The Rock and Iceberg Alley

 

June is one of my favorite months where the weather patterns shift more from rain and wind to more calmer, sunny days but not overly hot or muggy yet on the Atlantic coast of Canada.

I remember well when living on the northeast coast of Newfoundland and looking at the giant icebergs that drifted down from the north along Iceberg Alley with many getting grounded on the rocky shores of the island. Awesome and a huge attraction for visitors to the east coast island province known as The Rock.

June is also the month for some top companies and banks in Canada to go ex-dividend currently within the BTSX method of dividend stock picking and it get's diversified into different sectors.

Always informative reading, Matt from Dividend Strategy gets more into that with his latest post.

Top Telecoms, Banks, Oil/Pipelines, Insurance related and Power producers are a good mix to have in a portfolio.

Bell Canada or BCE, paying dividends for 39 years in the Telecom sector is my choice along with Telus (T) with both having ex-dividend dates this month. 

POW, or Power Corporation of Canada (with controlling interests in Great-West Life) is another top stock I'll add to in June.

In a snippet from Matt's article, this is what I seek and will add to on a steady basis ...

Matt: Absolutely.  Some might argue that government bond yields are safer than these dividends, but there are three important things to remember here.  First, these kinds of stocks have a very long history of paying increasing dividends: ENB – 27 years, EMA – 30 years, BCE – 39 years, and TD – over 100 years!  Second, quality dividend-paying stocks provide capital appreciation in addition to dividend payments whereas bonds do not.  And, third, dividends are taxed far less than bond interest.

Still, short-term fluctuations can make investors nervous.  What would your advice be for readers who might be feeling a little anxious?

Dave: Always in the past, the share prices on these dividend stocks have rebounded after a drop since the yields become too high to ignore. Momentary dips like the ones I have hypothesized should be viewed as buying opportunities.  Blue-chip dividend stocks rarely go on sale but there might be one coming up. And remember, trying to pick the absolute top or bottom of stock price movements is a mug’s game.

Good advice and should be taken just as that ... advice and information from personal perspectives.

The 24th of May Long Weekend

 

Although the '24th of May' doesn't always fall on the long Victoria Day holiday weekend here in Canada, in Newfoundland ... it's the traditional start of camping for the summer despite snow or rain and called the 24th of May long weekend.

It used to be mostly about tents once upon a time but now it's more like the start of RV season. Kind of roughing it? But certainly not the same like getting out the ol' Coleman stove and having breakfast, cookups by the fire, trail walks and fishing. Usually, lots of fun to be had and a good break from work.

In the Crypto world, Bitcoin is once again hanging around the 30 grand USD range. With always lots of volatility, the coin seems to reset to that range for now, waiting for direction that buyers and sellers will take it while rolling with the US stock market ...  more with the tech related Nasdaq market.

Ethereum or ETH is evolving with another phase happening in early June on the path to some major changes to occur in August such as moving away from Mining and hopefully making fees for users cheaper overall but I don't expect transaction ETH gas fees to go down much. This could boost the price some as those events get closer. 

June is another busy month for the dividend paying stocks I watch and hold with some top companies nearing ex-dividend dates, which is the date buyers must own the stock to receive the cash distributions paid. I'll highlight a few in my next post.

Mid May 2022 and Hold On

 

Hold ... is the word for May so far as extreme volatility has hit the stock and crypto markets. 

There are slight rebounds as investors ponder on where the bottom is in the stock or asset they currently hold or buy at bargain prices.

In the US and Canadian market place there are stocks below their average price heading into 2022. On my side of the border in Canada, one of interest is Manulife Financial Corporation, a multi-billion dollar insurance company, currently priced around $23 CDN with a pre-May price of around $25 to $26, which pays a decent quarterly dividend with an upcoming ex-dividend date of May 24th. 

The aim here is to get in on the stock gain when the markets bounce back and collect the cash dividends. That "buy low" thing. 

Amongst all the doom and gloom, there are always companies in sectors that are making money and also increasing dividends to share holders that come up in the financial news.

Crypto, dominated by the price fluctuations of Bitcoin followed the stock market down, especially, the US Nasdaq and continues to flounder currently but seems to be holding it's head above the water line as of today.

Again, bargain hunters are watching for the low and rebound. 

The big story this week that caused a huge amount of selling, is the collapse of Terra's LUNA and it's (no longer) Stablecoin, UST. There had been prior warnings from the crypto community watching and holding LUNA and/or UST, that UST is backed by Bitcoin to keep it pegged ( or even) with the US Dollar, However with the fall of Bitcoin from the 40 grand level down to 25 grand recently, that affected the UST and it fell from the $1 USD threshold it is supposed to maintain.

Bitcoin alone is too volatile for an outfit to use to "back" a Stablecoin with and that also caused LUNA to suffer a 100% loss as Terra tries to stop the bleeding and recover some.

That drama affected holders of Bitcoin as well that panicked and sold. While most loose in this hysteria, selling in a panic is something I never bothered with while I wait it out for better times. It's not wise to put all your eggs in one basket.

Eventually, that will fade into the past but there's certainly more caution in the air now so it will probably take awhile for the crypto market to rebound while it also follows the uncertainty in the overall stock market for now.

Goes with that saying, although there are several versions ... plan for success, but be prepared for the unexpected. I'm full of oldie quotes today

Expenses and the Oil

 

The price of gas and diesel is soaring with demand while there is a more overall want for supply from countries as the price of oil per barrel is $110 US currently. The US and Europe is on the hunt for more oil supply with the most of Europe is boycotting Russian oil.

Meanwhile, it's become more of a hit on my wallet paying near double for gas than it was months back. Add on the steady markup of groceries results in personal expenses being on the rise with the cost of living far ahead of the average 2% yearly raise unionized employees receive. 

Meanwhile, oil related and pipeline companies are making more money with the popular stocks like Enbridge (ENB) and others aglow with company news of increased revenue with some hiking dividend distributions to stock holders as a "special' dividend or an increase going forward.

Some good news while the Markets are in a general depressed state these days until a recovery that usually follows when the Bulls get to running and more "buying" than selling is on the go in general. But there are always some gems during even the worst of times.

Unfortunately for now and although it has a history of bouncing back quickly, Bitcoin and a lot of Altcoins have followed the stock market down with a pattern that will probably be permanent like a ball and chain. Where the millions that change hands and rapidly at times is in the NFT and Metaverse niches looking for big gains.

Not my thing where I find dividend paying stocks safer on the risk part of it but it's new, growing and exciting for those folks involved with that tangent of the crypto world.