It's confusing times as President Trump changes his mind every other day about 25% tariffs on Canada and Mexico. Meanwhile, he doesn't like it but Canada added a first phase of 25% tariffs and so far ... has kept them in place since March 4th waiting on Trump's next move. Partial, different rates and reciprocal? All this has the businesses effected on both sides of the border seeing a foggy course ahead until there's some clarity to it all.
I was delaying writing this post expecting the tariff issue to be set for awhile from March 4th but it's ever changing and hopefully not for the 4 years of Trump's term. Then there's the ... I want Canada and Greenland. Oh my.
As expected, the Markets don't like it and have fallen amid a lot of selling. I'm long term so staying the course. Usually during these times, some stocks I hold and those I'm interested in, fall in price so ripe for further buying. The "Buy Low" always on my mind.
In the February 2025 Canadian Money Saver Magazine, there is an update article from Matt Poyner about Beat The TSX, or BTSX strategy. I adopted that strategy shown on his site, DividendStrategy.ca a few years back but in a modified form where I buy monthly and not the top ten in equal amounts and hold for a year.
It works but doesn't always beat the TSX every year but over the long term with dividends included. it does. For 2024, BTSX gained 16.19% with dividends. Decent in my books while compared with the TSX 60 in the XIU ETF came in at 20.56% with dividends.
Probably a worthy addition alongside the BTSX portfolio, Blackrock's XIU ... iShares S&P/TSX 60 Index ETF.
As Matt writes, do your own due diligence where I go through the list plus down thru the top twenty dividend paying stocks and beyond on the TSX. I filter out those I'm not interested in. For example, I never owned Algonquin Power, AQN from the start. I sold BCE last year when all the grumbling started with the company and possible dividend cuts coming. Instead, I picked companies further down the list I mention regularly on this Blog.
Moving forward, on the 14th of February, Canadian Natural Resources, CNQ.TO has an ex-dividend date and recently increased their dividend by 4.44% with a current yield of 5.63%.
I'll be buying more shares of South Bow, SOBO.TO in the latter half of this month with an ex-dividend date of March 31st, 2025
There's lots of articles and posts about oil prices swaying more than usual these days with Trump, OPEC possibly increasing production and the US 10% tariff on Canadian oil. That will weigh on Companies in that sector depending what's going on from day to day. South Bow pays their dividend in US dollars so I receive the CAD conversion much like oil companies in Canada which sell their oil in the US and convert some or all to CAD in their accounts.
On "Cut the Crap Investing" with link shown in the right sidebar here, I seen Tourmaline Oil, TOU.TO mentioned a few times and a stock held by Dale Roberts, the author.
In the news recently, I read TOU had a decent quarterly report and cash flow. Their base dividend has been increased by 43% along with a special dividend payment for this quarter. March 14th is the ex-dividend date but to receive the special dividend, shares need to be bought before closing on the 13th of March.
Mid month March is coming up fast and then I'll be looking at the big banks of Canada with the Bank of Nova Scotia, BNS.TO first up on my radar for further buying.
I'm also looking at two high yield ETFs which surprised me from Manulife, MFC.TO where they are more about moderate to low yield. I'll debate about adding CYLD: Manulife Smart Enhanced Yield ETF and UYLD: Manulife Smart US Enhanced Yield ETF These ETFs would be more for income and monthly distributions to add cash for buying more core stock holdings.
Interesting weighting with the Holdings starting with Treasury Bills and then lower weighting into some solid companies. More about Manulife's ETFs in my next post.
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