tag:blogger.com,1999:blog-88481242825811116982024-03-17T20:04:06.298-07:00Rockin' On: Money -- A Duffer's Take on Investing in Retirement* duffer: an untrained, inexperienced but opinionated person, especially an elderly one. This blog contains the thoughts of a retired photojournalist, a senior and a duffer when it comes to finance. Circumstances forced the author to manage his retirement finances. He has done well but he is NOT a a financial adviser. The opinions expressed are his and should not be construed as legal, tax or financial advice. Those seeking professional advice should see a professional adviser.Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.comBlogger187125tag:blogger.com,1999:blog-8848124282581111698.post-24648499457915531662024-03-06T14:09:00.000-08:002024-03-06T14:18:44.159-08:00Bell, the telecom giant, is BCE: a buy<p>BCE is one of my core holdings but it has been on a race to the bottom, as of late. In fact, all the telecoms are dropping like proverbial stones. When BCE dipped below $49
recently, I should have added to my holding and averaged down. Maybe I will do it tomorrow as it closed today at $49.13. The Morningstar Analyst Report gives the stock a
four star rating and yet many analysts I checked feel BMO is a hold. It is possible BCE is going to linger at the bottom for awhile longer. Many analysts seem to think so.<br /></p><p>The
yield today is 8.12% with a payout
ratio hitting 117.19%. This payout ratio, found using WebBroker, is quite high but the number posted by Digrin is even higher -- an unbelievable 175%. Something is wrong here. These numbers are taking us into "Do you feel lucky, punk?" territory.<br /></p><p></p><p>BMO hasn't reduced a dividend
payment in years but past performance yah-da, yah-da, yah-da means don't believe such a move is off the table. DRG (dividend growth rate) is O.K. but not exciting. To put a dividend you believe you can trust into a retirement portfolio, a dividend yielding 8.12%, I am tempted to act and buy a little. BCE seems to present a buying opportunity, a too-good-to-be-true buying opportunity. So, do you, do we, feel lucky?<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-72288000445690445682024-03-06T13:34:00.000-08:002024-03-06T13:36:47.494-08:00Bank of Montreal (BMO): Buy<p>In the interest of full disclosure, I own Bank of Montreal and have for many years. A damn fine stock. When it dipped well below $120 recently, I added to my holdings. It has regained some of its value but it is still a buy today. The Morningstar Analyst Report gives the stock a four star rating and most analysts I checked agree BMO is a buy.<br /></p><p>The yield today is 4.84% with a payout
ratio of only 83.31%. This payout ratio is quite high for a Canadian bank. A number closer to 45% is what I expected. For instance, the Royal Bank (RY) is 50%.</p><p></p><p>BMO hasn't missed a dividend payment in more than 30 years. Its DRG (dividend growth rate) for the past three years is 10.71% and for the past twenty years 11.85%. With numbers like this, I see a core holding for a retiree: a dividend you can trust and it increases regularly.</p><p></p><p></p><p>If I didn't hold any BMO, I'd buy a little at this price but I'd keep some powder dry for other opportunities. With patience one can add to the BMO position when the stock is rated a very strong buy. You must stay alert though, it does not stay in the basement for long and that is a good quality in a stock one plans on owning for a very long time.<br /></p><p></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-53426083380659486532024-03-06T08:46:00.000-08:002024-03-06T12:06:01.278-08:00Algoma Central Corporation (ALC): Buy<p>I do not own Algoma Central Corp. (ALC) but at some point in the future I will. Why? Good company, well run with an excellent history when it comes to paying dividends. Today the yield is 5.1% with a payout ratio of only 32.71%. ALC has chalked up 28 dividend paying years and its DRG for the past three years is 30%<br /></p><p>Also, ALC has a good moat. It is the only stock in the TSX Marine Shipping sector. If you like diversity, adding a little ALC today looks like a good move.</p><p>Why am I holding back? The stock is fairly valued today. I like a bargain. I can afford to wait for a more appealing entry point. When it appears, I'm in.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-78637441730715633862024-02-28T07:53:00.000-08:002024-03-01T15:31:30.297-08:00More advice for a retiring friend and nephew<p>One has to build a solid, dividend-paying portfolio if one is to have a good trusted flow of income in retirement. A stock to consider is Emera (EMA).</p><p>First, it is selling in bear market territory. It could go lower and it might but it is well off its recent highs with a drop of more than 20%. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7p_4S66sZ4nglnsmwrUqvG4LA0bJg8xJQJ-s6KoedRACMhMAokILGGX_0CuOlyvw05mMlUiJ5WqPUD8KKDJ-xd_QQImPhL7fycePijv3mOouwEWzhCQhIYycgLywUL1q78dbnOBBjumbw1qToGiaNel87XHaN9MNqvxBW6S7V8iQ762XYETI3mBJ_qeNm/s1256/EMA%20Graph.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="297" data-original-width="1256" height="127" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7p_4S66sZ4nglnsmwrUqvG4LA0bJg8xJQJ-s6KoedRACMhMAokILGGX_0CuOlyvw05mMlUiJ5WqPUD8KKDJ-xd_QQImPhL7fycePijv3mOouwEWzhCQhIYycgLywUL1q78dbnOBBjumbw1qToGiaNel87XHaN9MNqvxBW6S7V8iQ762XYETI3mBJ_qeNm/w533-h127/EMA%20Graph.jpg" width="533" /></a></div><br /><p><br /></p><p> </p><p> </p>At a price of $46.93, EMA is yielding 6.12%. Impressive. Morningstar has Emera on its Canadian Income Pick List for good reason and recently put Emera on the Morningstar Canadian Core List as well.<p>All retirement portfolios should have some exposure to the utilities sector. Emera is an excellent utility. If one did not have any cash in utilities, EMA today presents an investment opportunity.</p><p>The utilities sector is considered a defensive play as people need electricity regardless of economic conditions. With <span>stable earnings and consistent dividends, utilities are less sensitive
to market fluctuations. During recessions, defensive sectors like
utilities tend to outperform the broader market. But, this does not mean the sector will not lose money in a downturn. Utilities can, and do, take a dive like any other investment.</span></p><p><span>An investor might allocate 4% of their retirement portfolio to Emera, investing half of that amount today and, if the price retreats, investing the other half. </span></p><p><span>Another good utility is Fortis (FTS). Fortis is down today but nowhere near as much as Emera. Fortis is correcting. It is off its recent high by about 15%. Selling at $52.49, it is yielding 4.5% today. Again, buying 2% today and 2% later seems like a fair approach.</span></p><p><span>Utilities are known to increase their dividends regularly. The dividend growth rate (DGR) for Emera is 11.66% over the past three years and 9.38% over the past decade. <a href="https://www.investopedia.com/terms/d/dividendgrowthrate.asp" target="_blank">According to Investopedia</a>, the DGR </span>is the annualized percentage rate of growth of a dividend over a set number of years.</p><p><span>Aiming to invest 10% of a retirement portfolio in utilities is not unreasonable. A portfolio of $400,000 would have $40,000 distributed among a number of Canadian utilities. For instance, if one invested in Canadian Utilities, Emera and Fortis, (2-4-4%), this would generate about $2175 annually.</span></p><p><span>In the interest of full discloser, I have 3.45% of my portfolio in Emera. I am looking to add another 200 shares if and when the stock price falls a bit more. I also own Fortis and I do not own Canadian Utilities at this time. I do own Altagas (ALA). A stock many include in the utilities sector.<br /></span></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-53274955209304385592024-02-27T18:51:00.000-08:002024-03-01T15:51:30.015-08:00Advice for a retiring friend and nephew<p>My job had a very poor pension plan. If I relied on my company pension in retirement, I couldn't pay my bills. But my wife and I live well. How? Dividend investing. Each year we earn as much or more from our stock portfolio than we do from my company pension plus our CPP and OAS payments combined. For this reason, I am a big booster of investing in stocks in retirement.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNB47X9oT-8ain2R49ufXyoIlu8wZReGw6wpdsAJArXGYO0xCVlkjXY6JrwEuhFk7qTEIf6aEZA_8w8XppVCtm2XZTi7Uy22QMEIyqRIL1b6epTE8K9apYTDoCa5dmgpWDfTMOHJtV5Mv1XDoOtZfNaXbwtLk19vFdZ8hf5cjpl_F5DMp_E7Mra2PSL-rb/s1080/Dividends.jpg" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="607" data-original-width="1080" height="180" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNB47X9oT-8ain2R49ufXyoIlu8wZReGw6wpdsAJArXGYO0xCVlkjXY6JrwEuhFk7qTEIf6aEZA_8w8XppVCtm2XZTi7Uy22QMEIyqRIL1b6epTE8K9apYTDoCa5dmgpWDfTMOHJtV5Mv1XDoOtZfNaXbwtLk19vFdZ8hf5cjpl_F5DMp_E7Mra2PSL-rb/s320/Dividends.jpg" width="320" /></a></div>With any luck, one will be retired for a long time. So, don't be cheap with your time. Put some time aside for research. To get you started, here are a couple of Webinars I believe a retiree should watch. Log-on to WebBroker and click on Learn -- Webinars -- Past Events. Watch: <i>Five Stock Dividend Portfolio</i> and <i>Defensive Dividend Income for Retirement</i>.<p></p><p>(After posting the above, I found <i><a href="https://www.youtube.com/watch?v=TkjI_rnq79A" target="_blank">Five Stock Dividend Portfolio</a></i> on YouTube.)<br /></p><p>One caveat: five stocks is a bare minimum. It can be done but why? Why buy one Canadian bank when you could buy two or three? Adding diversity while maintaining quality is always a good move.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhksEWanrIU7wjQ6zNHf9oGmBtF2y0Evge8ufHVhwoDcx3baBp2MV_IhaNLjlxekMTEFfcHhdRZletORVnFAv868dm1AACfYT5Eqj4XkUdturVgmsu7xSL5bwgNhg9b_T1TJNlYIiUZmcJoheIKFhdP1NHzuzXvwmfvr8H4O2Dg5xHKzMWZmaLg9C1FJyRF/s569/Retirement%20Porfolios.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="414" data-original-width="569" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhksEWanrIU7wjQ6zNHf9oGmBtF2y0Evge8ufHVhwoDcx3baBp2MV_IhaNLjlxekMTEFfcHhdRZletORVnFAv868dm1AACfYT5Eqj4XkUdturVgmsu7xSL5bwgNhg9b_T1TJNlYIiUZmcJoheIKFhdP1NHzuzXvwmfvr8H4O2Dg5xHKzMWZmaLg9C1FJyRF/s320/Retirement%20Porfolios.jpg" width="320" /></a></div>Last June I decided to test my retirement theories. I created an imaginary retirement portfolio with an initial value of $1 million dollars. It can been seen here: <a href="https://rockinonmoney.blogspot.com/2023/06/my-latest-crack-at-retirement-portfolio.html" target="_blank">Retirement Portfolio</a>.<br /><p>Today, that portfolio is worth $999,619.09. In January, I withdrew the minimum amount as an inkind withdrawal. In accordance with RRIF rules, these stocks were transferred to a newly opened TFSA now worth $42,397.06.</p><p>To sum up, my imaginary $1 million retirement portfolio is now worth $1,042,016.15. Later today, after making my monthly $3,470 withdrawal, I will have withdrawn a total of $27,076.65 to cover living expenses in retirement. I think I can claim success for my approach at the moment. <br /></p><p>A retiree could choose to buy an annuity rather than buy stock. They could, I wouldn't and didn't, but it is done. On the plus side, an annuity locks in annual payments. On the minus side, the locked in annual payments stays the same for the life of the annuity. A locked in payment loses a lot of buying power over the years. I have an annuity-based pension paying $6273.72 annually. To deliver the same buying power today as it did when opened in 2009. it would have to be paying $8790. <br /></p><p>How do insurance companies raise the money to make annuity payments? The insurance companies invest in stocks, bonds and cash funds for one thing. I like to think I simply cut out the middleman. Unlike my annuity payment, my portfolio payment has grown with the passing years and thus far my imaginary portfolio is doing the same.</p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-73376409494078690092024-02-04T10:28:00.000-08:002024-02-04T10:28:18.751-08:00A good source for insights into Investing<p>TD WebBroker offers classes on investing. Before signing up for a class, you might benefit from having enough investment smarts to be able to ask knowledgeable questions. I have found a great source of investing info is <a href="https://www.investopedia.com/articles/fundamental-analysis/09/elements-stock-value.asp" target="_blank">Investopedia</a>.</p><p>Recently, I bought a little B2 Gold Corp stock. I made my decision to buy based partially on stuff I had learned reading Investopedia. There are reasons why one stock is a buy and another is not. What are those reasons? Read Investopedia for the answer.<br /></p><p>Click the following link:<span style="font-size: small;"> </span><span style="font-size: small; font-weight: normal;"><a href="https://www.investopedia.com/articles/fundamental-analysis/09/elements-stock-value.asp" target="_blank">The 4 Basic Elements of Stock Value</a>. After that, check out this one: </span><span style="font-size: small; font-weight: normal;"><a href="https://www.investopedia.com/articles/markets/060116/4-ratios-evaluate-dividend-stocks.asp" target="_blank">4 Ratios to Evaluate Dividend Stocks</a>. Investopedia is amazingly complete. If you like video instruction, Investopedia has that as well.<br /></span></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-81577526954549420922024-01-31T11:46:00.000-08:002024-01-31T12:04:29.021-08:00I like B2 Gold Corp. (BTO)<p>Little bells start ringing when I decide a stock may be a buy. The first
bell is the stock price. If it is off its high for
the past year by 20% or more, it is in bear market territory. If it's alone in
its descent, this is worrisome. But, if the entire market is down as well, we may well have a buying low moment.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpV7psVZGRSYSDtTTzUvfdsN9ASCpop2iRqO0HqKfDPpJ9l6LWbYuuVQCGx0odZHwOaAvtGza6HuzICyFzKdGPbCaOnaUjYLRXFjoedbWiQ-oDoQaf0vfBtW9mr6Mump2U2-1NWfuDPo-p3USP8G7o_oLsRcVJcOZrnRIp7WyWws78OOLqu27ieTDnDed0/s523/B2%20Gold%202.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="298" data-original-width="523" height="182" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpV7psVZGRSYSDtTTzUvfdsN9ASCpop2iRqO0HqKfDPpJ9l6LWbYuuVQCGx0odZHwOaAvtGza6HuzICyFzKdGPbCaOnaUjYLRXFjoedbWiQ-oDoQaf0vfBtW9mr6Mump2U2-1NWfuDPo-p3USP8G7o_oLsRcVJcOZrnRIp7WyWws78OOLqu27ieTDnDed0/s320/B2%20Gold%202.jpg" width="320" /></a></div>Recently, B2 Gold Corp caught my attention. It was off its high for the year by 38%. Was B2 Gold in trouble or was the stock undervalued?<br /><p></p><p></p><p></p><p></p><p></p><p></p><p><span></span></p><p>For an answer, check the P/B ratio. If it less than 1.0, the stock may be undervalued. <span>B2 Gold had a P/B value of 0.9. A promising number.<br /></span></p><p>As a dividend investor, before going farther, I check the
dividend. I require a dividend of at least 4% and ideally with a payout ration below 80%. The lower the payout ratio the better. The payout ratio indicates the percentage of a company's earnings, or in some cases cash flow, that is being devoted to dividends. B2 Gold has a 6% dividend with a payout ratio of 68%. All good.<br /></p><p>Keep in mind, bear markets drive yields higher. A two dollar dividend on a hundred dollar stock yields 2%. If the stock price falls by half to $50, the two dollar dividend now yields 4%. This is yet another reason to buy low. <br /></p><p>Moving on, it is time to check the ROE or return on equity. The higher the ROE the better. To get a handle on what high actually means, check the ROEs of comparable companies in the same industry or sector. The ROE is more than just a measure of profitability, it is a measure of a company's efficiency at pumping out profits. According to TD WebBroker, the B2 Gold ROE leads the pack. Read what WebBroker had to say:<br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7FXDfJHB8t1zTAz8OuIA_xh1Sw0P41caN3r-T5YLMTdxpNCZ3ydltta2mB2YfIC360Z8F7QIfMBaE6usmaOfAkc67d-Kcltmw_fRvrbYFZBWIydsLxNdd7_s9O7GLUGMb2HIBK-A9L9ADGl-BakSNo4pWbK2ipMhJpBV2WkF3UusmfAwO77bFU8TsFDvV/s463/ROE.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="72" data-original-width="463" height="88" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj7FXDfJHB8t1zTAz8OuIA_xh1Sw0P41caN3r-T5YLMTdxpNCZ3ydltta2mB2YfIC360Z8F7QIfMBaE6usmaOfAkc67d-Kcltmw_fRvrbYFZBWIydsLxNdd7_s9O7GLUGMb2HIBK-A9L9ADGl-BakSNo4pWbK2ipMhJpBV2WkF3UusmfAwO77bFU8TsFDvV/w564-h88/ROE.jpg" width="564" /></a></div><p>TD WebBroker has a section on Profitablility under Function. The BTO numbers look excellent. See for yourself, the numbers are reproduced below:<br /></p><p><span></span></p><div class="separator" style="clear: both; text-align: center;"><span><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiyvq-bvtPDy_zTZboVZJxJjx8STpGyfA60BAKz81-5M8r7kQRjAKhoAhCPGlJjjdntaUWJDkIWp_t1fhKja-hl5fZaGyqjPXfxaB2vCFEalfmD8jwXD2CDSghyphenhyphenG32y4sSTaMF_It5lhLZGWy7kc5iQ8kQeulGZvWTYoeafqht44OEPJBBTj0pepixdjoN/s1073/Profitability.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="267" data-original-width="1073" height="139" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhiyvq-bvtPDy_zTZboVZJxJjx8STpGyfA60BAKz81-5M8r7kQRjAKhoAhCPGlJjjdntaUWJDkIWp_t1fhKja-hl5fZaGyqjPXfxaB2vCFEalfmD8jwXD2CDSghyphenhyphenG32y4sSTaMF_It5lhLZGWy7kc5iQ8kQeulGZvWTYoeafqht44OEPJBBTj0pepixdjoN/w555-h139/Profitability.jpg" width="555" /></a></span></div><p></p><p><br /></p><p><span>If a company isn't profitable you probably do not want to buy its stock but a profitable company may still have stock selling from the bargain bin. More and more this appears to be the case when it comes to B2 Gold. Let's continue our investigation.<br /></span></p><p><span>The P/E Ratio (TTM), TTM being the
trailing price-to-earnings ratio, is another indicator of whether a stock is
expensive or cheap. </span><span>A low P/E (TTM) ratio suggests the stock is
undervalued. B2 Gold has P/E (TTM) of 10.8. This is low.</span></p><p><span>Another clue indicating a company is undervalued is the P/CF or price to cash flow ratio. This ratio compares a company's share price to its operating cash flow. It is
calculated by dividing the market capitalization by the operating cash
flow of the company or on a per-share basis by dividing the share price
by the operating cash flow per share. The lower the P/CF ratio the better. A number below 10 indicates the stock may be undervalued. </span></p><p><span>The P/CF ratio is seen as a
better investment valuation indicator than the P/E ratio because it
provides a less distorted picture of a company's value, especially for
companies with large non-cash expenses. B2 Gold has a P/CF of 4.7, well below 10. Again, good!<br /></span></p><p><span>B2 Gold is getting ready to open a new gold mine in Nunavut come 2025. That's good. At the present time B2 Gold has a large mine in Mali among others. The Russians are showing interest in Mali and its gold. That's bad. I decided to buy B2 Gold. I picked up some shares for about $3.60. The dice are thrown. Will I have a winner?</span></p><p></p><p></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-59625239923090027082024-01-26T04:55:00.000-08:002024-01-26T09:38:52.065-08:00Buying B2 Gold Corp adds excitement to life<p>I cannot afford to gamble but I enjoy it. At least, I enjoy gambling when there is some chance of winning. The better the chance, the more the fun. For that reason, I rarely buy lottery tickets. The odds are terrible.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgus58SMXkMjCgNdBBwletm0LQfY5maNeLlCSoxFqcCjmkRAJotwKpcF78oi91SQPAsgWFydWjOophea3Ez1R1Z13PVzqbj0cG6NKeWWh7i1jvnIdRXFM5o4Ea3JiU2yREJmS6kLalMEdom6obZBECJaS3VBrlpJPurNutaNbsOJBPQqEVsb5oYqA-1Fp2H/s1305/B2%20Gold%206%20Mo.jpg" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="610" data-original-width="1305" height="150" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgus58SMXkMjCgNdBBwletm0LQfY5maNeLlCSoxFqcCjmkRAJotwKpcF78oi91SQPAsgWFydWjOophea3Ez1R1Z13PVzqbj0cG6NKeWWh7i1jvnIdRXFM5o4Ea3JiU2yREJmS6kLalMEdom6obZBECJaS3VBrlpJPurNutaNbsOJBPQqEVsb5oYqA-1Fp2H/s320/B2%20Gold%206%20Mo.jpg" width="320" /></a></div>The other day the market price for Canadian gold producer B2 Gold Corp dropped below its Exponencial Moving Average, its Bollinger Bands and its Moving Average Envelope. The stock has dropped from a high of $5.87 to a price of $3.56. That's a fall of almost 40%. This puts B2 Gold deep in bear market territory. With a solid dividend of 5.9% today, I saw a potential buy.<p></p><p>How do others see B2 Gold? It is on the TD Action Buy List this month. The analysts followed by TD Webbroker rate it a Strong Buy and I like the fact that in early 2025 B2 Gold is bringing a new mine online in Canada's far north, in Nunuvut. I see a mine in Canada as located in more politically stable region than a mine in Mali where B2 has a large mine today.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicDUMaUA99uplKNcdYNS49x7LrseFbvndOXd54V_TU4dQXQ74tX-Ar1t_sOFuPY2vwpCGlF5zT-wJgetR3IdCLYq1ZyVSA72wWCoMoTrBga-PDqgptnGqV98HN2V5AZdTV4aYUMjZUdA3Wk1rAGp1Tahlm1wLxT8pyKUF5_y9mXB2aXb1lSSiRLxjLwAMW/s200/B2%20Gold.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="172" data-original-width="200" height="172" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEicDUMaUA99uplKNcdYNS49x7LrseFbvndOXd54V_TU4dQXQ74tX-Ar1t_sOFuPY2vwpCGlF5zT-wJgetR3IdCLYq1ZyVSA72wWCoMoTrBga-PDqgptnGqV98HN2V5AZdTV4aYUMjZUdA3Wk1rAGp1Tahlm1wLxT8pyKUF5_y9mXB2aXb1lSSiRLxjLwAMW/s1600/B2%20Gold.jpg" width="200" /></a></div>The TD analysts have set an average target price for B2 Gold at $6.30. That is a gain of more than 75% over its market price today.<p></p><p>I see a buy. I like to invest up to 1% of my portfolio in "flings". B2 Gold looks like a "fling". I picked up some shares at $3.64 and I hope to make almost 6% on my investment, that's the dividend, while I wait for the price to pop. One gets a lot of stock when the entry price is so very low. If it jumps even $2, it is windfall.</p><p>If the Mali story doesn't deteriorate, I may have a winner.</p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-49989956068147608312024-01-08T13:33:00.000-08:002024-01-09T07:50:39.688-08:00The Next Move is to Diversify<p>A few days after making my in-kind withdrawal from my imaginary retirement portfolio, I had transferred some shares of Canadian Utilities from the imaginary RRIF to the imaginary TFSA. Holding only one stock, the CU shares, in my TFSA made me uncomfortable. There were a couple of stocks I wanted to hold and so today I diversified.</p><p>The TFSA now holds 309 shares of Canadian Utilities (CU), 820 shares of Telus (T) and 160 shares of TD Bank (TD). A further perk is that the value of the TFSA has increased by about $400. I will keep you posted as to changes at the first of each month.</p><p>Telus is a five-star stock by Morningstar's calculation. I will sell the Telus when the price rises. Remember, I also hold Telus in the RRIF account. I see holding Telus as a winning move. It pays a good dividend while one waits for the capital gain.</p><p>Buying the TD today will capture the quarterly dividend. Nice. And the TD stock should climb in the coming months and climb more than the CU stock I was holding. Eventually I may actually gravitate back to holding more CU. Remember, I am treating my RRIF and my TFSA as essentially one large portfolio. I do not want to be underweight in my CU holdings indefinitely.</p><p>Just to keep everyone up-to-date, the RRIF plus the TFSA is worth $1,055, 642.30 as of market close today. Not bad for a portfoliio opened with one million dollars in June. That means it is only seven months ago.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-82535103978383484582024-01-05T13:51:00.000-08:002024-01-08T13:35:53.796-08:00Inkind Transfers To Meet Mandatory RIF Withdrawals<p><span>The average Canadian couple retires with approximately $800,000 in retirement savings. It is not uncommon for individuals to open RRIFs worth $450,000 upon retirement. For this reason, when I created an imaginary million dollar RRIF for an imaginary couple it was not an unreasonable amount.<br /></span></p><p><span>RRSPs are designed for saving. At retirement RRSPs are converted into RRIFs structured to dole out the saved funds. The imaginary RRIF that I created is a self-directed portfolio of mainly dividend-paying stocks plus a smattering of ETFs. <a href="https://rockinonmoney.blogspot.com/2023/06/my-latest-crack-at-retirement-portfolio.html" target="_blank">The imaginary RRIF Portfolio is posted here. Please, take a look.</a></span></p><p><span>If this had been a real portfolio, no withdrawals would have been made in the first weeks after its creation. Dividends must be given time to collect. Emulating reality, the first monthly withdrawal of $3,333.33 was made in August. </span>By year end a total of $16,666.65 had been withdrawn. Despite the withdrawals, the portfolio value grew to $1,042,126.11 by December 31st.<br /></p><p>How did I choose a monthly withdrawal of $3,333.33? Four percent of a million is $40,000. Divide that by 12, for the 12 months in a year, and the
result is $3,333.33.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhctwIqjVF06L-omXqouxR9svDgYoCwqHZNBLcQXapeyhE-oCmRegHQiKZ_GK71iWafZjFW7SflvDc_HDBnXY6T1RMTw9onm2GWU_GWyojswWVejuVSg9_3Az6ZxAFhddoDKKD2VyFs5YbM8JFLuSxMJWetCI6oASfTvA4474apMi6aWFF_kb2tLU7mDW5u/s280/2023%20End%20of%20Year.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="280" data-original-width="206" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhctwIqjVF06L-omXqouxR9svDgYoCwqHZNBLcQXapeyhE-oCmRegHQiKZ_GK71iWafZjFW7SflvDc_HDBnXY6T1RMTw9onm2GWU_GWyojswWVejuVSg9_3Az6ZxAFhddoDKKD2VyFs5YbM8JFLuSxMJWetCI6oASfTvA4474apMi6aWFF_kb2tLU7mDW5u/s1600/2023%20End%20of%20Year.jpg" width="206" /></a></div><p></p><p>With each passing year the minimum percentage that must be withdrawn grows. The mandated withdrawal for a 66-year-old
retiree is 4.17%. This works out to a $43,456.66 withdrawal in 2024 calculated on the imaginary portfolio value of $1,042,126.11. </p><p>I make my mandated withdrawals as in-kind withdrawals by tranferring stock from my RRIF to my TFSA. In the case of my imaginary portfolio, 1344 shares of Canadian Utilities (CU) at $32.33, plus $5.14 in cash is being transferred from the imaginary RRIF to a newly opened imaginary TFSA.</p><p>In the coming year, $2413.82 in CU dividends, which previously went to the RRIF, now go to the TFSA. These dividends can be withdrawn tax-free from the TFSA when needed. If there is not enough contribution room in the TFSA, the balance of the mandated withdrawal is transferred to a non-registered plan. This is the way I handle my own RRIF withdrawals. I try to live solely on the dividends.<br /></p><p>A breakdown of the withdrawals, transfers and taxes follows:</p><ul style="text-align: left;"><li>RIF value at market close on Dec. 31, 2023: $1,042,126.11</li><li>Mandated withdrawal (4.17%) posted on Jan. 2nd by TD WebBroker: $43,456.66</li><li>In-kind withdrawal (1344 CU shares @ $32.33+$5.14 in cash) to TFSA:<span> </span>$43,456.66</li><li>No tax is withheld on mandated RRIF withdrawal but tax will be due in the following year.</li><li>Tax, as much as 30%, is withheld on future withdrawals over the mandated minimum withdrawal.<br /></li></ul>To ensure there is no nasty income tax surprise in 2025, 30% is withheld from each monthly RRIF cash withdrawal to cover future tax demands . The cash withdrawals are made to provide the imaginary retired couple with the funds needed to live. As the RRIF is expected to yield at least $39,947 in dividends, payments of at least this amount should not be a burden. An estimated $11,984 will be withheld for future tax needs.<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2UnsRUr_W1UJTAj2SXaTtVlPtpVICMLNcjvJIgCXYQmkab3q1GoYaSe7BOMZ8CK9vHtCBDXA7MPxyQ96EGFNMKTckf6xo3HiUS0BMZmJGcF85usP4fZZrV2WJwQkx3lydz5Q963fJyfzbLk_CeMX4vm2qOjM12Xhdjm4VUMcT817u75rZaH0xiQh269Iw/s432/Growth%20Amazing.jpg" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="281" data-original-width="432" height="208" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2UnsRUr_W1UJTAj2SXaTtVlPtpVICMLNcjvJIgCXYQmkab3q1GoYaSe7BOMZ8CK9vHtCBDXA7MPxyQ96EGFNMKTckf6xo3HiUS0BMZmJGcF85usP4fZZrV2WJwQkx3lydz5Q963fJyfzbLk_CeMX4vm2qOjM12Xhdjm4VUMcT817u75rZaH0xiQh269Iw/s320/Growth%20Amazing.jpg" width="320" /></a></div>Thanks, in part, to the tax-free nature of the TFSA payments, more money is available for withdrawal per month in 2024 than in 2023. As dividends tend to increase annually, this is another reason the monthly payments will increase in the coming year.<p></p><p></p><p>I imagine you are wondering how much the imaginary portfolio is worth today, Jan. 5th, after all withdrawals have been made? Amazingly, it is worth more than its starting balance and don't forget that there is almost $40,000 in a TFSA as well.<br /></p><p>My imaginary retired couple is very happy.</p><p>Click the link to see my next move: <a href="https://rockinonmoney.blogspot.com/2024/01/the-next-move-is-to-diversify.html" target="_blank">Next Move is to Diversify</a><br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-6793459953049587902023-12-23T12:54:00.000-08:002023-12-23T13:09:21.792-08:00Some rules I follow and some I don't<p>I like rules and the rules guiding investing are no exception. I follow a lot of them. But, I must confess, I break almost as many as I follow.</p><p>One rule I follow rigidly is the diversification rule. A portfolio should have no fewer than 20 investments and no more than 30. Too few and risk begins to rise. Too many and one might as well buy an index ETF. This is not to knock index ETFs but I am retired. I need income. I can buy two dozen dividend-paying stocks and get more income than I could from most index ETFs. Think ENB, TCP, T, TD, BMO, PPL, BCE, FTS, EMA and the list goes on.</p><p>One rule I do not follow is the fixed income vs. equity split that, according to the rule, one should have in one's portfolio. The traditional rule says subtract your age from 100 and allocate that percentage to equities. An updated version says subtracts your age from 120. I do neither. I simply invest in equities. Period. No fixed income investments other than cash and that cash is there to meet emergency expenses or to buy more equities when a bargain arises. Since cash today is yielding 4.55%, I do O.K.</p><p>I have too much home bias in my portfolio. Why? I have a dividend-weighted portfolio and dividends from Canadian companies carry benefits denied those dividends from foreign companies. But even I cannot completely ignore other markets, especially the United States. I have about 10% of my portfolio invested in XUS. If the American market pops, I benefit. If I were younger and did not need the dividends to live, I would own more but I am not and I don't. If the price declines in the future, I am planning on adding to my non-home investments by buying a little VI<span style="font-size: small;">DY (</span><span style="font-size: small;"><span style="font-weight: normal;">Vanguard FTSE Developed ex North America High Dividend Yield Index ETF). Its yield today is 3.9%. VIDY delivers diversity, maintains dividend income and lowers one's home bias. Love it!<br /></span></span></p><p><span style="font-size: small;">I like to buy and hold and hold and ho</span>ld. I have held my BMO stock so long it is close to doubling in value. My BMO investment is yielding about 9.75% a year in dividend income calculated on the original investment value.</p><p>But, I am learning there is a time to sell. When a stock price gets inflated, dump it. Move on. When the price comes down, consider buying back in. I sold some Nutrien when it was in the $145 range but for the most part, I held on while the stock slipped all the way to $76. By the time I sold, NTR may have hit bottom and it might have been a better time for buying than selling. If NTR gets low enough to raise the dividend yield to 4%, I will buy a little for diversity while maintaining income.</p><p>And those are my thoughts for the day. Oh, and have a very merry Christmas. Cheers!<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-89576219022769510142023-12-10T13:57:00.000-08:002023-12-11T08:52:45.310-08:00Diversification in a retirement portfolio<p>I believed in diversification long before I had even heard the term. Owning more than just one or two stocks just intuitively seemed right, to me. And despite what you may have heard or read, building a diversified portfolio of about 25 individual investments is not difficult. In fact, capping your portfolio at no more than 25 investments can be difficult. <br /></p><div class="article content body clearfix" data-tracking-zone="body" id="article-body"><div class="padded">Owning more than one or two stocks, spreads out risk. Owning more than 30 stocks risks diluting your portfolio with second string investments. It is easier to build a solid, successful 20 stock portfolio than one crammed with 40 investments. Less is more when it comes to portfolio building. </div><div class="padded"> </div><div class="padded">There are three risks that immediately spring to mind when one is investing in the stock market: market risk, firm-specific risk, sector risk. Market risk cannot be avoided. The market goes up and the market comes down but, it goes up twice as often as it falls. Market risk fades with the passing of time. Given enough time the market will always graph as an uphill slope.</div><div class="padded"><br /></div><div class="padded">Firm-specific risk refers to the uncertainty of making money on any given stock. Try as you might, firm-specific risk is always with you. Think of Nortel. You do recall Nortel, don't you? It was said to be "too big to fail." It failed.</div><div class="padded"><br /></div><div class="padded">Lastly, sector risk applies to all the stocks trading in one sector. For instance, AltaGas, Enbridge, Pembina, and TC Energy are all pipelines. If sentiment turns against pipelines, it turns against all the companies in the sector. Recently, telecoms ran into a rough patch that affected all the players in that sector. BCE, Cogeco, Quebecor, Rogers and Telus all dropped in value. Some dropped more than others but they were all affected.</div><div class="padded"><br /></div>Increase the number of stocks in a portfolio, increase the number of sectors in which one is invested, even throw in an ETF or two or three into the mix, and one has cut both firm-specific risk and sector risk. If you are Canadian with most investment in the TSX, buy an ETF based on the U.S. market, like XUS, and you have reduced market risk as well.<br /></div><p>How many individual investments should you own? Well, it depends a lot on who one asks. Some claim as many as 30 stocks are required for proper diversification. Others say owning 12 to 18 stocks in adequate.</p><p>I believe a good rule of thumb is to own at least 20 individual investments, up to a maximum of 25, with no more than five percent of a
portfolio dedicated to any one stock. Note, I said stock. ETFs are different. It is easy to have 15% of a portfolio in an Index ETF based on the U.S. S&P 500 like XUS. Buy XUS and you immediately have a well diversified investment made up of 500 U.S. large cap companies. ETFs by their very nature are risk-diluting through diversification.</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8klz7ycUj_DFDXYl4IzsOJ_-mTQ7eyBzRov6IbUPvPWErkKcwqdLJ8onXk7TZIgM5Im-eoruQu2J5NVF3M01lHDGrYrzA30u0ydHUucJ0FcolpuTGNJyQW2CzArZzKDceTUSDj1LX2Eb64-EB60oqEJhBWiE0XKmq43EiMpr1gNRknYJe0_buSioSa1hQ/s767/Sector%20Percent.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="767" data-original-width="527" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8klz7ycUj_DFDXYl4IzsOJ_-mTQ7eyBzRov6IbUPvPWErkKcwqdLJ8onXk7TZIgM5Im-eoruQu2J5NVF3M01lHDGrYrzA30u0ydHUucJ0FcolpuTGNJyQW2CzArZzKDceTUSDj1LX2Eb64-EB60oqEJhBWiE0XKmq43EiMpr1gNRknYJe0_buSioSa1hQ/s320/Sector%20Percent.jpg" width="220" /></a></div><p>A spreadsheet is an excellent way to track one's portfolio. I know TD WebBroker will allow one to download a spreadsheet of one's investments. I imagine most other brokerage houses have similar software available to those with self-directed accounts.<br /></p><p>A downloaded spreadsheet is incredibly malleable. One can easily track the percentage of a portfolio that is invested in each individual stock. And one can group stocks together and calculate how much of a portfolio in invested in each sector.</p><p>If you have more than one portfolio, download each and then link all to one master spreadsheet.</p><p>A well diversified portfolio should deliver good returns with less risk. A good spreadsheet will tell you how closely you are adhering to your diversification plan.</p><br />Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-41196291199051315092023-12-07T10:05:00.000-08:002023-12-07T13:55:47.119-08:00Telus has been a winner for me<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikog7VKUnPIWF3rB1450rxOFw2jxEJQS5jLECtCuF-vVfRt36U_DmnEg5oq0FgwUUiay-rYZZGz2rkYtkdGeLads4aticwOoJ4-nd6nHIO7H2LxdfqkoKDrLfqI8E2l-CM9g8k2bqa7c7OP3D-zI1AOyu31EwGDs6YrRXgJcFtgrpO0AAaMSCx00M7OffC/s545/Telus%20T.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="300" data-original-width="545" height="176" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEikog7VKUnPIWF3rB1450rxOFw2jxEJQS5jLECtCuF-vVfRt36U_DmnEg5oq0FgwUUiay-rYZZGz2rkYtkdGeLads4aticwOoJ4-nd6nHIO7H2LxdfqkoKDrLfqI8E2l-CM9g8k2bqa7c7OP3D-zI1AOyu31EwGDs6YrRXgJcFtgrpO0AAaMSCx00M7OffC/s320/Telus%20T.jpg" width="320" /></a></div>I like Telus. It has been good to me. I held Telus when it split and took that as an opportunity to sell half my Telus holdings.<p></p><p>Recently, Telus has peaked my interest as it, and the rest of the Canadian telecoms, have been emerging from a long downward spiral. </p><p>For instance, Telus dipped to a low of $21.60 in the past year. Sadly, I didn't add to my Telus holdings at the time.</p><p>Recently, I noticed it had recovered to $23.90. I took the bait and added almost two thousand shares to my Telus holdings. It has continued to climb since my purchase and today it is at $25.795. I am up $3600.50 on that buy.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjewozjpQxGzJpMnPKgryI_fKnjpmpik_HWhnCzFrFS4a3vFREeRVeLdfCIgEVF2qTXwuZOGdLz5GAe1BMgFk-ufeqG5mVNodEhNS7P8naO8aoZANW5_-EburVrk-3bT_-LolKMTCEoR_Ics1Kik4QPp0W1yqOXqNdW0JPPOeE00Ojc3JuehF4SuWVWGvRL/s680/5%20Star%20Telus.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="279" data-original-width="680" height="131" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjewozjpQxGzJpMnPKgryI_fKnjpmpik_HWhnCzFrFS4a3vFREeRVeLdfCIgEVF2qTXwuZOGdLz5GAe1BMgFk-ufeqG5mVNodEhNS7P8naO8aoZANW5_-EburVrk-3bT_-LolKMTCEoR_Ics1Kik4QPp0W1yqOXqNdW0JPPOeE00Ojc3JuehF4SuWVWGvRL/s320/5%20Star%20Telus.jpg" width="320" /></a><br /></div><p></p><p>Tomorrow is the ex-date for Telus and Monday is the date of record. Will I be reducing my Telus holdings? Yes but not immediately. Morningstar is rating Telus a 5-Star stock and that means it has more room to run. I will hold until Telus has lost at least one star and possibly two.</p><p>But, at some point, I will be reducing my holdings. I do not feel comfortable holding more than four or five percent of my retirement portfolio in any one telecom. Four percent is the goal. One must have goals.<br /></p><p><br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-90604191641427042992023-12-06T17:46:00.000-08:002023-12-16T19:21:20.494-08:00Dividend Capturing: a first look at this strategy<p>Let's start by immediately admitting that the dividend capture strategy when strictly applied does not work. Period. If it did, everyone would be doing it constantly. It doesn't and everyone isn't. With that out of the way, let's see how my kick-at-the-dividend-capture-can played out.<br /></p><p>I decided to buy a solid dividend-paying stock a few days prior to the
ex-dividend date. Sticking strictly to the rules of the strategy, one buys the stock in question on the day before the stock's ex-date. I prefer buying two days, or a little more, prior to the ex-date.</p><p>The goal is to be a shareholder on the ex-date. This guarantees one is a shareholder of record on the
record date, which is often the day after the ex-date. At this point, as a shareholder of record, you have captured the dividend. The dividend is yours. Period.<br /></p><p>Key terms to understand:<br /></p>
<p><b>Declaration Date</b></p>
<p>This is the date a company announces it is paying a dividend. The
declaration statement includes details such as the value
of dividend, the record date and the payment date.<br /></p>
<p><b>Ex-Dividend Date (or Ex-Date)</b></p>
<p>In order to receive the next scheduled dividend, you must own the stock <u>before</u> this date. If the stock is purchased on or after the ex-dividend date, the buyer will <u>NOT</u>
receive the upcoming dividend. The day before the ex-date is said to be
the last day one can buy a stock and still be eligible for the coming
dividend. I have been told buying the stock in question two days before
the ex-date adds a margin of safety.<br /></p>
<p><b>Record Date (or Date of Record)</b></p>
<p>By the end of the business day on the record date, you must be on the
company's books as a shareholder of record to receive the dividend. The
record date is usually the first business day after the ex-dividend
date.<br /></p>
<p><b>Payment Date</b></p>
<p>This is the scheduled date on which a company will pay a declared dividend to shareholders of record.</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEip5bUlJX559l1Su8fbISa2zQyISEzGdGyD1-IhvhpIPimxUSXpoACS7Nb8LS-QsB_6jP0wIE0vcyMTDcVN-fLRrG45eKsXtgwZcw335XTbYCSgN3Iy-AzteCgBMtWknU6eyCXXcp-8RDPMENcLf5ewUxr2Nbj_FEP2NaS3QVcLtY9QTOwpgSmo0I5ttHjj/s286/T%20Strong%20Buy.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="138" data-original-width="286" height="138" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEip5bUlJX559l1Su8fbISa2zQyISEzGdGyD1-IhvhpIPimxUSXpoACS7Nb8LS-QsB_6jP0wIE0vcyMTDcVN-fLRrG45eKsXtgwZcw335XTbYCSgN3Iy-AzteCgBMtWknU6eyCXXcp-8RDPMENcLf5ewUxr2Nbj_FEP2NaS3QVcLtY9QTOwpgSmo0I5ttHjj/s1600/T%20Strong%20Buy.jpg" width="286" /></a></div>Recently, I tried this strategy with Telus (T). Why Telus?
Well, today Telus is boasting a five star rating from Morningstar.
Other sources rate Telus a "Strong Buy". If I cannot sell the Telus
stock quickly for a fast profit, I can hold it and not lose sleep. One could do a lot
worse than holding Telus. In fact, I am already a holder of Telus.<p></p><p>How I played the dividend capture strategy with my recent Telus purchase:</p><ul style="text-align: left;"><li>Thursday, November 30: I bought 1900 shares of Telus at $23.90 for a total of $45,419.99.</li><li>Friday, December 8, 2023: ex-dividend date. I was a shareholder.<br /></li><li>Monday, December 11, 2023: I was a shareholder of record date. Shares were selling for $24.87.<br /></li><li>Tuesday, December 12, 2023: Shares selling for $24.65. I could sell for $46,825.01. I'm holding.</li><li>Wed, December 13, 2023: I could have sold 1900 shares of Telus at $24.94 for a total of $47,376.01 and $1956.02 profit thus far.<br /></li><li>Tuesday, January 2, 2023: I will collect a $714.40 dividend payment<br /></li></ul><p>Total profit for this play could have been $2,670.42. The way this really played out is much different. I figured Telus would continue to climb in price. It didn't. I held and Telus dropped below the price I had originally paid. By December 15th, I was in the red. I should have stuck with the original dividend capture strategy. Oh well . . . I will collect a very nice 6% plus dividend while I wait for the stock to recover and it will.<br /></p><h4 style="text-align: left;">The table below shows the key dates:<br /></h4>
<div class="table-responsive"><table border="1" style="border-collapse: collapse; height: 69px; width: 100%;">
<tbody>
<tr style="height: 35px;">
<td style="height: 35px; width: 7.97255%;">Type</td>
<td style="height: 35px; width: 19.4845%;">Declaration Date</td>
<td style="height: 35px; width: 27.0447%;">Ex-Dividend Date</td>
<td style="height: 35px; width: 26.3574%;">Record Date</td>
<td style="height: 35px; width: 19.1409%;">Payment Date</td>
</tr>
<tr style="height: 17px;">
<td style="height: 17px; width: 7.97255%;">Date</td>
<td style="height: 17px; width: 19.4845%;">November 3<br /></td>
<td style="height: 17px; width: 27.0447%;">December 8 (Friday)<br /></td>
<td style="height: 17px; width: 26.3574%;">December 11 (Monday)<br /></td>
<td style="height: 17px; width: 19.1409%;">January 2, 2024<br /></td>
</tr>
<tr style="height: 17px;">
<td style="height: 17px; width: 7.97255%;">Note</td>
<td style="height: 17px; width: 19.4845%;">A dividend of .3761 is announced.</td>
<td style="height: 17px; width: 27.0447%;">One must own Telus shares <u>before </u>this date to be entitled to the dividend.</td>
<td style="height: 17px; width: 26.3574%;">At the close of business on this date, one must be on the Telus books as a shareholder in order to receive the dividend.</td>
<td style="height: 17px; width: 19.1409%;">The date the dividend is paid to shareholders.</td>
</tr>
</tbody>
</table></div><br />Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-47247437292526029412023-12-04T12:22:00.000-08:002023-12-06T17:44:23.875-08:00Time is the secret to successful investing<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieuUrT9JBB-raced5dlFcoutP6AS1AxKo8HYWhmjVBGwO0RDQhu-89QO6eIbr2N1dB64IwhU549WFYAY1_OQL2lIENvi_H7eV8Z5xyqo_TbgLbt8cULgVLgAMEGDSYRuyrIkjJe94yRAeO0L9Jrk2dNcEzft9EtyUH-ayECozO6iD_wfq37rJbBlZ2RX3h/s503/Gain%20and%20Loss.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="503" data-original-width="118" height="470" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieuUrT9JBB-raced5dlFcoutP6AS1AxKo8HYWhmjVBGwO0RDQhu-89QO6eIbr2N1dB64IwhU549WFYAY1_OQL2lIENvi_H7eV8Z5xyqo_TbgLbt8cULgVLgAMEGDSYRuyrIkjJe94yRAeO0L9Jrk2dNcEzft9EtyUH-ayECozO6iD_wfq37rJbBlZ2RX3h/w110-h470/Gain%20and%20Loss.jpg" width="110" /></a></div><br />The Toronto market is down today. It's not as far down as it has been in recent months but it is down. I am not concerned. A lot of the stock that I own today was purchased some two decades ago. Some of these old holds have to be off their highs by 50% or more before I begin to see red.<br /><p></p><p>The gain at the top of the column on the left represents one of these old holds. It has delivered a steady stream of dividends for decades. I have taken out more money in annual dividend payments than I invested in the stock originally. And, as it has gained in value with the passing years, I have more money in it today than I did at its purchase. Stocks like this form a bulwark against an old, seasoned portfolio falling into the red.</p><p>The two stocks at the bottom are recent additions to my portfolio. The second from the bottom was added when the stock, a pipeline, got so cheap I could not resist buying it. With a dividend greater than seven percent, this stock is a gem.</p><p>The bottom stock is one that I bought just days ago. I am playing with the dividend capture strategy for an upcoming post. My gut feeling is that this strategy doesn't work. If it did, everyone would be doing it and everyone isn't.<br /></p><p>The ex-date for this stock is this Friday and last Friday it looked to be a stock on the upswing. And not only was it gaining value but its entire group, in this case telecoms, was in recovery mode. With all the relevant boxes checked, I bought a few hundred shares.<br /></p><p>What lessons do I take from the above? Lots of time spent holding a stock that is slowly climbing in value is time well spent. And although it is next to impossible to time the market, being lucky and buying a stock at the right time is a huge bonus. When you manage to time the market, admittedly after the fact, smile and go with the flow. You may have a gem worth holding for years.</p><p>Never forget: compounding is your friend. And time is the friend of compounding.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-54985966899319469182023-12-01T15:17:00.000-08:002023-12-01T15:19:10.971-08:00$1 Million Retirement Portfolio Demo as of Dec. 1, 2023<p>It is December and my crack at designing a retirement portfolio for a retiree with a million dollars in savings has climbed above the million dollar mark. In other words, the portfolio, opened in late June, is now back to the value it had when opened. </p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5W8RJoB57otRV9X2gh5b0BAjX-N21Em0lY81t-Oiq1Acw-6xAIWdl2Q3iCSlDjwDGsPJHt8DlraaZ9xDUILkK7PnUIsn0onxItdSuB9TcQHXu2WHPGgiZ7dwlfTmQPSUBqUz9Eo369LMdp5EvrgYD1E3PEabJJg5jmdhIqwTmAHvyQerJGrKvS39EISi0/s178/Dec1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="56" data-original-width="178" height="56" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi5W8RJoB57otRV9X2gh5b0BAjX-N21Em0lY81t-Oiq1Acw-6xAIWdl2Q3iCSlDjwDGsPJHt8DlraaZ9xDUILkK7PnUIsn0onxItdSuB9TcQHXu2WHPGgiZ7dwlfTmQPSUBqUz9Eo369LMdp5EvrgYD1E3PEabJJg5jmdhIqwTmAHvyQerJGrKvS39EISi0/s1600/Dec1.jpg" width="178" /></a></div>On the bright side, starting in August, I am withdrawing $3,333.33 at the first of each month. December's withdrawal brings the total withdrawn to $16,666.65. No matter the value of the portfolio, I am deducting the full $3,333.33 each month as this amount is covered by dividend income.<p></p><p>Today, the cash balance in the portfolio is $2,355.74. Clearly, I am in good shape to start the new year. I only need to collect a little less than a thousand dollars in dividends in the coming month to make my January payment. I will check the <a href="https://www.rateinflation.com/inflation-rate/canada-inflation-rate/" target="_blank">official inflation rate for 2023</a> and I will increase the monthly payment by that percentage.</p><p>I will also be opening a TFSA to receive the in-kind stock withdrawal I must make come January. My imaginary retiree is 65 and so is his wife. I will be withdrawing in-kind the <a href="https://www.woodgundy.cibc.com/en/reference/retirement-planning/rrif-minimum-withdrawal.html" target="_blank">mandatory 4%</a> of the opening value of the RIF and transferring that stock to the TFSA. To meet my monthly withdrawal demands, I may have to withdraw funds from both the RIF and the TFSA. We will see.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-14855603568555644092023-11-19T07:46:00.000-08:002023-11-19T11:14:46.056-08:00Retirement Porfolio Portfolio At $997,693.50<p>In late June I posted a retirement portfolio for a Canadian retiree with $1 million to invest. I put all the retirement savings into stock and it immediately took off. I soon had more than $50,000 in unrealized gains. Then the market went into a tailspin. My imaginary portfolio dropped to less than $970,000. Ouch!</p><p>Even though the portfolio was losing money, it continued pumping out dividend income. I was able to withdraw $3,333.33 at the first of each month starting in August. At this point I have withdrawn a total of $13,333.32 and the portfolio itself has almost recovered all the value it had lost. </p><p>My retirement portfolio now has a value of $997,693.60. If you want to see the portfolio I posted, please click the following link: <a href="https://rockinonmoney.blogspot.com/2023/06/my-latest-crack-at-retirement-portfolio.html" target="_blank">My latest crack at a retirement portfolio</a>.</p><p>Stay tuned. This portfolio and its management will get interesting come income tax time. There is an interesting wrinkle on the horizon. Hint: I meet the government minimum withdrawal demands with in-kind withdrawals rather than cash.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-18407979479469502902023-11-09T15:23:00.006-08:002023-11-11T08:18:51.165-08:00Retirement Porfolio Has Shrunk to $970,985.<p>Look above the date at the top left of each of my money blog posts and you will see this link: <a href="https://rockinonmoney.blogspot.com/2023/06/my-latest-crack-at-retirement-portfolio.html">My latest crack at a "Retirement Portfolio"</a>. Click on the link to see a retirement portfolio created at the end of June in 2023. If this were a real, functioning, million dollar retirement portfolio, a total of $13,333.32 would have already been removed to provide the mythological retiree with a monthly income of $3,333.33. The first payment was made in early August and will be increased annually to meet RIF withdrawal rules.</p><p>Note, 30% of each withdrawal is withheld to meet future tax demands. The retiree only sees 70% of the withdrawal for meeting living expenses. Although, one could argue that 100% of the withdrawal goes to living expenses as taxes are certainly a living expense.<br /></p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzTsfFpUgcs3dtzKg49Za-b-mBfgA3PHimPW4LE3AvcN9s-UqYEMAZBIs8TOXZfut58nzlIdNyT17QDYwbgD94WggZ78vRQI1_eSRa3TDH1fwI-1xZIGnYHTJiaQm3g0woNA2Ilr6uubIk9ImKeUifJShGMzNjKibapj0axnjEyEgY-5eqKKMI7buGIAiS/s118/Nov.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="67" data-original-width="118" height="67" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgzTsfFpUgcs3dtzKg49Za-b-mBfgA3PHimPW4LE3AvcN9s-UqYEMAZBIs8TOXZfut58nzlIdNyT17QDYwbgD94WggZ78vRQI1_eSRa3TDH1fwI-1xZIGnYHTJiaQm3g0woNA2Ilr6uubIk9ImKeUifJShGMzNjKibapj0axnjEyEgY-5eqKKMI7buGIAiS/s1600/Nov.jpg" width="118" /></a></div>Today the million dollar retirement portfolio is worth only $970,985.98. The market is in decline at the moment but the dividend income will continues undiminished. I imagine it will grow a little in 2024. Dividends often increase but cuts are not unknown.<br /><p></p><p>At the age of 65 the government mandates 4% of the a RIF or LIF portfolio must be withdrawn. This mandated percentage jumps to 4.17% in the year one turns 66. It continues to jump each year until one reaches the age of 95. At 95 the withdrawal rate hits 20% and remains there. The goal of the government is clearly to bleed the retirement portfolio dry. <a href="https://www.woodgundy.cibc.com/en/reference/retirement-planning/rrif-minimum-withdrawal.html" target="_blank">For more info on the withdrawal rules, click this link.</a><br /></p><p>If you come back in the new year, you will find that I make my mandated withdrawals in-kind. This is the way I operate in reality and I am going do the same online with this test account. I will transfer stock from my imaginary RIF to an imaginary TFSA. </p><p>The cumulative maximum contribution space in a new 2024 TFSA is $95,000. This means all the dividend income from this year's withdrawal can be protected and not only for this year. Dividends earned in a TFSA are sheltered from the ravages of income tax. It is called a tax free savings account, after all.<br /></p><p>Although I will not have to pay tax immediately on the transferred amount, I will have to pay the tax next year. To avoid the future shock of a spring income tax bill, I will withhold 30% from each monthly payment to cover future tax costs.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-58661754475758345482023-11-02T12:34:00.013-07:002023-11-05T06:36:09.378-08:00I often catch the falling knife.<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtISDilLIpEyLGQAc5nW0o5Vm6uEe1SMzjiSeeNmAs4BSTxDniJHsaEaVBbMsvJcp6SHRc5EQpm3IMty2E2o5m8mOHc28rTYhn9mfBSX4_TA-SDE9xxzg_Bu2r5qyNusgNRdu1zjfTGWOb2xn46hWfoL4IunihCFs_eF9Uobk_daFZBXJMMRpidlTseIpm/s446/BMO%20Today.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="280" data-original-width="446" height="201" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgtISDilLIpEyLGQAc5nW0o5Vm6uEe1SMzjiSeeNmAs4BSTxDniJHsaEaVBbMsvJcp6SHRc5EQpm3IMty2E2o5m8mOHc28rTYhn9mfBSX4_TA-SDE9xxzg_Bu2r5qyNusgNRdu1zjfTGWOb2xn46hWfoL4IunihCFs_eF9Uobk_daFZBXJMMRpidlTseIpm/s320/BMO%20Today.jpg" width="320" /></a></div>I have often caught the falling knife. The falling knife is a stock which is falling in price and one makes the mistake of buying long before it has hit bottom. Why does someone buy such a stock? The answer is easy: it looked like a great deal when compared to its recent highs.<p></p><p>For instance, a little over a year ago Bank of Montreal was selling for about $155. Then, it started falling. When it got down to about $117, I bought a couple of hundred shares. Recently, it sold for as little as $102.67. Yesterday it closed at $104.53. I am down about $2500 on my recent buy.</p><p>Guided by history, I believe BMO stock will revisit its old highs within three years and most likely in far less time than that. I may well be up $8000 in three years and I will have collect approximately $900 in dividends in those three years. I may make approximately 12.9% annually despite having caught a "falling knife."</p><p>For another example, let's look at my recent purchase of TC Energy (TRP). I paid $45.89 for my shares. I pulled the trigger early but the stock recovered quickly. The price is now at $47.24. I am up $270. The icing on the cake is the dividend. I have already collected $186.</p><p>The lesson I am trying to impart here is buy good companies at good prices and you will do just fine. Don't worry about calling the bottom. That is something that is almost impossible to do. Don't berate yourself when you buy early. It happens. In the scheme of things, it is not important. If the spread grows grossly large, you can always average down if you still have confidence in the stock.</p><p>______________________________________________________________________</p><p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhtjcui3ar3c_rolKoU6Gq5tZ1jmoA6kLjqJ5RNKb6q5NcN7wtB2uhISFDfVqZubNGG3a7GtPquTqqNDwgPkzF4Xn3HU0CJ8OtNnxrLa-QL2rq7YOf1VsF4cjQuCUQ-kRf9ZeKlsicv9Y9m1_1rtWJcxbgO7HOmKdNbkoLdUo29n1psKFhu__3yNg109op/s276/TC%20Energy.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="212" data-original-width="276" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhtjcui3ar3c_rolKoU6Gq5tZ1jmoA6kLjqJ5RNKb6q5NcN7wtB2uhISFDfVqZubNGG3a7GtPquTqqNDwgPkzF4Xn3HU0CJ8OtNnxrLa-QL2rq7YOf1VsF4cjQuCUQ-kRf9ZeKlsicv9Y9m1_1rtWJcxbgO7HOmKdNbkoLdUo29n1psKFhu__3yNg109op/s1600/TC%20Energy.jpg" width="276" /></a></div><br />By market close Friday, TRP was at $49.92. I was now up $806 in unrealized gains plus $186 in dividends. <p></p><p>Sometimes, "catching the falling knife" is not the right metaphor. Sometimes, one "dodges the bullet."<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-70219069278373715912023-10-07T14:08:00.007-07:002023-10-09T10:08:02.698-07:00Ryan Bushell: a fine financial expert on BNN<iframe allowfullscreen="" frameborder="0" height="315" src="https://webapps.9c9media.com/vidi-player/1.9.24/share/iframe.html?currentId=2781880&config=bnn/share.json&kruxId=&rsid=bellmediabnnbprod,bellmediaglobalprod&siteName=bnnb&cid=%5B%7B%22contentId%22%3A2781880%2C%22ad%22%3A%7B%22adsite%22%3A%22ctv.bnn%22%2C%22adzone%22%3A%22ctv.bnn%22%7D%7D%5D" width="560"></iframe>
<p>Ryan Bushell is the President and Portfolio Manager at Newhaven Asset Management Inc. I have followed Bushell for more than a decade and he has impressed me. He is one of the few financial experts appearing on BNN whose views I find worthwhile.</p><p>In doing the research for this post I came across a post by Michael O'Reilly. O'Reilly calls Bushell <a href="https://stockchase.com/expert/view/1326/Ryan-Bushell" target="_blank">one of the best performing experts</a> that he follows. I concur.</p><p>In the past three months, Bushell has rated the following stocks buys: Algonquin Power (AQN), CIBC (CM), Fortis (FTS), Pembina Pipeline (PPL), Telus (T), TC Energy (TRP). I mention these stocks as I have encouraged friends and relatives to buy them on recent dips. I firmly believe all these are excellent, conservative calls. One could not go too far wrong having a little of each in his/her portfolio.<br /></p><p>BNN Bloomberg reports that Bushell believes the recent fall in AQN share price is overdone. This company is
nearly two-thirds regulated utilities, including water utilities. The
business is not that different from where it was in the
past. Whether it sells the renewable energy business or not is of no consequence. </p><p>Bushell see the core business having more value than the share price
indicates. Even though there may be one more dividend cut, Bushell believes this is still a good time to buy. Bushell may be a bull on AQN but the bears have a fine, and very defensible, position.</p><p><span class="">Algonquin's financial performance has been
underwhelming recently. I</span><span class="">t reported a loss of US$253.2 million in the quarter ended June 30, 2023. The </span><span class="">loss was attributed to unfavourable weather conditions reducing
customer demand and resulting in less energy produced at its wind
facilities.</span><span class=""><span class="whitespace-nowrap"> And t</span></span><span class="">he company's earnings per share (EPS) for the trailing twelve months (TTM) was -$0.38.</span></p><p><span class="">I am overexposed when it comes to AQN. I am not going to add to that exposure in the near term but I may add to my holdings in the future.<br /></span></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-25569959421150709832023-10-06T16:22:00.004-07:002023-10-07T07:09:57.137-07:00The TD Bank is a buy<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPShx5rzkRYB0-YVuiBbgAtZ85UkXVUJyTxo9afOrtVNcLTsi894PDFHGN-kWr5KE-aUMZb1nGpDWa4UKUHjRwYfPyYuTgyo5AUOhImcUBbkWADEr3vSM2Te2dd7yvUeXpQkcQdQoMusviQrmZ0kDD0rQm-x7xqF7IWHcsY5eTrRzjlu0RNdbDh4Aycyrn/s605/TD.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="198" data-original-width="605" height="105" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPShx5rzkRYB0-YVuiBbgAtZ85UkXVUJyTxo9afOrtVNcLTsi894PDFHGN-kWr5KE-aUMZb1nGpDWa4UKUHjRwYfPyYuTgyo5AUOhImcUBbkWADEr3vSM2Te2dd7yvUeXpQkcQdQoMusviQrmZ0kDD0rQm-x7xqF7IWHcsY5eTrRzjlu0RNdbDh4Aycyrn/s320/TD.jpg" width="320" /></a></div><p>The TD Bank is at $79.80 right now with a resulting yield of 4.8%. A little over a year ago, BMO stock was selling in the range of $109. </p><p>Technically, the bank is only suffering a correction but it feels like its in bear market territory nevertheless. </p><p></p><p>Banks are not the investment of choice right now but they will be back in vogue someday and prices will recover. Meanwhile, I'd like to point out that
the TD Bank has gone almost almost as long as the Bank of Montreal without once cutting its
dividend. I cannot forecast a bottom but it is clear that the TD Bank is a fine buy right now and as you hold it you will be paid for your patience.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-92021823205507568762023-10-06T06:54:00.001-07:002023-10-06T06:56:20.382-07:00Bank of Montreal looking like a buy<p>The Bank of Montreal is at $109.26 and yielding more than five percent today. A little over a year ago, BMO stock was selling for more than $150. I cannot forecast a bottom but I can say, with some confidence, that BMO is a damn fine buy right now. And I'd like to point out that the Bank of Montreal has gone almost 200 years without once cutting its dividend.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-17070807842288227102023-10-05T10:10:00.004-07:002023-10-05T12:30:30.665-07:00Enbridge looks like a buy, at least to me.<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgT3fSO6XMwti2LbhnGsJgCzgUVbZF3GTCPiHlJRaDfHMbBcFfACOiHwLkT2zyeaYkHmVZVnT1F7UQaPbJkRh_uTOjEbwcLj-gvoJZM1UON5MU1sqoz9qfQsar5ttlPzlKhsyznp5IBMfFL44EyMkxDAz_O4KVA3MTEUXP7R7enaM7KzbMZxYlHaDpD60gh/s630/Wind.jpg" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="356" data-original-width="630" height="181" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgT3fSO6XMwti2LbhnGsJgCzgUVbZF3GTCPiHlJRaDfHMbBcFfACOiHwLkT2zyeaYkHmVZVnT1F7UQaPbJkRh_uTOjEbwcLj-gvoJZM1UON5MU1sqoz9qfQsar5ttlPzlKhsyznp5IBMfFL44EyMkxDAz_O4KVA3MTEUXP7R7enaM7KzbMZxYlHaDpD60gh/s320/Wind.jpg" width="320" /></a></div>My Enbridge dance card is full. I like putting a ceiling on how much I own of any one stock. I think of this as risk management through diversification. But, if you don't have a lot of Enbridge eggs in your basket, today might be a good time to consider some increased exposure to the Canadian pipeline operator.<p></p><p>Enbridge was in the news last month when it announced the proposed purchase of three utilities from Dominion Energy <a data-saferedirecturl="https://www.google.com/url?q=https://www.reuters.com/markets/companies/D.N&source=gmail&ust=1696612010100000&usg=AOvVaw3-ULYNxFg26xWdkrMkplJu" href="https://www.reuters.com/markets/companies/D.N" target="_blank">(D.N)</a>
for $14 billion including debt, creating North America's largest natural gas provider and
doubling its gas distribution business.</p><p>The
deal is for East Ohio Gas, Questar Gas, and Public Service Co of North
Carolina and will consist of $9.4 billion in cash and $4.6 billion of
assumed debt.</p><p>Enbridge is branching out. It is no longer simply a pipeline provider. Previously it was in the news for the windmill farms it is constructing in the Atlantic Ocean off the coast of France. Clearly, Enbridge wants to be a company with a future and it is ensuring that future today.<br /></p><p>At $43.34, the stock price at this moment shouts "Buy me!" and folk acquiring the stock will enjoy a dividend of 8.233% as they wait for the capital appreciation to kick-in.<br /></p><p>If I didn't own as much as I do, I would be a buyer. Who knows, I may yet yield to temptation and add just a little to my holdings. It is hard to resist.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-34697055048495509812023-10-04T07:43:00.003-07:002023-10-04T17:55:37.276-07:00If analysts are right, the future is bright. A big "if".<p>I am surprised by my losses. Oh, I saw some of the losses coming but I was blind-sided by others such as Telus. I had great faith in Telus. Very foolish. Never put too much faith in any stock. Stocks are fickle. Stocks are famous for constantly going up and then down and surprising us with both moves. It is the reason why many folk steer clear of the stock market. </p><p>If you are like me and have recently suffered massive paper losses and are realizing that these losses could double before the market turns around, you need some cheering up. I found a bright light shining in the dark shadow of the falling market - the analysts featured on TD WebBroker.</p><p>Take Quebecor. Its high for the past year was $35.61. Today it is at $28.25. If you check the Analysts page for the stock, you will find the analysts see an upside price of $39.33. There is one fly in the ointment; analysts are known to be wrong a lot of the time. Few are right even 70% of the time. Flipping a coin is often as good an indicator of future stock prices as the musings of a professional analyst. Sadly, three of the seven analysts were not even able to best a flipped coin.</p><p>But, hope burns eternal. My portfolio doesn't need the 38% upside the TD WebBroker-picked analysts see for Quebecor, nor does my portfolio need the 37% forecast for Telus. A 15% gain will be more than adequate. Such a modest dream may well be fulfilled.<br /></p><p>One final caveat when it comes to analysts. As a group, their forecasts are as volatile as the stocks they follow. One day a stock will be forecast to hit $60 but a month later the same analyst may see the stock only reaching $50. To err is to be an analyst.<br /></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0tag:blogger.com,1999:blog-8848124282581111698.post-74348095093934077052023-10-03T09:22:00.004-07:002023-10-03T10:50:20.829-07:00I'm told that this is not a bear market; oh?<p>T<span>he Canada Stock Market Index (TSX) reached an all time high of 22,213.07 in April of 2022. Right now, as I write, the TSX is at 18986.60. It is off it high by 3226.47 or 14.5%. This is a correction. It must suffer a dip of 20% or more before a bear market is declared. It is not unreasonable to imagine the TSX dropping to 17770 or even less. But even if it doesn't, this is a nasty pullback.<br /></span></p><p><span>My portfolio is down a little more than the market. I'm down about 15% and it hurts. Downturns like this are not unexpected but that fact does not soothe the financial pain. The losses may be paper losses but the accent is on losses and not paper.</span></p><p><span>The worst part of this moment is that I did not see it coming. I thought the market had bottomed and was turning around. I bought some Telus, some TC Energy, some TD Bank and Bank of Montreal. All these recent purchases have lost money. Now, I must guard my remaining cash and dole it out carefully.</span></p><p><span>On the bright side, thanks to the crashing stock values, the yield on my RIF has grown to 5.85%. With RIFs
the government sets the annual mandated withdrawal rate. This is a rate increases with each passing year. For instance, at retirement at 65 the
withdrawal rate is 4%. Ten years later, at 75, the rate is 5.82%. My
rather high dividend income means I will not have to sell any stock at
fire-sale prices to meet the government withdrawal demands. See the
withdrawal rate table here:<span style="font-size: small;"> </span></span><span style="font-size: small;"><span class="subheading-large" style="font-weight: normal;"><a href="https://www.woodgundy.cibc.com/en/reference/retirement-planning/rrif-minimum-withdrawal.html" target="_blank">RRIF Minimum Withdrawal</a>.</span></span></p><p><span style="font-size: small;"><span class="subheading-large" style="font-weight: normal;">The
value of my stock holdings may be down but I feel confident that
my dividend income will not shrink to anywhere near the same extent.
For instance, income from the big Canadian banks should be safe. The
Bank of Montreal has an impeccable dividend history. It has gone almost
two hundred years with nary a dividend reduction. The TD Bank can make almost as remarkable a claim.</span></span></p><p></p><blockquote><p><b>Hugo Ste-Marie, a strategist at Scotia Capital, wrote in a
report published last Wednesday: "Despite a challenging environment, keep in mind that over the long
run, dividends matter a lot, accounting for the lion’s share of equity
returns."<br /></b></p><p><b>To underline that point, the
Scotia Capital report broke down the growth of a $100 investment in the Toronto Stock
Exchange benchmark from 1956 to today. With dividends, it
would have grown to $29,000. Without dividends, it would be only $3,600.</b></p><p><b>Dividends contributed nearly 90 per cent of total returns over the past seven decades. In other words, it pays to stay invested. Buy and hold pays over time.</b></p></blockquote><p></p><p><span style="font-size: small;"><span class="subheading-large" style="font-weight: normal;">Few investors know when a correction or a bear market will appear but both tend to only stay for a short, but painful, visit. The average bear market in Canada lasts just under a year. That said, a two year bear market is not unheard of. Bear markets are difficult to call and far more frequent that most investors believe.</span></span></p><p><span style="font-size: small;"><span class="subheading-large" style="font-weight: normal;">But bear markets tend to be shorter than bull markets and not as frequent as corrections. The average bull market roars along for more than five years and can last much, much longer. A rule of thumb, based on the U.S. market, says a third of time the bear rules and two thirds of the time the bull runs free. Ride out the bear and ride the bull.</span></span></p><p><span style="font-size: small;"><span class="subheading-large" style="font-weight: normal;">For a good take on bear markets, read the linked article from The Motley Fool: <a href="https://www.fool.ca/investing/what-is-a-bear-market/#heading_5" target="_blank">What is a Bear Market?</a> In writing this piece, I found the following post very interesting and worth a read: </span></span><span style="font-size: small;"><span style="font-weight: normal;"><a href="https://www.finder.com/ca/stock-trading-statistics" target="_blank">Statistics and facts about the stock market in 2023</a>.</span></span></p>Rockinonhttp://www.blogger.com/profile/16466451909515114927noreply@blogger.com0