tag:blogger.com,1999:blog-84093522268649244542024-02-08T12:21:13.054-08:00Peter InvestsAn everyman's guide to the world of investmentsAnonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.comBlogger46125tag:blogger.com,1999:blog-8409352226864924454.post-89242449626780365522017-04-27T01:14:00.000-07:002017-04-27T01:14:11.452-07:00Canadian Gambling stocks<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.roulette30.com/wp-content/uploads/commonpockets.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.roulette30.com/wp-content/uploads/commonpockets.jpg" height="212" width="320" /></a></div>
<br />
<br />
Gambling is good business. People go without pressure around the world into casinos everyday knowing full well that every bet they make, the house has a mathematical advantage over you, it's true, we all know that. Yet we all have bet some money hoping beyond hope that we can be one of the lucky ones.<br />
<br />
That compelling urge of millions of regular people giving away their money to gambling establishments gives me the argument, why can't I be on the other side raking in the money? Well with these 3 Canadian stocks listed on the TSX, you can be.<br />
<br />
Without further fanfare, I give you:<br />
<br />
<b><u>Amaya Inc </u> (TSX:AYA)</b><br />
<b><br /></b>
Amaya does not operate any physical casinos or any buildings you can go into. They own PokerStars and Full Tilt Poker, which when combined together is the dominant player in this market share of online poker.<br />
<br />
Now there was a lot of press regarding the insider trading scandal with former CEO David Baazov being charged and the trail is still going on but now that Baazov has officially left the company, things can move forward.<br />
<br />
The good news is that in 2016, Amaya generated $355 Million in free cash flow which will be applied against their debt. If everything continues as is in terms of budgeted cash flow, their debt will be paid off in a few years.<br />
<br />
Another interesting thing about Amaya is that it collects most of its revenue in Euros while reporting in U.S. dollars. Currently the Euro is at about a 5 year low thanks for the Brexit vote against the U.S. dollar so if the Euro strengths against the U.S. Dollar, Amaya's position will improve without doing much, similar to an improved currency exchange.<br />
<br />
Amaya does not pay a dividend.<br />
<br />
<b><u>Gamehost </u> (TSX: GH)</b><br />
<b><br /></b>
Gamehost owns 3 physical casinos in Alberta and it has been tough the last few years for them as Alberta's economy has been hit and with the most recent Fort McMurray wildfire, they had to shut down one of their properties for a while.<br />
<br />
But as the greatest investor of all time, Warren Buffet says "buy when there is blood on the street". Well in this case, its wildfires in the street and once again, consider the URGE factor for gamblers, it continues despite outside influences.<br />
<br />
Gamehost currently trades at a 15 times their earnings. The classic P/E ration screening test. This gives it a very attractive valuation. Also GH pays a very healthy dividend, currently a yield of 5.75% monthly. How about that, on top of having the house advantage on every bet, you get a monthly dividend.<br />
<br />
As Alberta's economy improves, there is always chances for dividend increases.<br />
<br />
<b><u>Great Canadian Gaming</u> (TSX:GC)</b><br />
<b><br /></b>
GC is Canada's largest publicly traded casino operator. It has 20 casinos and racetracks in British Columbia, Ontario, Nova Scotia, New Brunswick, and Washington State.<br />
<br />
The company has done well in the last few years, with net income in 2016 of $75 million. GC does not pay a dividend but uses its profits to open new locations and upgrade existing establishments. It also has a buyback program, buying back more than 6 million shares or close to 10% of is total shares in 2016.<br />
<br />
<u style="font-weight: bold;">Conclusion</u><br />
<br />
Canada has a few interesting choices in gambling stocks and I have outlined 3 of them above. I am all for diversifying but the general consensus in Canada is to buy banks, utilities, oil stocks, etc. I give an option to expand your portfolio to include gambling stocks much like how I encouraged Food stocks in a previous posts. It's your money and you can diversify just like the experts by doing your homework and picking what you feel works for you. That being said, any one of the above gambling stocks would look good in any portfolio.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-14160468094341373062017-03-16T13:24:00.000-07:002017-03-16T13:24:31.339-07:00Marijuana Stocks in Canada<div class="separator" style="clear: both; text-align: center;">
<a href="http://cdn.saultonline.com/wp-content/uploads/2016/06/medicalmarijuana.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://cdn.saultonline.com/wp-content/uploads/2016/06/medicalmarijuana.jpg" height="213" width="320" /></a></div>
<br />
<br />
The last few months have revealed that a lot of investors have gotten onboard the Marijuana wave. Marijuana stocks such as Canopy Growth Corp (WEED.TO) have been touted as the next "can't miss" investment in North American and especially in Canada where the Federal Government will sometime in 2017 announced that selling weed will be legal.<br />
<br />
Estimates vary but the size of the Marijuana market in Canada is estimated to be between $15 to $25 Billion each year.<br />
<br />
Despite the hype, a prudent investor needs to understand where they are putting their money. Here are some reasons to consider before investing in weed:<br />
<br />
<b><u>Excessive valuations</u></b><br />
<br />
Canopy Growth Corp is valued at $1.8 Billion and was just recently added to the TSX Composite Index which will add fuel to the valuation going forward. But Canopy is a very expensive stock right now, it did $30 Million in sales in the last 12 months and this gives it a P/E ratio of 60 times. Now using the P/E ratio on a risky stock really doesn't apply and also to compare it to other stocks in the same category again does not work. Canopy is going into uncharted waters with such a lofty valuation based on "what might happen" in the future. If something goes wrong where what happens does not exactly happen that way, what would become of this stock. <br />
<br />
Analysts have predicted, even if the Federal government passes legislation legalizing Marijuana, it could take at least 2 years for Canopy to make a profit.<br />
<br />
<b><u>Old saying</u></b><br />
<br />
There is a very interesting term in investing called "buy the rumour, sell the news". I actually have seen this happen a few hundred times.<br />
<br />
When the Trudeau government finally announces that Weed is legal, it may send the stock crashing down<br />
<br />
<b><u>Sin Stock</u></b><br />
<br />
In Canada, there are not a lot of sin stocks to invest in. In the States, there are casinos, brothels, cigarette producers, weapons manufacturers, alcohol, and prison stocks. These are called sin stocks, where what they produce, service, or provide causes harm to someone somewhere. If you value a stock to not harm anyone with your investment dollars then Marijuana stocks may not be for you.<br />
<br />
<b><u>Final Thoughts</u></b><br />
<br />
It comes down to this. Legal Marijuana will be big business in Canada, but that doesn't mean any of the pot producers will be good investments. Currently Canopy Growth Crop (WEED) and Aurora Cannabis Inc (ACBFF) are trading at very lofty valuations similar to the tech stocks during the dot com craze. Whenever there are such lofty valuations, no one knows which way the stock will go, up or down.<br />
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-59521260947427495922017-02-23T02:04:00.000-08:002017-02-23T02:04:10.931-08:00Munch down on Canadian Dividends<div class="separator" style="clear: both; text-align: center;">
<a href="https://pbs.twimg.com/profile_images/1731966128/YGEH_LogoDev_June07b_FINAL1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="303" src="https://pbs.twimg.com/profile_images/1731966128/YGEH_LogoDev_June07b_FINAL1.jpg" width="320" /></a></div>
<br />
<br />
Now in Canada we may not have the same number of food companies on our stock exchange but there are a few interesting choices. There are a few good dividend payers and some that are have too high of a yield that it makes it sense that a dividend cut is its future plans. Regardless of the dividend, you can be a shareholder of a company and whenever you see someone eating something from that company, you can take a warm feeling that person is lining your pockets with dividends. You may or may not have dined at these establishments but you will for sure recognize the brand. There is a saying, if you don't understand the company, don't buy into it. Well how easy is it too understand a company except to munch down on their product. Without further fanfare, here are some Canadian Food stock dividend payers:<br />
<br />
The Keg (KEG.UN) yield 5.37%<br />
<br />
The Keg Royalties Income Fund is actually not a stock but an open ended trust. The trust pays monthly distribution is has consistently had attractive high yield. The main objective of the fund is to pay the highest sustainable distribution to its shareholders through it's stores. What more can you ask for, the fund is designed to pay monthly and provide the highest yield possible. If you like your steak with a side of high yield then this stock maybe on your radar.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://placevillemarie.com/images/logo/logo_thekeg_72.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://placevillemarie.com/images/logo/logo_thekeg_72.jpg" height="96" width="320" /></a></div>
<br />
<br />
Boston Pizza (BPF.UN) yield 6.01%<br />
<br />
The Boston Pizza Royalties Income Fund is an open ended trust fund. This is not actually a stock that owns the Boston Pizza restaurants like you think. They own the Canadian rights to the Boston Pizza trademark. Which in turn the restaurants have to pay a royalty to use. So basically this fund is indirectly receiving money through royalties from the restaurants. The high yield is somewhat safe as the fund is designed to distribute monthly all available cash to its unit holders after it cash for working capital and a reserve are satisfied. So if you like Boston Pizza's famous pizza sauce then this stock may just be right for you.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://upload.wikimedia.org/wikipedia/en/thumb/2/20/Boston_Pizza.svg/1024px-Boston_Pizza.svg.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://upload.wikimedia.org/wikipedia/en/thumb/2/20/Boston_Pizza.svg/1024px-Boston_Pizza.svg.png" width="320" /></a></div>
<br />
<br />
SIR Royalty Income Fund (SRV.UN) yield 7.69%<br />
<br />
SIR Royalty Income Fund is in the business of owning and operating full service restaurants in Canada. It operates concept restaurants including Jack Astors, Canyon Creek Chop House and Loose Moose Tap & Grill. The fund intends to pay monthly distributions. So if either of the above brands interest you, then again this stock may be right for you.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://upload.wikimedia.org/wikipedia/en/4/43/Jack_Astor's_Bar_%26_Grill_logo.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://upload.wikimedia.org/wikipedia/en/4/43/Jack_Astor's_Bar_%26_Grill_logo.png" /></a></div>
<br />
<br />
Pizza Pizza (PZA.UN) yield 4.83%<br />
<br />
Pizza Pizza Royalty Corp owns the trademarks and trade names used by all it's franchisees. Pizza Pizza franchises dominate the quick serve pizza industry in Ontario. It also operates Pizza 73 in Western Canada which has over 100 stores. Pizza Pizza has long been a staple in Ontario and now with this stock you will reap the benefits every time you see someone walk out of a store with takeout. So next time you are wondering what stock to buy, think of some dipping sauce with that slice of dividend you could get with this stock.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://vps31234.vps.ovh.ca/wp-content/uploads/2014/10/pizza_pizza1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://vps31234.vps.ovh.ca/wp-content/uploads/2014/10/pizza_pizza1.jpg" height="123" width="320" /></a></div>
<br />
<br />
A & W (AW.UN) yield 4.02%<br />
<br />
A & W Revenue Royalties Income Fund is a Canada based limited purpose fund. The fund owns the trade mark and rights to the A&W name in Canada. The fund's objective is maintain an annual payout ratio of 100%. Now that number to me is very impressive. The fund's sole purpose to pay monthly distributions to its unit holders through the royalties from over 800 A&W restaurants in Canada. I am sure you have seen the commercials but with this fund, all those commercials will be helping you get more dividends into your account.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://windsorite.ca/wp-content/uploads/2016/06/1464977517.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://windsorite.ca/wp-content/uploads/2016/06/1464977517.png" height="153" width="320" /></a></div>
<br />
<br />
MTY Food Group (MTY) yield 0.96<br />
<br />
MTY Food Group is a Canadian company that franchises and operates quick service restaurants in Canada. It has 4 segments to its business, Corporate, Franchising, Distribution, and Processing. Basically it does all the backend work all the way to consumer getting the product. It operates under multiply banners with well known names such as Villa Madina, Thai Express, Yogen Fruz and Cultures. Well established quick service restaurants and well known. So next time you are wondering around the food court in the mall and notice of these names, you can rest assured that that lineup to buy food is also giving you dividends and is bolstering your trading account.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://www.mallmaverick.com/system/stores/store_fronts/000/010/860/original/villamadina.jpg?1452741778" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://www.mallmaverick.com/system/stores/store_fronts/000/010/860/original/villamadina.jpg?1452741778" width="320" /></a></div>
<br />
<br />
Second Cup (SCU) no yield<br />
<br />
The Second Cup Ltd is a Canadian based specialty coffee retailer. There are about 310 cafes operating under the brand name Second Cup in Canada. There are about 30 Corporate stores but the rest are franchise based. Besides the coffee, it also offers sandwiches, muffins, cookies, and a wide range of coffee related products. So next time you get a coffee at Second Cup you can be confident that cup of java is giving you money if you own this stock.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.businessexchange.ca/wp-content/uploads/2016/05/SECOND-CUP-FRANCHISE-CAFE-FOR-SALE.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.businessexchange.ca/wp-content/uploads/2016/05/SECOND-CUP-FRANCHISE-CAFE-FOR-SALE.gif" height="213" width="320" /></a></div>
<br />
<br />
Now all of these are stocks and not mutual funds even tho they are called income fund, or royalty fund. There are no MER funds associated with these stocks. They are all available to be purchased on the Toronto Stock Exchange any time, you just have to wait for the right price for you, remember buy low sell high. It still holds true for dividend stocks.<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-17787441802062893322017-02-15T22:15:00.000-08:002017-02-15T22:15:19.402-08:00Munch down on U.S. Dividends<div class="separator" style="clear: both; text-align: center;">
<a href="http://a.abcnews.com/images/Business/abc_us_food_chains_expand_infographic_16x9_16x9_608.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://a.abcnews.com/images/Business/abc_us_food_chains_expand_infographic_16x9_16x9_608.jpg" height="180" width="320" /></a></div>
<div>
<br /></div>
<div>
<br /></div>
Restaurant stocks are a little risky, since they are subject to food scares, seasonal demand, and recessions but they are fun and colourful, especially if they pay a dividend. It's always fun to see someone eat a burger and have a certain great feeling that they are contributing to your RRSP or profit in your account. The U.S. has a treasure trove of restaurant stocks, some very well known, some regionally known. Whatever the stock, if it pays a dividend, it will get onto my radar.<div>
<br /></div>
<div>
Making income though dividend investing involves searching for solid companies that have a good chance of increasing the dividend year after year. As the company's sales and profits grow, dividends usually grow also, and the money you get through dividends can be reinvested or used as cash.</div>
<div>
<br /></div>
<div>
With interest rates giving less than 1 percent on GICs and other "safe" investments, investors looking for yield can look at U.S. Restaurant stocks.</div>
<div>
<br /></div>
<div>
Without much fanfare, here are a few of my favourite U.S. Restaurant stocks:</div>
<div>
<br /></div>
<div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://upload.wikimedia.org/wikipedia/en/thumb/b/bc/Applebee's.svg/1280px-Applebee's.svg.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="148" src="https://upload.wikimedia.org/wikipedia/en/thumb/b/bc/Applebee's.svg/1280px-Applebee's.svg.png" width="320" /></a></div>
<div style="font-family: Helvetica; font-size: 12px; line-height: normal;">
<br /></div>
</div>
<div>
<br /></div>
<div>
Dine Equity (ticker: DIN). Who doesn't like fluffy pancakes and affordable seafood? Dine Equity known for International House of Pancakes and Applebee's gives a great dividend yield of 5.81% with a low P/E ratio of 12.09. They also are raising their dividend payouts 2 times in the last 3 years.</div>
<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://upload.wikimedia.org/wikipedia/en/thumb/b/b8/Dunkin'_Donuts_logo.svg/1280px-Dunkin'_Donuts_logo.svg.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="119" src="https://upload.wikimedia.org/wikipedia/en/thumb/b/b8/Dunkin'_Donuts_logo.svg/1280px-Dunkin'_Donuts_logo.svg.png" width="320" /></a></div>
<div>
<br /></div>
<div>
<br /></div>
<div>
Dunkin Brands Group (ticker DNKN). If you love the stability of a good coffee and donut company then look no further than Dunkin Donuts. This iconic brand in the U.S. increases their dividend annually and pays a respectable 2.31 percent yield. With a lower yield provides more space for the dividend to be paid for a very long time. The company is adding Franchises even tho they are a very large company. With recent earnings beats and dividend hikes, this company looks to be as strong as ever.</div>
<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="http://vignette3.wikia.nocookie.net/logopedia/images/4/45/Taco_Bell.svg/revision/latest/scale-to-width-down/200?cb=20100117213647" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://vignette3.wikia.nocookie.net/logopedia/images/4/45/Taco_Bell.svg/revision/latest/scale-to-width-down/200?cb=20100117213647" height="200" width="156" /></a></div>
<div>
<br /></div>
<div>
<br /></div>
<div>
Yum Brand (ticker YUM). Another above average restaurant stock with a dividend yield above the industry average. Yum Brands is known for KFC, Taco Bell, and Pizza Hut. This stock pays a yield of 2.52% which at this level is very sustainable for the near future. With a very strong history of annual dividend hikes, you will sure be enjoying your fried chicken or pizza more than usual.</div>
<div>
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://upload.wikimedia.org/wikipedia/en/thumb/f/fb/OliveGardenNewLogo2014.png/225px-OliveGardenNewLogo2014.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="https://upload.wikimedia.org/wikipedia/en/thumb/f/fb/OliveGardenNewLogo2014.png/225px-OliveGardenNewLogo2014.png" /></a></div>
<div>
<br /></div>
<div>
<br /></div>
<div>
Darden Restaurants (DRI). Known for family favourites such as Olive Garden and Longhorn Steakhouse. Darden boasts a dividend yield of 2.94% and very strong history of raising dividend payouts, you will be enjoying these dividends with your family meal. Darden has a strong management team that delivers value to shareholders through cost controls and delivering a consistent dining experience. They have diversified their company with a more upper class dining experience by purchasing The Capital Grille.</div>
<div>
<br /></div>
<div>
So there you have some of the more stable dividend U.S. Restaurant stocks out there. Of course as with all advice, please do your own research.</div>
<div>
<br /></div>
<div>
Disclamer : I do not own any of the above stocks mentioned in this article.</div>
<div>
<br /></div>
<div>
<br /></div>
<div>
<br /></div>
<div>
<br /></div>
Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-70445356841935543252016-12-12T22:22:00.000-08:002016-12-12T22:22:01.616-08:00This goes against my dividend ideology but consider…...<div class="separator" style="clear: both; text-align: center;">
<a href="http://energyandgold.com/wp-content/uploads/2016/06/crude-and-gold-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://energyandgold.com/wp-content/uploads/2016/06/crude-and-gold-1.jpg" height="195" width="400" /></a></div>
<br />
<br />
So as most people I talk to regarding stocks, investing, money management probably know that I am a strong advocate of dividend investing. Buying quality stocks that pay a good dividend, raises its dividend regularly, has a good dividend payout ratio, has a good P/E ratio, and is a good DRIP candidate.<br />
<br />
But after 31 stocks that I have purchased over time and have been dripping for a while now, things need to be more entertaining.<br />
<br />
In my talks with many individuals, I engaged in conversation with 1 person regarding options trading. Amazing returns in short periods of time, sometimes in minutes such as when you buy calls or puts right before an earnings report. So basically, buying either puts or calls is your gamble on whether the stock goes up or down. With dividend investing, you are basically only betting on the stock going up, going up means you are making money. When a stock goes down, you lose money. <br />
<br />
With call options, you make money when the stock goes up.<br />
<br />
With put options, you make money when the stock goes down.<br />
<br />
Now options trading requires an entirely new type of trading account, an account on margin, basically you are trading on credit. Now to me that is too much work, I am happy with my regular trading account where I can buy stocks and ETFs. But how can my regular trading account benefit from something going down.<br />
<br />
Consider Horizon ETFs, in particular commodity leveraged ETFs and commodity leveraged inverse ETFs. Here is there link <a href="http://www.horizonsetfs.com/" target="_blank">Horizon ETFs</a><br />
<br />
The 4 or in this case 8 ETFs that I have added to my watch list are HOU.TO, HOD.TO, HGU.TO, HGD.TO, HZU.TO, HZD.TO, HNU.TO and HND.TO<br />
<br />
So to understand what each ETF does, look at the letters in the ticker. The "H" simply means its an Horizions ETF, the next letter is either U or D, up or down. The 3rd letter tells you what this ETF is tracking, O is Crude (Oil), G is gold, Z is Silver, and N is Natural Gas. All of these commodities are tracked daily on sites like <a href="http://www.cnbc.com/" target="_blank">CNBC</a> and <a href="http://bnn.ca/" target="_blank">BNN</a> .<br />
<br />
So after you add to these to your watch list and start to see how they react to commodity prices. If the price of crude goes up 4% then the HOU etc goes up about 8%. Yes that right, you can make 8% in 1 trade. Remember the ETF is leveraged so anything the commodity does, its 2 times. Now if the price of Crude drops 4%, the HOD ETF will gain 8%. How is that possible, remember its inverse leveraged, the "DOWN" ETF likes when something goes down.<br />
<br />
These ETFs can be used as a day trade only, do not hold these any longer. The leveraged aspect of them is very powerful.<br />
<br />
So add these tickers to your watch list if you want to gamble a bit without opening an options account.<br />
<br />
Disclaimer : I have traded all of the ETFs above.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-6931126872478381732016-09-09T20:06:00.001-07:002016-09-09T20:06:47.515-07:00Hate paying bills? Get back at them by investing in them.<div class="separator" style="clear: both; text-align: center;">
<a href="http://i.huffpost.com/gen/1941934/images/o-BILLS-OVERDUE-facebook.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://i.huffpost.com/gen/1941934/images/o-BILLS-OVERDUE-facebook.jpg" height="200" width="400" /></a></div>
<br />
We all have to do it. Pay bills. We all hate it. There is no way to get away from it. "They" get richer and we get poorer. The only way to get back at them is to invest in them. If you can't beat them, join them. The old saying goes. For all the money you pay into your bills, remember there are hundreds, thousands, even millions of people paying the same bill. What does that mean to the company receiving the money? Profits. Revenue. Goods sold. If you ever thought that a bill you are paying will ever stop. Think of it this way, the company on the receiving end thinks the same way but in a greedy way. They like your money.<br />
<br />
The following are 2 bills that everyone hates to pay and why you should invest in them.<br />
<br />
<b><u>Telus Corporation (T.TO)</u></b><br />
<b><u><br /></u></b>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.jnmjournal.com/wp-content/uploads/2014/02/telus.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://www.jnmjournal.com/wp-content/uploads/2014/02/telus.jpg" height="174" width="320" /></a></div>
<br />
Telus is considered to one of the big 3 stocks in telecommunications so if you own a cell phone, chances are you pay Telus a bill. They like overages on your data plan, they like overages on your day time minutes. All more money for them, more out of your pockets. Get back at them by investing in them.<br />
<br />
Telus is considered a forever stock with a great dividend. Basically you buy the stock and hold it forever and watch the dividends grow. Over the years Telus has developed a reputation as one of the better dividend paying stocks on the TSX. It continues to today.<br />
<br />
Telus currently pays out a quarterly dividend of $0.46 per share which given the current stock price of $42.03 gives the company a handsome and attractive dividend yield of 4.37% The company has been raising the dividend for several years, which is likely to continue for the next few years. The projected dividend growth rate is 8% per year. By comparison and to see exactly what is happening. A decade ago, Telus' dividend was $0.136 per share. In addition to having one of the most safest and best dividends currently, Telus has also engaged in share buy back programs over the years and this has pushed the stock price higher.<br />
<br />
Besides having one of the best dividends on the TSX, Telus is also a growth stock. It is one of those rate stocks that can provide great dividends and growth over time. While the growth is not the quickest, it is in most part - stable. The stock is currently trading at $42.03 and over the past 3 years has appreciated by 31%.<br />
<br />
Onto the numbers. There are many metrics that can and will be used to determine if a stock is a good buy or not. For Telus, the current payout ratio is 73.95% Most investors like a payout ratios to be under 80% which basically tells us that Telus can maintain paying their current dividend very easily for the long term.<br />
<br />
In the short term, the Beta is currently at 0.55 The Beta basically tells us that if it is under 1, the stock is not volatile compared to the market. If it is at 1 or over, then the stock price can change violently compared to the market. Telus' Beta is good.<br />
<br />
So using my theory of 1 Drip. You can purchase 100 shares of Telus for $4,203 and receive $46 in dividends which you will register as a DRIP. The next time you get a dividend it will be 101 shares paying you $46.46 and so on and so on. This setup should keep you in DRIPs and additional stocks for a long time. (just as long as the price of the stock does not go above $46 - but then that is a good thing)<br />
<br />
<b><u>Enbridge Inc (ENB.TO)</u></b><br />
<b><u><br /></u></b>
<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.cp24.com/polopoly_fs/1.1663921.1391129700!/httpImage/image.jpg_gen/derivatives/landscape_960/image.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://www.cp24.com/polopoly_fs/1.1663921.1391129700!/httpImage/image.jpg_gen/derivatives/landscape_960/image.jpg" height="112" width="200" /></a></div>
<b><u><br /></u></b>
Don't like to pay that gas bill from Enbridge. Get back at them. Invest in them. Enbridge's business is the transporting and distributing of energy in Canada and the United States. They have pipelines and terminals. They are also involved in renewable energy projects such as wind, solar, and geothermal projects.<br />
<br />
Enbridge distributes natural gas to 2.1 million customers.<br />
<br />
Now when you think of Enbridge, you think of the price of crude and if the price of crude goes down, Enbridge goes down with it. Enbridge is a lower risk investment than the many other energy companies. Less than 5% of its business is subject to direct commodity price exposure. Further, 95% of its cash flows come from strong, long-term contracts.<br />
<br />
Onto the numbers. Enbridge's payout ratio is currently 40% and using the 80% rule, this tells us the dividend is safe and is positioned to grow.<br />
<br />
The Beta for Enbridge is 0.66 which tells us that the stock price will not change violently compared to the market.<br />
<br />
Enbridge's current quarterly dividend is $0.53 giving a dividend yield of 3.65% at the current stock price of $58.11 Using the 1 Drip model. You should purchase 120 shares which will give you a dividend payment of $63.60, with the annual dividend hikes, you should be setup for many years with a purchase like this.<br />
<br />
DISCLOSURE - I own shares of TelusAnonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-39550204177166613732016-08-21T21:10:00.001-07:002016-08-21T21:10:29.829-07:00Investment metrics : Raising dividends<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.dividend.com/media/W1siZiIsIjIwMTYvMDUvMTYvNHNyM24zcDhld19EaXZpZGVuZF95aWVsZF9wcm9pZnRfYW5kX3JldHVybi5qcGciXSxbInAiLCJ0aHVtYiIsIjYwMHgzMTVeIl1d/Dividend%20yield%20proift%20and%20return.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.dividend.com/media/W1siZiIsIjIwMTYvMDUvMTYvNHNyM24zcDhld19EaXZpZGVuZF95aWVsZF9wcm9pZnRfYW5kX3JldHVybi5qcGciXSxbInAiLCJ0aHVtYiIsIjYwMHgzMTVeIl1d/Dividend%20yield%20proift%20and%20return.jpg" height="213" width="320" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<br />
<br />
Another metric that I use when determining when to put my hard earned money to invest is raising dividends. I like dividend investing, pick your stock, investigate whether it is fits your criteria to be in your portfolio. Of course, neither me or anyone else can control whether the stock price goes up or down. I would be lying if I only purchased stocks that increase in value. That fact is, we can't control anything when it comes to the price of the stock. What we can control is when to buy and dividends. For a long term perspective, raising dividends appeal to me, a company that pays outs dividends has an obligation from the board of directors to maintain profits. In fact, if a company hikes dividends on a regular basis, this translates into the board of directors having not only to maintain profits but to increase them. <br />
<br />
An example of the type of chart to look for would be Fortis (FTS.TO). Currently at a stock price of $42.95 with a quarterly dividend of $0.375 per share, Fortis' dividend yield is 3.49% The dividend yield for any stock can be calculated by this simple formula.<br />
<br />
Dividend per share paid times number of times paid during year / stock price<br />
<br />
In Fortis' case, the calculation would be:<br />
<br />
(0.375 x 4) / 42.5 = 3.49%<br />
<br />
The formula can be changed easily when dividends are paid monthly as opposed to quarterly simply by change the 4 to a 12 in the above formula.<br />
<br />
That being said, my ideal stock would have a dividend yield between 3.00% to 5.50% This is what I would consider the sweet spot of dividend yields. It gives you enough skin in the game and is also not being greedy. There are tons of stocks with dividend yields above 5.50% but a high yield indicates a possible dividend cut. Who wants that. <br />
<br />
Here is a chart that sums up the last 4 years of dividend payments for Fortis:<br />
<br />
<br />
<br />
<html xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mv="http://macVmlSchemaUri" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:v="urn:schemas-microsoft-com:vml" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<link href="FTS%20word%20html_files/filelist.xml" rel="File-List"></link>
<!--[if gte mso 9]><xml>
<o:DocumentProperties>
<o:Author>Alanna Fong</o:Author>
<o:LastAuthor>Alanna Fong</o:LastAuthor>
<o:Revision>2</o:Revision>
<o:TotalTime>1</o:TotalTime>
<o:Created>2016-08-22T03:46:00Z</o:Created>
<o:LastSaved>2016-08-22T03:46:00Z</o:LastSaved>
<o:Pages>1</o:Pages>
<o:Words>58</o:Words>
<o:Characters>333</o:Characters>
<o:Lines>2</o:Lines>
<o:Paragraphs>1</o:Paragraphs>
<o:CharactersWithSpaces>390</o:CharactersWithSpaces>
<o:Version>14.0</o:Version>
</o:DocumentProperties>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<link href="FTS%20word%20html_files/themedata.xml" rel="themeData"></link>
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:SpellingState>Clean</w:SpellingState>
<w:GrammarState>Clean</w:GrammarState>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<style>
<!--
/* Font Definitions */
@font-face
{font-family:"\FF2D\FF33 \660E\671D";
panose-1:0 0 0 0 0 0 0 0 0 0;
mso-font-charset:128;
mso-generic-font-family:roman;
mso-font-format:other;
mso-font-pitch:fixed;
mso-font-signature:1 134676480 16 0 131072 0;}
@font-face
{font-family:"\FF2D\FF33 \660E\671D";
panose-1:0 0 0 0 0 0 0 0 0 0;
mso-font-charset:128;
mso-generic-font-family:roman;
mso-font-format:other;
mso-font-pitch:fixed;
mso-font-signature:1 134676480 16 0 131072 0;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-unhide:no;
mso-style-qformat:yes;
mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"\FF2D\FF33 \660E\671D";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
.MsoChpDefault
{mso-style-type:export-only;
mso-default-props:yes;
font-size:10.0pt;
mso-ansi-font-size:10.0pt;
mso-bidi-font-size:10.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"\FF2D\FF33 \660E\671D";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page WordSection1
{size:612.0pt 792.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:35.4pt;
mso-footer-margin:35.4pt;
mso-paper-source:0;}
div.WordSection1
{page:WordSection1;}
-->
</style>
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]--><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1027"/>
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1"/>
</o:shapelayout></xml><![endif]-->
</head>
<body bgcolor="white" lang="EN-US" style="tab-interval: 36.0pt;">
<div class="WordSection1">
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: 4.65pt; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184; width: 148px;">
<tr style="height: 15.0pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td nowrap="" style="border: solid windowtext 1.0pt; height: 15.0pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Dividend
Date<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-left: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Dividend<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 1;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
</div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div class="MsoNormal">
</div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 2;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Aug 17,
2016<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.375<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 3;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">May 16,
2016<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.375<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 4;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Feb 15,
2016<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.375<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 5;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Nov 16,
2015<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.375<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 6;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Aug 17,
2015<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.34<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 7;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">May 14,
2015<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.34<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 8;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Feb 12,
2015<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.34<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 9;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Oct 22,
2014<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.32<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 10;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Aug 13,
2014<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.32<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 11;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">May 14,
2014<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.32<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 12;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Feb 12,
2014<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.32<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 13;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Nov 13,
2013<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.31<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 14;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Aug 14,
2013<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.31<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 15;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">May 15,
2013<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.31<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 16;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Feb 12,
2013<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.31<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 17;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Nov 14,
2012<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.3<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 18;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Aug 15,
2012<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.3<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 19;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">May 15,
2012<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.3<o:p></o:p></span></div>
</td>
</tr>
<tr style="height: 15.0pt; mso-yfti-irow: 20; mso-yfti-lastrow: yes;">
<td nowrap="" style="border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 83.0pt;" valign="bottom" width="83">
<div class="MsoNormal">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Feb 13,
2012<o:p></o:p></span></div>
</td>
<td nowrap="" style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 65.0pt;" valign="bottom" width="65">
<div align="right" class="MsoNormal" style="text-align: right;">
<span style="color: black; font-family: Calibri; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">0.3<o:p></o:p></span></div>
</td>
</tr>
</table>
<div class="MsoNormal">
</div>
</div>
</body>
</html>
As you can, the amount of the dividend paid by the company increases once a year. I like that. If I was to go further back, I would see regular increases once a year. Again I like that. This is the type of chart I look for in a stock, raising dividends on a regular basis.<br />
<br />
So along with my article on P/E ratios as an investment metric <a href="https://peterinvests.blogspot.ca/2016/08/investment-metrics-pe-ratio.html" target="_blank">P/E Ratio</a> <span id="goog_1859172861"></span><span id="goog_1859172862"></span><a href="https://www.blogger.com/"></a>. Raising dividends are another metric that I use to determine which stock my hard earned money I invest in.<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-83393544716333074072016-08-01T23:15:00.000-07:002016-08-01T23:15:15.715-07:00Investment metrics : P/E Ratio<div class="separator" style="clear: both; text-align: center;">
<a href="https://media.licdn.com/mpr/mpr/AAEAAQAAAAAAAAkTAAAAJGRjNDUyZmViLTBjNzMtNGVmOC1hM2VlLTU3ZTJjMjVhNzNiZQ.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="182" src="https://media.licdn.com/mpr/mpr/AAEAAQAAAAAAAAkTAAAAJGRjNDUyZmViLTBjNzMtNGVmOC1hM2VlLTU3ZTJjMjVhNzNiZQ.jpg" width="320" /></a></div>
<br />
<br />
Another conversation happened recently. "Peter, how do you know which stocks to pick?" Well I will never advocate that I can pick winners every time. But to at least know the basics of how to pick and what to look for as a "retail investor". Since this term has been given to us by the real investors, aka the fund managers. When a fund has a bad day, nothing really happens, they lose money and the fund manager continues with his life. If a retail investor has a bad day, it can change your lifestyle if you are not careful. That being said, to be careful, I use certain investment metrics to help me pick a stock. This blog post will examine the investment metric called P/E ratio.<br />
<br />
The P/E ratio or price-to-earnings ratio is likely one of the best known fundamental ratios, it's also one of the most valuable. The P/E ratio divides a stock's share price by its earnings per share to come up with a value that represents how much investors are willing to shell out for each dollar of a company's earnings.<br />
<br />
<br />
<html xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<link href="Bank%20stocks_files/filelist.xml" rel="File-List"></link>
<!--[if gte mso 9]><xml>
<o:DocumentProperties>
<o:Author>Alanna Fong</o:Author>
<o:LastAuthor>Alanna Fong</o:LastAuthor>
<o:Revision>1</o:Revision>
<o:TotalTime>6</o:TotalTime>
<o:Created>2016-08-02T05:23:00Z</o:Created>
<o:LastSaved>2016-08-02T05:31:00Z</o:LastSaved>
<o:Pages>1</o:Pages>
<o:Words>17</o:Words>
<o:Characters>101</o:Characters>
<o:Lines>1</o:Lines>
<o:Paragraphs>1</o:Paragraphs>
<o:CharactersWithSpaces>117</o:CharactersWithSpaces>
<o:Version>14.0</o:Version>
</o:DocumentProperties>
<o:OfficeDocumentSettings>
<o:AllowPNG/>
</o:OfficeDocumentSettings>
</xml><![endif]-->
<link href="Bank%20stocks_files/item0001.xml" rel="dataStoreItem" target=":Bank stocks_files:props0002.xml"></link>
<link href="Bank%20stocks_files/themedata.xml" rel="themeData"></link>
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:SpellingState>Clean</w:SpellingState>
<w:GrammarState>Clean</w:GrammarState>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>JA</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:EnableOpenTypeKerning/>
<w:DontFlipMirrorIndents/>
<w:OverrideTableStyleHps/>
<w:UseFELayout/>
</w:Compatibility>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="276">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="34" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]-->
<style>
<!--
/* Font Definitions */
@font-face
{font-family:"\FF2D\FF33 \660E\671D";
panose-1:0 0 0 0 0 0 0 0 0 0;
mso-font-charset:128;
mso-generic-font-family:roman;
mso-font-format:other;
mso-font-pitch:fixed;
mso-font-signature:1 134676480 16 0 131072 0;}
@font-face
{font-family:"\FF2D\FF33 \660E\671D";
panose-1:0 0 0 0 0 0 0 0 0 0;
mso-font-charset:128;
mso-generic-font-family:roman;
mso-font-format:other;
mso-font-pitch:fixed;
mso-font-signature:1 134676480 16 0 131072 0;}
@font-face
{font-family:Cambria;
panose-1:2 4 5 3 5 4 6 3 2 4;
mso-font-charset:0;
mso-generic-font-family:auto;
mso-font-pitch:variable;
mso-font-signature:3 0 0 0 1 0;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{mso-style-unhide:no;
mso-style-qformat:yes;
mso-style-parent:"";
margin:0cm;
margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"\FF2D\FF33 \660E\671D";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
.MsoChpDefault
{mso-style-type:export-only;
mso-default-props:yes;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"\FF2D\FF33 \660E\671D";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}
@page WordSection1
{size:612.0pt 792.0pt;
margin:72.0pt 90.0pt 72.0pt 90.0pt;
mso-header-margin:35.4pt;
mso-footer-margin:35.4pt;
mso-paper-source:0;}
div.WordSection1
{page:WordSection1;}
-->
</style>
<!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
table.MsoTableGrid
{mso-style-name:"Table Grid";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-priority:59;
mso-style-unhide:no;
border:solid windowtext 1.0pt;
mso-border-alt:solid windowtext .5pt;
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-border-insideh:.5pt solid windowtext;
mso-border-insidev:.5pt solid windowtext;
mso-para-margin:0cm;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:12.0pt;
font-family:Cambria;
mso-ascii-font-family:Cambria;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Cambria;
mso-hansi-theme-font:minor-latin;}
</style>
<![endif]-->
</head>
<body bgcolor="white" lang="EN-US" style="tab-interval: 36.0pt;">
<div class="WordSection1">
<table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;">
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
<td style="border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
Stock</div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
BMO</div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
BNS</div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
CM</div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
NA</div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
RY</div>
</td>
<td style="border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.3pt;" valign="top" width="63">
<div class="MsoNormal">
TD</div>
</td>
</tr>
<tr style="mso-yfti-irow: 1;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
Price</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
83.70</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
66.31</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
99.19</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
44.71</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
79.59</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.3pt;" valign="top" width="63">
<div class="MsoNormal">
56.89</div>
</td>
</tr>
<tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;">
<td style="border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
P/E ratio</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
22.53</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
11.91</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
10.88</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
13.15</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.25pt;" valign="top" width="63">
<div class="MsoNormal">
11.98</div>
</td>
<td style="border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 63.3pt;" valign="top" width="63">
<div class="MsoNormal">
12.96</div>
</td>
</tr>
</table>
<div class="MsoNormal">
</div>
</div>
</body>
</html>
<br />
In the chart above, which is simply the big 6 banks in Canada currently and what their stock price is on August 1, 2016 along with their P/E ratio. Why I am only using the same stocks in the same industry. The reason being you can only compare P/E ratios of a similar company, that is where it is most valuable. You could say it is comparing apples to apples and oranges to oranges. I would not compare say a bank P/E ratio to a food stock P/E ratio. <br />
<br />
So someone asks me which stock to buy that is the best bank. Most investors have their tickers loaded into yahoo finance or google or even directly on their smart phone. They right away say either TD bank or National bank. TD trades at $56.89 and National trades at $44.71 so they are the cheaper stock, right? That would be incorrect using technical analysis which includes looking at the P/E ratios. I would answer that CIBC is the cheapest stock right now. They answer, how can that be? CIBC is at $99.19 which is almost double TD bank? <br />
<br />
The answer lies in the P/E ratio. CIBC's is at 10.88 vs TD Bank at 12.96 Simply put, investors value TD more than they value CIBC. "Buy low, sell high". Remember that old saying. Using the P/E ratio, you buy lower valued stocks to sell high later. <br />
<br />
Looking again at the chart, you will notice that BMO's P/E ratio is higher than the other banks by quite a bit. Double CIBC's in fact. This right away tells me that investors have rallied BMO stocks more than other bank stocks. They think BMO will perform better than the other banks. If you were to buy bank stocks today, I would take a double take at BMO and maybe avoid buying them using the P/E ratio as your guide.<br />
<br />
At some point, you will come to the point of investing money into the bank stocks. How much money tho? $1,000? or $5,000? Let's assume you are going to buy $5,000 worth of bank stock. For BMO, that would be 58 shares, for TD that would be 87 shares and CIBC that would be 50 shares. So basically you are buying $5,000 worth of stock but CIBC at $99.19 seems expensive? It's the same amount of dollars invested, don't assume the stock price determines who is cheap and who is not?<br />
<br />
Now you have a general understanding of using P/E ratio analysis to help you determine whether a stock is a buy or no buy.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-54838360282120448522016-07-17T23:50:00.000-07:002016-07-17T23:50:09.934-07:00All banks or 1 bank portfolio<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://2sidesof49.files.wordpress.com/2015/10/cdn.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="133" src="https://2sidesof49.files.wordpress.com/2015/10/cdn.jpg" width="320" /></a></div>
<br />
<br />
Recently I had somewhat of a reunion with old friends from way back in the day, it must have been close to 2 years since us 3 had a chance to sit down and just chat. Eventually the topic of money, investments, RRSP, RESPs, etc came up. Well both have been aware of my financial blog and one of them has been hearing of my speeches of money for I would say 4 plus years now. My constant ramblings back in the olden days mostly consisted of the evil Mutual Fund MER. Well to shorten the story, he took an investment course and the instructor even had worse things to say about Fees, Life Insurance, Investments, mutual funds, etc. It literally opened his eyes, short of acknowledging my ramblings all those years, he has switched. Well not completely switched. "No more new money into mutual funds" was his final statement. He's almost there. He asked me if I am out of mutual funds, I answered completely. He's almost switched over, he's shocked about fees. Self directed accounts is all he has now. I've explained my rational of dividend investing among other topics like technical investing (50 day Moving average, 200 day moving average, P/E ratios, etc). Baby steps, baby steps. If my ramblings open the eyes of someone in my circle and they save money, then I will keep rambling.<br />
<br />
Onto my 2nd buddy. Let's just say he works at a big 5 bank and leave it at that. His major holding is guess what, a big 5 bank. Now the question to me was, he has had contributions to his big holding for many years now and it has performed for him.<br />
<br />
Before we get into this analysis, I want to disclose that I own 4 holdings in the banks. Bank of Montreal, Royal Bank, TD Bank, and Laurentian Bank. And as consistent with my previous articles, I own enough shares to drip 1 share with the exception of TD, which I drip 2 shares every dividend payment.<br />
<br />
Canadian Banks are unique that they operate in an oligopoly, where the sheer scale of them makes it hard for any new entrants into this sector of the economy. This could be described as a moat in my forever stocks post. The Canadian banks have many revenue streams, personal / business lending, investment banking (discount brokerages), wealth management, and auto, life, property insurance. The banks have many years of growth over the years and have provided regular dividend increases.<br />
<br />
Now some numbers, I will compare the 10 year, 5 year performances for CIBC, Coke Cola, and Enbridge. I will compare this to the TSX performance for the same period.<br />
<br />
On June 30 for the years 2016, 2011, and 2006 for CIBC, the stock price listed on yahoo finance is $46.74, $60.45, and $97.04 This gives CIBC a 5 year gain of 68%, a 10 year gain of 107%.<br />
<br />
On June 30 for the years 2016, 2011, and 2006 for Coke Cola , the stock price listed on yahoo finance is $16.02, $29.02, and $45.33 This gives Coke Cola a 5 year gain of 56%, a 10 year gain of 182%.<br />
<br />
On June 30 for the years 2016, 2011, and 2006 for Enbridge, the stock price listed on yahoo finance is $12.33, $26.87 and $54.73 This gives Enbridge a 5 year gain of 104%, a 10 year gain of 343%.<br />
<br />
On June 30 for the years 2016, 2011, and 2006 for the TSX, the price as listed on TMX money is 11,612 and 13,300 and 14,04 This gives the TSX a 5 year gain of 5%, a 10 year gain of 21%.<br />
<br />
Investors have bought bank stocks thinking they provide the best returns so why not put my life savings and invest it into 1 bank or only 5 banks. This means if you have life savings of $600,000 you will buy only CIBC or split it 5 ways into all the banks hoping for the best returns. Now the 5 year and 10 year numbers I've gotten show that CIBC destroys the TSX which is the benchmark for all investors to beat. The 10 year for the TSX is 21% while CIBC clocks in at 107%. It isn't a fair contest. But if you wanted the best returns, why not put $600,000 into Enbridge, their 10 year is 343% which triples CIBC's stellar decade. But no one would ever dream about just buying Enbridge. Same holds true for Coke Cola.<br />
<br />
Now to avoid diversification by buying only 1 bank or only the banking industry is just dangerous. Granted, the canadian Banking industry is well regulated but the 2008-2009 financial crisis showed that banks can fail. They failed in the U.S. and can fail in Canada. There is still risk. There are too many what ifs. What if the housing bubble bursts, what if the global economy slows, what if interest rates are rise too fast. What if.<br />
<br />
Studies have shown that to get proper diversification you need 18 stocks across 18 different industries to be properly diversified. Owning just 1 or just 5 stocks seems super risky.<br />
<br />
Mutual funds have been saying it since the beginning of time. Past performances do not guarantee future performances. So to answer my 2nd buddy's question. Yes it is risky to only own 1 bank stock or even own just bank stocks. But if there is an employer matching to your contribution then some of the risk is taken away but there is still risk.<br />
<br />
As a shareholder, I hope bank stocks keep generating solid returns and raise their dividend but I would never bet my entire portfolio on 1 stock or 1 industry. That's why I diversify with telecoms, large consumer discretionary stocks, food stocks, chemical stocks, REITS, cigarettes, etc. This type of portfolio will hold up better in a downturn then 1 stock or 1 industry.<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-71672474451498871752016-07-11T23:14:00.002-07:002016-07-11T23:14:53.363-07:00RRSP Bashing<div class="separator" style="clear: both; text-align: center;">
<a href="https://allenlarose.files.wordpress.com/2014/06/hell-no-we-wont-pay-620x396.jpg?w=614" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="204" src="https://allenlarose.files.wordpress.com/2014/06/hell-no-we-wont-pay-620x396.jpg?w=614" width="320" /></a></div>
<br />
<br />
<br />
I am sure at any BBQ, any brunch, heck even a good old poker game with the guys can generate conversations regarding money. One particular topic that I have engaged in a few times this year already are anti-RRSP or RRSP bashers. Yes, you are correct, there are more than I care to share, numbers of people who do not and will not ever, open an RRSP account. They say they have to pay all that tax back. They'd rather just spend that money now and have absolutely not a penny in savings except what they have in their savings or checking account. I ask them what happens when you get to around 58 or 59 years old, and your salary is at $80,000 a year, what happens when you stop working for medical or some other reason. Where is that $80,000 or even $50,000 a year going to come from for the next 10 years? They say, it will work itself out. Seniors living in poverty is not an idea I enjoy. Neither does the government, that is why they have given us RRSPs.<br />
<br />
Anti-RRSP individuals will complain about how you can't use the lucrative dividend tax credit or how contributing to an RRSP would turn a tax free windfall into taxable income when taken out of the RRSP. Also mentioned is how the 50% reduction in capital gains tax is lost.<br />
<br />
This type of ideology stays alive, they can only think of the tax they have to pay rather than take the time to understand how RRSPs work.<br />
<br />
So here will be a basic, simple example of how RRSPs work, this could be the last time but I doubt that, as RRSP bashers will always be out there.<br />
<br />
Let's look at a simple example.<br />
<br />
Assume an individual has saved $10,000 for the year and she's wondering whether she should invest it inside an RRSP or in a non-registered account, or worse, just spend it on something like the mortgage (this could lead to the house poor post I've done before). We will assume her marginal tax rate is 40% and regardless of which account she chooses to invest in, that that stock triples in 20 years.<br />
<br />
Would she be better off in a registered or non-registered account?<br />
<br />
Before we get an answer to this question, the tax refund needs to be looked at. Assume her employer deducts taxes from her pay cheque. If she contributes $10,000 to her RRSP, she will receive a $4,000 tax refund, so that $10,000 RRSP contribution wouldn't actually cost her $10,000, it would cost her just $6,000 ($10,000 minus the $4,000 refund).<br />
<br />
Stated another way, if her marginal tax rate was 40% then $10,000 inside an RRSP (which is pretax dollars) is equal to $6,000 in a non-registered account (which contain after tax dollars)<br />
<br />
Now we can use these numbers to do a fair comparison.<br />
<br />
First, investing inside the RRSP, the $10,000 would grow 3 times in 20 years to $30,000. If she sells the stock and withdraws the money, she will pay $12,000 of income tax (40% of $30,000) and be left with $18,000 net.<br />
<br />
Now, investing outside the RRSP, the $6,000 would grow 3 times in 20 years to $18,000. If she sells the stock and withdraws the money, she will pay capital gains tax of 20% (half of 40%) on the $12,000 which is the difference between her purchase price ($6,000) and sell price ($18,000). After deducting $2,400 in income tax, she is left with $15,600 net.<br />
<br />
Winner winner chicken dinner. RRSPs win. The return in the RRSP setup is better. Notice that the difference between the RRSP and the non-registered totals ($18,000 versus $15,600) is equal to the capital gains tax ($2,400). Far from losing the 50% capital gains reduction, the RRSP avoids capital gains entirely.<br />
<br />
With an RRSP, the only tax is on withdrawals. Bashers love to complain about the tax on withdrawals because it looks so large, but really its just the original tax they deferred plus growth of that tax over time. As the example above shows, even after pay tax on withdrawals, the RRSP investor still wins. If an investor's marginal tax rate is lower in retirement, the benefits of the RRSP are ever greater, go ahead, try the withdraws at 30%, and watch how much tax you all be saving on withdrawing $50,000 or $60,000 a year.<br />
<br />
You will soon see that the RRSP Bashers are really bashing their own head with the money they are losing in tax savings.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-12927356154548374442016-07-03T22:49:00.002-07:002016-07-03T22:49:41.463-07:00Forever stocks<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.suredividend.com/wp-content/uploads/2016/04/Our-Favorite-Holding-Period-is-Forever-e1459884710148.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.suredividend.com/wp-content/uploads/2016/04/Our-Favorite-Holding-Period-is-Forever-e1459884710148.png" height="160" width="320" /></a></div>
<br />
<br />
Forever stocks. My take on forever stocks.<br />
<br />
I'll start with with a Warren Buffet quote, " Our favourite holding period is forever"<br />
<br />
Forever stocks are stocks you can buy and hold forever, that is how strong they are, you do not need to worry about their performance, they will come out in the end forever, they will go down but in the long term (forever perhaps), they will outshine most things in the stock market and even beyond.<br />
<br />
Let me introduce my criteria for picking forever stocks. It's not as hard as you think. There are a lot of other factors and criteria out there in the selection process but here are 2 very easy initial screeners that anyone can use.<br />
<br />
1. Increasing dividend payouts<br />
<br />
2. Moats<br />
<br />
The first indicator which I have touched on in past blogs is easier than you think. My go to place to see dividend payouts and to see if they have increased over the years is Yahoo. That is correct, a simple yahoo search is 1 minute away. The path is simple, go to yahoo.com, then to yahoo finance, then type in your ticker. click look up, click historical prices and then finally dividends. It will show a perfect shap shot of the dividend payouts. Now increasing dividend payments is not enough to show what a forever stock should be.<br />
<br />
Moat is exactly what you may think. A moat around a castle, making it hard for an enemy to breach the castle wall. In investing language, it means either an economic, brand, or management moat. A company needs to protect itself from competition. A moat makes it harder for another company to steal your earnings that you have worked so hard for. An economic moat means that it would be hard for a company to encroach on your earnings simply because it would be economically hard for them to match or exceed what you have done so far. A brand moat would be simply the name of the company, that is so recognized that it can succeed simply on brand recognition. Management moat would indicate that management has been able to succeed no matter what conditions the environment can throw at them.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.coca-cola.com.bz/content/dam/GO/coca-cola/belize/logos/logo_coca_cola_seo.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.coca-cola.com.bz/content/dam/GO/coca-cola/belize/logos/logo_coca_cola_seo.png" height="320" width="320" /></a></div>
<br />
<br />
One example that I can show you how it works is Coca Cola. Yes that old soft drink that is at war with Pepsi. Coke Cola has the ability to thrive for 100 years or in our case, forever. It's a simple business that is big, and I mean big, globally in fact. This is the economic moat, this business will not excite most people but it's stock price will rise with profits. If someone was to challenge them, Coke Cola will simply buy them out with their deep pockets. Economic moat. The distribution network for Coke Cola is so vast that it encompasses almost the entire world. Most North Americans will probably never of heard of the 3,500 different drinks under the Coke label but tishe main brand, the iconic red can, Coke Cola is a brand moat all it self. Management has kept the profits and the business running with dividend increases for 50 years now. Check it out on yahoo, it's true. <br />
<br />
So with the these moats and dividend increases, it's no wonder you can consider Coke Cola a forever stock.<br />
<br />
Disclosure: I own Coke Cola shares.<br />
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-85489800666942428502016-06-21T22:06:00.001-07:002016-06-21T22:06:54.360-07:00Canadian Bank stock dividends - are they really that good?<div class="separator" style="clear: both; text-align: center;">
<a href="http://aworkathomebusinesses.com/wp-content/uploads/2015/07/What-is-a-ponzi-Scheme.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://aworkathomebusinesses.com/wp-content/uploads/2015/07/What-is-a-ponzi-Scheme.png" height="224" width="320" /></a></div>
<span id="goog_507884845"></span><span id="goog_507884846"></span><br />
<br />
<br />
At a recent family function. Someone came up to me and asked me if I liked to talk about investing and personal finance. I said of course. Well I got cornered and he has been investing for years now and how you can never go wrong with bank stocks.<br />
<br />
"They pay a healthy quarterly dividend come rain or shine and they keep hiking their dividends year in year out". Combine that what a decent capital appreciation, and you can't do any better.<br />
<br />
This is just a quick summary of our conversation that must have taken place in thousands of living rooms, bars, and anywhere else people meet to talk about how things are going in their lives. Bank stocks sometimes come up, after all banks are in our everyday lives.<br />
<br />
The above statements are somewhat true, Canadian bank stocks are in my opinion, almost the perfect dividend stock to own for the long term. But think deeper.<br />
<br />
Like a herd of sheep, we simply refuse to see the banking industry for what it really is, its an industry that is working harder every day to take your hard earned money. Almost in a silent way. They make money on your mortgage, your bank accounts, your investments like mutual funds, commission fees for trading, even your payroll deposit, yes that right, they make money on your payroll deposit Let's face it, everyone uses something at the bank and you can't escape that part of everyday life.<br />
<br />
Yet, we give the banks our hard earned money and they pay it back to us in dividends? And we think because we get this dividend, its good? It's almost like the money the bank makes, its paying it back to you in dividends. That's if you own the stock and not just invest in mutual funds. It's almost like the ultimate ponzi scheme. Some might go as far to say the banks are trying to suck and blow and the same time. If this offends you because you are a banker or are friends with a banker, I apologize. The thing is, every investment comes with a strings attached. It just so happens, the banks have a long string into our lives.<br />
<br />
A quick look at the 2015 Royal Bank of Canada annual report shows in their income statement that fees totalled $7.8 Billion. How much did Royal bank pay out in dividends in 2015? $4.6 Billion.<br />
<br />
If you own Royal Bank stock and you bank with Royal, it's important that your mindful of the the fact that your relationship with the bank and the fees paid to maintain that relationship more than covered the dividends you back from your investment in their stock. I am not just picking on Royal Bank, if you go through all the Big Six bank's annual statements, you will see something similar.<br />
<br />
Now recent articles about banks hiking their fees, just seem wrong. Most consumers will be complacent about the increase, they will continue to bank with their bank. Now not all Canadians own a bank stock, so if you do not own any bank stocks, you are behind at this point, as investors who own bank stocks have at least gain somewhat of a foothold with their financial establishment.<br />
<br />
Now I hear what you are saying, its like a cash back or a discount on my fees I pay because of the dividends they get, if thats the case then so be it. But remember that when you receive a dividend from the bank, it may not be exactly what you think it is.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-34621307450251166282016-06-14T21:09:00.000-07:002016-06-14T21:09:21.735-07:00CRM2 - Client Relationship Model 2 and other ways to reduce fees<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="http://moneycoachescanada.ca/wp-content/uploads/2014/06/feess.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://moneycoachescanada.ca/wp-content/uploads/2014/06/feess.jpg" height="320" width="320" /></a></div>
<br />
<br />
The long awaited amendment to the way investment dealers and financial advisors deal with clients is coming in July 2016, are firms worried?<br />
<br />
The Client Relationship Model Phase 2 is meant to show clients how much money in fees they are actually paying on their investments. The actual annual cost and compensation of all operating, transaction, and related charges paid to the dealer. As well, trailer fees and other type of payments will all be shown in dollars.<br />
<br />
Now why would an investment firm be worried. In today's investment environment, where low returns are the norm. There will be clients who discover that their dealer or financial advisor or mutual fund manager is actually making more money (in fees) then they are on their investments. Not just this year but year after year after year.<br />
<br />
There are literally millions of mutual fund clients who do not even think they are paying fees for years now. These individuals might be in for a big shock when new quarterly statements start showing up in their mailbox showing the fees that are paid out (in dollars). <br />
<br />
But smart investors already pay low fees, either by buying their own stocks or purchasing ETFs. These type of investors will not panic when CRM2 takes into effect. If you want to pay lower fees and be in the know, then here are a few ways to reduce those crazy investment fees that you have been paying.<br />
<br />
<b><u>Don't Trade</u></b><br />
<b><br /></b>
Investment brokers love traders. Buy low, sell high, does that sound familiar? Broker fees are really low in today's environment but companies still make millions on your trading fees. If you have seen the move "Wolf on Wall Street", that is exactly how they made their money, when you buy or sell something, they make a commission regardless of if the stock goes up or down.<br />
<br />
When you trade to make a profit and especially if it is in a non-registered account, you trigger tax implications. You have to pay capital gains tax on your trade. More money leaving your pocket.<br />
<br />
Only trade when it makes sense for your portfolio.<br />
<br />
<b><u>Stay away from IPOs</u></b><br />
<b><u><br /></u></b>
Investment companies make more profit on Initial Public Offerings (IPOs) than any other type of transaction. Investors are told to get excited about the new issue and not to miss out on the next greatest thing.<br />
<br />
No one needs to buy the latest IPO but brokers need to sell them.<br />
<br />
<b><u>Don't buy mutual funds</u></b><br />
<b><u><br /></u></b>
Most mutual fund clients will be in for a huge shock in July 2016 when they get their new statements showing all their fees, including trailer fees paid to their investment advisors, previously buried so no one can humanly find it, will now be on view for all to see.<br />
<br />
Now you may see mutual fund fees at 2% and think, that is not that bad but think of an investment of $10,000 in a mutual fund. The manager will be getting $200 regardless if it goes up or down. Now that $200 does not sound like much but think of an investment of $100,000 which could represent either a part of someone's life savings or even all of one's life savings. Now the 2% fee equals now $2,000. Bet you didn't know that now. You pay $2,000 for someone to manage your life savings. Your fund might not even gain $2,000 in a year or worse, it falls $2,000 and then you have to pay the 2% for it falling? How does that sound fair? So your advisor has a good chance to make more than you gain in a year.<br />
<br />
It has been documented that high fees over a 25 year investment time frame can eat of up hundreds or thousands of dollars from your nest egg. That could make the difference between a good retirement and a great retirement.<br />
<br />
<b><u>Final thoughts</u></b><br />
<b><u><br /></u></b>
The new CRM2 will show investors how much they are actually paying in fee. Be aware, save, and make your golden years more golden.<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-22382209999549387912016-06-06T17:07:00.000-07:002016-06-06T17:07:35.235-07:005 Investing mistakes to avoid<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.frugalrules.com/wp-content/uploads/2015/03/5-investing-mistakes-that-are-easy-to-make-horz.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.frugalrules.com/wp-content/uploads/2015/03/5-investing-mistakes-that-are-easy-to-make-horz.png" height="217" width="320" /></a></div>
<b><br /></b>
<b><br /></b>
<b>1. We have no idea of what we are doing…..</b><br />
<b><br /></b>
Currently as you read this, you might have thought, what is he talking about? What I am talking about is right now you probably have an RRSP matching plan or Pension matching plan at your place of work. Now I am a total advocate of employer matching pension plan or RRSP plans. If it is a 100% match, that is literally free money. Now you put in 2% and your employer matches your 2%. All is great? Well look between the lines, you most likely only have the Group RRSP plan to contribute to with this matching. And guess what, it will be mutual funds, yes I know, the mutual fund company will paint a glorious picture of how you need this or you will die a penniless life at the end. They get ongoing guaranteed fees. They love that. There really isn't anyway out of picking mutual funds with this matching going on. The only way out is to pick the lowest fee fund which is going to be an index fund.<br />
<br />
What is wrong with this setup? It's that most people think the workplace RRSP match is all they need. They don't know what they are doing? They don't know how much money they need at retirement. <br />
<br />
Worse, is when individuals go on their own and try to invest without a plan. They see headlines and try to chase a falling knife. I say if you are reading a headline of the newest and biggest stock then you are already too late. Talking about the latest sexiest stock gains is great but did you buy before that? I enjoy my dividend approach of investing, it really is boring and only exciting to me it seems but I know what I am doing with my approach.<br />
<br />
Do you?<br />
<br />
<b>2. We don't know what we are paying for</b><br />
<b><br /></b>
Most people still have no idea when they purchase a mutual fund, which happens to be the main type of investment product in Canada currently, that they pay fees. Canada has some of the world's highest mutual fund fees. In 2014, the average fee for mutual funds was 2.1%, in 2015, that number jumped to 2.3%. Doesn't sound that high, we pay higher interest on our store credit cards so a measly 2.3% is peanuts, right? Wrong! A recent survey showed that 9 out of 10 Canadians severely underestimated their fees, sometimes to the tune of $150,000 over a life time.<br />
<br />
Outside of mutual funds, there are financial advisors, brokers, and fees for just about everything. To navigate everything properly and understand all the jargon out there for a beginner does seem daunting.<br />
<br />
Bottom line, understand your fees and commissions that you are paying for and see if it fits yours needs.<br />
<br />
<b>3. We trust anyone to manage our money</b><br />
<b><br /></b>
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://financialjuneteenth.com/wp-content/uploads/2014/01/wolf.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://financialjuneteenth.com/wp-content/uploads/2014/01/wolf.jpg" height="213" width="320" /></a></div>
<b><br /></b>
Current situations that have arisen from conversations with friends, co-workers, individuals I just meet at the supermarket have a thing in common lately. They have a financial investor. Not just a normal financial investor but usually someone whom they have met in their circle or is a friend of a friend or even worse, it is someone's son that you trust and respect. Now I may start off by saying all financial advisors are crooks or they are all out for themselves. I am sure there are great ones out there but in the end, no matter their relationship to you, you are responsible of your own savings and investments.<br />
<br />
Case in point, unless you track your investments full time, then you won't understand how everything works, all you know is your advisor keeps asking for a cheque for investing. He says there is a great opportunity and you should not miss out. Wait a minute, you take all the risks for his guess? Yes, you may get a gain in the transaction but no one knows what will happen. We do know one thing, your advisor will get a commission on the transaction. Depending on the type of security, the percentage will vary wildly. In the movie, Wolf on Wall Street, brokers were receiving 50% commission on junk stocks or penny stocks. That's insane, the broker doesn't care about that $8,000 you just pumped into a start up. He will get 50% commission on that purchase.<br />
<br />
<b>4. We grow older but not wiser in finances</b><br />
<b><br /></b>
There are older investors in this world. They have been in mutual funds all their life. It would be hard to change their habits at this point. If they were to figure out how much they have paid in their 30 or 40 years of investing then they would raise a stink. And guess what, after the stink they would go right back and give more money to their investor. <br />
<br />
Older investors would no doubt not realize that they could have paid between $150,000 to $250,000 during their life time in fees. This is not in doubt especially if they have all their monies in mutual funds.<br />
<br />
<b>5. We need to put up a bigger fight</b><br />
<b><br /></b>
Investing needs to be a battle. It should be a battle between you and your rate of return. Not you battling your advisor. Believe you me, your advisor will fight tooth and nail to get that additional investment from you just to get a percentage commission which could be as little as $100.00 but they will befriend and tell you the pit falls of not investing. <br />
<br />
We need to be learn more about our own money. We need to avoid the route that the investing world has steered us into and fight for our money.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="http://nme.assets.ipccdn.co.uk/images/2013Rocky_SylvesterStallone_PA-14110031250713.article_x4.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://nme.assets.ipccdn.co.uk/images/2013Rocky_SylvesterStallone_PA-14110031250713.article_x4.jpg" height="190" width="320" /></a></div>
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-75564139941286744732016-05-26T00:30:00.002-07:002016-05-26T00:30:50.478-07:00Someone told me stocks are risky<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.skepticalob.com/wp-content/uploads/2012/11/iStock_000019747710XSmall.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.skepticalob.com/wp-content/uploads/2012/11/iStock_000019747710XSmall.jpg" height="212" width="320" /></a></div>
<br />
<br />
Someone I just met today started a conversation with me. We got onto the topic of the stock market. He flat out said that stocks are risky, it's pure gambling. He gave me the example of how someone told him to buy Royal Bank stocks because it was a great bank stock and a great company overall. I started to like this conversation with this person, whom I'll call A.S. well A.S. said that he bought 200 shares of RY.TO at $80 for an investment of $16,000 and then it dropped to $69 for a loss of $11 times 200 shares for total loss of $2,200.<br />
<br />
There is a way to lower the risk of investing in stocks, that is to buy stocks when they have fallen in price which is discounted in a way.<br />
<br />
Unfortunately, most investors become greedy and buy stocks when they rise and become scared and sell when share prices fall. Shouldn't it be the opposite if you want to a successful investor? So if go back to the scared investor selling, isn't it the people behind the stocks who sell that is making the act of investing risky if they act irrationally.<br />
<br />
<b><u>Reasonable Thinking</u></b><br />
<b><u><br /></u></b>
Remember the saying, "buy low, sell high"? It's so true, why do people do the opposite? When you do the opposite, you are locking in your losses and therefore you have realized the risk. People who hold stocks in downturns because they know the stock will rebound are the most successful investors out there.<br />
<br />
One way to invest in a reasonable way is to buy quality stocks with a long time horizon when they are priced correctly on a dip.<br />
<br />
So going back our example with A.S., his friend who told him Royal Bank stock was a good investment, he forgot to say for the long term. Royal Bank at $80 a share was fairly valued, the dividend would have been a decent 3.90%. It is a quality business which raises its dividend on a regular basis. Is a leader among the big 5 banks. All good traits of a solid business.<br />
<br />
Your investment is not completely safe even when you buy a quality company at a good price. There was a moment in time that even Royal Bank dipped down to $48 or even $25 during the crisis in 2008. Now if you bought then, you would be very happy with your investment. Goes back to buy low sell high which a lot of investors forget.<br />
<br />
<b><u>Risk</u></b><br />
<b><u><br /></u></b>
The real risk comes when you sell at a loss or sell them for less than what you paid for them. Risk happens when the investor can't hold onto Royal Bank shares when it falls to $48 a share. There is no need to sell quality companies that have a downturn,<br />
<br />
<b><u>Final Thoughts</u></b><br />
<b><u><br /></u></b>
Investing in stocks isn't risky. It is the investors owning stocks who can act irrationally that make the act of investing risky. If you buy quality dividend stocks for the long term, you should not have anything to worry about. When there is a downturn, you still receive your dividend just as when there is an upturn, you get your dividend. Remember buy low and sell high. That statement still works after all this time.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-75349383949286490612016-05-21T05:08:00.001-07:002016-05-21T05:08:20.924-07:00Earn $50,000 in dividends and pay no $0 in tax<div class="separator" style="clear: both; text-align: center;">
<a href="http://i.investopedia.com/content/short_article/3_tax_implications_o/shutterstock_314942846.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://i.investopedia.com/content/short_article/3_tax_implications_o/shutterstock_314942846.jpg" height="207" width="320" /></a></div>
<br />
<br />
A nice thing about dividends is that they are taxed at a lower rate then interest and other income.<br />
<br />
Most people have heard of this but what most don't know is that depending on your province where you are taxed, its possible for an individual with no other sources of income to earn nearly $50,000 in dividends without paying any tax at all.<br />
<br />
How you ask? Two main things, the dividend tax credit and the basic personal amount available to all Canadians.<br />
<br />
<b><u>What is the Dividend Tax credit</u></b><br />
<b><u><br /></u></b>
When you receive a dividend, the money comes from a corporation's after tax profits. Because the company has already paid some tax, it wouldn't be fair to make a shareholder pay again?<br />
<br />
Solution, a gross up on the dividend. On your tax return, you gross up the dividend ( 2012 gross up is 1.38) received basically you are converting it back it pre-tax amount. Next you figure out how much tax you have had to pay on that grossed up amount, based on your marginal rate. Finally, you subtract the dividend tax credit. The end result, is the tax you would actually have to pay on the dividend.<br />
<br />
Let's put the dividend tax credit into an example, it might be easier to see how it works instead of just having definition typed out for you. Let's say you live in Ontario and you have been carefully building a portfolio over the years and it is now worth $1.2 million. In this example, you will be receiving $47,888 in dividends which equals to a 4% yield. A very possible setup given the dividend yields in today's environment. Let also assume that you have no other sources of income. You would gross up your dividend of $47,888 (times 1.38) to $66,085 which is what you would report on your income statement.<br />
<br />
If anyone that knows just the basics of income tax, they would say, what the? I get $47,888 in dividends and I report $66,085? That is just wrong. But look at the table at the bottom of this post, you will see the how you do not have to pay any tax. The total federal tax of $11,549 is offset by the basic personal tax credit and by the federal dividend tax credit.<br />
<br />
Also note, that at income levels below $10,882 in 2012, you are getting two credits working for you, the dividend tax credit and the basic personal credit.<br />
<br />
it's the same story for Ontario tax.<br />
<br />
Other provinces have the same provincial calculation but they all have the same story, the amounts vary but the same story is there.<br />
<br />
If a tax payer claims other credits such as spousal, or child credits. They may be able to earn even more dividend income and still pay no tax.<br />
<br />
The above example is for information purposes only and uses 2012 data and is to get you thinking but as always, please consult a tax professional for all your tax questions.<br />
<br />
<b><u>Final Thoughts</u></b><br />
<b><u><br /></u></b>
We all heard of winning the lottery and living off the interest. Well, not all of us will win the lottery but over the years, the power of dividend investing shows it's true colours, you can make your own lottery and live off the interest (dividends in this case) and pay no tax. Now who wouldn't want that? Think about it.<br />
<br />
Federal tax<br />
<br />
1st $42,707@15% $6,406<br />
(66,085-42,707)@22% $5,143<br />
Less basic credit 10,822@15% (1,623)<br />
DTC 66,085@15.02% (9926)<br />
<br />
Net Federal tax 0<br />
<br />
<br />
Ontario Tax<br />
<br />
1st $39,020 @5% $1,971<br />
(66,085-39,020)@9.15% $2,476<br />
Less basic credit $9,405@5.05% (475)<br />
DTC $66,085@6.4% (4,229)<br />
Net 0<br />
Add Sur Tax 0<br />
<br />
Total Ontario Tax 0<br />
<br />
<br />
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-38768538027345623342016-05-09T22:29:00.001-07:002016-05-09T22:29:14.619-07:00Age of rule thumb - Asset allocation<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.investmentnews.com/storyimage/CI/20130917/FREE/130919893/AR/0/Investors-hearing-the-call-of-equities.jpg&cci_ts=20130917152548" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.investmentnews.com/storyimage/CI/20130917/FREE/130919893/AR/0/Investors-hearing-the-call-of-equities.jpg&cci_ts=20130917152548" height="200" width="320" /></a></div>
<br />
<br />
The popular "age of rule thumb" states that a portfolio should get more conservative as a person gets older. For example, a 30 year old with several years of investing and earnings ahead of them should allocate about 30 percent of his or her portfolio to fixed income and the remaining 70 percent to equities which have a higher risk, but potentially higher returns.<br />
<br />
An 80 year old on the other hand would have, who can not afford to take much risk should allocate 80 percent of his or her portfolio to bonds or guaranteed investment certificates and just 20 percent to equities.<br />
<br />
This is an easy rule to follow and maybe at one point it made complete sense. It has survived all these years as a guide which to me should not be carved in stone. It can be changed or modified to fit today's investor. Today's investor are retiring earlier and living longer, thanks to better health care and nutrition, their money must last longer also. That's is why the age of rule thumb to me is way too conservative.<br />
<br />
In today's financial world, the proper asset allocation will always be talked about and discussed. Maybe it should start with this rule or maybe it should not. But to most investors, it is what allocation they are comfortable with, they must know the risks to make an informed decision. To pigeon hole them into this type of asset allocation without options to me seems, wacky. Yes wacky. There are old standbys and traditions in the financial world of investing that just seem wacky. Why do people follow what was done in the past? Does it make it right for today's world? Think about it, would I call you from a rotary phone or would it be obvious to call you from a cellular phone? Kinda the same there here, would I follow the same asset allocation as my grand parents?<br />
<br />
<b><u>Modification to Age or rule</u></b><br />
<b><u><br /></u></b>
Why not multiply the person's age by one one-hundredth of their age and capping the fixed income percent at 50? For example, a 40 year old would have 40 times 0.4 or 16 percent in fixed income.<br />
<br />
A 70 year old would have 70 times 0.7 or 49 percent in fixed income. <br />
<br />
Anyone older than that should have a 50-50 mix.<br />
<br />
There are other factors like how much will an investor need to withdraw from their portfolio. If a retired investor is withdrawing about 7 percent a year from their RRSP, they would need to take that into consideration.<br />
<br />
A wealthy investor who lives off the 1 percent of their assets can afford to invest in more equities than the previous example.<br />
<br />
Health also need to be a consideration, if you sense that you are going to live longer, then you need to make sure you have enough money to last all those years.<br />
<br />
There you have it, my views on a modified formula to determine asset allocation of one's portfolio.<br />
<br />
It is not as easy as plugging in numbers into a formula but now you can make a more informed decision about your asset allocation.<br />
<br />
Please leave any questions or commentsAnonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-90589132896183952072016-04-25T04:06:00.001-07:002016-04-25T04:06:56.887-07:00Buying real estate for investment purposes? Consider Riocan as an alternative.<div class="separator" style="clear: both; text-align: center;">
<a href="https://3dhubs.s3-eu-west-1.amazonaws.com/s3fs-public/talk/attachments/iStock_000017454953Medium-1024x682.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="213" src="https://3dhubs.s3-eu-west-1.amazonaws.com/s3fs-public/talk/attachments/iStock_000017454953Medium-1024x682.jpg" width="320" /></a></div>
<br />
<br />
Most people have heard the situation of buying a second property, either residential or commercial and renting it out to make money. That investment setup is great for most individuals or investors. You buy a property, you receive rent, you sell the property when it goes up in value at a future date. This setup sounds really great, what is left out is the maintenance cost or time cost of having this setup. Example, if you buy a second house and rent it out, you are the landlord. You must still continue to pay property taxes and utilities. Of course with the rent payments, you expect to come out ahead. Most times you do but it is not effortless. When the toliets get clogged or the roof leaks, or when the water pipes burst, you are expected to repair these in a timely manner and that can get expensive both in dollars and time. This sudden repair could happen at 2:00 am, you would need to go and investigate when the phone call comes in.<br />
<br />
<b><u>REIT</u></b><br />
<br />
Now I present an alternative option that might appeal to some, might not appeal to others. If you a buying real estate for investment purposes, why not buy a R.E.I.T. which stands for Real Estate Investment Trust. A REIT is a company that owns, and in most cases operates, income producing real estate. Depending on the REIT, they can own many types of real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centres, hotels and even timberlands.<br />
<br />
<b><u>RIOCAN</u></b><br />
<br />
The REIT I am going to showcase will be Riocan. They are Canada's largest real estate investment trust with approximately $15 Billion as of December 31, 2015 in their portfolio. It owns and manages Canada's largest portfolio of shopping centres and ownership interests in a portfolio of 305 retail properties, including 15 under development. Riocan's purpose is to deliver to it's unit holders stable and reliable cash distributions that will increase over the long term.<br />
<br />
<b><u>TO THE NUMBERS</u></b><br />
<b><u><br /></u></b>
Let's assume you want to buy a $400,000 2 bedroom condo for investment purposes. Now for argument sake, let's assume you have the $400,000 in cash and you can buy the condo outright. You advertise, you interview tenants, you settle on $1,700 monthly as rent. Now that sounds great but you still need to pay maintenance fees, property taxes, and utilities unless you negotiated the rent to include that, but let's say you pay them. Now a realistic number after all this would probably be about $1,000 which is what you make as a landlord.<br />
<br />
Now if you use that same $400,000 and buy Riocan Shares. It would look like this. As of April 22, 2016, the price of Riocan shares is $26.78 per unit, which means you could buy about 14,900 shares and their distribution is $0.118 per unit which is a dividend yield of about 5.28%, not bad considering the cost of living is about 2.5%. You buy the shares, you will now get $1,758.20 in monthly income. The calculation is 14,900 shares times 0.118, now for situation, I would not recommend a DRIP as you want the income. You will be taxed on this but Riocan qualifies for the divined tax credit so you will get benefits there. This also needs to be bought in a non-registered brokerage account.<br />
<br />
Now the price of Riocan shares will change but if you look back at the history of the price, it is pretty stable. I know, they always say that past performance does not indicate future results but Riocan has a low beta. Beta means volatility and Riocan is low. The distribution is monthly so that is a plus.<br />
<br />
<b><u>FINAL THOUGHTS</u></b><br />
<br />
Now you may have heard the argument about putting all your eggs in one basket if you do the Riocan purchase but if you buy a condo for rent, is that that not the same thing, putting all your eggs into the condo? It's how people view investments, I can understand with the crash of 2008 and 2009 that people are wary of the stock market but in the long term, stocks will benefit you the most.<br />
<br />
If you do not want to buy $400,000 of Riocan, you can buy $200,000 and another $200,000 on another REIT, they all have high dividend yields and who wouldn't want to be a landlord for shopping plazas and say Hotels.<br />
<b><u><br /></u></b>
Next time you drive past a shopping plaza, take a quick look at the signs that show you what stores are located there. At the bottom, you will see Managed and Operated by RIOCAN. You will be surprised as to how many plazas that you pass by every day and did not know it was a Riocan property.<br />
<br />
<a href="http://www.riocan.com/" target="_blank">Link to RIOCAN</a><br />
<br />
Here is the link to their website, you can see the address of the properties listed in your area.<br />
<br />
Consider this alternative to real estate investment.<br />
<br />
Please leave your thoughts and comments.<br />
<br />
Disclosure, I own enough shares of Riocan to qualify for a 1 share DRIP.Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-32399466986641353562016-04-04T19:21:00.001-07:002016-04-04T19:21:20.090-07:00Become a TFSA millionaire<div class="separator" style="clear: both; text-align: center;">
<a href="http://redheadedmule.com/wp-content/uploads/2015/09/wwtbamlogobig.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://redheadedmule.com/wp-content/uploads/2015/09/wwtbamlogobig.jpg" height="188" width="320" /></a></div>
<br />
<br />
<br />
When i was younger, I always dreamed of being a millionaire. Sounds rich doesn't it? A million dollars is not what it used to be. It is still a lot of money and you can retire comfortably with that amount. But how do you get there without winning the lottery.<br />
<br />
Before the TFSA (Tax Free Savings Account ) was created, the knock out champion of savings was the RRSP. Basically a tax deferring setup by the government to encourage saving money for retirement. The intention was great but deferring meant paying it back at the end. Everything is rosy when you get those refund cheques for years and years on end but when it comes time to take it out, the tax man is waiting and wait they will.<br />
<br />
Along comes the TFSA, all gains, dividends, interest is tax free. Now the merits of the TFSA vs the RRSP debate will continue. But I would like to add some thought to it. RRSP is great for tax deferring but isn't the TFSA better as it is no tax forever? Yes the TFSA limit is small currently as of 2016 the limit is $46,500. But here is some thought as to how to become a TFSA millionaire for younger investors.<br />
<br />
As long as you max out the $5,500 limit each year and invest in stocks that are able to deliver a decent return over the next few decades, they're almost guaranteed to turn their TFSAs into million dollar accounts by the time they are ready to retire. Its hard to pick stocks that can stick around for decades, any one of situations can come up to ruin a stock.<br />
<br />
A really good example is Kodak in the 1980s. It dominated the photography industry. If you bought film, it was a good chance it would be Kodak. It had a huge presence in photography and cameras.<br />
<br />
We all know what happened next. Kodak did not recognize digital photography. Shares peaked at $100 each in 1987 and 25 years later, they were worthless.<br />
<br />
<span style="color: red;"><u>PICK A GOOD STOCK</u></span><br />
<br />
Now fast forward to Canada in 2016. BCE or Bell Canada Enterprises looks to be a Kodak clone. BCE is Canada's largest telecommunications provider and dominates the industry, providing the systems needed for data hungry consumers to get their fix. With more and more of our lives centring around the internet both at home and on the go, its hard to see anything but continued demand for the company's services. It's hard to see what happened to Kodak happen to BCE.<br />
<br />
<span style="color: red;"><u>GET RICH SLOWLY</u></span><br />
<span style="color: red;"><u><br /></u></span>
Say you were a 25 year old looking to save for retirement. To retire at a conventional age, you'd have a 40 year investing period.<br />
<br />
Over the last 15 years - including reinvested dividends but excluding brokerage commissions, BCE has gone up 7.6% annually. This is including the crash of 2008-2009. As you can see this is not a high flying stock. Just a solid blue chip stock delivering good performances. BCE also raises its dividend at least once a year. Setting up a DRIP for 40 years would be beneficial to yourself. The magic of compounding working on your side.<br />
<br />
If an investor put $5,500 annually into a TFSA and BCE were able to replicate the returns from the last 15 years, it would take 32 years to become a millionaire. Assuming a start date at age 25, this investor would be worth seven figures by their 57th birthday. All tax free!<br />
<br />
It isn't really hard to get rich slowly. All investors need to do is to be patient, have a good savings rate, reinvest dividends, and choose good stocks. The rest will take of itself.<br />
<br />
<span style="color: red;"><u>FINAL THOUGHTS</u></span><br />
<br />
Now I know what you are thinking. That classic disclaimer, something along the lines that past performances do not always reflect future returns. With my points above, anything could happen but there are worse places to put $5,500 a year. BCE delivers a great dividend yield. There are no MERs to pay for 40 years. Heck I got the idea BCE was blue chip simply by looking at the top 10 holdings in most top mutual funds, if it's good enough for a mutual fund, its good enough for me.<br />
<br />
As always, do your due diligence in investing your own money.<br />
<br />
DISCLAIMER : I own BCE shares, enough for 2 shares every time the dividend DRIPs<br />
<br />
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-73774514646441026582016-03-27T20:37:00.003-07:002016-03-27T20:37:30.121-07:00What it takes to be a self-Directed Investor<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.howtosavemoney.ca/sites/default/files/article-images/selfdirectedinvestingwhatyoumustknowbeforestarting.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.howtosavemoney.ca/sites/default/files/article-images/selfdirectedinvestingwhatyoumustknowbeforestarting.jpg" height="227" width="320" /></a></div>
<br />
<br />
<br />
Ultimately, all self directed investors need to be comfortable with the stocks they hold. They should know what business the stocks they hold do and how they make money. They should also have a plan for their portfolio which all contributes to a comfort level.<br />
<br />
<b><u>Have a Plan</u></b><br />
<br />
An example would be my own portfolio. I was very interested in dividends and found out about DRIPs (Dividend re-investment plan). Once I got my first DRIP payment, I was hooked. It seemed like a natural fit for me. I truly was in it for the long run, I could hold a blue chip stock and collect the DRIP stocks every time a dividend was paid. Then I kept reading that the dividend amount can be increased on a regular basis. It just seemed like it was the perfect fit for me. I did not pay Mutual Fund MERs, I paid once to buy the stock and then can enjoy the DRIPs for years. The stock I buy could go up and down but then so could Mutual Funds, they go up and down also.<br />
<br />
Currently, I have 37 dividend paying stocks all paying between $10 all the way up to $120 either monthly or quarterly. Not a month goes by where there are not multiple dividend DRIPs in my account. Annually, I already know that I will be getting 270 DRIP stocks in 2016. This fits well with my strategy of putting my investment monies in for the long term. <br />
<br />
<b><u>Keep Learning</u></b><br />
<b><u><br /></u></b>
There are many ways to learn about financial investments. Reading books, articles, talking with people, and taking courses are all good ways to learn. Financial blogs are gaining popularity as a new generation of financial gurus and bloggers are revealing all the so called financial secrets to all the internet to see. There was always a mystery of what investing in the stock market entailed. Financial Blogs are in my opinion an untapped source of information. Reading the right blog over time can get you as much information as you can get on a topic which otherwise would be something you would pay for from a financial advisor. DIY investing is something everyone should look at and blogs out there have given me the confidence to explore and apply what I want my life savings to do.<br />
<br />
<b><u>Critical thinking</u></b><br />
<b><u><br /></u></b>
I figured out that there is a big difference between trading and investing. Trading involves buying low and selling high. This type of thinking is as old as it gets. Investing usually involves long term holdings. Just because you buy a stock and it goes down the next day, it does not mean you were wrong. Also if it goes up the next day, it does not mean you were right either. I have repeated this before and will repeat it again. No one knows where the price of a stock will go tomorrow, next week, next month, or next year.<br />
<br />
The basic concept of dividends being raised once a year for example, fits well with my thinking. It's something I want in my portfolio. It drives my research in stocks, it keeps me disciplined. It keeps me thinking that everything will be fine when markets take a dive.<br />
<br />
<b><u>Final thoughts</u></b><br />
<b><u><br /></u></b>
A self directed investor should be willing to learn and apply their knowledge. They should have a plan. They should always be learning or looking to learn something new. They should review their stock holdings periodically and review the direction of the stock to make sure it falls in line with their direction of where they want to take their portfolio.<br />
<br />
Are you a self directed investor. Please share your thoughts.<br />
<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-73018272220305876562016-03-20T21:45:00.002-07:002016-03-26T21:07:22.954-07:00I can get 4.72% Dividend Yield today<div class="separator" style="clear: both; text-align: center;">
<a href="http://i.investopedia.com/inv/articles/site/Introduction_to_dividends_figure_1.gif" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://i.investopedia.com/inv/articles/site/Introduction_to_dividends_figure_1.gif" height="62" width="320" /></a></div>
<br />
I have been asked what do I mean by Yield? I answer you can get a solid 4.72% yield right now. The answer comes back to me. You mean 4.72% interest. I have to reply back and say no, I can get a 4.72% yield for the year and it's guaranteed but can change day to day, its a little different than interest.<br />
<br />
So the conversation stops right there in frustration for most novice investors. It's a simple fact, people prefer to get more money back so when I say I can get a 4.72% yield for the year, they automatically start thinking about what they can get at the bank, a GIC at 1 to 1.4% locked in for 5 years? A savings account that gives you 0.6% annually? So when I so confidently say that I can 4.7% today, they look like I am talking witch craft. "What do you mean you can that much? I've never heard of that before, you make it sound so easy"<br />
<br />
To explain my situation, i would need to first explain what an interest rate is and what a dividend yield is.<br />
<br />
<b><u>Interest Rate</u></b><br />
<b><u><br /></u></b>
When someone mentions interest rates, people always go straight to a GIC or a savings account and grip about how little it pays. A plain vanilla GIC that you can get just by walking into a bank will give you interest in the range of 1 to 1.4% locked in for 1 to 5 years. The longer term, the higher interest rate, say 2% interest in 5 years? A savings account currently at any major bank (this does not include Tangerine or EQ Bank) will give you 0.2 to 0.8% annually. This is the current climate in 2016 in Canada when the word interest rates are mentioned. These are the 2 biggest generates of money from interest rates.<br />
<br />
<b><u>Dividend Yield</u></b><br />
<br />
Simply stated, a dividend yield is calculated by taking its dividend per share and then dividing it by its price per share. The end result is then expressed in percentage terms. A lot of jargon that you as a new investor does not need. To help you understand how this simple calculation will get you 4.72% yield. Go to Yahoo Finance and type in BCE.TO Bell Canada Enterprises is considered a blue chip stock in the Canadian market, they are a solid company in Television, telecommunications. internet, sports, etc. They have raised their dividend once a year for quite some time now. When you get to BCE.TO click historical prices, then dividends only. You see that the last dividend payment from BCE was 0.683 and they pay quarterly. So the calculation is 0.683 x 4 = $2.732 and now dividend that by the current stock price which is 2.732/57.83 = 0.0472 or 4.72% dividend yield. So if I buy BCE stock today, i will get a 4.72% yield? Yes that is correct. Now the stock price can and will change price, it will go up or down accordingly but the $0.683 every quarter does not change, the stock price will change and this will change the dividend yield but the dividends get paid every quarter. If they pay monthly dividends, then the calculation where the 4 was, changes to a 12.<br />
<br />
<b><u>Final Thoughts</u></b><br />
<b><u><br /></u></b>
Buying stocks to get the dividend yield has its own risk and rewards and yes stock prices can do down and up and dividends can get cut but using historical data, there are more than enough blue chip stocks that will hike dividends every and so goes the price of the stock. This hiking of the dividends helps smooth out the volatility in the stock market. If you want to escape the under 1.5% interest rates locked in for 5 years that the banks give you, then you need to become a DIY investor and look into purchasing dividend stocks. Think of it this way, the banks can get the same BCE stocks that I can as a DIY investor. The BCE stock is also more liquid where I can sell any day I want while the GIC is locked in for years. They use your hard earned money that you put into the GIC and take that money and they can buy BCE stock, they will get paid by BCE a yield of 4.72% and give you 1.4% in return. It's a no brainer, the banks are making money on your money. That term has been used for many years but finally I figured out one of the ways they were doing it. You as smart investor can stop this cycle and get that 4.7% instead of the banks. This is in my opinion, smart money, you money is working for you in one of the best ways it can.<br />
<br />
If anyone has a question on dividend yields or interest rates, please leave a message.<br />
<br />
<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-69036989269229201692016-03-14T22:35:00.002-07:002016-03-14T22:35:37.699-07:00Top 5 Canadian Financial Websites to add to your favourites<div class="separator" style="clear: both; text-align: center;">
<a href="http://sme-blog.com/wp-content/themes/basicmaths/img/smeblog-top5-square-2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://sme-blog.com/wp-content/themes/basicmaths/img/smeblog-top5-square-2.jpg" /></a></div>
<br />
<br />
There are a slew of financial websites on the internet. Some big, some small, some backed by big names and some with better content than others. Some with more up-to-date information than others. Some with dedicated columnists and others with valued opinions. All assist you, the investor in making sound financial decisions with timely information and thought provoking articles.<br />
<br />
Here are the top 5 Canadian financial websites with commentary:<br />
<br />
<u>CNBC.COM</u><br />
<br />
Is a U.S. based website that concentrates on the U.S. markets and the other major indexes including Asian and European markets. Commodities are up to the minute even when the North American Markets are closed as Asian and European markets all trade the price of a barrel of Crude, so this site is great for keeping tabs on the price of Crude. Also includes the PRE MARKET index which shows what the markets will before the opening bell at 9:30 am for U.S. indexes. Strange that the Canadian TSX is not mentioned on this site at all. Write ups and articles are very well written and thought provoking. Popular columnist is Mad Money Jim Cramer.<br />
<br />
<a href="http://www.cnbc.com/" target="_blank">CNBC</a> visit site<br />
<br />
<u>GLOBEANDMAIL.COM</u><br />
<br />
Started out as a financial newspaper and has expanded to be a leading Canadian financial news website. Since it is still a newspaper, there are other sections on the website like Sports, Lifestyle, and condo news. But my favourite sections are business and Investing. The investing section has a sub section called Investor Tools which is great. When announcements occur in the Canadian markets like mergers or dividend hike announcements, here is where you will hear it before most other sites. Columnists include Rob Carrick and John Heinzl. The only drawback is your IP address only allows you 10 free views a month on this site, unlimited viewing is like $1 a month. Tickers are delayed 15 mins and only start when the markets start.<br />
<br />
<a href="http://www.globeandmail.com/" target="_blank">GLOBE and MAIL</a> visit site<br />
<br />
<u>FINANCIALPOST.COM</u><br />
<br />
Basically he business section of the NATIONAL POST. Well thought out articles and topics that relate to the investor, no matter style of investor they are. They have sub sections called Investing and Personal Finance which are well organized and provide valuable insight into topics that Canadians can relate to.<br />
<br />
<a href="http://www.financialpost.com/" target="_blank">FINANCIAL POST</a> visit site<br />
<br />
<u>MOTLEY FOOL</u><br />
<br />
An international site with divisions in each country. You want to choose FOOL Canada. Great articles, when you finish reading an article, you feel that arguments for the buying or selling of a certain stock are valid. Focuses primarily on the investor looking to buy stocks in a company but needs more information to justify the purchase. So a lot of stock picking articles. They do it well with their titles of their articles. They have a ticker but it is not as good as BNN or CNBC.<br />
<br />
<a href="http://www.motleyfool.com/" target="_blank">motley fool</a> visit site<br />
<br />
BNN.CA<br />
<br />
The Canadian version of CNBC. The BNN channel on television is very well laid out. They have tickers on the indexes and stock tickers. Business news in flashing on the channel also. Very creditable with well know analysts, portfolio managers, and CEO's of companies appearing as guest speakers. Larry Berman is a popular guest speaker. Website shows everything that is on television. Certain analysts have moved stock prices with their comments before on this site. With that being said, something must be good here if someone on the show can move a stock price with their words.<br />
<br />
<a href="http://www.bnn.ca/" target="_blank">BNN</a> visit site<br />
<br />
Did I miss any sites? Please let me know.<br />
<br />
Thanks<br />
<br />
<br />
<br />
Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-43037991749189000182016-03-11T00:32:00.000-08:002016-03-11T00:32:18.989-08:00Comparison: Mutual Funds vs ETFs<div class="separator" style="clear: both; text-align: center;">
<a href="http://whatisthedifferencebetween.net/wp-content/uploads/2015/05/ETF-or-Mutual-Fund.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://whatisthedifferencebetween.net/wp-content/uploads/2015/05/ETF-or-Mutual-Fund.jpg" height="180" width="320" /></a></div>
<br />
<br />
By now, hopefully everyone has at least heard of ETFs or Exchanged Traded Funds. We could call them the cousin of the Mutual Fund. The ETF industry has grown a lot over the years but is still a distinct second in the race for Canadian Investor's dollars. In 2015, ETFs did do record sales but only accounted for about 10% of the market in terms of Investor's Dollars. Without further delay, here are key points in the difference between Mutual Funds and ETFs:<br />
<br />
<u>Mutual Funds</u><br />
<br />
<ul>
<li>Can be purchased at most banks and other financial institutions or self directed accounts</li>
<li>Holds securities usually dictated by the direction of the fund, usually in the hundreds</li>
<li>Average MERs or Management Expense Ratios for Mutual Funds in 2015 was 2.3%</li>
<li>Usually includes front end (when you buy) or back end fees (when you sell) </li>
<li>The advisor gets from the fees called a Trailer Fee</li>
<li>Price of the Mutual Fund is determined at the end of the day</li>
</ul>
<div>
<u>ETFs</u></div>
<div>
<ul>
<li>Can be purchased only using a self directed account or until recently using the BMO Smartfolio products.</li>
<li>Can hold securities dictated by the theme of the ETF but can also be very focused in their selection, sometimes holding only 6 stocks.</li>
<li>ETF fees are amazingly small, an index ETF can be had for as low as 0.2% vs it's mutual fund counterpart Index fund' MER of 2.1%</li>
<li>There are no front end, back end or trailer fees.</li>
<li>You do have to pay the commission to buy, which currently all banks have their brokerage fees at $10 or less</li>
<li>Is traded like a stock so there is a ticker and can be bought and sold several times in a day.</li>
<li>Dividends are yours to keep or can be setup in a DRIP (dividend re-investment plan)</li>
</ul>
<div>
<u>Final Thoughts</u></div>
<div>
<u><br /></u></div>
<div>
The biggest difference between Mutual Funds and ETFs is for sure the Fees. The banks are very quick to advertise the magic of compounding and how if you hold your Mutual Fund for 20 years, $1,000 will grow to this number. That is true but they never talk about how the Fees are also compounded. The magic of compounding fees can be summed up this example : a portfolio of mutual funds totally $500,000 will pay a fee of $11,500 a year (using the average of 2.3% in 2015). Assuming no new money is added during a 10 year period, the total fees in 10 years will total $111,500 assuming no compounding. Now do that math again, it is a true number. Do you know that you are spending this amount in fees in a 10 year period? This is only at the bank level where you get $500 automatically taken out of your account and divided among the mutual funds they asked you to pick. If you had a financial advisor who would pick the funds for you, tack on an additional 1% to bring the fees to about 3.3% a year.</div>
<div>
<br /></div>
<div>
ETFs are definitely better for the average investor but ETFs can only be purchased using a self directed account. Most investors think buying and selling ETFs is hard. In my experience, setting up the appointment at the bank and signing the papers was the hardest part. If you bank online, you can invest online using a self directed account. </div>
<div>
<br /></div>
<div>
BMO Smartfolio is a bank product which enables investors to not open a self directed account but can gain access to ETFs and their low fees similar to a mutual fund setup through automatic withdrawals. The BMO Smartfolio gives investors the ability to access lower ETF fees with a big of hand holding since they only offer BMO ETFs.</div>
<div>
<br /></div>
<div>
To buy and ETF, you only pay the $10 and put in your order. If you were to buy $10,000 worth of a mutual fund, you would pay $230 every year as long as you hold the mutual fund. If you were to buy the same type of ETF, you would pay $10 for the $10,000 but the ongoing fee would probably be in the area of 0.5% or $50 a year. Now that is comparison shopping there. $230 vs $50. I bet most people would go with the $50 but then again they spend more time deciding on $1.99 or $2.49 toothpaste.</div>
<div>
<br /></div>
<div>
Selling a mutual fund sucks. It's like it is stuck in the 1980's. If you want to sell a Mutual fund, you need to call in, identify yourself and then tell them you want to sell the fund, but be warned, get this call in before 11:00 am or you won't get the price at the end of the day at 4:00 pm. With ETFs, the price is listed instantly and you can decide to buy or sell right there. Just like online banking.</div>
<div>
<br /></div>
<div>
Last thought, more Canadians need to understand that there is a better fee for your investments and the quicker they understand, the quicker they can invest their way without fees holding them back ($110,000 in 10 years)</div>
<div>
<br /></div>
<div>
<u><br /></u></div>
<div>
<u><br /></u></div>
<div>
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-65612743694243528712016-03-07T20:44:00.000-08:002016-03-07T20:44:47.999-08:00The Balanced Mutual Fund - sounds great but look again<div class="separator" style="clear: both; text-align: center;">
<a href="http://www.vitt.in/images/balanced-mutual-fund.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://www.vitt.in/images/balanced-mutual-fund.jpg" /></a></div>
<br />
<br />
<br />
There will be investors that are in Mutual Funds. They have been in Mutual Funds from their 1st dollar invested and no matter how many people tell them that they are paying way too much (see my post on Mutual Fund MERs) they will stay in them no matter what. <br />
<br />
<a href="http://fundinfo.rbcgam.com/mutual-funds/rbc-funds/overview/default.fs" target="_blank">RBC Mutual Funds</a><br />
<br />
Here is the link to the RBC Mutual Fund Listing. If you must stay in Mutual Funds. You can still reduce your investing costs. Avoid the Balanced Fund. Now the name sounds safe, secure, almost like you are covering all your bases. You are investing in safe and risky. You are balanced. A balanced fund in my view can bring confusion and complexity to an investor's portfolio when making it simpler is often best. <br />
<br />
Going to our example of the RBC Mutual Funds. Go to fund RBF272 Balanced Fund. The MER is 2.16% and if you drill in. Look at the top 10 holdings. The names that stand out are RBC, TD, BNS, and Suncor. Now go to fund RBF556 Index Fund. The MER is 0.72% and if you drill in again, the top 10 holdings include RBC, TD, BNS, BCE, BMO, Suncor, and Enbridge. Now there are a lot of duplicate holdings in these 2 funds. The problem is a lot of investors could and I am sure they have picked both funds. Now the huge difference is the MER. 2.16% vs 0.72% for almost the same holdings? I think you can see where I am going now.<br />
<br />
Now all Balanced Funds are created differently, while Index Funds are just that, they match the index in their allocation. <br />
<br />
Here are 3 reasons why Balanced Funds are bad for you:<br />
<br />
1. Who is the Fund Manager?<br />
<br />
The Balanced Fund lets a complete stranger decide what he considers the best balanced allocation is for the Fund and this in his view is suppose to satisfy everyone's investment needs in the fund. Highly unlikely. The investment needs of an investor should be in the hands of a financial planner not in the hands of the Fund Manager who may not even be in the same province that the investor lives in. <br />
<br />
2. CASH BALANCES<br />
<br />
What do I mean Cash Balances? Well not all but some balanced funds have cash balances of almost 5%. If you look at the year end or quarterly statements, they will most likely be a section that indicates the fund is holding a cash balance. So that means you are paying the MER for someone to hold CASH? And the MER is high too, too much cash means too much of your money is not working for you but instead is helping fund the MER paid to the fund manager.<br />
<br />
3. FEES<br />
<br />
I left the last item called Fees or MERs. The MER applies to the entire Mutual Fund industry but for this post, the 2 RBC Mutual Funds are great examples of what to look for. The fact that Canada has some of the highest MERs in the world and is repeatedly publicized and discussed but ignored by investors tells how powerful the industry has brain washed us into thinking Mutual Funds are great. While a balanced fund can charge higher fees than its Index counterpart, I would rather own the lower fee just for the sake of a lower fee.<br />
<br />
Final Thoughts.<br />
<br />
Do not let the name, balanced fund confuse you. You are not balanced at all, there is no balance. It is just another fund where the allocations are picked evenly. This is definitely not worth your hard earned MER. Go Index Fund.<br />
<br />Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0tag:blogger.com,1999:blog-8409352226864924454.post-54683861613051489472016-03-01T08:31:00.003-08:002016-03-01T08:31:40.639-08:00Do you have too many mutual funds in your RRSP?<div class="separator" style="clear: both; text-align: center;">
<a href="http://tessant.wpengine.netdna-cdn.com/wp-content/uploads/2014/02/green-mutual-funds.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" src="http://tessant.wpengine.netdna-cdn.com/wp-content/uploads/2014/02/green-mutual-funds.jpg" height="213" width="320" /></a></div>
<br />
<br />
<br />
Once in a while, co-workers or friends ask me about their personal financial situation. In particular, their RRSP and investments. They have heard me say over and over again "there has to be a better way". They seem to think I have a golden conversation where after we part ways, they will be richer in money and heart. Well I am more than happy to start the conversation off with, are you buying mutual funds at the bank? The answer almost every single time is yes. Right there, that is my golden egg idea. Get out of mutual funds. The problem is not everyone is happy to hear this, they have squirrelled away savings every year to their RRSP into their RRSP is at the bank level which means 95% of the time, their money is in mutual funds. Switching out of mutual funds to either individual stocks or ETFs is my golden egg moment where I save the investor hundreds of thousands of dollars over X number of years. (read my post on mutual funds). You see, no one likes to be told what they have been doing for 15 years is wrong. I was in that boat and asked "there has to be a better way" and found out about MERs .But we won't go into that in this blog. This blog will will focus on the RRSP bank mutual fund investor having too many funds.<br />
<br />
Yes, there are people who will stay in mutual funds all their life. So be it, it will happen. But if I ask that person, how many mutual funds they have, the answer most times is "I don't know". They usually get back to me in a few days and report that it is over 10 funds. I am all for diversification but is owing 10 plus mutual funds really beneficial to you, the investor?<br />
<br />
In my humble opinion, a DIY Index investor in Canada can get completely diversified with 4 mutual funds. A Canadian Bond fund, A Canadian Index fund, A U.S. index fund, and an International fund. If anything happens in the markets, you will not be left behind. To save even more, instead of mutual funds, the 4 types of funds can be purchased using ETFs, remember ETFs have a much lower fee than their mutual fund counterpart, usually with the exact same holdings. A popular low cost option for ETFs are the TD e-Series line of mutual funds. My 4 picks to absolutely remain diversified on the cheap are:<br />
<br />
<br />
<ul>
<li>TD Canadian Bond Index - e (TDB909)</li>
<li>TD Canadian Index Fund - e (TDB900)</li>
<li>TD U.S. Index Fund - e (TDB902)</li>
<li>TD International Index Fund - e (TDB911)</li>
</ul>
<div>
It's ok to add 1 or 2 more funds to expose your holdings to say Oil and Gas, or Real Estate but the above 4 will cover everything happening in the world for Canadian investors.</div>
<div>
<br /></div>
<div>
<u>Too much diversification</u></div>
<div>
<u><br /></u></div>
<div>
If you have too many funds, there will be over lap in your holdings. How do you see this? Check the top 10 holdings of your mutual funds. You will see a lot of Banks, Telecos, Insurance companies in Canadian Mutual funds. Why would I hold 3 different funds where the top holdings are all basically the same?</div>
<div>
<br /></div>
<div>
It might be ok to overlap with your workplace RRSP. Most workplace RRSPs only offer mutual funds. There is no way around that so over lap will have to happen there.</div>
<div>
<br /></div>
<div>
<u>Bring in the financial advisor</u></div>
<div>
<u><br /></u></div>
<div>
I don't want to stereotype financial advisors but why is it that they area always recommending new funds? They charge their commission on the funds they sell to their clients. No one can predict the ups or downs of the market so why is the financial advisor more qualified to do this guess with your money. </div>
<div>
<br /></div>
<div>
<u>My golden egg - final thoughts</u></div>
<div>
<u><br /></u></div>
<div>
So there you have it, my golden egg conversation. Get out of mutual funds, you will save the MER (do the calculation and you will see) and diversify on the cheap. Whatever happens with the market, be it up or down, you will not be paying the high mutual fund MER.</div>
Anonymoushttp://www.blogger.com/profile/08916484155145844144noreply@blogger.com0