Are canadian bank stock safe from Humpty Trumpty?

[Zoot Allures]

I have gone 60% into cash but I hate doing that because I am a firm believer in holding in a bear
but Trump is a meglomaniac and that changes things and I do not know WTF to do

So, what stocks should I buy that is safe from Duck Donald?

Canadian banks are safe from tarrifs, at least directly, and they pay dividends
so buy Canadian banks?

 

[Jubee]

Nothing is safe and I don't think anything will be for a very long time. They want to destroy wealth and this is the guy hired for the job, unless you're in that "big club" of multi-millionaires and billionaires.

 

[Mandala]

My thoughts are tarriffs are a scare tatctic to get countries to “play nice” . So, Trump’s tariffs probably will not last very long, if enacted at all.

Canadian banks don’t export anything, so they aren’t tariffed.

A ETF of Canadian Financials has very little vulnerability to tariffs as they own Canadian banks .

 

[glamphotographer]

My thoughts are tarriffs are a scare tatctic to get countires to “play nice” . So, Trump’s tariffs probably will not last very long, if enacted at all.

Canadian banks don’t export anything, so they aren’t tariffed.

A ETF of Canadian Financials has very little vulnerability to tariffs as they own Canadian banks .

Yes, Trump wants the world to recognize him as King of America. I bought TD bank shares during the pandemic.

 

[Butler1000]

I have gone 60% into cash but I hate doing that because I am a firm believer in holding in a bear
but Trump is a meglomaniac and that changes things and I do not know WTF to do

So, what stocks should I buy that is safe from Duck Donald?

Canadian banks are safe from tarrifs, at least directly, and they pay dividends
so buy Canadian banks?

Buy ScotiaBank. Good international presence, no scandals.

 

[Mandala]

Yes, Trump wants the world to recognize him as King of America. I bought TD bank shares during the pandemic.

I do not agree that banks are a great buy as they are overpriced and their dividends are a joke as they subtract
the value of the stock by the exact value of the dividend as the dividend comes out of the price of the stock
If you need some money sell the stock, same thing

However, companies do not give dividends if they are in need of cash so any company that
has a history of dividends is a solid company but you are missing out on market upswings
by going after dividend companies

However, the OP wants to get as far away from TRUMP as possible but still be in the market
so I can see the logic in buying Canadian Banks

 

[faveone]

Companies like Enbridge & Hydro One are great investment because their clients need their services but don't have many options

 

[HungSowel]

Enbridge has done very well the last 3 months, I thought it would get demolished due to the tariffs but it did not. It pays a pretty hefty dividend of ~6%. Fortis is another "safe stock" that pays ~4% dividend. I am probably going to get some Enbridge into my portfolio.

If you are ok with capital appreciation instead of dividends, a Gold ETF would be a good asset to have in your portfolio.

 

[superstar_88]

I do not agree that banks are a great buy as they are overpriced and their dividends are a joke as they subtract
the value of the stock by the exact value of the dividend as the dividend comes out of the price of the stock
If you need some money sell the stock, same thing

However, companies do not give dividends if they are in need of cash so any company that
has a history of dividends is a solid company but you are missing out on market upswings
by going after dividend companies

However, the OP wants to get as far away from TRUMP as possible but still be in the market
so I can see the logic in buying Canadian Banks

Dividends are treated more favourably from a tax standpoint than capital gains so isn't this a good thing

 

[Mandala]

Dividends are treated more favourably from a tax standpoint than capital gains so isn't this a good thing

That is why people buy them esp as retirement income as they are safe

1 Not really. They are taxed lower because the companies have already paid taxes
on the dividends and you own the company so they are taxed lower to stop you
being double taxed

2 The loss in income from the market is greater because
you are restricted to canadian companies

3 You miss out on better market returns in the long haul if you had greater exposure

Chasing lower tax rates is not smart investing IMHO
but some dividend companies are solid investments but not because of dividends

 

[Zoot Allures]

Buy ScotiaBank. Good international presence, no scandals.

I would prefer a ETF of Canadian banks.

ZWB ETF of canadian banks uses a covered-call strategy
that softens stock losses but with sharp reduction in upside

I do not believe in covered calls as it reduces upside but they are safer so maybe until
Trump is assassinated as that is the only way to get rid of him

 

[Butler1000]

I would prefer a ETF of Canadian banks.

ZWB ETF of canadian banks uses a covered-call strategy
that softens stock losses but with sharp reduction in upside

I do not believe in covered calls as it reduces upside but they are safer so maybe until
Trump is assassinated as that is the only way to get rid of him

That works too.

 

[superstar_88]

That is why people buy them esp as retirement income as they are safe

1 Not really. They are taxed lower because the companies have already paid taxes
on the dividends and you own the company so they are taxed lower to stop you
being double taxed

2 The loss in income from the market is greater because
you are restricted to canadian companies

3 You miss out on better market returns in the long haul if you had greater exposure

Chasing lower tax rates is not smart investing IMHO
but some dividend companies are solid investments but not because of dividends

I was merely referring to dividends over capital gains in response to your comment
"they subtract the value of the stock by the exact value of the dividend".
If the value is the same then why not get the increase as dividends rather than capital gains.
Are you saying an equal increase in value of dividends and capital gains nets out to the same tax.
Sounds more like you were trying to spin this into a negative when it's actually a positive or at worse neutral.

I wasn't questioning whether all dividend stocks are good or bad or better or worse investments.
There's more to investing than just dividends. Go see the BCE thread.
Or even whether Canadian stocks are better or worse than non Canadian stocks.

 

[HungSowel]

Supposing capital gains and dividends are taxed exactly the same, capital gains still comes out ahead as you can defer the taxation until you sell.

 

[nottyboi]

My thoughts are tarriffs are a scare tatctic to get countries to “play nice” . So, Trump’s tariffs probably will not last very long, if enacted at all.

Canadian banks don’t export anything, so they aren’t tariffed.

A ETF of Canadian Financials has very little vulnerability to tariffs as they own Canadian banks .

Surely the wave of bankruptcies, reduced economic activity etc will result in larger loan loss provision and reduced earning for the banks?

 

[nottyboi]

Companies like Enbridge & Hydro One are great investment because their clients need their services but don't have many options

Yup pay or freeze to death.

 

[nottyboi]

Enbridge has done very well the last 3 months, I thought it would get demolished due to the tariffs but it did not. It pays a pretty hefty dividend of ~6%. Fortis is another "safe stock" that pays ~4% dividend. I am probably going to get some Enbridge into my portfolio.

If you are ok with capital appreciation instead of dividends, a Gold ETF would be a good asset to have in your portfolio.

All the pipelines are doing well. My TRP went up 40% spun of SOBO then bounced right back to a new 52 week high. I bought it due to Coastal gaslink.

 

[superstar_88]

Supposing capital gains and dividends are taxed exactly the same, capital gains still comes out ahead as you can defer the taxation until you sell.

That's assuming taxes are the same and I'm not convinced it is. Aren't corporate gains also after tax. You make a good point though that capital gains can be deferred at a personal level but taxes still paid nevertheless. Could even be higher when the time comes. LIke RRSPs which I think is a government scam. Capital gains in an RRSP is taxed at 100% when withdrawn. Taxed as income. Outside of RRSP 50%. Dividend payouts that are re-invested in an RRSP also will be taxed wholly as income upon withdrawal.

 

[HungSowel]

All the pipelines are doing well. My TRP went up 40% spun of SOBO then bounced right back to a new 52 week high. I bought it due to Coastal gaslink.

I made note to get into Canadian gas and oil stocks before PP becomes PM because he would be more friendly to the industry. This was back 6 months ago before Trump tariffs and when it looked certain that PP would win the next election against JT.

Carney at least on the surface seems to be more friendly to oil and gas development than JT. I think that is the reason energy stocks are doing well. With that said I think energy stocks would do even better if PP was going to become PM.

 

[Dave in Phoenix]

LIke RRSPs which I think is a government scam. Capital gains in an RRSP is taxed at 100% when withdrawn. Taxed as income. Outside of RRSP 50%. Dividend payouts that are re-invested in an RRSP also will be taxed wholly as income upon withdrawal.

But the initial investment is after tax, and accumulation within the RRSP is tax free, yes until withdrawn but can time withdrawls based on need and tax effect.