Dividend
- Thread starter Bigdaug
- Start date
Both good picks. Their prices won't sky rocket but the dividends are excellent. I think TD is undervalued among the big banks.
Diversify as others have stated: pick up a few more banks (BMO, RBC), toss in some telecom (good dividends), and if you can afford it, add some US blue chips (Amazon, Google, Apple).
Diversify as others have stated: pick up a few more banks (BMO, RBC), toss in some telecom (good dividends), and if you can afford it, add some US blue chips (Amazon, Google, Apple).
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Where is that money currently sitting? In your RRSP? TFSA? Other?
You should diversify your risk based on where the money is sitting to offset capital gains (or potential losses).
RRSP: Growth stocks with dividends
TFSA: Solid dividend stocks
Other: Risky dividend stocks (so that you can claim capital loss)
Also, good start but try to get a basket of 10 stocks to spread your risk. I'd pick 5 industries, 2 companies per industry.
I had it in rrsp mutual funds last ten years. Its been like 3%. I think dividend alone pay better even without the stock price going up much.
Dude, im all in Enbridge right now. It got slammed during the crash for just being energy related. but if you ctuallly look at their biz, its 99% long term contracts. No one is backing out of their pipeline obligations. They are down 30% from the Feb highs (price is 41 now, high of 58). I think they see 70 in 2021 provided the entire market makes new highs. In which case you can realistically see a 50%+ capital gain while collecting the 8% dividend. Its a fucking flat out steal right now. All the buzz is about solar energy, EV's, and 10000PE growth stocks so gems like this are flying under the radar. The death of energy, as the media likes to tout it has happened every couple of years for the past 2 decades. But realistically its not happening in our lifetime.
This is great advice obviously 95% of the time but this is a special circumstance.
Diversification is to protect from the downside. In this case, in Enbridge case we literally just had the worst case scenario happen in regards to the pandemic. Short of nuclear war there couldn't have been a worse year for energy than what 2020 was. Energy stocks just went through hell, and they alll pretty much bottomed. Now is the time to NOT diversify and pile into stocks we KNOW will be back like airlines, energy, hotels. Those are going NOWHERE.
mutual funds are great if you are a novice or cannot do research on the net. the management suck up all the profits. fund manager and the company get rich. a basket of good blue chip paying dividend over the long term in your own self directed account is better in the long run. 8% over the long term is a good marker. that is doubling every 7 years.
Agree with ENB and TD but definitely add others and diversify. BCE and Telus. Bank of Nova Scotia. Suncor or go with the XEG ETF in Canada and the XLE ETF for some US energy exposure. If you want to spice the yields
a little bit add also a little bit of Fiera Capital and Russell Metals. Long term I love Brookfield Asset Management also but it’s been finally on a tear a little bit and not buying that for dividend yield but for growth.
ENB is a no brainer at current prices and was a super bargain about two weeks ago in mid 30s.
if you don’t actually need the dividend income right now make sure you’re enrolled in these companies dividend reinvestment plans (DRIPs or DPPs) through your broker
For energy the past week has been very good and I am just waiting for another oil price pullback in December before I’d buy more.
Ten years from now the core portfolio above will be triple in value if dividends reinvested.
a little bit add also a little bit of Fiera Capital and Russell Metals. Long term I love Brookfield Asset Management also but it’s been finally on a tear a little bit and not buying that for dividend yield but for growth.
ENB is a no brainer at current prices and was a super bargain about two weeks ago in mid 30s.
if you don’t actually need the dividend income right now make sure you’re enrolled in these companies dividend reinvestment plans (DRIPs or DPPs) through your broker
For energy the past week has been very good and I am just waiting for another oil price pullback in December before I’d buy more.
Ten years from now the core portfolio above will be triple in value if dividends reinvested.
I have 3 letters for you: VCN. I hope you can spare 0.06% MER ($60 per year on $100,000 investment) in exchange for almost complete diversification (or go for XIU if you would like to diversify using US stocks too). And for those smart once who say that mutual funds are for people who cannot do research: it is actually for people who can do lots of research and learned that the best way to invest is to diversify. However, if your education stopped with Undergraduate Finance degree of an MBA, then sure, do your "research".
I own some BAM but they are into a lot of brick and mortar assets (shopping malls and office buildings). How will shopping malls and office buildings do in the future?
The market is forward-looking. So, the right question is not how they will do in the future, but how they will do in the future RELATIVE TO what people think today about how they will do in the future.
Between 96-2000 I was in a pension plan at work with Investors. My contribution every month was 4 hundred. The guy invested me in 6 different funds. One was FID265. Anyway, I got out of the plan when I left the Company and got rid of everything except 265, I bought stocks and other investments with balance. Anyway, I do not know how much I actually contributed to 265, most like no more than 10K. Anyway, I am sure glad I kept it as it is now worth 122K and has out performed my other investments. 2.25 mer, but worth it the fund pays well. Annual divided payment in Dec, last one was over 6K, I am looking forward to this years.
www.theglobeandmail.com
Fidelity Canadian Growth Company Fund Series B (CADFUNDS: FID265.CF) Quote
Updated NAV Pricing for Fidelity Canadian Growth Company Fund Series B (CADFUNDS: FID265.CF). Charting, Tear Sheets, Fund Holdings & more.
www.theglobeandmail.com
So, it is about 12% annually compounded over 22 years. Sounds about right. However, saving their 2.5% MER and going with low-fee growth funds would have netted extra $60K today. Of course, there were no ETFs 20 years ago...Between 96-2000 I was in a pension plan at work with Investors. My contribution every month was 4 hundred. The guy invested me in 6 different funds. One was FID265. Anyway, I got out of the plan when I left the Company and got rid of everything except 265, I bought stocks and other investments with balance. Anyway, I do not know how much I actually contributed to 265, most like no more than 10K. Anyway, I am sure glad I kept it as it is now worth 122K and has out performed my other investments. 2.25 mer, but worth it the fund pays well. Annual divided payment in Dec, last one was over 6K, I am looking forward to this years.
Fidelity Canadian Growth Company Fund Series B (CADFUNDS: FID265.CF) Quote
Updated NAV Pricing for Fidelity Canadian Growth Company Fund Series B (CADFUNDS: FID265.CF). Charting, Tear Sheets, Fund Holdings & more.
I guess my point is this. If you look at the last 10 years on the chart attached. If you invested 10k in FID265 it would be worth 50k today. If you invested in the index or the category it would only be worth around 20k. So I am happy to pay 2.25% mer to make this much profit. I know the index or etf funds are usually between .5 and 1% but I am very happy with the results. I have bank stock and other etfs that have performed to the index and while ok they have not outperformed. I invested in all these funds because of the low mers. Now I am beginning to wonder. I always invest in dividend stocks as that is the way to grow for the long term.
Any opinions are appreciated.
Fidelity Canadian Growth Company Sr B, Fund, performance | Morningstar
Morningstar Financial Research conducts Analysis on Markets, Mutual Fund, Stocks and ETFs through Investment Data and News.
www.morningstar.ca
Well, FID265 grew from $10K to $40K in 10 years while Canadian market grew only to $20K. However, S&P 500 denominated in CAD grew to $50K and, by the definition of "Canadian Growth" fund, FID265 has only 50% Canadian equity in it. Since it is growth company fund, its beta is above 1, so, yes, you are getting your expected return minus MER. By the way, MER for market-index ETFs is below 0.1%, not between 0.5% and 1%
3 of the Big 5 banks reported their year-end earnings the day after the Economic Statement was tabled.
BTW: Ever notice no mutual funds older than 5 years show a loss? It's because fund managers kill all losers before they reach 5 years old.
BTW: Ever notice no mutual funds older than 5 years show a loss? It's because fund managers kill all losers before they reach 5 years old.
Thanks fall. Did I read the chart wrong? It says it grew to 50k not 40K as you suggest. Are you suggesting it was not a good investment? You are right on etf mers for index. I was thinking of other etfs like XIU. Thanks for the correction.
