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Discussion Starter #1
New to the forum and fairly new to the investing world. At least the self directing part. I want to start to build a portfolio and have opened an online account.

I am hoping to throw some ideas and get your input, I have an open mind. ;)

I just received a little over 5k from my tax refund and I decided I wish to buy a dividend paying stock (or a couple maybe). I decided on BCE to start but when researching I get this:

BCE.PR.S
Bce Inc TSE
BCE.PR.Y
Bce Inc TSE
BCE.PR.Z
BCE INC 1ST CUM RED PRF SHS S TSE
BCE.PR.R
BCE INC 1ST PRF SER'R'CAD25 TSE
BCE.PR.T
BCE INC 4.502% PRF 1/11/11 SR TSE
BCE.PR.D
BCE INC COM PRF D TSE
BCE.PR.A
BCE INC PRF CUM RED 1ST SER'A TSE
BCE.PR.E
BCE INC PRF CUM REDEEM 1ST SE TSE
BCE.PR.F
BCE INC PRF CUM REDEEM 1ST SE TSE
BCE.PR.G
BCE INC PRF CUM REDEEM 1ST SE TSE


Symbol Company Name Exchange
BCE.PR.H
BCE INC PRF CUM REDEEM 1ST SE TSE
BCE.PR.I
BCE INC PRF CUM REDEEM 1ST SE TSE
BCE.PR.C
BCE INC PRF SER'AC' 1/3/08 CA TSE
BCE
Bce Inc-Ts TSE
BCE.PR.B
BCE PR B TSE


So after I went :eek: I thought I would throw this question out to you all...

I'm 48 yrs old. No debt but most of my worth is in my house. I know it's already a silly question but how much are all those stocks different? Which would be the better to buy?
 

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Some of the are preferred shares and some of them are common.

Common are just like the stocks you see going up and down all the time. Those are common stocks. When a company bankrupts, you get nothing.

Preferred stocks are stocks are pay you a dividend, they operate like stocks, they go up and down but they're more like bonds in the sense that once interest rates go up, preferred stocks get more unattractive and they give you a yield%. When the company bankrupts, at least you'll get some $$ back as opposed to common stocks and the trade off is that you don't get voting power with preferred stocks.
 

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driver, only one of these is BCE common. It's that inconspicuous little guy 4th from the bottom of the list.
 

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If you bought BCE then if you had a phone contract with BCE, you would technically be paying yourself when you paid your bill, and getting the money back (in a round about way) via the dividend payment!
 

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Well I guess if they start ripping you off more, then maybe the stocks would go up too..

I have stocks in Husky for this reason. Now I don't mind if gas goes up
 

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bce common dividend is .435 per quarter, or 1.74 per annum, to yield 5.70%. This is one of the highest yields among widelyi-held blue chip canadian companies. This dividend will also produce a dividend tax credit against federal & provincial taxes income taxes otherwise payable. The next record date to receive the dividend will be june 15; however buyers must buy prior to the X-date which looks as if will be the 9th or 10th of june. You will be able to check on the exact X-date after company declares its dividend, which looks to be around may 5.

bce is a good choice for a beginning investor. However, all telcos are subject to intense competition from rival industries such as cable & voip. Reportedly the big US telcos are building residential fibre networks; i believe bce may follow. Fibre will allow telcos to offer reliable broadband services to home consumers at low competitive prices.

owning common as opposed to preferred stock permits the shareholder to participate in any growth bce may experience. It's also a good teaching device. While owning bce & collecting the pleasant dividend, a new shareholder can ask himself which are the major competitors to bce, both among the incumbent telcos and among the competitive cable & ip services. And what will be the effect on the existing telecommunications industry in canada as newly-licensed egyptian-owned Globalive starts up services (hint: so far, not much.)

.
 

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Discussion Starter #9
Excellent responses, thank you. For years I placed very little into RRSP's and investments as I cleaned up my mortgage. Was it the smart way to go? I guess we will see in a few years as now I am debt free and will plan to invest as aggressively as I saved for the mortgage...

I am in the process of taking over my own investment decisions as I now have more time to research and learn.

I plan to pick up some income stocks initially. I have 20k from my rrsp account (moved to my self directed) that I am holding in a short term GIC that I will "ladder" once rates come up a little (5%). This is to preserve a base of capital that will make me feel comfortable. Also, I am starting to read up on financials as well... banks (RBC, CIBC) as well as utilities....

Thanks again for the advice, I plan to tap into it often....
 

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So you get dividends with the normal common shares as well?
Typically, newer & less established companies don't pay dividends as they need all the money they can get to grow the business. Others, such as tech companies (though not all), don't pay dividends due to the high cost of research & development, such as Apple/RIM for example & so they reinvest the money & in doing so, grow the stock for the investor rather than pay a dividend.

Do you already have a TFSA account?
 

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Do you already have a TFSA account?
Yes, in January I found out about them and opened one for both the wife and I. Topped them off at 10k each and then later found out I could have things other than cash in them.:mad:

Next January I will open another one and plan to fill it with dividend paying stocks....:)
 

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Yes, in January I found out about them and opened one for both the wife and I. Topped them off at 10k each and then later found out I could have things other than cash in them.:mad:

Next January I will open another one and plan to fill it with dividend paying stocks....:)
If you want to reinvest your dividends, you might want to consider a DRIP:

http://dripinvesting.org/
 
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