Watchlist Picking for February, 2024

 

Daylight Savings Time kicks in less than a month ... March 10th and I'm already looking forward to more daylight and heading into spring. Time to shop around for a new BBQ where mine is burnt out. Burgers and wieners sizzling where steaks are a luxury item these days unless on sale. Meanwhile grocers here are saying a freeze on prices is coming to an end? Ok, didn't know there was a price freeze where I'm paying more every month.

I'll need more dividend payments to keep up and on that subject, in the Lifeco sector; Manulife Financial (MFC) comes to mind with an ex-dividend date of February 27th and a pay date of March 19th. 

MFC is currently undervalued going by the current Graham Number. ($44) with a 4.80% yield and a 5 year dividend growth of 10%.

A stock I will add this month after "watching" it for awhile is Atco Limited (ACO-X), which I mentioned in my last post. Atco Ltd has a 5 year dividend growth of over 7% and with a 3% dividend increase for it's February 28th ex-dividend date, paid on the 31st of March.

I look for decent companies that are growing their dividends but as an investor with no insight to what goes in company boardrooms or a CEO's office, I can only go by what stats, news and history provides.

A good example of this is the release of a recent upsetting quarterly report by a top telecom company in Canada, BCE. That is still causing a stir, even getting the Prime Minister, Justin Trudeau miffed calling it a garbage decision over BCE's cutting of 4800 jobs plus other closures/selling. BCE increased it's dividend by 3.1%, while a minimum of a 5% increase was expected. 

BCE's bottom line could improve over the next couple quarters but at what morale cost are on some investor's mind.  The stock world can be cruel and unforgiving to investors at times while the underlying companies think about profit as they hand out layoff notices from time to time.

Meanwhile, long term yield investors see it as a stitch in time and look forward to future accumulating dividend payments with their holdings.

February, 2024 and the Leap Year

 

2024 is a leap year with February having 29 days. For those on a payroll, depending on a company which pays Thursdays, there will be a rare 3 paydays this February. 

February is also a fairly busy month for my watchlist and portfolio, checking on ex-dividend and pay dates. Pipelines, Utility and Lifeco's are in focus on the dividend calendar.

At the top of the BTSX list is Enbridge, ENB in yield with an ex-dividend date of February 14th, Valentines Day. The pipeline made major moves into the US last year, adding natural gas assets and continues to look for opportunities they say are to good to pass on after they do their research and work the numbers.

Based in St. John's, Newfoundland in the Fortis Building, Fortis (FTS) is spread out across North America and beyond, mainly into power generation with 66 billion in assets and 25 billion ready to deploy. 50 years of increasing dividend payments to shareholders with an ex-dividend date falling on February 15th.

These are what many investors call boring stocks but FTS, like Emera, EMA are decent foundation stocks to build a portfolio on in my opinion. 

Accumulating monthly dividend cash payments, there are decent ETF options like Vanguard's VDY, with a current yield of 4+% with 52 equity holdings that include ENB and FTS.

In the last half of February, there are ex-dividend dates coming up for Lifeco's, or insurance companies like Sunlife, SLF and Manulife, MFC in my next post along with a watchlist stock ... ATCO  ( ACO.X) which has a current yield above 5% with Canadian Utilities, CU being it's largest subsidiary or holding.

I like this question and answer from a recent article with Greg Newman of Scotia Wealth Management but not only for new investors but as long as one is into stock investing.

What advice do you have for new investors?

Good investing is about experience. You should try to do as many things correctly as possible and try to avoid mistakes. You will inevitably make them, but just make sure you learn from them – and keep learning. Also, be humble. Investing is a long-term process.

.