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There are alot of big companies out there paying big dividends. Three that come to mind are: Altria Group (MO), Verizon (VZ) and AT&T (T). All these companies pay over 6%. Is Altria not a great stock to hold over time? I'm looking to get in soon, can someone let me in on the downsides---beyond the moral one of investing in a tobacco company....
 

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There are alot of big companies out there paying big dividends. Three that come to mind are: Altria Group (MO), Verizon (VZ) and AT&T (T). All these companies pay over 6%. Is Altria not a great stock to hold over time? I'm looking to get in soon, can someone let me in on the downsides---beyond the moral one of investing in a tobacco company....
Here's a big one: litigation risk. I used to own Altria but don't follow it these days but I purchased it when a verdict threatened to bankrupt the entire company (it hadn't spun off Phillip Morris International or Kraft Foods back then). I don't own any of these stocks anymore.
 

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I won't own it, because I will never use one of their products.

Not sure if Obama-care will treat them equally in the future either. For now they do, to not offend voters. But insurance companies treat smokers differently.

AT&T-well if I were american I might use their product.

Or you could take it a step further, China Mobile (CHL), now that has exposure to a big market. Yield is 3.8%
 

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BC just curious, why are you drawn to US dividend stocks ?

they could somewhat make sense if one had an income small enough as not to be taxable at all, although in this case the investor will lose the 15% withholding tax that the US will impose and he won't be able to claim any foreign tax credit for this.

they could also make sense if one had such a large investment portfolio that one needed diversification out of canada. Or if one wanted to take a trip on the currency caboose now that CAD is so high.

but for a youthful starting-out kind of investor, it might be a good idea to stick with what you know. What's familiar. Close to home. Like BCE instead of AT&T or verizon.

the downside to all the incumbent telcos as far as i can make out is that wireless IP is supposed to have nearly put em out of business by now. Instead they're thriving. Noises & rumbles about big telcos rolling out new house-to-house fibreoptic cable in the US ... can bce & telus be far behind.

someone has mentioned crescent point in canada. This has been a favourite energy play for several years. It's a marvellous story. Perhaps not a buy this week, one wants to catch it during an oil dip.
 

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Exchange Income Corp - EIF is paying about 10%
EIF is likable, I bought a few shares (it didn't take many to have enough to be eligable for the monthly 3% off DRIP)
but my concern is that the CEO only has 2500 shares, with a 10% div. who wouldn't be buying more every month? but he is not and that makes me cautious.
 

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EIF is likable, I bought a few shares (it didn't take many to have enough to be eligable for the monthly 3% off DRIP)
but my concern is that the CEO only has 2500 shares, with a 10% div. who wouldn't be buying more every month? but he is not and that makes me cautious.
Hmm that is interesting. I suspect that he has much more. How did you confirm that?

What did you buy at?
 

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I have BMO, RY, CAT,WMT, CHL, IBN, TTM and INFY etc. these are good dividend paying company. I participate in DRIP program. Some US companies give stocks from treassary account which is 5% below market price. Later on sale this stocks with15 to 25 % profits. Off course you pay to pay capital gains on these stocks which you accumulate during DRIP. I am not sure this is right but it works for me for long time.
 

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ceo michael pyle holds 6027 shares outright plus 2500 in his rrsp.

you'll see this on sedi.ca, the official filing depository, and also on all other insider reports as these are derived from sedi.

jd why would you say you "suspect" that he owns "much more."
have you any reason to believe that mr. Pyle owns additional shares lodged somewhere but not disclosed ?
 

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ceo michael pyle holds 6027 shares outright plus 2500 in his rrsp. you'll see this on sedi.ca, the official filing depository, and also on all other insider reports as these are derived from sedi. jd why would you say you "suspect" that he owns "much more."
have you any reason to believe that mr. Pyle owns additional shares lodged somewhere but not disclosed ?

Nope - I was not sure of your source. I never paid close attention to the announcements pertaining to the directors' hoildings etc.
 

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Not sure if some of you can help me out. A friend is looking to sell some BCE, apparently they have been buying since something like 1960. They have their paperwork, but aren't sure of the tax implications of when they sell.

Me, many years away from retirement, so I do keep my DRIP paperwork, and track it, and the subsequent dividend payouts, of my investments via globeinvestor.com. But I am of no help as I haven't really read much about the selling end of things yet.

I know that Jon202 will have an answer for this.

I wasn't sure if the excel spreadsheets at http://dripinvesting.org/Tools/Tools.asp would give him his answer.
 

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CHL.UN will convert to a corporation, but in the meantime they are paying 8.4% and that is with a 0.6x payout ratio. Lots of risks: heavy dependence on a few customers. I like this micro cap because it has very low correlation with my other investments. It is about 1% of my portfolio.

T.A looks like value to me and has a 5.3% dividend, 0.6x payout ratio.
 

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CHL.UN is big in Nigeria oil platforms and elsewhere and somewhat a play on oil I would think and this is off the top of my head. There main office is at the South Terminal at YVR in Richmond BC and they are also building and testing a state of the art helicopter simulator there I believe.

I know this because I talk to the new pilots coming from around the world who usually start out in Nigeria.
 

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Interesting, someone at my bank asked me for an opinion on that one. Their payout ratio is 2.2x. The company is clearly under stress. They have high debt and they are sending cash out the door. I don't get it.
yes quite interesting, i did more research, they are actually the largest propane dealer in canada and also a supplier for insulation and construction products.

They have been around for quite awhile and paying steady dividend. Where do you check their high debt?

this other one i am looking into SRV.UN.TO (Sir royal income fund), holds restaurants like jack astors in canada. paying alot of distro also, but i failed to find their conversion date and post conversion payout..
 

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They have been around for quite awhile and paying steady dividend. Where do you check their high debt?
I got it from the TDW Markets and Research tool. It says their D/C is 62%. But if you think the company is worth pursuing, you need to look at the annual and quarterly reports. Be sure this is not an error.
 
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