2025 will be a year of government and leader change in North America with Trump taking office in the US on January 20th. Possibly in Canada. Justin Trudeau and the Liberal party will face headwinds where a non-confidence vote could be coming in January.
Otherwise, there's always a lot going on besides the US tariff threats that will probably push up inflation and effect interest rates plus the daily economic news which the stock market reacts to.
Meanwhile, where sectors and stock prices move with the news and social media, I check on corporation financials and statistics I hold when making further buys. Ideal, is a growing dividend going forward which has that compounding effect with a stock that's undervalued. With undervalued stocks, there's that potential for stock price gains plus the cash dividend.
Blackrock's ... XIU, iShares S&P/TSX 60 Index ETF with an inception date of Sept. 28th, 1999 is widely used in comparisons and I check on it compared to my portfolio where I'm more focused in stocks among the top twenty by dividend yield ranking in the TSX 60 with a growing dividend for income while XIU's distributions bounce around from year to year.
However, looking at XIU's impressive performance returns with 24.96% for the Year to Date (up to Nov 30th, 2024) ... It's a benchmark I would like to match but in most cases, I'll have to sacrifice some performance for the dividend yield.
In the new year, I'll be adding to BNS, Bank of Nova Scotia with an ex-dividend date of January, 7th, 2025 with a current 5.47% yield. The drawback with BNS where I'm looking for dividend growth is that there hasn't been any since 2023. Perhaps in 2025 where the Bank has been making positive moves of late and expanding into the US.
Of the top banks in Canada, TD is the underdog bank going through a CEO transition and beefing up their compliance department. TD's stock will probably have slow growth for awhile but I'll take the 5.34% yield and a recent dividend increase while I wait for better times. The ex-dividend date for TD is on the 10th of January, 2025.
Reading up on the JP Morgan ETFs I got into. Both JEPI and JEPQ with US exposure, will have a varying distribution and yield from month to month going forward. JP Morgan Canada plans to add more ETFs with US and international holdings. TMX Money calculates the yearly yield for JEPI at 6.32% currently and for JEPQ, 14.66% being listed in their Top Dividend 50 list while I'm taking the risk factor into account.
Happy holidays and I look forward to the 2025 events that will rock the stock market world from time to time and I'll see how it all looks mid month January when Canadian Banks have ex-dividend dates plus interesting ETFs.
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