Month: April 2016

April Stock Market Review

Weekly Stock Market Review (Apr 25 – 29)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

You can also browse through the list of blog posts written by my fellow investors around the finance blogosphere. I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

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Dividend Growth Investing Tips That Shouldn’t Be Forgotten

BeginnerStrategy

The following is a guest post. 


“Someone’s sitting in the shade because someone planted a tree long time ago” – Warren Buffett, American business magnet and investor.

Analysts suggest that when it comes to investments, long-term portfolios or those who wait at least 10 years to see a return have more advantages over those portfolios filled with short-term opportunities, such as mutual funds, growth stocks, and even bonds. Thus, many investment resources will always recommend diversifying investment portfolios with high-quality dividend paying stocks, as it has been proven to yield high long-term returns and a reliable dividend income one can depend on until they reach their retirement age.

Again, this is for those investors who don’t need the cash immediately and would rather re-invest those dividends back to the company after a payout. If you are interested then here are some key benefits of long-term dividend paying stocks in your portfolio:

  • It can be especially rewarding, as it can make up roughly 45% of the total return if you re-invest
  • By the time you retire, you have a large number of shares which equate to more income
  • Dividends are less volatile than earnings over time
  • Companies that offer dividend stocks are generally established in their industries and are able to ride tough markets

However, there are critical tips investors must know when including dividend growth stocks in their portfolio. In this post, we will highlight some of the investing tips you need to consider when earning big payouts.

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Lessons From Investing in Valeant Pharmaceuticals

5 Lessons From Investing in Valeant Pharmaceuticals

Beginner

As I previously opened up about my horrific Valeant Pharmaceuticals story, I committed to compiling a list of the lessons I’ve learned over the course of my holding period of the infamous VRX shares.

So, here’s a list of what I’ve learned – and how, by now knowing these things, I am ultimately a better investor despite my 85% loss.

  1. Only invest money that you are 100% comfortable with losing 100% of. Because chances are, when you’re speculating, you could very well lose your entire investment. Come to terms with what you may be doing is speculating and not investing.

  2. Set a stop-loss limit sale on a “fun money” growth stock. Sure, you may tell yourself (like I did, a thousand times) that the stock will bounce back. But it’s just as, if not more, easy for the price to continue declining than it is to jump back up.

  3. If you realize you made a mistake when your investment has dropped 50%+, then sell and be done with it.

  4. Sometimes it’s easier to reallocate your capital into a better-positioned stock to make up the loss you’ve incurred. Take advantage of that realization.

  5. Don’t invest in an equity that doesn’t return cash in the form of a distribution. While you may be down on an investment for a long time, a dividend will at least pay you to wait as you decide what you’ll be doing with the stock or holding it. I also like to believe it indicates shareholder appreciation from the company / management. It’s also much easier to stomach a huge decline in your stock’s market value with a dividend.

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Whitecap Resources cut their dividend 38%

Dividend Cut: Whitecap Resources (WCP)

Dividend Raises

On April 11th, Whitecap Resources (WCP) cut it’s dividend for the second time since I’ve been holding shares. WCP’s annual dividend was reduced by 37.78%, from $0.45 to $0.28. Since 2016 I haven’t invested in any energy producers and am glad with the decision I’ve made up to this point – even with the current rally we’ve been experiencing. The two monthly dividend paying energy stocks I bought – Pengrowth Energy and Whitecap Resources have both beat their dividend to a pulp.

In January, Whitecap Resources first cut their dividend by 40%. At that time I was down 40% on my WCP investment, and I’m now down 23%, so it’s been going up consistently and I’m willing to ride that out while collecting the monthly dividend.

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April Stock Review

Weekly Stock Market Review (Apr 18 – 22)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

You can also browse through the list of blog posts written by my fellow investors around the finance blogosphere. I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

Dividend Bloggers’ Posts

Stock Articles

Economy Articles

Remember to subscribe to The Dividend Beginner blog to get e-mail notifications when  I release new blog posts. Part of being a great investor is always staying as up-to-date as possible!  The Dividend Beginner blog will help you with that, so you don’t have to! 

Alaris Royalty Corp.

Recent Purchase: Alaris Royalty Corp. (AD)

Purchases

On April 7th, I purchased 50 shares of Alaris Royalty (TSE: AD) to The Dividend Beginner’s portfolio. I purchased the shares at $29.22, with a trading cost of $6.95 for a total investment of $1,467.95.

This is my third time purchasing shares in Alaris Royalty Corp., and I’m incredibly happy and fortunate to be able to do so. I originally purchased 60 shares of AD in November 2015 for $24.80 per share, then later averaged down in January 2016 by purchasing 60 shares at $22.00; and after my investment had increased over 25% I decided I would add even more as I believe the company is poised for a whole hell of a lot of growth going down the line. Their dividend is incredibly generous and they have a very high profit margin on their royalty business. I now own 170 shares of Alaris Royalty, with a market value of $5,152.70, which accounts for around 14% of my dividend growth portfolio.

Below is a summation of my purchases in what-is-now my largest investment, Alaris Royalty.

Date Shares Price Value
April 7 2016 50 $29.20 $1466.95
Jan 15 2016 60 $22.00 $1326.95
Nov 9 2015 60 $24.80 $1494.95

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Purchase Inter Pipeline Stock

Recent Purchase: Inter Pipeline Ltd. (IPL)

Purchases

On April 7th, I added 57 shares of Inter Pipeline Ltd (TSE: IPL) to The Dividend Beginner’s portfolio. I purchased the shares at $26.10, with a trading cost of $6.95 for a total cost basis of $1,494.65.

This is my second time purchasing shares in Inter Pipeline, and I’m happy to do so. I originally purchased 43 shares in February for $23.20 per share, and the stock price has continued to rise steadily since. I originally invested a total of $1,004.55 into IPL stock as I was playing very conservatively and soon realized it deserved a bit more of my attention, so I upped my share count to a nice round 100. The monthly dividend income is a great boost to incoming dividends to help cover monthly expenses as the numbers are starting to mean something after a year.

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April Stock Review

Weekly Market Review (April 11 – 15)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

You can also browse through the list of blog posts written by my fellow investors around the finance blogosphere. I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

Dividend Bloggers’ Posts

Stock Articles

Economy Articles

Remember to subscribe to The Dividend Beginner blog to get e-mail notifications when  I release new blog posts. Part of being a great investor is always staying as up-to-date as possible!  The Dividend Beginner blog will help you with that, so you don’t have to! 

Stock Watch List April 2016

Stock Watch List for April 2016

Watch List

As we watch the market rise and fall, sometimes we see a big drop – the perfect opportunity to push some capital into the market and make some dividend growing investments. However, when this happens, many will watch and become lost in the vast amount of opportunities and potential investments. Which one is the best fit? Which one has the greatest expected dividend growth? These exact queries are the reason it’s so incredibly useful to make or follow a stock watch list every month, so when opportunities present themselves in abundance you know where to put your money.

Following are my picks for the month of April; these stocks are in no way recommendations; they are simply the stocks that I watch throughout the month and am hopeful to allocate capital to if given the chance and opportunity.

My stock watch list follows a simple formula; of which the details can be read below. Things I like are coded in green, while things I dislike are coded in red. Companies which add up to 3 or more points (things I like – things I dislike) have their name coded in green, and are generally considered high-quality assets by me.

Things I like are:

  • P/E below 10
  • Yield above 4.00%
  • Payout ratio below 50%
  • 5-Year Yield Growth above 10%
  • 10-Year Dividend Growth Streak

Things I dislike are:

  • P/E above 20
  • Payout Ratio above 80%
Company Price P/E Div. Growth Streak Div Yield 5 Year Div Growth Rate Payout Ratio
Fortis Inc 39.86 15.58 42 3.76 5.01% 54.95%
Metro Inc 42.49 19.83 21 1.32% 14.70% 23.12%
Canadian National Railway 80.64 18.33 20 1.86% 18.28% 28.15%
Canadian REIT 44.34 16.26 14 4.06% 4.95% *70.25%
Inter Pipeline Ltd 26.04 20.4 13 5.99% 10.41% *68.00%
Alaris Royalty Corp. 29.57 18.09 8 5.48% 10.62% 80.00%
Magna International 51.73 8.35 6 2.51% 33.18% 18.19%
Cineplex 50.89 23.95 5 3.07% 4.10% 72.16%

*These items were calculated using adjusted funds from operations (AFFO), which offer better clarity for the particular industry. In the case of the REITs, the P/E is calculated using AFFO rather than earnings, so the title of this metric would be P/AFFO (Price-to-adjusted funds from operations). 

With the watch list for April, there are four companies which have 3 points awarded to them, however IPL’s valuation has been steadily increasing as people have been bidding up shares, and the P/E has just gone over 20, so it is removed from the Top Picks.

It’s been the same companies for a while now which scream quality assets, but the valuations are also high and the dividends are low for my favourites Metro Inc and Canadian National Railway, but I’m fast approaching a junction where I should be diversifying into other sectors and beefing up some like Industrials and Utilities.

I’m also noticing that the Canadian dividend growth list which interests me is slowly dwindling as I open and increase positions in these stocks which pique my interest, and I’d really like to shift towards U.S. stocks soon. Regarding this, I can only hope that the $CAD continues to strengthen and that by the time I’m ready to start focusing my attention elsewhere that I can get a decent exchange, or it will be much harder to become profitable.

The top stocks on this list in order are:

  1. Canadian National Railway (CNR)
  2. Metro Inc (MRU)
  3. Magna International (MG)

If you find comfort in holding a stock watch list through each month, I implore you to subscribe to The Dividend Beginner newsletter, and you will receive my monthly stock watch lists directly in your e-mail inbox at the time of posting. 

How do my fellow investors’ watch lists look like? What are you thinking of buying this month? Why? 

April Stock Market Review

Weekly Market Review (April 4 – 8)

Review

Welcome to the Dividend Beginner’s Weekly Stock Market Review, where you readers can see all of my new blog posts at a glance and decide which ones peak your interest for further reading.

You can also browse through the list of blog posts written by my fellow investors around the finance blogosphere. I also took the time to mark down all the interesting articles related to finance, investing and economics for my readers. So go make yourself a nice warm cup of coffee and get to reading, learning, and making money!

Dividend Beginner’s Posts

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Disclaimer

My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.