July 2018 Watchlist

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Includes: BNS, BPY, LWSCF, MFC
by: PassiveCanadianIncome

Originally Published July 12, 2018

Well, here we are almost in the middle of July. There is a lot happening this month that can affect the market both in positive and negatives depending on what you are buying. This is my July 2018 Watchlist.

Tariffs, and More Tariffs

All the trade war stuff has started this month and recently I read Trump is thinking of putting more trade tariffs on China… I really don't see much good coming from this. Nafta still hasn't been dealt with and clearly that ain't good. The market keeps chugging along though, although today my portfolio took a nice hit.

The Bank Of Canada Raised Benchmark Interest Rate a Quarter percent

I had a feeling this would happen as Employment is very high and things are looking good. Of course the trade wars are a big issue and I feel rates will very slowly rise. I mentioned this before when Utility stocks took a massive dive down. Canadian's consumer debt is really high, having one of the highest debt rates in the world. This would be a big factor for the Bank of Canada to consider.

I'll be honest the trade war stuff kinda scares me, especially with Trump at the helm. But the interest rate raise could create some good opportunities on the TSX.

Clearly, the Banks and Insurance companies would surely benefit from the recent rate hike. Telcos and Utility stocks should take a little tumble as they generally carry a nice debt load. I wonder if this will take some steam away from Enbridge (NYSE:ENB).

What Stocks I will be watching this month.

Bank of Nova Scotia (NYSE:BNS) - This is my #1 stock I keep debating throwing another stack into. They have actually gotten a little bit cheaper since my last buy. They are now sporting a P/E under 11. Which is dirt cheap for a top 5 Canadian Bank. They are really diversified geographically and will benefit from the interest rate hike. Currently, BNS offers up a 4.38% yield. Very nice!

Unfortunately their ex dividend date was at the end of last month, so I would have to wait 3 months to enjoy the dividends from this new purchase. This is a little factor. I know it is minor, but do you factor this into your decision process when buying stocks?

Manulife Financial (NYSE:MFC) - This is currently a small holding of mine. One of my original investments from way back. I have done well with this one picking it up back when it was like 17 bucks. It is currently 22 cents off its 52 week low and has a 3.76% dividend yield. I really like what they are doing, jumping into the Asian market for insurance and financial services. There are a lot of rich people there and it is always good to diversify around the world. Of course the rate hike would be a benefit to them as well. Ex dividend date will be sometime in mid-August.

Sienna Senior Living (OTCPK:LWSCF) - Another original position. I have wanted to add to them for a while. Unfortunately they aren't a dividend growth stock. They have taken a little dive lately and are trading just over their 52-week low. Their yield is currently 5.58% and paid monthly. I love the senior stocks, with the aging population of the baby boomers the retirement homes should do very well in the future, and Sienna is one of the best. Ex dividend Date end of every month.

All of those are existing positions, but if I were to add one.

Brookfield Property Partners (NYSE:BPY) - My Real estate sector is surprisingly one of my lowest at the moment. I love the Brookfield group in general, they generally continue to do great things. I think BPY is undervalued and so does Morningstar, giving it a fair value of north of 29 bucks. It's currently $25.45 and offers a solid 6.33% yield. To be honest I don't know if there will be a withholding tax on the dividends in a TFSA. I know there hasn't been with my Brookfield Renewable stocks though. Do any of you know? Ex dividend will be sometime in August as well.

Finale

Well, there you have it, the stocks on my radar currently to add to our TFSA this month. If one of the telcos or utilities I own took a nice dive, things may change though!

Which one would you pick? What is on your radar?

Have a great day.

Cheers!

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.