The Monthly Bill

 

It's the last day of February and heading into March with Daylight Savings Time and the much welcome, first fay of Spring.

March is also another what I call, a "Telecom" month with two heavyweights in that sector having ex-dividend days where initial or additional Buys need to be in to receive the quarterly cash distributions these companies payout to shareholders.

Bell Canada (BCE) and Telus (T) with current yields of 6.09% and 5.15% respectively, are monthly bill outfits for their paying customers and of course cell phone users, internet and TV subscribers see increases in rates over time.

BCE increased their dividend by 5.16%. T or Telus increased their dividend by 3.69% in December of last year and I expect to see more increases this year.

I'm more comfortable with large market cap companies like these that have a steady cashflow coming in from customers compared to ... let's say the mining industry which is very heavy on expense refining raw ore to iron or iron pellets for example. They depend on the day to day Market price commodity conditions with one of the largest importers in the world being China and their want for more or less during a given year for their steel mills.

That can either boost a Miners gains or go "under" and close a mine site permanently or temporary with China controlling that monopoly.

A different world compared to the Utility sector with mega companies in Canada like Fortis (FTS) and Emera (EMA) with customer bills generating cash for them every month that never go down even with inflation coming back to a 2% range some day or year. Only increases.

Mid March will bring on a look at more stocks with companies like TC Energy Corp (TRP) spending big bucks to get BC's natural gas pipeline and plant operational to supply customers in Asia and countries across the Pacific ocean. A top 5 Bank like CIBC.

There are also a lot of what they call "Passive Investing" opportunities becoming more popular with ETF's and Funds out there. Split Shares and Covered Calls that pay higher dividends causing the building attraction for some investors. More on them and how their cash generation helps with the accumulation of individual stocks I buy.