Saturday, November 24, 2012

LIM and other assorted investments

I'm still holding my LIM. No surprise here. The big question is: "Will iron ore prices recover in 2013?" A lot of bight folk are saying, "Yes." Still it is a crap shoot at this point.

I don't have a lot of skin in the game but enough to add a little spice to my portfolio. A "win" with LIM might not make me rich, I don't have enough stock. But a win might pay a few months of my expenses in retirement. Nice.

And a loss? It might cost me a couple of weeks of  retirement-living-expenses money. Not a big deal.

Never play, and I do mean play, with more money than you are comfortable losing.

My other bets have been doing much better than LIM.

  • CET (Cathedral Energy Services) is up marginally and I have been enjoying the good dividend while waiting for a turn-around in the oil patch. 
  • My REM (a U.S. iShares ETF) is well off its highs but it is still up from my entry point and is still delivering a fine 11.34% dividend. I have no complaints. 
  • My Sun Life Financial is up almost 30% and carries a nice 5.3% yield helping pay the bills in retirement.
  • AUSE, an ETF from WisdomTree, hasn't done much since I bought a few shares but it has been paying its way with a 4.81% yield. That's almost a full percentage point more than what I need to balance my books in retirement.
  • I keep adding to my RY (Royal Bank) holdings whenever the stock has a major dip. RY is up about 20% and paying a 4.1% dividend based on today's stock price.
  • My ZUT is up too, but it is not an ETF that I am enamoured with. I'm not all that fussy about some of the holdings. Still, it is up and paying me a dividend of about 5.2% to hold my nose. I'd like to make a bundle on a couple of my dogs, like LIM, and then I'd buy some more utilities. I could buy something like Fortis or Emera but I am leaning towards another ETF. This time I'd buy XUT. It is only yielding 4.44% today but I believe it would partner nicely with my ZUT holdings.

I have cutback my budgeted income from dividends for the coming year based on my concern about the stability of the high-yielding Penn West dividend. If the yield is cut, so be it. I am prepared. If the yield isn't cut and oil prices climb out of the present hole, I'll celebrate.

As of today, my portfolio has delivered almost 6% year to date. It was down of late but the market has been recovering over the past few days. It may still be a fine year for my investments when I close my  books on 2012 in another five weeks.

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