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  • Dividends At A Reasonable Price - Part 2 [View article]
    Christine, my understanding is that earnings have been slashed. Some companies are down 58% in earnings over the last quarter. Suncor was expecting 30% down in top line earnings and 87% down on the bottom line. That was why I sold my holding at a small gain (I only bought mid-Oct). They met earnings expectations but actually posted a bottom line loss for the first time in years. It's pretty dismal out here oil country. Layoffs left and right.

    I haven't bought other oil companies since last summer. I think this will get worse before they get better as the cutbacks in the larger companies trickle down through the system. (now engineering, soon services companies). I expect them to be seriously hit later in the year as dismal earnings reports trickle in. I expect a lot of smaller companies to go bankrupt. Yes, I do fear that I watched the bottom and missed out. But once acquisitions and mergers start happening, to me that will signal safety in the industry. If the big guys decide there's a bottom and start buying, then the long-term issues are over and the strong will get stronger. I have my companies all picked out and watch them everyday. That doesn't mean I think nibbling is a bad idea though. I just have other things to buy right now.

    That being said: Suncor's chart makes me want to jump in for a swing trade! Tempting, tempting. Upside 10%, downside 10%....hmmmm. A lower price than my first purchase! Managed to resist today. We'll see about tomorrow.
    May 14, 2015. 06:50 PM | 1 Like Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    So far my experience with preferreds is an ETF. Like bonds, it's something I am aware of, but don't feel comfortable enough with to choose individually.

    At this point my direct experience has been guaranteed investments, (the advisor looked after the mutual funds), a year of technical swing trading, and a few yrs of DGI. I have this whole summer with nothing to do but be a housewife (really unchallenging in a condo, without children!) work out, get some sun, and dive into these other topics. Despite our life challenges, most women in the world would happily trade places with me, and I am grateful for the opportunity, my husband is thrilled that I have time to spoil him rotten, and he's also thrilled I'm learning and experiencing deploying the funds.
    Bonds have not been the best investments since I started in 2011. I started with under $10,000, so I wasn't trying to build a diversified asset portfolio at that time, just increase what we had. We've come a long way in just a few years. We are aware that the past few years have been unusual and it's been great to have a bull market to break my teeth on. Our expectations this year are quite limited in the return department - I'm expecting dividends only.

    My current goals are to get the new money deployed gradually into the 42 stocks that I have already identified (give or take a few as opportunities arise, situations change and I change my mind). Learning about bonds, preferreds and options is also a priority as there are still the monthly funds being added and cash on the sidelines.

    When and if interest rates start to rise, the landscape will change and I want to be ready to take advantage of what opportunities those changes will bring.
    May 14, 2015. 01:06 PM | Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    Young DGI Guy,
    First off, congratulations on learning about investing in your 20's. There's nothing better you can do to help yourself than start early! The large lump sum is something very new for me. For the past 4 years I have had an amount to invest every month (a bit bigger, but still, same thing).

    Loyal 3 is a great boon to young US investors and recently someone started a similar Canadian thing. I think it's called Virtual Brokers.

    I agree with Eric above. I have far more sell regrets than buy regrets. I wouldn't bother with the ETF if you are planning to deploy the funds more permanently soon. I am only using them to hold part of the funds I know will take me 6 mo or more to deploy. My experience has been that with a watchlist to work from there's a decent opportunity in something every month or two and like Eric said, deploying a couple month's dollars at a time is a good thing. When you average in to holdings like this getting the perfect timing is less and less important. I didn't DRIP the small holdings so that those cash bits were deployed with the cash into my best opportunities at the time. Sometimes cash built up waiting for the opportunities, but then on a bigger dip, I had more funds to add.

    Patience is important.
    May 14, 2015. 12:45 PM | 2 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    Hilo, Thank you so very much for the clearest explanation of puts I have ever read! Not too wordy at all. Very helpful to me and I'm sure to others as well. Thank you for taking the time to write it.

    One of the things I have been looking at is choosing the yield (ie with FTS) I want instead of a price I like (of course, the yield is factor of the price) and I can see how rolling in with puts is a strategy that will help. I can choose the strike price to fit my desired yield and wait to see what happens. As we don't need the income yet, I have time. Patience...well we'll see! ;)

    I want to do this well and I'm here to learn. I have time, energy, motivation, and most of all the willingness to learn and processes new ideals - bordering on eagerness. I know this is an amazing opportunity and I don't want to squander it. I suspect I will have this same opportunity again in the future when we sell the rental property or if I receive an inheritance and I want to do everything I possibly can to prepare for the future. I had signed up for 2 of the options seminars which I have to wait weeks for and travel to, but just found out the first most intro one is available online. It's in a hard-to-find area though. I had run into it before. Good thing I left it open on the other computer or I might not have found it this morning.

    Warning: Many of TD's seminars are to encouraging trading (how else do they make their money?) or are for very beginners to get them hooked in and signed up (of course). But this may be helpful. Hope to watch some today.

    Thank you Hilo!
    May 14, 2015. 12:29 PM | 5 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    I have a nice bunch of free trades to use (I phoned my broker to ask for them when I had the funds entering the portfolio - they wisely decided they'd rather give me free trades than have me place my funds elsewhere) so no cost.

    Also I must disagree. Stocks do not go up in nice straight lines. Especially this time of year. Like life, it's bumpy. I can move in and then take advantage of bumps. ie. I bought into BCE right after their nice earnings. But the next week there was a CRTC announcement that could have dropped the stock. Fortunately it didn't, but I bought it a slightly lower price anyway when the news was positive. If the news hadn't been good, I probably wouldn't have bought the next lot. I expect there will be an even better entry point sometime in the next 6 months. It doesn't take much of a drop for the next traunch to make the second set of fees a moot point. I was happy with my first BCE price, and the 2nd was only 53c cheaper...but I still saved my fees several times over buy buying lower on the 2nd purchase. Meanwhile my money is working for me, and I still have some for an 'if". However, it wouldn't surprise me if BCE goes down $2 to the next support level before continuing a gradual upward slope. People flock to BCE for safety, so if there is a market shake up, it'll be fine. I have to disagree with you, averaging is usually a beneficial strategy with larger sums.

    I read your article and profile. I feel old now. Your stocks are much more risk oriented than mine. These sorts of names will not necessarily hold up well in a correction.
    May 13, 2015. 11:01 PM | 4 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    That would be interesting. Since I started in Feb 2011, I have crushed the VEA, based on its returns and dividend rate on Google Finance. I have no idea if that will continue. I posted my results over the past few years in articles. My goal has been 9% a year - 4% in dividends and 5% in cap gain and I've exceeded them handily. I've been fortunate to get the portfolio off to a great start.

    Goals have changed. My goal now is get the new funds invested and earning 4% in stable growing dividends so that if we need it to, the portfolio will provide the necessary income. I struggle with the tension between, as Buy and Hold says to get excellent valuation, and effectively deploying the funds for income sooner than later. I'm not in a rush, the income isn't needed this month, and I have only 'spent' a small portion (maybe 15%) of the funds in the last 6 weeks. As usual I'm trying to budget carefully.

    Last year I back-tested the portfolio I had at the time and it fell far less than the indexes during 2008 and 2009. It helped me identify some possible weaknesses too. My current portfolio is actually much more conservative. A strong pull-back this summer would be just what I need, but I would not wish that on anyone.

    Based on what I am seeing around here, I think that we're not at all done with the oil weakness and I sold my Suncor in TFSA before their last earnings at 40 for a little gain expecting it to pull back. I'm shocked the losses didn't sink it faster and further. When to get back in is the big question! My only other oils are a small position in CVX and a large one in CPG. (I'm not counting the pipelines). If I bought in today, I'd have 6% more shares and dividends for the same money. Not bad for just stepping aside for a few weeks. I'd be okay with that. If it gets down to $32 again, the dividend would be an attractive 3.5%. Lots of decisions. This isn't even mid-May...I have lots of time to reach my goals.
    May 13, 2015. 09:52 PM | 3 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    With hindsight, it sure looks like ADM was a great buy a couple of months ago. I'm not particularly familiar with it. Good recommendation though and I'll look into it.

    I listened to someone quite excited about Potash (POT) the other day. I'm not so excited. I shy away from things as directly related to the commodity. But the yield sure is nice right now. It would be just a trade not a long term hold.
    After the issues in Russia last year, I bought into AGU and took a nice profit and walked away in just 6 months or so. It went up much further since, but not really the kind of thing I'm into right now.
    May 13, 2015. 09:23 PM | 3 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    I have plans of buying holdings in parts, 3 or 4 traunches averaged in between now and Christmas. So, if I want $10,000 in one stock, I might buy 3 bunches of about $3000 or 4 of $2500 if I'm less confident. In the past I've just bought the stock outright, putting in a limit price of what I want to pay that is likely to fill that day.

    My goal is to get the bulk of the funds deployed by Christmas and keep a large cash holding (a couple years expenses) which I can deploy for those fantastic opportunities and double as an emergency fund.

    Recently I've started putting in some low-ball orders just in case of things I would like to buy at quite low prices. You never know if there's a dip, and someone else has a market order in and there aren't many shares trading right at that moment, I might get in on a deal. But, I'll keep a watch on it. For example, I have an order in for a lot of Fortis at $34.10. This gives me a 5% yield. Since Fortis trades fairly heavily, it's pretty unlikely, but one never knows.

    I would love any suggestions of how to deploy. I know very little about options but intend to take advantage of the next options seminar available to me (there are 4 seminars available) and once I have some basic understanding I can meet with my brokerage experts for advice.

    I'm also starting to watch some bond ETFs and fixed income products. I'm not too interested right at this moment, but things can change quickly and it's finally time to expand my knowledge and experience, especially when I have the time. I've been off work a whole week and my to-do list only seems to get longer! :)
    May 13, 2015. 09:03 PM | 4 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 2 [View article]
    I own PG, which I first bought in March 2014. I bought a little more already, and my average price is just a little higher than now. I want to add another 20% to my current holding, maybe late summer will have an opportunity??

    I own a nice swack of JNJ. It's one of my largest holdings. I made 4 purchases back in 2013. My ACB is down from here. Same thing, I wouldn't mind having more (but am not seeking it) and maybe late summer will be a good opportunity. I haven't purchased any more USD in the last 6 mo.

    These are never-sell holdings. I agree, not the best prices, especially if the market melts down, but 3% yields for some stable growing dividends is okay for me. I have some 5 and 6% yielders to balance them out and still meet my goals.
    May 13, 2015. 07:24 PM | 4 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 1 [View article]
    When I went in to buy a new one they asked if they could keep the old one, as they hadn't seen one as badly damaged with the person walking away. If it scares just one kid into wearing a helmet...
    May 13, 2015. 10:35 AM | 3 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 1 [View article]
    Oh, I hope so Christine! Now that we don't have to directly take the children's lives into account, I look forward to some travel. Empty next is fabulous! So many of my daily hours used to revolve around food gathering and preparing. Now it's measured in minutes. Right now I'm imagining some 3 or 6 months contracts somewhere a little more exotic (simply different will do, actually). Short enough we'd keep our home base this time, but long enough to savour the culture instead of just the vacation nibble!
    May 13, 2015. 10:30 AM | 4 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 1 [View article]
    Brian, I really enjoyed both my readings of Mr. Miller's book and I'm so glad it's available as a free PDF!
    Your action list is excellent and very similar to my article series.
    >Determine your Goal...(based on your real needs and objectives) That's this article!
    >Use Your Own Goal Driven Criteria...(not overly complicated) The next one!
    >Select only Quality Companies...(quality=c... in turbulence) Begins with the one after that.
    May 12, 2015. 11:50 PM | 1 Like Like |Link to Comment
  • Dividends At A Reasonable Price - Part 1 [View article]
    Great suggestions Canadian. My hand is poised on the ENB and Bank buttons, just haven't pulled the trigger yet. I allocated all my funds out on paper and sadly, it seems like so little. I still can't buy everything on my dream list, which seems to get longer by the day!
    May 12, 2015. 11:45 PM | 2 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 1 [View article]
    Yes, exactly Fast Track. Good planning ahead! In some ways that's what this move was about. Selling our house and moving to the condo has done that for us in so many ways, protection from an oil-based real estate market, heath reasons, large upcoming home repairs over the next few years, possible loss of job, financial freedom. We only had our own mortgage and debts related to rental property before anyway but now we only have the modest rental mortgages left. We will debate whether to pay them off when their terms are up. My husband could never manage to cope with keeping up the house or moving and getting the house ready to sell if something happened to me. A bicycle accident a couple summers ago when my helmet was crushed on the road drove home the point that it might not be me that's left and that was when we first discussed downsizing, but children were still home. I walked away (limped really) but it could easily have been different. My helmet is a display piece at the cycle shop for why to wear a helmet! A fall 10 years ago left me briefly wheelchair bound. I'm back to full functionality now though. Now, if anything happens, it will be very easy for either of us to stay in the condo and caregivers have been arranged for him as we know he couldn't manage on his own.
    There are a lot of people living without tenant insurance or owning condo property without rental insurance. Very sad as there have been a few condo fires in the city lately. We do need to plan for what if's and worst case. Very good point. Thank you for making it. There are many things out of our control. There's definitely more than just investing to a healthy financial plan.
    May 12, 2015. 11:41 PM | 2 Likes Like |Link to Comment
  • Dividends At A Reasonable Price - Part 1 [View article]
    We've preemptively made decisions that we are very happy with. Life has challenges but we are not at all crushed. Actually, we feel very fortunate. I keep waiting for the regrets of selling the house to settle in, but 6 weeks into condo life, so far so good. An older lady I met said she resisted the transition for many years, but wished she'd made it much earlier now.
    The transition was (and there's another phase yet) lots of work and somewhat stressful but I hope that the theme for the next few years is restoration and so far, we're seeing this begin. It's nice for dh to get home from work and have no household responsibilities (other than helping me with the occasional manageable household project - we did the painting and flooring before we moved in and a few of the fixtures, but we'll gradually do the rest when we feel like it). We jump on our bicycles or don swimsuits or sneakers that are beckoning, instead of seeing the endless to-do list that comes with an older house. With people all around us losing their jobs, we definitely feel fortunate and feel protected from whatever may come.
    May 12, 2015. 11:15 PM | 1 Like Like |Link to Comment