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I'm investing for a long stretch; at least 10-20 years.
My stock picks are all dripped and many are solid blue chip (all Canadian). I've got stocks like Royal Bank, TD and Enbridge.

However, included are those that give low yields like Stella Jones (0.61%) and CCL (0.67%). When I retire and need to draw income, I might sell off those low yield stocks and switch over to income funds with high monthly yields.

So, I guess I want to know if I'm ok to hold those low yield stocks. I don't chase high yields but look for companies that will reward the investor with steady rising dividends.
 

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I think the mix is fine... some dividend yield is desirable but not yield for yield sake. It is good to have companies like stella Jones, CCL, CN, etc. in the mix for diversification purposes. Many of our industrials and consumer stocks are low yield but are expected to be solid performers over the longer term.
 

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I'm investing for a long stretch; at least 10-20 years.
My stock picks are all dripped and many are solid blue chip (all Canadian). I've got stocks like Royal Bank, TD and Enbridge.

However, included are those that give low yields like Stella Jones (0.61%) and CCL (0.67%). When I retire and need to draw income, I might sell off those low yield stocks and switch over to income funds with high monthly yields.

So, I guess I want to know if I'm ok to hold those low yield stocks. I don't chase high yields but look for companies that will reward the investor with steady rising dividends.
Not a whole lot of information stated in your post to give you an opinion on your dividend portfolio. Is it ok to hold low yield stocks? Yes. While they might not give you a high yield, stocks like SJ and CCL have had double digit dividend growth % in the past number of years. Dividend growth and long history of it is, in my opinion, more important than a high dividend yield now.

If Cdn stocks are all you have in your portfolio, it might be a good idea to obtain exposure in foreign equities. One way to do so is to purchase index funds/ETFs that track S&P 500 and EAFE.
 

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If your looking for lower yielding dividend stocks, I'd consider ones like CNR, Cdn Tire, Loblaws, Metro. These have a longer history of paying and growing their dividend (bit higher growth rate). I avoid cyclical, energy, tech, but that's me. Your core holdings should be with the Average Yielding Blue chips as you've stated.
Check out MyOwnAdvisor site or the Connolly Report (dividendgrowth.ca) for much more info.
 

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I would include Magna (MG) on this list -- not really a high yield stock generally, but it occasionally it goes on sale.
Beauty is obviously in the eye of the beholder. I consider Magna a cyclical, as bad as the auto industry itself. Not the roller coaster I would want to be on for a buy and hold investor.
 

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Discussion Starter #8
If your looking for lower yielding dividend stocks, I'd consider ones like CNR, Cdn Tire, Loblaws, Metro. These have a longer history of paying and growing their dividend (bit higher growth rate). I avoid cyclical, energy, tech, but that's me. Your core holdings should be with the Average Yielding Blue chips as you've stated.
Check out MyOwnAdvisor site or the Connolly Report (dividendgrowth.ca) for much more info.
The Connolly Report you mentioned addresses all of my concerns. Thank you.
 

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Beauty is obviously in the eye of the beholder. I consider Magna a cyclical, as bad as the auto industry itself. Not the roller coaster I would want to be on for a buy and hold investor.
I don't like auto stocks either (and that is what Magna pretty much is now) and it probably isn't a candidate for super long term hold but a braver person than I can probably make a lot of money on it in the next few years. If you like Beemers and Jags, that is...

"""Magna International Inc. is contemplating a new assembly plant after securing a deal to build luxury sedans for BMW AG, which will help fill capacity at its flagship factory in Graz, Austria. Production of BMW’s 5-Series will begin next year and adds to an agreement to manufacture vehicles for Jaguar Land Rover Ltd. and Daimler AG, Magna said in an e-mailed statement. Magna, which said it expects to produce 200,000 vehicles per year by 2018, is considering adding production capacity in China, the U.S. or Europe within the next two years."""
http://business.financialpost.com/n...-bmw-5-series-deal-at-flagship-austrian-plant
 
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