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Stocks
- Thread starter Boots
- Start date
As of a few minutes ago, banks stocks by share price, annual dividend, and % dividend payout relative to stock price.
Very safe investment with reasonable returns if you're looking for safe retirement income.
| TD | 55.21 | 1.88 | 3.41% |
| BNS | 66.37 | 2.64 | 3.98% |
| BM | 78.37 | 3.20 | 4.08% |
| CM | 94.35 | 4.12 | 4.37% |
| NAT | 47.54 | 2.00 | 4.21% |
| RY | 77.01 | 3.00 | 3.90% |
Very safe investment with reasonable returns if you're looking for safe retirement income.
A million in bank stock will earn you a nice dividend income. Throw in a bit (2 to 4%) of annual share liquidation, and you would have a very nice income from that stock. Add in CPP and OAS, and you would be doing very well.
Of course if your stock is in an RRSP portfolio, the government will require you to liquidate shares starting at 4% annually at age 65 IFRC and going up from there each year, which means very high income. Me, the excess will flow into my TSFA brokerage account where I can keep the money working for me with no tax implications.
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Start early and invest consistently in reasonably safe investments and it doesn't take much cash out of pocket to reach that level. Funny thing is that the banks used to push a million as being necessary for an average level of retirement comfort. Depending on lifestyle and debt at time of retirement, you can do ok on half that.
I started saving late but got lucky with consistently high investment returns in the last 15 years. Unless the market completely tanks, I hope to crack that million mark by summer. Even if the market tanks, my retirement is already set as being at minimum both early and comfortable.
I have done many calculations, for me it comes out to 480K in RRSP to live comfortably (wife and I) after 65, it will carry us to 85+, then it will be time to sell the house. This is based on the house being paid off and kids’ education paid etc. That is basic living, no travel, no fancy new cars, etc. We will do much better than basic living since I will have more than 480K AND my wife has a very strong pension… but I need a baseline.
As for some of the stock investing outlined in this thread, here are some comments, just my opinion of course…:
BANKS: I like banks and I am trying to maximize US exposure. I like TD for this reason. I also have Citi as a VERY long play (grabbed this one in 2008 when it crashed). Canadian banks are pretty solid.
GRAPHENE: This is a shot in the dark. Many are penny stocks with negative balance sheets, you can win big (lucky) and loose big (most likely). The key is to take your profits at the right time or get out fast if it goes south, this will parallel the .com and biotech booms IMO. If you get greedy and hold on too long hoping for the next Apple/Microsoft you may end up with a Commodore… The bigger companies (lower risk) that are in the field are too diversified to see a big win on graphene alone.
US EXPOSURE: IMO the US will have some solid growth in the next couple of years, maybe longer. Canada looks a little weak (US will out strip us on growth). I also think the Canadian Dollar will be dropping down into the 60s in the near future. For this reason I have been in general increasing my US stock holdings (win on dollar, win on growth). Just bought a S&P ETF for this reason, not sexy but…
OIL: I am going to wait this one out and hope to catch it at the bottom (not there yet). The echo in profits has not been fully felt yet, give it six months…
RAIL: I like rail, I have done very well here. **** needs to get moved...
In general I tend to focus on solid financials and strong dividends (but never more than half EPS) these days. The stock price does not grow all that fast but the risk is lower. Make sure to do a DRIP so you get the compounded growth. I already did the paper millionaire .COM boom with the paper 1000aire outcome so I keep the harebrained schemes to a min, but still do some… Not too sexy these days but I am consistently getting year over year 20 to 30% growth in my portfolio entirely on my stock “pics”, much better than interest from the banks (or my pillow). Did I mention DRIP!
As for some of the stock investing outlined in this thread, here are some comments, just my opinion of course…:
BANKS: I like banks and I am trying to maximize US exposure. I like TD for this reason. I also have Citi as a VERY long play (grabbed this one in 2008 when it crashed). Canadian banks are pretty solid.
GRAPHENE: This is a shot in the dark. Many are penny stocks with negative balance sheets, you can win big (lucky) and loose big (most likely). The key is to take your profits at the right time or get out fast if it goes south, this will parallel the .com and biotech booms IMO. If you get greedy and hold on too long hoping for the next Apple/Microsoft you may end up with a Commodore… The bigger companies (lower risk) that are in the field are too diversified to see a big win on graphene alone.
US EXPOSURE: IMO the US will have some solid growth in the next couple of years, maybe longer. Canada looks a little weak (US will out strip us on growth). I also think the Canadian Dollar will be dropping down into the 60s in the near future. For this reason I have been in general increasing my US stock holdings (win on dollar, win on growth). Just bought a S&P ETF for this reason, not sexy but…
OIL: I am going to wait this one out and hope to catch it at the bottom (not there yet). The echo in profits has not been fully felt yet, give it six months…
RAIL: I like rail, I have done very well here. **** needs to get moved...
In general I tend to focus on solid financials and strong dividends (but never more than half EPS) these days. The stock price does not grow all that fast but the risk is lower. Make sure to do a DRIP so you get the compounded growth. I already did the paper millionaire .COM boom with the paper 1000aire outcome so I keep the harebrained schemes to a min, but still do some… Not too sexy these days but I am consistently getting year over year 20 to 30% growth in my portfolio entirely on my stock “pics”, much better than interest from the banks (or my pillow). Did I mention DRIP!
I wouldn't (don't put all your eggs in one basket) ... but a chunk of it in a dividend-paying bank stock, another chunk in a dividend-paying utility/telco, another chunk in a big-cap dividend-paying energy stock, and another chunk of it in some other dividend-paying large cap of your choice (pick a different sector), and the rest split up among a bunch of dividend-paying small caps, is a not unreasonable plan.
I buy and sell, but even without doing that, just the dividends on these will do better than sitting on cash in a bank account.
Bonds have done well in the decreasing-interest-rate environment of the last several years - I've always thought rates were done going down and then they kept going down - but it's hard to imagine this continuing. If/when rates go up, people sitting in fixed income will see their portfolio value go down. If they stick it out and hold the bond until maturity ... they won't actually lose money unless they sell out early. Lots of people are in fixed income for the very reason that they don't have the stomach for that, and sell when they shouldn't. I'm not a fixed-income guy, and bonds are hard for most individuals to trade, and I've had enough of paying mutual fund managers their cut. Therefore ... no fixed income in my portfolio.
I'm running an experiment that started on Monday. I use a financial guy because I have a job that's not money, and his job is money. So I have taken a small pot of cash and am investing based on what I'm hearing here and will monitor his choices for my money over a six month run and report back. If it turns out you guys are as clever as the wall of traders over at Edward Jones I will have learned something.
Do NOT recommend this action!!
These types of experiments are best run in a fantasy portfolio. Yahoo finance works well for just this type of thing.
I've tracked several of Cramer's Mad Tips using this method since he cut ties with Larry Kudlow. Very surprising & interesting at the same time.
I'm into HOD.TO as of 15 minutes ago. (9.78 )
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How have you done om Cramers tips?
You guys have really got me interested into this thing. I've always been of the old school 'save save save' mentality (European background maybe?) and haven't really focused on building a portfolio for future growth.
I'd be interested in a fairly conservative investment, dividend paying especially.
Recommended reading? Knowledge base to get started on this type of thing? Mid 30s here so probably should start building more than a ING savings/RSP account for future retirement purposes.
I'd be interested in a fairly conservative investment, dividend paying especially.
Recommended reading? Knowledge base to get started on this type of thing? Mid 30s here so probably should start building more than a ING savings/RSP account for future retirement purposes.
I have a little over 100 of his picks on my radar. I plug in "1" unit, and enter the price at that time.
At the moment, overall, it's up 48.71%. That's after a few years. Some are down over 200%, and vise versa.
I don't think I've bought a single one of his picks, unless he picked AliBaba. I don't watch his show religiously, as I used to.
Please seek assistance from a financial advisor where you do your banking. It's free. It helps you sleep at night.
As you learn (whether by doing your own due diligence, or otherwise) you may want to book 5 -10% of your investment money in stock(s).
Conservative / divi paying mutual funds make a decent footing.
Talk to an advisor - please.
General idea is to make sure every dollar you have has a job and isn't just sitting around.
For example, I have to pay off $8000 for school in August. Some of that money is in a year long GIC (from last August), and the money I'm getting now it's going into a money market fund (you can't lose money from this).
All the other income I have that isn't budgeted towards food or clothing, but instead for crazy expensive stuff like a new bike, house, vacation, retirement, etc. is thrown into stocks.
Stock specific tips can be read in many books, just go browse chapters. AND MAKE SURE YOU READ MORE THAN ONE BOOK!
http://www.amazon.ca/The-Intelligent-Investor-Definitive-Investing/dp/0060555661
Everything else is speculation.
strictlye
Well-known member
A few years ago I advised people to by bank stocks during the financial crisis. Most critized but those of you who listened more than doubled your initial investment.
That was then. Aside from oil, what's on the horizon?
More banks?
(I have funds heavy in banks - both sides of the border. They've put a smile on my face in the last 10yrs).
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