Alternatives for Idle Cash

 

I enjoy reading the various blogs, newsletters and articles based on dividend investing. Interesting cross section with different viewpoints, strategies, portfolios and information while seeing an interesting gem to jot down, research and invest in from time to time. 

Many a portfolio have some of the same stocks as I do while others have others that work for them and then there are those that are sold with usually a reason why.

This month, I'll add to TD Bank and going by the Graham Number, TD is undervalued. With interest rates dropping sometime this year (hopefully) the big bank stocks will probably increase in price slowly but that's an assumption as always on my part.

The 8th of April is the ex-dividend date for TD and the same day as the much anticipated viewing of the total solar eclipse.

TD did not list HISAs or High Interest Savings Account ETFs after they became more popular with high yields while the elevated interest rates continue but they have recently launched a cash type ETF that works in a similar fashion. Resetting to $50 when the distribution date is announced with a 5% yield. TCSH, or TD Cash Management ETF pays it's first distribution on the 4th of April.

 

Image Credit: Shutterstock

Perhaps an opportunity for cash that is standing by for a future investment and can earn interest income in the meantime while ETFs can be bought and sold anytime during market hours. A good time to buy is when TCSH resets to $50.

When the Bank of Canada does lower interest rates it will slowly bring down the yields on the HISAs and possibly TCSH but for now, it's a wait and see situation.

For more on HISAs and a point of view on the Tawcan blog with Bob and his research on them ... Best High Yield Canadian HISA ETFs

Spring and Growing Dividends

 

It's spring with the long Easter weekend coming up and I see the outside garden centres being stocked already for another busy planting season. 

Inland from the coast here, there are many dairy farms that use a natural fertiliser for their fields in the form of liquid manure and pump sprayed this time of year. With the wind in the right direction and wanting the windows open for that spring fresh air and putting clothes out on the line ... the smell can get pretty ripe with a hurried change of plans. Frebreze doesn't stand a chance in smothering it.  

Next week, a top bank in Canada, CIBC (CM-T) is on my calendar to buy more shares. With an ex-dividend date of March 27th, CIBC has a current yield of 5.63%.

There are a lot of decent stocks to consider buying before that day, such as TC Energy, (TRP-T). This pipeline and natural gas distributor increased it's dividend by 3.23%

People love their sugar and we tend to consume too much sometimes. Boston Cream donuts are an addiction of mine along with a Tim Horton's coffee in the mornings

With that in mind, a Canadian company called Rogers Sugar or RSI-T is a popular "cheap to buy" stock on my Watchlist and has a current 6.78% yield, paying dividends quarterly.

In a recent update, buys and sells now have a shorter waiting period in Canada stating on May 27th when it will only take 1 business day for a Trade to settle instead of the current 2 business days to settle.

I have quite a few stocks on my Watchlist that I feel are "worthy" with the yield range I'm looking for but tend to put cash/dividends back into my holdings that are in the top twenty yielding stocks in the TSX like Power Corporation of Canada (POW-T) with companies like Great-West Life and Wealthsimple under it's umbrella and a current yield of 5.36%.

Although I mention yields and dividends/distributions, it's wise to look and study the stock's stats like P/E, earnings per share, cashflow and payout ratio, etc. One of my favourites is the 5 year dividend growth and I've read 5% and above is another metric to go by when deciding on a stock. For example, CIBC (CM-T) has a 5 year dividend growth of 10.3%.

 

  

Since it was International Women's Day back on the 8th of March, I'll add a quote from Geraldine Weiss, a lady who followed her investing rules and was successful.

We all hope for capital gains, but the only thing we can really count on is the dividends.