Staying Invested for October, 2023

 

Stay invested and one can't time the Markets sticks in my mind looking at the short term market swings but with long term goals and compounding dividends.

However, with the constant media noise about inflation and interest rates depressing many an equity stock and those that pay dividends ... I feel it's a good time to Buy while stock prices are down on those I'm interested in when other investors are selling ... moving cash over to so called "safe havens". GIC's, high interest savings accounts and gold.

Nothing new there with the up and down cycles of the Markets in the past ... the fear and greed thing driving many an investor.

It looks like possible further hikes have gone more to central banker talk about how long will we keep interest rates at this high level? Be a lot of media discussion about that going forward I'm sure.

Besides investor concerns when companies take on more debt at higher interest rates, costing more money to operate and Banks dealing with bad loans/mortgages that will probably increase heading into 2024, central bankers and interest rates are the biggest downers for now and weigh on the Markets in my opinion.

It's the middle of October and with the top five banks ... Royal Bank (RY-T) and Bank of Montreal (BMO-T) have ex-dividend dates on the 26th and 27th for this month with current dividend yields of 4.71% for RY and 5.34% for BMO. I figure they are decent buying opportunities while their stock prices are down and flat currently

Those banks and others will be releasing earnings reports in the next few weeks for the past quarter. I don't expect much difference from the last earning reports except probably directing more money to cover possible loan defaults. Better days ahead when central bankers decide to slowly drop rates, which could take awhile unfortunately.

Doing some research and googling, there are several Canadian ETF's that hold all these top banks plus more financials but besides the lure of enticing cash dividends, I wouldn't expect much ETF price appreciation for now but some will increase over time eventually such as BMO's ETF ... ZWB.

The Final Quarter for 2023

 

The cooler evenings here on the east coast of Canada are most welcome starting October with humidity levels falling off. The cooler stock market is not what investors went to see in their portfolios lately but as long as dividends are being paid by Holdings, it's patience with me as I wait for most stock values to recover once again.

Meanwhile, it's a mix of fear taking hold for some and selling while others buy at lower prices looking for more gains in the future. The big five Banks in Canada, for example are expected to rebound next year after the 2023 adjustment to interest rates staying higher for longer. But, as always, these are predictions.

It's good to see the dividend increases from Fortis (FTS) with 50 consecutive years and Emera (EMA) with 31 years so far and 4-6% increases for the next few years in their recent news releases. That keeps me motivated and continue to accumulate shares in these utilities.

Emera (EMA) has an ex-dividend date for Halloween with payment on the 15th of November.

Emera Approves Increase in Common Dividend

Company Release - 9/20/2023

HALIFAX, Nova Scotia--(BUSINESS WIRE)-- On September 20, 2023 the Board of Directors of Emera Inc. (TSX: EMA) approved an increase in the annual common share dividend to $2.87 from $2.76 per common share and extended its dividend growth rate target of four to five per cent through 2026.

“Today’s dividend increase is in line with our dividend growth rate target of four to five per cent and reflects our continued confidence in our assets, our strategy and the strength of our business,” said Scott Balfour, President and CEO of Emera Inc. “We remain focused on executing a balanced energy transition that drives value for our customers and generates reliable returns for our shareholders.”

As always, some great articles being posted by Bloggers and Investors on my right sidebar. How they increase dividends over time with patience looking at the long term by staying in the Market.

The stock market history has shown that overall, the final quarter in the year is more positive compared to say ... how September ended for example. Interesting to see if that's still a trend.