TD, ETFs and US Stocks

 

With the Canadian banks, TD Bank has an ex-dividend date of July 10th and undervalued with a current dividend yield of 5.39% . TD has a dividend growth rate of 7+%. Numbers I like as the bank deals internally with compliance and training while it shakes up that department and has set aside millions for upcoming fines for breaches in some of their US branches. 

It is opposite to conventional thinking when it's about issues like higher unemployment rates. During elections, there's usually promises of more jobs to get politicians elected or re-elected in their riding or seeking leadership. Central Banks think of it as a positive when more people lose their jobs and more inclined to lower interest rates, perhaps again this fall. However, inflation seems to be ticking up again, although not surprising to me. 

It's in my best interest that rates come down eventually where it should favour the stocks while on the subject of banks in this post.

There are a lot of new bank and financial related ETFs being added in 2024. Curiosity gets the best of me so I look over a lot of these with a reasonable MER, management fees and yield while considering risk. Meanwhile I continue to buy the individual bank stocks with Bank of Montreal, BMO and Royal Bank, RY having ex-dividend dates later in this month of July with attractive yields.

BMO also has a couple of popular all Bank ETFs, ZWB paying a 7% yield with monthly distributions and ZEB ... equal weight Canadian banks ETF, also paying monthly with a 4+% yield to consider. 

On my radar these days, is adding some decent dividend paying US stocks of which there are many. I'll get into that deeper in my next post and seems to be a theme with the Bloggers and newsletters I read lately with the tech fuelled S&P 500 index down south. My interest is more about how the high dividend US stocks are doing minus the tech related 7 stocks that some say could be an AI bubble that will pop some day in the future. 

Lots to consider like currency exchange rates and fees and the foreign 15% deducted from dividends/distributions unless in an RRSP. Are CDRs a better option? ... Canadian Depository Receipts that pay proportional dividends to the amount invested. 

Natural Gas in June of 2024

 

Big oil and some banks that fund them are pushing back against the "proposed" guidelines for either the start of cutting back on oil production or adding expensive carbon capture facilities by 2030 to met Federal requirements. The big companies in Canada see what's coming and have been shifting to Natural Gas and shipping it to market. The US is using more Natural Gas and TC energy has the pipeline to deliver it plus the NG port in BC for shipping.

I was looking for feedback on TC Energy (TRP-T) and the pipeline becoming two stock market companies. TC Energy and South Bow combined having the same dividend currently paid. The actual divide into two stocks will happen sometime later this year.

I read, listen to and watch the The Dividend Guy, Mike on the subjects that interest me. A recent video that gets into one of those subjects is TC Energy and South Bow. A good overview with the pros and cons. Where I'm long term, I'll continue with both. TRP being into Nuclear power plants is also a plus I agree with. Some major US utilities are adding nuke plants as power demands ramp up down south 

I have read about all this fast tracking AI, which requires bigger data centres to feed it and that requires a lot of energy such as natural gas. If your into Bitcoin and know about Bitcoin Miner setups... they require a lot of power similar to the data centres geared for AI and other applications. TC Energy has an ex-dividend date of June 28th.

Summer is here and July will be about Bank stocks with me. BNS ... The Bank of Nova Scotia is on my hit list early in July to debate about with it's ex-dividend date. BNS didn't increase it's dividend like in past years so far in 2024. Some say it's a good thing like all banks when they don't see the growth numbers they like, they cut expenses and re-organise the section(s) causing the bleeding. Others sell where dividend growth has stalled for now.

BNS is undervalued with a current 6.86% yield and creating fear with some investors. Makes me want to buy more while it's down for now.