Tools and Canadian Tire

 

The Bank of Canada continues to hold the interest rate of 5% and from an April 10th Reuters article, forecasts meeting it's 2% goal in 2025. 

Higher gasoline prices are expected to keep overall inflation close to 3% in the second quarter of 2024 before it eases to below 2.5% in the second half of the year and returns to the 2% target near the end of 2025.

Kind of looks like an upbeat look ahead but there is no mention about the cost of groceries in that post which is a continuous rising expense these days so I don't pay much attention to the inflation rate for now until the BoC starts to lower that current 23 year high of 5%.

It's been awhile since I checked on the top 10 dividend paying stocks in the list of the TSX 60 and the BTSX, Beat the TSX portfolio listing.

I was surprised to see Canadian Tire, CTC.A  moved up into 10th spot as it's share price has come down and it's yield went up to a current ... 5.48% with a current rounded price of $128. 

The stock is undervalued and has dropped since the companies recent report about winter sales being off due to a milder winter. I figure it goes back to what I mentioned about gas, groceries and everything else being hiked.

There was a time, I'd look forward to their weekly flyer and specials, showing up at their shop when the sales kicked in. That new tool that will come in handy or that Ginsu knife that never dulls. Best pick up that Master Chef knife sharpener on sale just in case.

I'm sure Canadian Tire will work to improve it's lower than expected winter sales heading into summer where it's about pay bonuses for the top executives to make it happen. The ex-dividend date is April 29th, 2024. Is it a good time to buy while the price is down? Decisions and research for the DIY investor as always. The stock is expensive while there is the partial stock buy option Wealthsimple has in place with a proportional dividend payment.

Interesting news recently with Canada's energy sector where a lot more oil and natural gas will be exported which is favourable for more cash for the those energy stocks that will benefit from more product being shipped and the companies that support them with services. 

Trans Mountain pipeline will begin flow in May and in British Columbia, TC Energy's stake in Kitimat, the natural gas export terminal project in British Columbia, scheduled to ramp up later this year perhaps spurring more interest from investors in 2024.