Recommendations discussed with a friend

Yesterday, I heard from a friend who is not a senior and yet both he and his wife are retired. I respect his thoughts on the market. This husband and wife team have a solid track record when it comes to investing. After our chat, I sent him an email listing some of the stocks we had discussed. The following is from that email.

• Cogeco (CGO) down 37% -- $54.24 at close Friday -- 4.61% dividend
• Brookfield (BAM.A) down 33% -- $52.64 at close Friday -- 1.36% dividend
• Quebecor (QBR.B) down 27% -- $23.87 at close Friday -- 5.03% dividend
• Restaurant Brands (QSR) Only down about 7% but be patient. May tumble.
• Vanguard ex NA High Dividend (VIDY) down 20% -- $22.21 at close Friday -- 4.82% dividend
• BMO Europe High Dividend Covered Call Hedged to Cdn (ZWE) -- $16.86 at close Friday -- 7.83% dividend
• I am mixing VIDY and ZWE for my ex N.A. exposure.
• You are right. TC Energy is down much more than Enbridge. TRP may be a better capital gain play than ENB and this may easily negate the dividend yield advantage enjoyed by ENB. My friend also mentioned that TRP is not carrying as much debt as ENB. With rising rates, the extra debt could be a deciding factor.
  
• Algonquin Power and Utilities (AQN) down 29% -- $14.24 at close Friday -- 6.82% dividend

I neglected to mention the one ETF that I actually tried to buy just a few days ago -- RIF. It is an ETF for those looking for REIT exposure. Most of the REITs are Canadian but about 10% are U.S. REITs. RIF is down more than 30% today and it is yielding more than 5%. I may buy 1000 shares in the coming week. And if drops another 10%, I will buy another 1000 shares at least.

Both Algonquin and Quebecor are begging to be bought at present prices. I'm trying to be patient and wait but I make no promises. I live on dividends and these two are looking damn good.

A Bear Market Discussion

The American market is nicely into bear market territory. The Canadian market, for the most part, is still in correction mode. Yet, Canadian REITs are well into bear market land and I have been buying. My average cost is well above the present cost of the REIT ETF I have been buying, RIF, but my average cost is still just entering correction territory. I am not put off by the fear of catching a falling knife.

If bear markets leave you frightened, click on the following link: Bear Markets by the Numbers: Sit Tight While Others Panic. Freelance Journalist Carla Fried, who specializes in personal finance and writes for a wide range of publications, does an excellent job with this piece from 2019.è

Fried's third paragraph nails it for me. She writes, "Bear markets are absolutely normal. They are a consistently recurring event. The more you understand about the mechanics and history of bear markets, the less you will panic when the next one arrives. Even better: If you are a long-term investor, there’s some upside to bear markets if you’re ready and willing to make a bold move. (More on that in a sec.)"ter

Following the thinking expressed above, this long-term investor may buy another big block of RIT if it is down again. I am a big believer in the upside of bear markets. Make the bold move and do not look back. The bull will coming roaring back sooner or later. I like to be ready.