In the US, Mr. Powell, head of the Federal Reserve is making his first cutting of interest rates which could happen in September as Canada heads into their 3rd lowering of interest rates from a high of 5% coming into 2024.
That puts more of a positive investor sentiment towards the markets depending on sectors. Utilities and pipelines for example will like the lowering of interest payments on their debts.
I'm a monthly "dollar cost averaging" buyer so I'll probably be paying more for my stock buys for now but there's always a lot of factors moving prices daily ... up and down and my buys "average" out through the months and years ahead while the compounding factor kicks in.
It's back to school and studies here in September. It seems with the stock market, I'm always in school, learning and working the plan. Not always easy to do as a portfolio and dividend growth accumulates. The mind wants to see it grow faster like an addiction but just chasing mid to high yield with no research is not the answer. That's when a break from the markets is needed to sort of reboot.
With 20 individual stocks, I have a Watchlist of some decent stocks. One I'll add for certain in September is Capital Power Corporation (CPX) I've been keeping tabs on for awhile, which operates in Central & Western Canada and in the US.
The utility has a dividend increase of 6% added with a current yield of 5.52% with an ex-dividend date falling on the 27th of September, 2024. CPX has a 5 year dividend growth of 6.57%. What I like to see but as always, past performance doesn't mean it will repeat or even grow that dividend rate.
Why add more stocks? Various company board decisions about dividends with plans for more capital going towards expansion for a set term can sometimes affect dividend growth such as Emera (EMA) for example, with their expansion plans in the US lowering dividend growth to 1 to 2% going forward for awhile.
So, it's about keeping an average dividend rate and growth over the portfolio going forward with me and won't alter my future plan to add more money to Emera with their current yield of 5.70%.
Meanwhile, September is about more pipeline and energy stocks in my next post that rank up there in the highest yielding stocks in the TSX with "risk" data updated regularly by the Globe and Mail.
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