will be able to confirm/refute your hypothesis. At first glance they seem like decent picks. However, what makes those 5 better than any others? I haven't studied your selections and cannot comment as I don't hold any of those stocks myself.
I'm certain if you try to explain why you think those are the stocks for you you will receive many replies. More importantly, you will learn lots about yourself as an investor(what you know, what you do not know and what you need to know) and your picks.

Cheers! and welcome to the forum.
Nice post!
I for one, will heed your advice,
 

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Discussion Starter · #5 ·
Thanks for the response. I'll try to be more specific then.

Here's my background: I've basically maxed out on my RSP (on mutual funds) and TFSA (normal HISA account) contributions. I don't have any other liabilities, such as mortgage or car financing. At the same time, I have excess cash that I know I won't be touching that is sitting in an account and not generating much of a return. That's why I'm thinking of opening a non-registered account and dabble in the stock market.

My considerations: I am not an active trader. And, like everybody, I would like to maximize returns and minimize tax. That's why I decided on Canadian dividend paying stocks because eligible dividends can provide dividend tax credits. I had considered owning a bunch of ETFs, but I figure that some of the distributions may not be eligible dividends. I also believe that I may get more in return if I just own the stock instead (I could be wrong though).

Why I chose these 5 stocks: Setting aside about $15k, I believe investing $3k in different Canadian sectors would be diversified enough of a portfolio. I tried to follow a criteria, in which all dividend distributions have increased in the last couple years. The only exception was Husky Energy, but I haven't heard too many bad news from them recently, and I think it's undervalued. I also tried to screen for P/E ratios less than 15, decent payout ratio, and dividend yield greater than 1. Of course, I also looked for any negative news reports that might seriously affect the company.

I hope that's enough detail haha. I welcome any feedback/suggestions.
 

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Discussion Starter · #6 ·
I would not buy IGM while their net sales of new mutual funds are negative, which they currently are by about $1B/year. They are buying back stock so you won't see a big effect on their per share earnings or dividends, but there is not a lot of room for growth and risk if low cost ETFs take off. Would take a bank like BNS or BMO over them - similar yield but less risk and likely better capital appreciation long term.
Interesting, doctrine. I didn't find out any info about the net sales of mutual funds. I had considered BMO as well, but leaned towards IGM last minute because I couldn't find too many negative news about them and their share price was lower.
 

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I like the 5 x $3000 dividend stock model, this is what I did with my TFSA last year.

As mentioned, I would dump IGM for a bank. TD or BNS is the pick here. I would also dump the two resident pump-stocks, Husky and TransAlta. Actually I would scrap it all except for maybe BCE and the excellent 5x3000 model.

1x Telecom: BCE, Telus
1x Bank: TD, BNS
1x Pipeline: ENB, TRP, IPL.UN
1x REIT: REI.UN, REF.UN
1x Utility: FTS, EMA, CU

I had this in my 2011 TFSA minus a bank and plus CNR, which returned 15%+ altogether.
 

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Discussion Starter · #8 ·
@ Argonaut: Congrats on the 15%+ return! One thing I wanted to emphasize is that I'm planning to hold these investments in a non-registered account because I've already maxed out my contributions in RSPs and TFSA.

Couple questions for you on your suggestions:

1) Is it worthwhile to hold REIT in a nonregistered account? From what I understand, the distributions are a mix of return of capital, dividends, capital gains, and interest. I'm thinking that it may not be tax efficient to do so.

2) What do you think of the future outlook of pipelines and REIT? I'm scared that these two sectors are overvalued.

If you could please provide your opinion, I would appreciate it! :)
 

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leeder you have done a fine job coming up with the plan to hold 5 stocks outright in order to receive 100% of the dividends plus 100% of the eligible dividend tax credits, while avoiding etf mers along along with possible etf interference with the tax accounting.

so far, so good. What i didn't care so much for was your list of choices.

argo's Famous Five list came to mind, of course, so i'm glad he visited this thread & offered its current version.

the difference is that argo's list was not plucked from stock screeners but was hewn out of solid experience. It can stand up to any analytic, of course, & these are all good solid stocks w good dividends. But in addition argo has held them in one of his accounts ever since he joined this forum more than a year ago.

for a carefully hand-crafted small portfolio, i'd take argo's list any time, every time. Another advantage of this plan is that the investor can build on it easily by adding more $$ to any of the individual holdings. The same list would serve just as well for a portfolio of 50k or even 100k.

you'll also note that there are choices in each category, so the final word & the finishing touches will be your own.
 

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Discussion Starter · #11 ·
if you are serious about deferring taxes, non dividend stocks is the ideal source. no sell = no tax
haha... yes, you're quite right. I suppose it's a comfort thing. I don't want my investment to be based solely on stock price, in which my gain/loss is determined when I sell the stock. Additionally, I find that most companies that distribute dividends tend to be more reliable. I guess I can live with a little bit of tax; nonetheless, I still want to minimize that aspect.
 

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It's always nice to get the humble endorsement. But to play devil's advocate to the both of us, this list has performed quite poorly in comparison to the general market so far in January.

I haven't noticed much because gold and silver are doing well for me, but for the equity-only investor it is something to watch out for. These strong-dividend types may indeed be riding a bit high from last year, but I would buy them all again today. They serve my purpose of creating a "dividend-snowball" on top of my TFSA hill. Intention and execution will vary for different investors.
 

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Argo is right.

I hold BCE, CPG, ECA, TRP, TA, BMO for solid dividend payers.

The only one that has performed this year is BMO.

However, this is expected as they were largely sought after last year and have a lower general beta. Most stocks have a higher beta than these ones, anyway, and thus, they would not perform as well even if they hadn't been largely sought after last year.

I am still holding all of them with no plans to sell.
 

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So, you're an investor and a trader, but is that even possible? Don't you have to be either investor or gambler? :D
:D:p

KaeJS, no any US dividend chapmions/contenders?
My only US position right now is 50 shares of MT @ 17.85.

I sold all my US positions. I will buy some in the future, but I have no capital right now. I still have $3,600 of margin to cover before I can consider buying more stocks.
 

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:D:p



My only US position right now is 50 shares of MT @ 17.85.

I sold all my US positions. I will buy some in the future, but I have no capital right now. I still have $3,600 of margin to cover before I can consider buying more stocks.


TRP Short positions change


2012.01.13 2011.12.30 Net Change
TRP 26,090,435 23,405,857 2,684,578

GL:cool:
 

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Ata jahol letargem misparim shelha l safa ioter pshuta? :D
batuach:p
Hamisparim halalu omrim she yesh hagdala lmeniot TRP

ani lo yachol lehiot yoter pashut.
yesh lecha lameniot haze esrim veshesh million tishim elef vearba meod vechamesh mikumim meshutafim lenegdo.
ani choshev she ata meviin?
ani lo rotze lichtov be ivrit ki any lo rotze lehanien af echad me ha eter .
bahatzlacha
ve shavua tov

be kitzur ; im anachnu mamshichim ledaber beivrit kol ha anashim po holchim lehitlonen aval lo eichpat li.......
 

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Hello, I'm looking to hold a few Canadian dividend paying stocks. I'm a pretty passive investor and will likely hold these stocks indefinitely. My initial investment will be about $15k, likely split evenly between 5 stocks (so about 3k each). I just want to get an opinion for the following stocks and if anyone has any better suggestions (other stocks? should I look at ETFs? are the below stocks I have listed diversified enough?)

BCE Inc.
Corus Entertainment
Husky Energy
IGM Financial
TransAlta Corporation

Thanks!
With 15K to invest, if you're looking for diversity and yield amongst canadian companies, i would just buy one of these ETF's instead of buying individual stocks: XIU, XDV, CDZ. This makes more sense for now and when your portfolio grows you can start dabbling into individual equities. Just my opinion.
 
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