Official Long-term Investments Thread

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What do you guys have for stocks with strong dividends?

Picked up some Pembina, looking at Enbridge and Bell or Shaw or Telus?

[kenny]

GEI, FAP and VSN

[littledan]

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What do you guys have for stocks with strong dividends?

Picked up some Pembina, looking at Enbridge and Bell or Shaw or Telus?

For dividends I have Telus, CIBC, TD, and CPX.

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Any more tips for long term dividend holdings?

Also picked up some Rio Can and Boardwalk

Pembina has worked out well +8% so far

[Manhattan]

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Any more tips for long term dividend holdings?

Also picked up some Rio Can and Boardwalk

Pembina has worked out well +8% so far

The problem with buying REITs like RioCan and Boardwalk is you're going up against very strong headwinds if interest rates keep rising. The loans on these companies will be a lot more expensive going forward just like your mortgage would be more expensive with higher interest rates. Higher costs means lower profits which equals stagnant or lower stock price. (Boardwalk is super concentrated on the Alberta market by the way)

For a buy and hold long term investment account you should be buying some Canadian insurance companies right now. Their valuations are cheap based on metrics (PE, book value, etc) and they actually benefit from higher interest rates. The dividend on most of them is around 3 to 4% and I'm pretty sure you'll see steadily increasing payouts as well as capital appreciation.

[BavarianBeast]

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What do you guys have for stocks with strong dividends?

Picked up some Pembina, looking at Enbridge and Bell or Shaw or Telus?

Pick up some BDT.TO, thank me in 2 years

[max_boost]

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The problem with buying REITs like RioCan and Boardwalk is you're going up against very strong headwinds if interest rates keep rising. The loans on these companies will be a lot more expensive going forward just like your mortgage would be more expensive with higher interest rates. Higher costs means lower profits which equals stagnant or lower stock price. (Boardwalk is super concentrated on the Alberta market by the way)

For a buy and hold long term investment account you should be buying some Canadian insurance companies right now. Their valuations are cheap based on metrics (PE, book value, etc) and they actually benefit from higher interest rates. The dividend on most of them is around 3 to 4% and I'm pretty sure you'll see steadily increasing payouts as well as capital appreciation.

Insurance companies like what?

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Pick up some BDT.TO, thank me in 2 years

okay. I'll toss 100 shares that way lol

[RealJimmyJames]

Great West lifeco

[Manhattan]

Manulife is the cheapest. Sunlife is probably the best managed and probably the best for a long term hold. I'd wait to buy any of them in a dip.

[max_boost]

Any more long term tips, throw them here. Thanks guys.

[BavarianBeast]

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Any more long term tips, throw them here. Thanks guys.

https://www.cnbc.com/video/2016/02/2...investing.html

Buffet knows best!

[sabad66]

Long term I would say the mj etf is decent. Hmmj.to

[zhao]

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What do you guys have for stocks with strong dividends?

Picked up some Pembina, looking at Enbridge and Bell or Shaw or Telus?

chr.tsx FTW. bought this at 7.25, sold it already, but my wife is hanging on to hers long term. A friend put 50g in to this thing after I told him it was my choice for a dividend stock and looking in to it myself. Even at its current price of 8.6x its a 5.5% dividend. My understanding is they have a contract with air canada for service for a decade or so, so the dividend isn't likely to go anywhere anytime soon. Also, they buy and rent planes to carriers like jazz. Pretty solid company for a buy and hold strategy. IMO its safe to buy now because it should fluctuate between 8.50-9 pretty safely from now on, and it's also had solid upward growth every year for years. I think this is pembina version 2.0, where it just slow climbs year after year almost forever.

RSI.tsx is pretty solid too. another 6%ish dividend company, the only problem is why they are so solid is because they divided the sugar market in canada in 2 with redpath. crazy barriers to entry insures no competition from inside or outside of canada... but no crazy market growth potential. If I had millions in the bank i'd put a huge chunk in to this one and hold it forever. it fluctuates between $6 and 6.90 lately. I'm pretty sure I remember this company from a finance prof talking about it with rave reviews, and that was 20 years ago now.


Pembina has been pretty stagnant this year for price though which is why I didn't buy PPL, but that would probably be my 3rd choice for a dividend stock right now.

[JustinL]

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chr.tsx FTW.

I've been in on CHR.TO for a couple years and it's done well for me with growth and dividends. Funny enough, I also like Corus entertainment CJR-B.TO and have been holding it for a while too. FN.TO has been a solid performer for me for many years both grinding up its value and paying a pretty good dividend. Finally I also have ALA.TO, which pays a good dividend... but has lost a bunch of value since I bought it. With their big American acquisition that's still not finalized, it's definitely riskier, but the dividends are still sweet and who knows what the future will hold.

[max_boost]

wow those are some nice yields!

How many stocks do you guys have? I wonder if I am buying too many? I have about 15 different ones right now but never more than $5k per.....

[Manhattan]

High yields most of the time means a company is not doing well financially and the market is signaling that it is risky and/or the dividend will be cut. If you have a long time horizon the better way to go about things is looking for companies with decent and GROWING dividends. Yield might be 2 to 3% today but when business is doing well they'll increase it year after year.

A high dividend should only appeal to deep value investors who understand the underlying health of the business or a retiree who's only interested in income, not growth.

^

To answer your question the less you understand the markets the more you should own (at least 20 to 25). If you have a good grasp on markets you can afford to be less diversified.

[JustinL]

I hold around 25+, but it is a bit too much to keep track of in the day to day swings and news of each company. My portfolio is almost all medium to long term investments, and I try to have a balance of some growth stocks and some dividend stocks. The dividend stocks I look for are like what Manhattan suggests: consistent dividends. FN.TO for example hasn't missed a dividend since 2011 and has increased it slowly over the years. Dividend yield is only part of the decision on this kind of stock. I like the companies I invest in to be profitable and a healthy long term outlook too. If you sort stocks by yield in a screener, you get some crazy stocks I don't even look at because I don't understand them.

I've made mistakes on stocks like this too, but I try to learn from them.

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Do you guys subscribe to the: buy what you use way of investing?

I mean had I done that I would be rich since I'm basically addicted to FB/Apple/Google/TD/RBC/Rogers/Aphria but I guess I would miss out on a lot of other companies I'm not familiar with.

[asp integra]

Anyone own TransAlta Renewables Inc. (RNW.TO)?
Looks like it has a nice dividend/good future growth possible in that sector

[zhao]

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wow those are some nice yields!

How many stocks do you guys have? I wonder if I am buying too many? I have about 15 different ones right now but never more than $5k per.....

I think that depends on a lot of factors.

Most of my my wife and I's money is in property. She has more money in funds/gics(retch)/stocks then me and is against risk so she is pretty heavily diversified (she buys in 5g blocks). Because I'm only playing with my RRSP (i use that for long term) and TFSA (used for short term), which are in the 5 figures range, i'm only actually investing in 2-3 stocks at a time. I'm going ultra high risk short term all my eggs in one basket type of investments in my TFSA because i'm very ok with risk if there is potential for big reward, so I'm ok dumping 50g in to one stock with no dividend. I think if the stock was right, I'd be ok with up to 100g in one stock, but likely no more unless it was a real no brainer. I'll generally buy or sell in blocks of 20g also. I personally think 5g is the bare minimum i'd be using to buy a stock, and prefer to buy no less than 10g worth. I'm also focusing on only a few stocks because I am going extremely risky with my portfolio. IMO i need to be focused on what a stock is doing, what makes it move, where it is likely to go ,what news just came out, what changed; I can't do that with more than a stock or 2. With my mining stock i'm in i'm watching zinc prices constantly all day, watching what stockpiles are on the London metal exchange, watching stock boards to see what people are saying, watching what trolls are saying about it, etc. I spent probably 3 months looking at that mining stock before I bought (as well as a lot of others trying to pick which was the biggest no brainer this year). The result of that is i'm at a 38% ROI in the last 6 months in my TFSA. Now with 25 stocks you're unlikely to get that kind of return ever, but you're also unlikely to take a crazy hit, and it's likely to be far easier to sit back and relax.

This is the long term thread though, so say if I was playing with 1 million dollars with a goal of sitting on a stock or investment long term, I'd be investing a lot safer and would want to be buying stocks in 50-100g blocks, so likely somewhere just over 10 stocks. I'd also be mostly only buying stocks with dividends, and most of them would be in the 3-6% range. Most of these would be stocks I'd be planning to hold for 2-3 years+. IMO if a stock has a dividend over 6% there is a good chance something is fishy. CHR is the only high dividend paying stock that i researched where it looked sustainable and like it would have upward growth with the stock price. The ones i was glancing at a year ago with 8-10% dividends dont have that now lol. I would also probably keep 80% diversified in low risk stocks dividend stocks, and 20% for risky stuff like i'm doing now. I would also be diversifying to all industries as well. I'd want to diversify to pick stocks to cover sectors, so something for tech, mining, aerospace, energy, etc.

The alternative is i'd be very tempted to just diversify into mutual funds until i was getting near retirement, since those are ideal for sitting back and pulling in profits long term.

IMO the most important thing with investing is investing in a way you can actually sleep at night. If you're up all night worried that you bought 500g of home capital group, that's not the investment for you.

Do you guys subscribe to the: buy what you use way of investing?

I mean had I done that I would be rich since I'm basically addicted to FB/Apple/Google/TD/RBC/Rogers/Aphria but I guess I would miss out on a lot of other companies I'm not familiar with.

Nope. I subscribe to the invest in what you know about, not what you use mentality. There are companies that I love their products or services that i'd never want to own in a million years.

I still remember my first pick on a stock market, with my mock portfolio I had to run for a semester for a finance class project. I went all in, riverside forest products (lumbermill in kelowna) on the VSE @ around $7 in january 99, by the end of the semester it was $13-14. I bought that because in grade 10 we went on a fieldtrip there in highschool, and I remember the manager telling us every year like clockwork they do the opposite of last year. If last year was a boom, the next year will be a bust. So I saw their stock was at a 52 week low, so I bought.

The ones that i've owned that I knew nothing about I did crash courses on learning about prior to buying. like I said I spent a few months learning about zinc mining. Technically I should jump in to investing in insurance companies and auto companies by that logic, but they're just not attractive right now to me. The one I think is doing interesting things is not publicly traded and i dont see good ROI on them.