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Wed, Aug 13th, 2014, 09:14 PM #1
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- Apr 2014
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Sat, Aug 16th, 2014, 02:40 PM #2
- Join Date
- Dec 2008
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- Montreal
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I think the markets due for a correction so I am not buying. I have sold a lot of my investments. I am watching a few things though for when they are good prices.
Irobot-
GE-
Loreal
Black berry
Banco sanders
SPDR metals and mining
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Sat, Aug 23rd, 2014, 11:07 AM #3
- Join Date
- Apr 2011
- Location
- West Vancouver, BC
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- 7,008
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- 11041
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- 368 (100%)
Looking for some input/advice....I am considering buying some (blue chip) dividend stocks as a means of income (I am recently retired) vs putting money in interest (taxed) bearing accounts/investments. I have never been involved in the stock market, so would appreciate any info/links, etc
for beginner investors.
Thanks in advance !
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Mon, Sep 1st, 2014, 09:30 PM #4
- Join Date
- Dec 2008
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- Montreal
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- 411
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- 918
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You'd probably be better off buying a couple income/dividend etf or mutual funds. There are a ton of places to find good investment advice. I would go to the local library and pick up a few books. I am not really in your generation...and so I am not really the best person to be giving advice on income investing. However for blue chip grade stocks...I like PPL. I am invested in them and the 3,48 dividend is not bad. I wish I would have put more money in them. I'm also interested in GE but they are so large, they are more like buying a mutual fund.
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Sat, Sep 6th, 2014, 10:36 PM #5
Enjoy your retirement as it is an opportune time to fine tune your investment portfolio and take control of your finances.
Do some reading before you buy, whether you decide on stocks, low MER mutual funds or ETFs. As you are just starting out with stocks, some of your money could be parked in a high-interest savings account (some of these can be bought within your stock brokerage account and are called HISAs). I would also research some good ETFs by asking around on various forums. I can’t recommend any because I am not a particular fan of these, especially ones issued by banks.
Go to the library and get this book by John Reynolds called "The Skeptical Investor". A lot of financial advisors will hate this book because it attacks their sacred cows. There is a lot of truth in what he says, however, and I can speak from personal experience.
http://www.amazon.ca/Skeptical-Inves.../dp/067006405X
Another easy read is Derek Foster's "The Lazy Investor" (and other books by the same author):
http://www.amazon.ca/The-Lazy-Invest.../dp/097369601X
You are wise to consider blue chip dividend paying stocks as they can go up or down and you can continue to collect a steady stream of dividends, as long as you don't need the original capital invested and won't have to sell the stocks until the timing suits you. It's kind of like owning some rental properties - you can continue to receive ever-increasing rents during good times or bad, and choose when you want to liquidate your assets under the best market conditions (only without all the headaches of being a landlord).
For starters, do some research into the "Dividend Aristocrats" which have had a long history of paying ever-increasing dividends for at least 25 years. Some of your investments should include at least a few of these.
http://www.thepassiveincomeearner.co...d-aristocrats/
http://en.wikipedia.org/wiki/S%26P_5...nd_Aristocrats
Consider putting some of your investment bankroll into a discount broker for trading online. Most of these, like BMO InvestorLine or TD Waterhouse, will let you transfer funds from an existing bank account to the online account as needed. The trading commissions are around $9.95 regardless of number of shares purchased or price per share, provided you have a minimum of $50,000 CAD (or equivalent in investments) held in various accounts (RRSP, TFSA, regular investment, etc) with them. You could even link up a spouse’s accounts or a close relative's (parents, siblings) and get extended trading privileges or extra online tools to help with your research.
Proceed carefully and buy one stock at a time and only if the valuation is good. BMO InvestorLine (I use them as an example because I am a customer but do not necessarily recommend for everyone as it is a personal choice) has a Value Analyzer tool which lets you quickly see whether a stock is presently undervalued or overvalued. Use this as a starting point, and do some more research to make a final decision. Some things I like to consider before choosing a stock, besides good and consistent dividend yields, are low forward and trailing P/Es, low-to-moderate PEG ratios, and low-to-moderate book values.
http://www.investopedia.com/articles...railing-pe.asp
http://www.investopedia.com/terms/p/pegratio.asp
http://www.investopedia.com/terms/b/bookvalue.asp
Some people like to segregate their stocks according to the tax advantage that can be realized through dividends. For example, a regular investment account that is taxed annually might have only Canadian dividend stocks since Canadian dividends are taxed at 50% of the total amount, and at your marginal tax rate (which is typically lower after you retire). US stocks have their dividends taxed fully outside of tax sheltered accounts such as RRSP accounts, so you could hold both USD and Canadian stocks within your RRSP without paying taxes on the dividends (some exceptions to the rule exist, but I won't get into those) On TFSA stocks there is a withholding tax of 15% minimum on all US and most foreign stocks (again some exceptions exist, like UK stocks sold on US exchanges which are exempt and are great for inclusion in TFSAs). I personally don’t practice this because I believe a stock that is bought at a good price will be good no matter whether it is tax-sheltered or not. If I have spare cash in my TFSA, and the right stock comes along, I will buy it.
I normally don’t buy unless the stock has dropped below its 200-day or 300-day moving average:
http://stockcharts.com/school/doku.p...oving_averages
Unfortunately, the present-day valuation is so high on most widely traded stocks that it is hard to find a good stock worth buying nowadays. But there are bargains if one looks hard enough.
If you decide to start off with an online account, make sure you forward a W8-BEN form to your broker or bank, otherwise they will deduct 30% withholding tax on your US dividends instead of the 15%. It's probably very hard to get the overpaid taxes back especially if you are not a big client or dealing with a low-cost discount broker.
Make sure your online bank/broker is able to link USD and CAD accounts to your various trading accounts, as your dividends received will be parked in either the US or CAD account for future purchases without incurring currency exchange charges which can take nibbles out of your profits.
Lastly, take your time and learn one stock at a time. Read through their annual reports if you can make some sense out of them. Don’t let a financial advisor pressure you into buying a stock, mutual fund or ETF tight away as it is to their advantage to sell something right away. One’s money never disappeared by parking it safely in a savings account, but the "wrong" stock bought without proper due diligence (or even supposedly "safe" ETFs or mutual funds) could go down awfully quickly and take years to recover after a recession. The following article is an interesting read – not to say it will happen as in 2001 and 2008, but if you see the same warning signs, you better not be 100% invested in stocks during retirement!
http://seekingalpha.com/article/1824...0-successfullyLast edited by secret aging man; Wed, Sep 10th, 2014 at 03:54 AM. Reason: Added links to articles and definitions
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Sat, Sep 6th, 2014, 10:43 PM #6
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Sat, Sep 6th, 2014, 11:00 PM #7
- Join Date
- May 2011
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- On the verge of indecision
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I would never, ever take advise from an internet forum when looking for a real investment. I'd rather interview many financial advisors from several companies and be guided by professionals whose job it is to know and understand the ins and outs of investing.
Especially as the stock market is prone to periodic downturns.
I've been on the internet for far too long to trust a friend of a freind ..or first time poster....
Short answer : no Long answer : NOOOOOOOOOOO!
Welcome to the Penguinocracy..One Penguin, One vote..I am The Penguin..I have the One Vote
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Sun, Sep 7th, 2014, 01:09 AM #8
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Sun, Sep 7th, 2014, 03:46 PM #9
Here is an interesting article.
http://m.seekingalpha.com/article/2475515
Last edited by secret aging man; Wed, Sep 10th, 2014 at 03:45 AM.
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Fri, Sep 26th, 2014, 11:20 PM #10
I'm looking at Royal Bank at the moment. I am a dividend investor and love their long history of (increasing) consistent dividends. If it drops I will buy. The problem is that it hasn't dropped in a while
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