It's mid January, 2024 already and most investors are wondering what lies ahead for this year with probably a sense of optimism about the speculation of interest rates that affect companies and banks, coming down at some point this year.
I tend to label the months when ex-dividends occur with stocks in my portfolio and watchlist, with this month being Canadian Banks on my list to further buy. BNS and TD were in the first half of January and ahead is the popular Royal Bank (RY) plus Bank of Montreal (BMO), which recently announced a dividend increase.
Reading the news about the Banks, the millions of dollars they have had to put aside to cover credit losses like mortgage defaults, continues to bother many an investor and that will play out for some time to come. This year and into next as mortgage renewal dates happen.
I'm a fan of the "undervalued" stock (Graham Number) and a history of increasing dividends which brings on compounding over time. Currently, BNS, TD and BMO are undervalued with room to grow in price while RY is about at par.
Courtesy of Yahoo Finance
Looking over some popular Canadian equity ETFs with high yields, TD and RY tend to rank high in weighting or in the top ten holdings by the managers. For example, Vanguard's VDY and Blackrock's XEI both have low management fees and hold top companies with decent yields, paid out monthly.
The 31st of January is the ex-dividend date for one of my core utility holdings; Emera (EMA) with a current yield of 5.61%.
Since I'm into cash dividends, I'll end this post from Henry of Your Ever Growing Income showing examples of income/dividend growth over time.
As always, there's lots of informative reading on the Blog list on the right sidebar.
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