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  • Dividend Growth Investors Should Look To Canada [View article]
    Hi gibor365. CNQ has been in a downtrend since march but recently found support at its 50DMA around $34. Technically speaking, this should be a strong support level but if there is more market carnage in the following weeks I could easily see it giving away. There is no other obvious support level until $30. If you have a long term investing frame, any price in this rage should be very reasonable.

    HCG is a little more difficult as the stock price is in free fall, giving up 25% in the last couple of months. The simple answer is that this stock is severely undervalued and would be a great buy now. But who isn't looking for the best possible price? There is long term support at $40 and the stock has already bounced off of this level after an earlier test. If you are planning a single purchase, the lower end of this range would be a steal in my opinion. Personally, I plan on adding to my position by averaging in; in today's market anything labelled "financial" is feared regardless of how far removed it is from the Euro mess.
    Nov 2, 2011. 09:50 PM | Likes Like |Link to Comment
  • Dividend Growth Investors Should Look To Canada [View article]
    Hi hat_trick2,
    With RSI, like most former trusts, the conversion to a corporation knocked the wind out of their sails and they were forced to cut their dividend. It looks like the new dividend is sustainable with room to grow in the future albeit slowly. My caution with the stock is that it has been slowly grinding down for over a year now, although it has driven up the yield to a nice 6.6%

    If you are interested in plays like RSI, may I suggest Acadian Timber (ADN)? Also a high-yielding, slow growth former trust but may have some inflation protection with its assets tied to forestry.
    Nov 2, 2011. 12:35 AM | 2 Likes Like |Link to Comment
  • Large Cap, High-Dividend Stocks: Waiting For Payback [View article]
    Walt17. Personally I use the "intent and ability" paradigm. I look at the history of dividend increases and statements by management to see if the company is committed to increasing their dividend. Then I look at the company's fundamentals to see if they have the ability to raise that dividend. I believe too much emphasis is put on historical DGR. An amazing 1,3,5 &10-yr DGRs mean little if the payout ratio is at 99% and EPS growth is flat.
    Nov 2, 2011. 12:08 AM | 1 Like Like |Link to Comment
  • Dividend Growth Investors Should Look To Canada [View article]
    hat_trick3: thanks for suggesting two more unconventional Canadian dividend plays!

    RSI had done well, offering up nice total returns over the last several years but is struggling a little bit now. EPS was negative this year and projected to be flat next year. I wouldn't sell the stock but would like to see a bit of a turn around before opening a new position.

    LIQ is a former trust that does offer a nice 7.5% yield. The dividend looks safe, it is a nice defensive stock and an indirect play on the oil sands. My only qualm with the stock is their attempt to expand into the U.S. which has not gone well at all.
    Nov 1, 2011. 09:52 AM | 2 Likes Like |Link to Comment
  • 'Risk On' Is Back: Why Uranium Stocks Are Poised To Double [View article]
    I agree that the bearish action in uranium stocks has been a bit overdone. I am primarily a dividend growth investor but try to look outside the usual dividend plays. Most people wouldn't think of Cameco as a dividend growth stock but they have had 8 consecutive years of dividend increases and a very respectable 23% 5 year dividend growth rate. I plan on adding some on this next leg down.
    Oct 31, 2011. 10:16 PM | 1 Like Like |Link to Comment
  • Tobacco Giants Are A Hold, But Not A Buy [View article]
    Excellent thoughts on tobacco stocks. During the recent downturn, investors have paid up the defensive stocks leaving many trading at a premium price. Altria in particular faces the headwinds of declining U.S. smoking rates and a FCF that no longer can keep up to their expected dividend increases. I like PM but will wait for a dip to add more.
    Oct 31, 2011. 10:09 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investors Should Look To Canada [View article]
    Thanks for the comment about Schwab. I recognize OTC stocks can be a pain but I believe a few stocks like Home Capital Group are worth the trouble. Incidentally, it's also one of Canadian hedge fund manager Eric Sprott's top ex-material stocks.
    Oct 31, 2011. 10:04 PM | Likes Like |Link to Comment
  • The bear market that pushed stocks down into early October may just have been a cub, according to Sam Stovall, and that could mean more gains ahead. The S&P 500's recent decline was near 20% percent from its April high to the October 3 closing low of 1099. Stovall says, historically, the gains following these "baby bear" markets have been an average of 13% in the first three months, 23% over six months and 32% in the year after.  [View news story]
    Good news. Here is hoping that the bear cub doesn't grow up and eats us!
    Oct 31, 2011. 08:29 PM | Likes Like |Link to Comment
  • Dividend Growth Investors Should Look To Canada [View article]
    Hi Philpsonh,
    Thank you for making an excellent point. Buying the securities from the TSX is preferable: TD Ameritrade and Canaccord Capital allow this. These stocks would be excellent long term holds so buying them from the OTC boards should be fine, too -- just don't use a market order!
    Oct 31, 2011. 02:35 PM | Likes Like |Link to Comment