What To Buy And Sell In Your High-Yield Portfolio [View article]
Hi Urbannek,
Thanks for your question. I often use http://www.barchart.com for screening and information. This statistic (PNNT: 12 Month EPS Change: -2060) is at this link:
What To Buy And Sell In Your High-Yield Portfolio [View article]
Hi Nathan,
I wish that I was as prescient as you in the corporate bond market - I only bought a couple of small positions, which I still hold for their great yield-on-investment.
Great question about SWAN! Although there is a lot written about a SWAN (Sleep Well at Night) strategies, I believe that this is a myth. Let's examine 2 SWAN scenarios:
1. USD and U.S. T-Bills: What are they worth with the trillion-dollar annual deficit, leveraged Fed balance sheet, and quantitative easing? Is near-zero yield an appropriate risk payment? Is this a truly SWAN investment? If you do not diversify into other currencies, will you feel safe and sleep well at night?
2. U.S. mega-cap and dividend-growth stocks: The big banks are involved in the LIBOR fiasco, and persist in reducing shareholder value through mortgage, trading, and other risks. Pitney Bowes (a dividend Champion for many years) is heading for the basement. Is there any reason that changing consumer tastes cannot impact dividend-growth stocks' sales and share prices? Legislation may be a concern - there are many places in Canada which are perfume-free (due to allergies) - PG beware! Governance and patent protection of Pharma industry products may change, or their development pipelines may not support share prices - JNJ, AZN, and others, are at risk. MCD, PEP, and KO, are dependent on the fast-food market - what if we have a societal move to healthier cooked-at-home foods, and return to drinking tap water?
I am not saying that any of these are bad investments - in fact, I believe that most of these may be excellent investments, depending upon your strategy (again, they do not fit mine). I am just suggesting that these SWAN investments have their own risks. My belief is that any investment choice will create risks - some are less than others, but nothing will be risk-free.
High-yield is riskier than T-Bills, mega-caps, and dividend-growth stocks, but will compensate with a higher return/yield. The degree of risk can be mitigated by investing in smaller amounts (i.e., many more security holdings, with small dollar values); choosing companies that provide necessities (such as utilities and infrastructure); and, investing globally in developed countries only. By buying (small) positions through 3 or 4 small purchases / transactions, you can "test the waters" without making major commitments.
A strategy is a personal choice that each investor needs to feel comfortable with - nobody should pursue a strategy that does not meet his/her goals, and I am not sure if any investment portfolio should qualify as a SWAN strategy.
What To Buy And Sell In Your High-Yield Portfolio [View article]
Hi,
Thanks, again, for your readership and comments!
Douglas Albo is correct - I hold GGN because I believe in the upside of gold and gold-mining (with high yield), rather than being impressed with the discount to NAV and performance. As identified by a few of us, I also seem to have perfect timing when it comes to buying GGN at the wrong time. I sold DPO and the Canadian Banks because I believe that they are too richly valued - not because I believe that they are bad investments. There are probably better ways to achieve these goals, but they were my portfolio holdings...
I share a bit of number19's perspective of being a bit of a gambler. In fact, I submitted an article on a couple of speculative securities to keep on our watch lists, today. Although I believe in the future of Atlantic Power (AT) - I love clean energy as an industry (and hold AT) - I am very disappointed that management did not properly inform investors about the dividend cut, and am unhappy about my paper-loss.
What To Buy And Sell In Your High-Yield Portfolio [View article]
Hi,
Thanks for your comments and feedback.
I believe that we have explored a few concerns about managing our investments in our high-yield portfolios. We seem to share concerns that:
1. The yields may not be sustainable because of company financials and/or government actions. The counter-side to this is that the yield is highest (and security price lowest) when these risks are present.
2. Our investment choices and trade-offs may not be "the best". I also struggle with this - for example, I agonized over selling the Canadian Banks, which had been the cornerstone of my portfolio. My learning was that I need to dispassionately assess my holdings and adjust them to my personal goals and comfort levels. Similarly, each person will have his/her own high-yield portfolio criteria.
Again, I appreciate your readership and ideas! Thanks for sharing your thoughts through these comments.
Under-Performing Brazilian Stocks Look Attractive Now [View article]
Hi,
Great and compelling article.
My only Brazilian position (the same as "Dogs that Bark") is AESAY.PK, which is under water due to government intervention in electricity pricing.
Would you please review the yields on: 7.Light SA (LGSXY.PK) - Current Dividend Yield: 14.48% 9.Companhia Energetica de Minas Gerais Cemig (CIG) - Current Dividend Yield: 11.40%
Seeking Alpha - and some other investment websites - report much lower yields. This has historically been an issue for South American securities, and I remain uncertain about the actual annual yield, despite their website info:
That said, the substantial dividend was paid for both, in the last week, so yield-oriented investors will need to wait 1 year for this component of the return.
Preparing For Volatility: How A Plan Can Help [View article]
Hi Ron,
Thanks for the "honorable mention" and kind words. This was an excellent article, and you generated an interesting discussion. Also, thanks for your identification of TIS - it is now on my watch list!
I have not authored a lot, lately, as I am working on my personal Action Steps. I have built a substantial cash position (sold European, CEFs, and low-yield stocks), which I am hoping to redeploy in the summer. Frankly, you raise an excellent point on selling shares with diminished returns - I have not done a good job with this (Atlantic Power, gold mining positions, and Canadian O&G mid-caps).
Should Investors Buy The Defense Sector? [View article]
Hi Nortwest Investor,
Thanks! I appreciate your comment!
I agree that the best opportunities may be with the smaller companies - perhaps not primarily in the Defense Sector, but as suppliers or indirect beneficiaries. In fact, my investment preference is to focus outside of the large-caps. That said, North Korea or Iran could immediately provide a gain for the large-cap defense stocks.
Despite the potential, I am not a buyer; gold provides a more diversified hedge, and the Defense Sector is priced too richly (and too low a dividend yield) for my investment appetite.
Should Investors Buy The Defense Sector? [View article]
Hi kgwj1,
Thanks for your supportive comment!
Although I am not currently planning update articles on these topics - my strategy has not really changed very much - I have "tweaked" my strategy and portfolio since I authored the article: Positioning Your Equity Portfolio For High Yield With Moderate Risk, Part II http://seekingalpha.co...
My major changes were to reduce the risks of my portfolio for what I perceive is a volatile ride over the next 5 years. I still want to be paid early and often through high-yield, so have moved down the capitalization "food chain", and have bought more small positions with higher yields. Additionally, I have moved away from legislatively-dependent, financial engineering companies - such as BDCs and mREITs - to hard assets.
My changes: - Sold BDCs, mREITs, shipping, most European positions, and most CEFs. - Sold many dividend growth positions and large-caps (which differs from other strategies/authors). - Bought more Australian utilities (via OTC trades). - Bought more gold funds. - Bought Canadian and US mid and small-cap high yielding companies in the resource (Canadian and US mining and O&G), utility, telecom, and infrastructure, sectors. - Bought US pipeline MLPs (although very unfavorably taxed in Canada, I buy on dips for great after-tax yields - particularly when compared to 4% yields on infrastructure securities in Canada). - Reduced exposure to Canadian banks, and increased positions in Canadian real estate and retirement (similar risks to consumers and housing, but much higher, tax-favored yields, in REITs). In September, I updated the Canadian real estate listings: http://seekingalpha.co... - Still believe that there is a place for fixed income in my portfolio - most of it is Government of Canada backed, but some is convertible debentures of junior gold companies. An article on this topic is: http://seekingalpha.co...
Most US and Canadian securities appear very-richly priced, at this juncture, so except for adding small incremental US MLP positions on dips (BWP, MMLP, EEP, CMLP, NS), I am sitting on some cash, waiting and watching.
That said, there are many successful investors who pursue very-different strategies from our preferred, high-yield approach!
Thanks, again, for your comment and positive feedback!
Extract 12% With Brigus Gold Convertibles, Maturing In March 2016 [View article]
Hi,
Yes. It is often a problem for even Canadian investors to trade convertible debentures. Interactive Brokers does not permit the purchase of Canadian convertible securities, and even my Canadian discount broker (CIBC Investors Edge) has a process to purchase these through telephone transactions (for a $50 per transaction fee).
That said, they are publicly traded in Canada, so shop around. Perhaps e*Trade, iTrade, or Questrade - this is a link comparing the Canadian discount brokers - have access and a better price:
Atlantic Power: A Tale Of Misinformation [View article]
Hi,
Brilliant article!
Unfortunately, I am long AT. I had also believed management's statements that they would protect the dividend; AT has historically managed to a high payout ratio, so I complacently sat back to collect dividends.
I can help respond to a few comments from those who have a litigious orientation. The governance of securities on the Toronto Stock Exchange falls under the Ontario Securities Commission (OSC). Unlike the US and many other jurisdictions, security regulation in Canada is a provincial mandate (the equivalent of each US state regulating their constituent securities). Therefore, Atlantic Power (note that it trades under TSX:ATP, and not AT) is regulated by Ontario.
If you choose to appeal to the Canadian regulator, you must contact the OSC. That said, there have been a few news items which propose that the OSC has very-weak enforcement relative to the SEC. This is not to discourage you - here is a link to contact the OSC - complete with complaint forms, telephone numbers, etc..
I am personally not inclined to seek legal recourse, but suggest that American shareholders would find a more supportive environment in the American legal system or through the SEC.
Extract 12% With Brigus Gold Convertibles, Maturing In March 2016 [View article]
Hi maytal100,
Other than private placements, the (publicly-available) convertible securities in Canada are traded on the Toronto Stock Exchange (TSX). My previous comment has the tickers, and a link to a list of the convertible debentures which are traded on the TSX.
As disclosed in my article, I am long a few different Canadian (gold mining) convertible debentures; therefore, all of these are available to retail investors. I believe that the minimum purchase is $1,000.00 CAD (which is currently trading a little below the USD).
Extract 12% With Brigus Gold Convertibles, Maturing In March 2016 [View article]
Thanks, Randy. I love reading your bond ideas!
I posted an article on Canadian gold mining convertibles a few months back, which may provide other ideas: http://seekingalpha.co...
FYI, Canadian convertible securities are publicly traded on the Toronto Stock Exchange. You can find a comprehensive list of these Canadian convertible debentures at: http://natpo.st/YJCGV3
Analyzing Canadian REITs, Part V: Retail [View article]
Hi amateur_investor,
I am not sure if the CAD will be a stronger currency than the USD in the long-term, given the soft prices for oil and gold (in fact, I hope not - the US is Canada's largest trade partner, and we need a lower CAD to provide a little competitive equalization for the US economies of scale). Frankly, I continue to buy USD, as I believe that the dysfunctional politics will eventually end, and the US will again drive global prosperity (and I need to diversify outside CAD). That said, you may well be right, as the USD is depreciating!
Regarding the potential for Dundee REIT, we are in total agreement. TSX:D.UN is the single largest holding in my portfolio. I also hold Dundee International REIT (TSX:DI.UN) and Dundee Industrial REIT (TSX:DIR.UN) - both of these latter REITs were created or spun-off by Dundee REIT, and they retained a substantial position. I think that they have smart, growth-oriented management, and that their securities provide an attractive (and tax-deferred) yield.
If you decide to buy Dundee REIT, I would wait until after the end of February - Canadians make tax-deferred retirement contributions (similar to your IRAs) until the end of February, and the funds seem to be buying yield-oriented securities, such as Canadian banks and REITs. A dip in Mid-March (or during the summer) may provide a better entry point - and higher yield on investment. As usual, this is just my $0.02 opinion :)
Analyzing Canadian REITs, Part VII: Retirement, Nursing Homes, Healthcare And Cemeteries [View article]
Hi galicianova,
I hold Extendicare Inc (EXE:TSX), which is no longer categorized as a REIT. They continue to operate senior health centres, which is an area that I like. They have also continued with their high-dividend policy, and their business model has not changed substantially from what was described in this article.
Given that 75% of the income is from the US, and that there are medical funding and other health/senior care issues in the US, EXE has not been doing well - in fact, my position remains "under water". Additionally, EXE has a history of being on the wrong side of litigation, and has had a stream of write-offs.
All of these factors may be priced into the share price - which would provide new investors a great yield, with a fairly-high risk. Recently, I added to my position - I like the long-term business prospects of this company and industry, and feel that the risk/return profile is aligned for me. That said, this is not a Sleep Well At Night stock
Analyzing Canadian REITs, Part X: Highest Yields And Lowest Risks [View article]
Hi vmirage,
Although I am not a huge fan of funds, I do like REIT INDEXPLUS Income Fund IDR.UN:TSX. High yield, diversification, etc., are good reasons, but it does have a small market cap of around $120M. I have not considered a real estate fund, personally, as many of my positions are Canadian real estate securities, so I would just be buying more of the same. Additionally, REITs defer taxes, and I am not sure that you would achieve this goal through this fund.
Now that I have said this, I propose that you wait to buy on dips. I believe that it may be worthwhile to try for a price closer to $11.50 CAD than the current $11.85 - particularly given the less-than-positive outlook for Canadian real estate, and the summer market doldrums are just a few months away.
Of course, it is just my opinion - I believe that most of the TSX - particularly banks and real estate - is a ``Hold`` at the high current levels - except for gold, O&G, and other resources which are low.
What To Buy And Sell In Your High-Yield Portfolio [View article]
Thanks for your question. I often use http://www.barchart.com for screening and information. This statistic (PNNT: 12 Month EPS Change: -2060) is at this link:
http://bit.ly/11NigkD
That said, I thought to look at AOL, which seems to disagree with both of our numbers (although closer to yours) - the link is here:
http://aol.it/188BrEd
Google seems to have values (Annual Diluted EPS Excluding Extraordinary) which align with your numbers) - the link is here:
http://bit.ly/11Niic9
Thanks for pointing out this discrepancy - Mark Twain's saying "There are lies, damn lies, and statistics" seems to hold true :)
Cheers, Monty
What To Buy And Sell In Your High-Yield Portfolio [View article]
I wish that I was as prescient as you in the corporate bond market - I only bought a couple of small positions, which I still hold for their great yield-on-investment.
Great question about SWAN! Although there is a lot written about a SWAN (Sleep Well at Night) strategies, I believe that this is a myth. Let's examine 2 SWAN scenarios:
1. USD and U.S. T-Bills: What are they worth with the trillion-dollar annual deficit, leveraged Fed balance sheet, and quantitative easing? Is near-zero yield an appropriate risk payment? Is this a truly SWAN investment? If you do not diversify into other currencies, will you feel safe and sleep well at night?
2. U.S. mega-cap and dividend-growth stocks: The big banks are involved in the LIBOR fiasco, and persist in reducing shareholder value through mortgage, trading, and other risks. Pitney Bowes (a dividend Champion for many years) is heading for the basement. Is there any reason that changing consumer tastes cannot impact dividend-growth stocks' sales and share prices? Legislation may be a concern - there are many places in Canada which are perfume-free (due to allergies) - PG beware! Governance and patent protection of Pharma industry products may change, or their development pipelines may not support share prices - JNJ, AZN, and others, are at risk. MCD, PEP, and KO, are dependent on the fast-food market - what if we have a societal move to healthier cooked-at-home foods, and return to drinking tap water?
I am not saying that any of these are bad investments - in fact, I believe that most of these may be excellent investments, depending upon your strategy (again, they do not fit mine). I am just suggesting that these SWAN investments have their own risks. My belief is that any investment choice will create risks - some are less than others, but nothing will be risk-free.
High-yield is riskier than T-Bills, mega-caps, and dividend-growth stocks, but will compensate with a higher return/yield. The degree of risk can be mitigated by investing in smaller amounts (i.e., many more security holdings, with small dollar values); choosing companies that provide necessities (such as utilities and infrastructure); and, investing globally in developed countries only. By buying (small) positions through 3 or 4 small purchases / transactions, you can "test the waters" without making major commitments.
A strategy is a personal choice that each investor needs to feel comfortable with - nobody should pursue a strategy that does not meet his/her goals, and I am not sure if any investment portfolio should qualify as a SWAN strategy.
Cheers, Monty
What To Buy And Sell In Your High-Yield Portfolio [View article]
Thanks, again, for your readership and comments!
Douglas Albo is correct - I hold GGN because I believe in the upside of gold and gold-mining (with high yield), rather than being impressed with the discount to NAV and performance. As identified by a few of us, I also seem to have perfect timing when it comes to buying GGN at the wrong time. I sold DPO and the Canadian Banks because I believe that they are too richly valued - not because I believe that they are bad investments. There are probably better ways to achieve these goals, but they were my portfolio holdings...
I share a bit of number19's perspective of being a bit of a gambler. In fact, I submitted an article on a couple of speculative securities to keep on our watch lists, today. Although I believe in the future of Atlantic Power (AT) - I love clean energy as an industry (and hold AT) - I am very disappointed that management did not properly inform investors about the dividend cut, and am unhappy about my paper-loss.
Cheers, Monty
What To Buy And Sell In Your High-Yield Portfolio [View article]
Thanks for your comments and feedback.
I believe that we have explored a few concerns about managing our investments in our high-yield portfolios. We seem to share concerns that:
1. The yields may not be sustainable because of company financials and/or government actions. The counter-side to this is that the yield is highest (and security price lowest) when these risks are present.
2. Our investment choices and trade-offs may not be "the best". I also struggle with this - for example, I agonized over selling the Canadian Banks, which had been the cornerstone of my portfolio. My learning was that I need to dispassionately assess my holdings and adjust them to my personal goals and comfort levels. Similarly, each person will have his/her own high-yield portfolio criteria.
Again, I appreciate your readership and ideas! Thanks for sharing your thoughts through these comments.
Cheers, Monty
Under-Performing Brazilian Stocks Look Attractive Now [View article]
Great and compelling article.
My only Brazilian position (the same as "Dogs that Bark") is AESAY.PK, which is under water due to government intervention in electricity pricing.
Would you please review the yields on:
7.Light SA (LGSXY.PK) - Current Dividend Yield: 14.48%
9.Companhia Energetica de Minas Gerais Cemig (CIG) - Current Dividend Yield: 11.40%
Seeking Alpha - and some other investment websites - report much lower yields. This has historically been an issue for South American securities, and I remain uncertain about the actual annual yield, despite their website info:
Light SA:
http://bit.ly/10zk2E7
CIG:
http://bit.ly/12iRjlg
That said, the substantial dividend was paid for both, in the last week, so yield-oriented investors will need to wait 1 year for this component of the return.
Thanks, Monty
Preparing For Volatility: How A Plan Can Help [View article]
Thanks for the "honorable mention" and kind words. This was an excellent article, and you generated an interesting discussion. Also, thanks for your identification of TIS - it is now on my watch list!
I have not authored a lot, lately, as I am working on my personal Action Steps. I have built a substantial cash position (sold European, CEFs, and low-yield stocks), which I am hoping to redeploy in the summer. Frankly, you raise an excellent point on selling shares with diminished returns - I have not done a good job with this (Atlantic Power, gold mining positions, and Canadian O&G mid-caps).
Keep the great articles coming!!!
Cheers, Monty
Should Investors Buy The Defense Sector? [View article]
Thanks! I appreciate your comment!
I agree that the best opportunities may be with the smaller companies - perhaps not primarily in the Defense Sector, but as suppliers or indirect beneficiaries. In fact, my investment preference is to focus outside of the large-caps. That said, North Korea or Iran could immediately provide a gain for the large-cap defense stocks.
Despite the potential, I am not a buyer; gold provides a more diversified hedge, and the Defense Sector is priced too richly (and too low a dividend yield) for my investment appetite.
Cheers, Monty
Should Investors Buy The Defense Sector? [View article]
Thanks for your supportive comment!
Although I am not currently planning update articles on these topics - my strategy has not really changed very much - I have "tweaked" my strategy and portfolio since I authored the article:
Positioning Your Equity Portfolio For High Yield With Moderate Risk, Part II
http://seekingalpha.co...
My major changes were to reduce the risks of my portfolio for what I perceive is a volatile ride over the next 5 years. I still want to be paid early and often through high-yield, so have moved down the capitalization "food chain", and have bought more small positions with higher yields. Additionally, I have moved away from legislatively-dependent, financial engineering companies - such as BDCs and mREITs - to hard assets.
My changes:
- Sold BDCs, mREITs, shipping, most European positions, and most CEFs.
- Sold many dividend growth positions and large-caps (which differs from other strategies/authors).
- Bought more Australian utilities (via OTC trades).
- Bought more gold funds.
- Bought Canadian and US mid and small-cap high yielding companies in the resource (Canadian and US mining and O&G), utility, telecom, and infrastructure, sectors.
- Bought US pipeline MLPs (although very unfavorably taxed in Canada, I buy on dips for great after-tax yields - particularly when compared to 4% yields on infrastructure securities in Canada).
- Reduced exposure to Canadian banks, and increased positions in Canadian real estate and retirement (similar risks to consumers and housing, but much higher, tax-favored yields, in REITs). In September, I updated the Canadian real estate listings:
http://seekingalpha.co...
- Still believe that there is a place for fixed income in my portfolio - most of it is Government of Canada backed, but some is convertible debentures of junior gold companies. An article on this topic is:
http://seekingalpha.co...
Most US and Canadian securities appear very-richly priced, at this juncture, so except for adding small incremental US MLP positions on dips (BWP, MMLP, EEP, CMLP, NS), I am sitting on some cash, waiting and watching.
That said, there are many successful investors who pursue very-different strategies from our preferred, high-yield approach!
Thanks, again, for your comment and positive feedback!
Cheers, Monty
Extract 12% With Brigus Gold Convertibles, Maturing In March 2016 [View article]
Yes. It is often a problem for even Canadian investors to trade convertible debentures. Interactive Brokers does not permit the purchase of Canadian convertible securities, and even my Canadian discount broker (CIBC Investors Edge) has a process to purchase these through telephone transactions (for a $50 per transaction fee).
That said, they are publicly traded in Canada, so shop around. Perhaps e*Trade, iTrade, or Questrade - this is a link comparing the Canadian discount brokers - have access and a better price:
http://bit.ly/YCuAON
Good luck! Cheers, Monty
Atlantic Power: A Tale Of Misinformation [View article]
Brilliant article!
Unfortunately, I am long AT. I had also believed management's statements that they would protect the dividend; AT has historically managed to a high payout ratio, so I complacently sat back to collect dividends.
I can help respond to a few comments from those who have a litigious orientation. The governance of securities on the Toronto Stock Exchange falls under the Ontario Securities Commission (OSC). Unlike the US and many other jurisdictions, security regulation in Canada is a provincial mandate (the equivalent of each US state regulating their constituent securities). Therefore, Atlantic Power (note that it trades under TSX:ATP, and not AT) is regulated by Ontario.
If you choose to appeal to the Canadian regulator, you must contact the OSC. That said, there have been a few news items which propose that the OSC has very-weak enforcement relative to the SEC. This is not to discourage you - here is a link to contact the OSC - complete with complaint forms, telephone numbers, etc..
http://bit.ly/XmrmAb
I am personally not inclined to seek legal recourse, but suggest that American shareholders would find a more supportive environment in the American legal system or through the SEC.
Cheers, Monty
Extract 12% With Brigus Gold Convertibles, Maturing In March 2016 [View article]
Other than private placements, the (publicly-available) convertible securities in Canada are traded on the Toronto Stock Exchange (TSX). My previous comment has the tickers, and a link to a list of the convertible debentures which are traded on the TSX.
As disclosed in my article, I am long a few different Canadian (gold mining) convertible debentures; therefore, all of these are available to retail investors. I believe that the minimum purchase is $1,000.00 CAD (which is currently trading a little below the USD).
Cheers, Monty
Extract 12% With Brigus Gold Convertibles, Maturing In March 2016 [View article]
I posted an article on Canadian gold mining convertibles a few months back, which may provide other ideas:
http://seekingalpha.co...
FYI, Canadian convertible securities are publicly traded on the Toronto Stock Exchange. You can find a comprehensive list of these Canadian convertible debentures at:
http://natpo.st/YJCGV3
Cheers, Monty
Analyzing Canadian REITs, Part V: Retail [View article]
I am not sure if the CAD will be a stronger currency than the USD in the long-term, given the soft prices for oil and gold (in fact, I hope not - the US is Canada's largest trade partner, and we need a lower CAD to provide a little competitive equalization for the US economies of scale). Frankly, I continue to buy USD, as I believe that the dysfunctional politics will eventually end, and the US will again drive global prosperity (and I need to diversify outside CAD). That said, you may well be right, as the USD is depreciating!
Regarding the potential for Dundee REIT, we are in total agreement. TSX:D.UN is the single largest holding in my portfolio. I also hold Dundee International REIT (TSX:DI.UN) and Dundee Industrial REIT (TSX:DIR.UN) - both of these latter REITs were created or spun-off by Dundee REIT, and they retained a substantial position. I think that they have smart, growth-oriented management, and that their securities provide an attractive (and tax-deferred) yield.
If you decide to buy Dundee REIT, I would wait until after the end of February - Canadians make tax-deferred retirement contributions (similar to your IRAs) until the end of February, and the funds seem to be buying yield-oriented securities, such as Canadian banks and REITs. A dip in Mid-March (or during the summer) may provide a better entry point - and higher yield on investment.
As usual, this is just my $0.02 opinion :)
Cheers, Monty
Analyzing Canadian REITs, Part VII: Retirement, Nursing Homes, Healthcare And Cemeteries [View article]
I hold Extendicare Inc (EXE:TSX), which is no longer categorized as a REIT. They continue to operate senior health centres, which is an area that I like. They have also continued with their high-dividend policy, and their business model has not changed substantially from what was described in this article.
Given that 75% of the income is from the US, and that there are medical funding and other health/senior care issues in the US, EXE has not been doing well - in fact, my position remains "under water". Additionally, EXE has a history of being on the wrong side of litigation, and has had a stream of write-offs.
All of these factors may be priced into the share price - which would provide new investors a great yield, with a fairly-high risk. Recently, I added to my position - I like the long-term business prospects of this company and industry, and feel that the risk/return profile is aligned for me. That said, this is not a Sleep Well At Night stock
I hope that this helps. Cheers, Monty
Analyzing Canadian REITs, Part X: Highest Yields And Lowest Risks [View article]
Although I am not a huge fan of funds, I do like REIT INDEXPLUS Income Fund IDR.UN:TSX. High yield, diversification, etc., are good reasons, but it does have a small market cap of around $120M. I have not considered a real estate fund, personally, as many of my positions are Canadian real estate securities, so I would just be buying more of the same. Additionally, REITs defer taxes, and I am not sure that you would achieve this goal through this fund.
Now that I have said this, I propose that you wait to buy on dips. I believe that it may be worthwhile to try for a price closer to $11.50 CAD than the current $11.85 - particularly given the less-than-positive outlook for Canadian real estate, and the summer market doldrums are just a few months away.
Of course, it is just my opinion - I believe that most of the TSX - particularly banks and real estate - is a ``Hold`` at the high current levels - except for gold, O&G, and other resources which are low.
Thanks for your interest and question!
Cheers, Monty