Discount Stock Buying

 

Dollar Cost Averaging and/or discount DRIP buying is a long term strategy I use. 

Cash dividends from companies and banks are the reason I started in the stock market while I check on the stocks I buy next to read the latest news if they are undervalued or overvalued. What's the latest P/E ratio ... Price to Earnings. 

There's a lot of focus these days with higher interest rates on the debt companies have to pay and if they buy more outfits or build/expand their business (Pipelines for example) ... which usually follows with news about the more expense burden and press articles about dividends and if they are they safe from cuts.

I prefer to buy "undervalued" but that's not always in the cards where I'm primarily looking to boost my cash dividends from that company. Ex-dividend dates seem to come up fast at times when debating the price but in the long term... 5 years, 10 years and longer ... price haggling doesn't matter much where a lot can happen with stock prices over the years.

Reminds me of discount grocery shopping ... I want the cheapest price but there's not always sales on the go at the time I need it. 

Where's my focus with stocks? ... usually in the top twenty of the highest dividend paying stocks on the TSX ... TSX 60 by Dividend Yield

With more concentration on the top ten and the BTSX portfolio except AQN.

How is the BTSX performing so far this year with rate of return? Not too shabby all things considered with all the ups and downs so far with inflation and holdings dealing with higher interest rates, etc. But overall ... kind of steady going.

BTSX: 4.6%   (3 year average) 14.90%

TSX60 Benchmark: 6.04%  (3 year average) 9.09%

Concluding for today, I prefer steady and/or rising cash dividends coming in but I am into a commodity driven royalty outfit called Labrador Iron Ore Royalty Corporation, which is into the Newfoundland iron miner ... Iron Ore Company of Canada (Overview Here). 

LIF-T, Labrador Iron Ore Royalty Corporation is dependent on the price of iron, how much can be sold and shipped and one of the largest importers in the world of iron is China. 

A surprise increase in LIF's dividend of 0.95 per share or unit was declared this month. The ex-dividend date is next week on September 28th with a payment date of October 26, 2023.

On the LIF site, the quarterly fluctuating dividend payments can be seen and as I mentioned, dependent on the iron market place. 

Update: 20 September, 2023

Fortis, FTS-T has increased it's dividend by 4.4%, from 0.565 to 0.59 per share for the December 1st, 2023 payment with an ex-dividend date of November 16, 2023.

This increase is a milestone with 50 years of dividend increases with a 4-6% increase in dividends in the years to come.

   

Portfolio Sectors

 

There's never a dull moment with the stock market during a given week.

Enbridge (ENB-T), the Canadian pipeline giant surprised those who hold it's stock and others watching by buying 3 Natural Gas outfits in the US for $15 billion including debt this week. 4 Billion raised from a special stock offering that sold out in hours. 

First things comes to mind is the added debt and some sell with lingering doubts about if ENB can maintain it's attractive cash dividends to holders. Time will tell when the dust settles on all that news. 

The price of oil going up at this time is one plus for the pipelines and oil related.

Speaking of attractive ... Keyera Corp or KEY-T, has increased it's cash dividend with an ex-dividend and Pay date for this month of September, 2023 with earnings surprises so far this year.

I'm in a mindset of holding 2 to 3 companies in each sector for the portfolio to stay somewhat diversified. For example Telus or T-T and BCE-T in the telecom sector. The big banks are an exception.

Courtesy of time.com

The big banks of Canada I own in ETF/Fund holdings and keep adding to them separately such as adding more shares of CIBC, CM-T with an ex-dividend date in the last week of this month. 

Some good news I guess on the inflation front in Canada. The Bank of Canada has decided to hold interest rates at 5% ... for now. Looks ominous ... the "for now". Groceries continue to climb in cost adding to household expense and gas will go up with the oil price increase lately.