[swoop_ds]

The majority of my portfolio can be summarized as:
Td e-series (canadian,us,global, and bonds)
Canadian dividend stocks
A small work pension (mutual funds)

Anyways, I just put $2000 into questrade that I'm trying to decide what to do with. It's not"play money" but I also intend to do something other than index invest with it.

Here are some options that I'm tossing around:
1. Buying a cheap us dividend stock that I could synthetic drip. The fact that it's a cheap stock is important as I have to be able to purchase enough of the stock so that the synthetic drip will actually buy one stock every dividend payment. I haven't researched specific stocks yet.
2. Buying 100 shares of a stock that I want to hold for the semi long term. The stock would need to be under $20 so that I could buy 100 shares. I would want to try selling covered calls on it. (Thus needing 100 shares needed) I assume it would help if the stock was us based and a little volatile. I'm not sure what good examples of this would be.
3. This will cost more in commissions- buying 5-8 "sin stocks". (Tobacco, liquor, etc)
4. Buy some diversified index etfs (no fees at questrade for this from why I understand) - this would be similar to what I already do with my eseries so I don't really want to do this right now unless I can't find something else to do instead.

Anyways, I'd love to hear opinions. I think I'm leaning towards 1/2.

 

[Worm]

There are more knowledgeable investors on here than I that will likely chime in, but here are my thoughts...... I'd say whatever compliments your overall investment plan the best. I would avoid trying to find a stock that is either cheap enough to DRIP, or to get 100 shares simply on that criteria. I'd rather find a stock I want to hold, buy whatever you can afford now, and get more later when you have more cash until you satisfy these goals. If you can find one that fits all these criteria great, but I don't think that should be where the research should start.

Since you asked, if we have to choose personally I'd go with #4 right now. Once you know which stocks you want then #1 or 2 are good as well.

 

[jcgd]

1. Buying a cheap us dividend stock that I could synthetic drip. The fact that it's a cheap stock is important as I have to be able to purchase enough of the stock so that the synthetic drip will actually buy one stock every dividend payment. I haven't researched specific stocks yet.

The actual share price does not indicate if it is cheap or not.

cheap
tʃiːp/Submit
adjective
1.
low in price, especially in relation to similar items or services.
"local buses were reliable and cheap"
synonyms: inexpensive, low-priced, low-price, low-cost, economical, economic, competitive, affordable, reasonable, reasonably priced, moderately priced, keenly priced, budget, economy, cheap and cheerful, bargain, cut-rate, cut-price, half-price, sale-price, sale, reduced, on special offer, marked down, discount, rock-bottom, giveaway.

Cheap means you are getting good value for your money.

A company with a share price of $1000 could be cheaper than a company with a share price of $5.

 

[swoop_ds]

Yeah I guess cheap isn't the correct word. Number one also depends on the dividend yield, not just the stock price. This is why I like my canadian drips because they drip even if I only have one share ad fractional shares drip too.

I agree that this shouldn't be a reason for picking a stock, but I have a feeling that I could probably find one or two that this would apply to that are also good companies. I remember looking awhile ago at canadian stocks and I think canadian oil sands matched this criteria for instance.

I also wouldn't be against a stock or two that doesn't pay dividends, but if a stock does pay dividends, I'd rather symthetically drip them then have small amounts of money collecting in my account. (Not that money collecting is a bad thing!)

 

[none]

If you're going to DRIP anyway what's the point? Money extracted from the company for the dividing hits the stock price the exact amount - it just makes meaningless paperwork.

 

[liquidfinance]

I really don't know what you wish to achieve here.

I would say may be something like bpf, pza, che. But you say it's not play money. If you want high enough yield to drip off 2k you will likely be taking on a lot of risk.

I really don't see the need to be able to drip. By a good stock. If you can't drip it but really want to put the money to work the look to buy an etc with the commission free trades.

 

[SpendLessEarnMore]

not a US stock but if you want high yield, cheap stock check out Partner's Reit. Currently sitting at $6.02 and yielding 10.63%.

 

[Butters]

not a US stock but if you want high yield, cheap stock check out Partner's Reit. Currently sitting at $6.02 and yielding 10.63%.

Wow, that's a pretty insane yield, the company rents out space to shoppers drug mart and many other well know stores in malls... why is the stock price so low!

 

[none]

^because the yield is so high.

 

[HaroldCrump]

When large cap and well established REITs like Dundee Corp. are yielding > 8%, it is no surprise that ones like Partner's is yielding 10%+

 

[underemployedactor]

Hey Swoop, have a look at BOCH. Smallish US bank based in the West yielding about %2.1. Closed at $5.56. Decent metrics. And yeah, I own it (the common shares, not the bank).

 

[swoop_ds]

Thanks for some stock ideas everyone. I've been doing lots of reading lately looking for some possible stocks