Pipelines and Banks in March, 2023

 

I find it interesting and keeps me motivated when reading up on various sources of information and ideas/plans from Bloggers that have already achieved their investment goals, working towards them or just remain on a never-ending continual build of a portfolio 

I'll most likely be the latter where it will be a source of cash when needed or reinvestment funds to continue the "build" on dividend paying stocks and ETF's.

Individual stocks once bought have no management fees unlike ETF's ... but, with all the competition for investor's cash, many have very low management fees these days and I've seen a couple recently with none. Those that provide cash distributions with growth over the months and years are popular I'm sure. BlackRock and Vanguard and many others out there come to mind.

One of my holdings, PPL, or Pembina Pipelines (BTSX) has moved from monthly cash distributions to quarterly starting this month with an ex-dividend date of March 14th and a current yield of 5.61%

My focus will then be on the Canadian banks towards the 2nd half of March, with CIBC (CM) and National Bank (NA) having ex-dividend dates. 

Meanwhile, with the long term stocks where I like with a decent history, there's always something new that comes out.

Royal Bank of Canada (RY) recently launched a covered call ETF ("covered calls" usually comes with higher distributions) called RBC Canadian Dividend Covered Call ETF with ticker: RCDC.

An impressive list of 75 holdings by "weight" including BTSX stocks and many in the TSX Top 60 by dividend yield. The current yield is over 6% and pays monthly distributions. 

Recently, I was reading Tom Connolly's March updates on DividendGrowth.ca and he provided a link to a "Do it Yourself" investor with 36 years of experience and a 2 part interview on Bob's Tawcan Blog who's 100% focused on Canadian stocks and has the Tax impact factored in. 

https://www.tawcan.com/living-off-dividends-tax-free/

Any DIY investor living in a country can apply this with research and beefing up on that countries tax laws on how it impacts today and into retirement. The US, Europe and Asia for example have top quality dividend stocks. Only a Google search away but deeper research and the risk factor is always recommended

In that interview, the investor mentions the BTSX, which I also follow : 

High quality stocks are selected – conservative large cap stocks – most often dividend aristocrats – minimum 2% yield with the odd exception for superior growth stocks or those with growth potential. Great focus is placed on buying dividend aristocrats and stocks in the TSX Composite 60 Index with a nod toward following the Beat the TSX strategy. 

Tawcan: Funny B mentioned the BTSX strategy. Check out Matt, the brain behind Beating the TSX strategy, and his family’s amazing story about travelling the world with 4 kids.