Canadian Dividend Growth Investor

Long only, value, dividend growth investing
Canadian Dividend Growth Investor
Long only, value, dividend growth investing
Contributor since: 2012
Thanks, Bjamesh. I'll consider them.
Dknk, that's a nice yield on cost!
Larry&Sherry, I will put them on my list of potential companies to write about. Thanks!
Thanks, Dknk!
Thanks, ElSyd. The Big 5 banks are definitely on the list. I've been tallying up votes, and it looks like I would write about the telecoms next.
Patrick, thanks for pointing that out. It would have been better if I called them "oil & gas midstream companies" instead of "pipelines", but I decided to use the shorter name for a shorter title.
Sailtheworld, thanks. :)
Barefooter, I gotta agree with Bjamesh and Sunnypt regarding the forex.
I haven't looked into any liquor stocks. Which specific liquor stocks are you interested in?
Timmies, ENB is definitely a safer company than VSN. The most important thing is you feel more comfortable with it.
Timmies, thanks for the added information on VSN. Instead of looking at positions with the number of shares I own, I look at them with the amount of capital allocated (market price), amount of invested capital (book price), and amount of dividends generated if they're dividend companies.
Surfgeezer, you're right. Enbridge and its affiliates own and operate renewable projects that represent more than 2,700 MW (gross) of green power capacity. From Enbridge's website, Enbridge & its affiliates have primarily wind assets, followed by solar, alternative, and geothermal. Source:
Good luck with VSN.
Hi Dinjh, thanks for commenting. You're looking at whether the dividend was sustainable for Q3, but in the article, we're looking at a full year's cash flow to determine VSN's dividend sustainability.
Timmies, I'm sorry about your experience with VSN. I hope you only had a small position in it. I think the important thing is that you learned something from it. Why did you originally invest in it? What metrics could you have looked at that might have indicated its dividend wasn't as safe as it seemed or prevented you from investing in it? -- Those are questions I asked myself, for example, when I had my first dividend cut from an energy company.
It's probably more prudent for energy companies to finance via debt over equity after their share prices fell so much. Of course, excessive debt is not desirable.
Bjamesh, good luck with ALA. Averaging in is certainly more prudent than guessing the bottom.
Bjamesh, you maybe right. From Altagas January presentation, the company estimates that this fiscal year its EBITDA is split between Power (40%), Utilities (35%), and Midstream (25%). 50% of its EBITDA is estimated to come from Canada and the other 50% from the U.S.
Hi Znaimalpha, Pembina (TSX:PPL)(NYSE:PBA) was included in my previous article on large-cap pipelines found here:
Chippos, thanks for commenting. PBA was included in the previous article on large-cap pipelines found here:
Anthony, thanks for sharing your insights.
TransCanada just hiked its dividend by 8.7% from a quarterly dividend of $0.52 to $0.565 per share (annual payout of $2.08 to $2.26 per share).
Thanks, Mr. Carnevale. I enjoyed the article.
I've been turning on more DRIPs as the market is falling. Since it's impossible to catch the bottom, I just let the price average over time. The rest of the dividends I receive, I just collect and reinvest in quality companies I want at attractive valuations.
I have my eyes on VFC and others, but it's really hard to pull the trigger because it costs 39% more to convert CAD to USD. Do you have an opinion on forex matters? Do you think like time in the market and not timing the market that investors shouldn't "time" for a favorable or, at least, a "fair" forex rate?
Thanks, Mocha. I would put another vote in for telecoms. ;) I wasn't aware RCI didn't announce a dividend increase. That said, I think it's a good thing it's paying down debt first.
RS, will be interested in how you carry out your "short list" process. Are you thinking of writing an article about it?
Autofocus, thanks for commenting. I will consider including ENF in the mid-cap pipeline article.
Peter, indeed. Now, I have a more meticulous process in determining dividend safety.
Hi Sir Money, thanks for your comment. I haven't looked into Veresen yet, so I don't have an opinion on it right now. I will consider including it in the mid-cap pipelines article.
Fabien, thanks for your comment. I like Telus and BCE only RCI.B.
ALA.TO looks good on initial research.
I hope to cover all these soon in upcoming articles.
Jack, no problem. I'll consider including PBA, IPPLF, and FCGYF in a coming article on mid-cap pipelines.
Jack, I was using the adjusted earnings per share metric. Actually, using this metric, since 2006, Pembina's dividend per share wasn't fully covered by its earnings except in 2013.
Just because Pembina's adjusted EPS don't cover its dividends doesn't mean it's dividend is in danger because as I've stated in the article, its cash flows cover its dividend well. However, I decided to show the adjusted EPS as another comparison.
BoomBoom, thanks for reading and commenting. I'm certainly thinking of continuing my coverage on Canadian dividend stocks because they can very well be good opportunities for Canadian investors (and especially American investors who have the strong U.S. dollar advantage). Now that you mention the likes of IPL and ALA, I'm thinking of covering the mid-cap energy space next.
Carl, I agree many quality Canadian dividend stocks such as the ones you mentioned are priced at good value. Since parity is pretty rare, even if the loonie only rises to C$1.20 to US$1, it'd still be a 20% gain.
Hi Ally, I like your choices. BCE usually is a more stable stock than Telus, but Telus has more growth. Of course, BCE has a bigger dividend to start. I am likely to cover the Canadian telecoms in a future article. So, stay tuned.
Jay, just to clarify. I'm in Enbridge Inc (not Enbridge partners). I bought shares on the TSX.
So you would spend the cash if you held too much of it. That's why you invest it instead. It's good you know yourself, as all investors should.
Before I buy anything, I jot notes down indicating why I bought it and what I expect from it. Sometimes it's for a trade and some are for long holding, but it doesn't mean I won't trim if it gets overvalued.