Investing

Investing Idea - Dividend Growth

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  • Feb 23rd, 2018 9:06 am
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[OP]
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Dec 14, 2010
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jerryhung wrote:
Feb 13th, 2018 12:33 pm
Ha, whatever names we find for dividend/D.G., it's going down faster than it can raise, at least for me. The rise in yield isn't even that much, relatively

ENB/ENF/TRP/PPL/IPL/KEY/all pipelines
AQN
CJR.B << near $8 again
EIF
I don't have FTS/EMA but same thing
As a buyer, you want lower prices. That allows you to buy more shares for the same dollar amount, which provides a higher income than if the shares were higher - that higher income can then be invested or spent. Buying US stocks because TSX stocks keep falling is not the best way to take advantage of quality companies that keep getting attractively priced. We can't control price fluctuations, but we can control the quality of the companies we purchase. The higher the quality, the more confident I am that the company will bounce back.

As interest rates rise, these stocks go down, since their goal is to provide income. However, in the long term, earnings will drive price accordingly. Undervalued companies trade below their intrinsic value. These are companies that have not been getting much love from the market lately, with lots of bad news from the media, in spite of good operating results. To me, these companies present a nice investment opportunity. And ideally these companies should provide you with perpetual growing income, where no shares need to be sold to meet your income goals.

If you are looking to sell soon (to lock gains via total return), then these are not the best stocks for capital appreciation. There are lots of growth opportunity in TSX, but not these dividend paying stocks, specially pipelines, utilities or telecom. Also, gains in the short term should be the focus of trading, not investing.

Lastly, it's important to remember that price movements alone can be very misleading. A rising stock price will often lull an investor to sleep creating a false sense of security where they believe that all is well. On the other hand, a falling stock price usually creates anxiety and sometimes leads to outright panic. These feelings can be rational as long as they are justified by sound fundamentals. Knowing the differences between rational and emotional reactions will make all the difference.


Rod
Everything about my Investing and automated Trading strategies to boost your income: https://boostyourincome.ca
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Apr 19, 2005
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jerryhung wrote:
Jan 25th, 2018 10:25 am
just like that, CJR.B is almost $9 again (from $8 on 1/19)
CJR.B is $8 again.
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Sep 19, 2004
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rodbarc wrote:
Feb 13th, 2018 9:42 pm
As a buyer, you want lower prices. That allows you to buy more shares for the same dollar amount, which provides a higher income than if the shares were higher - that higher income can then be invested or spent. Buying US stocks because TSX stocks keep falling is not the best way to take advantage of quality companies that keep getting attractively priced. We can't control price fluctuations, but we can control the quality of the companies we purchase. The higher the quality, the more confident I am that the company will bounce back.

As interest rates rise, these stocks go down, since their goal is to provide income. However, in the long term, earnings will drive price accordingly. Undervalued companies trade below their intrinsic value. These are companies that have not been getting much love from the market lately, with lots of bad news from the media, in spite of good operating results. To me, these companies present a nice investment opportunity. And ideally these companies should provide you with perpetual growing income, where no shares need to be sold to meet your income goals.

If you are looking to sell soon (to lock gains via total return), then these are not the best stocks for capital appreciation. There are lots of growth opportunity in TSX, but not these dividend paying stocks, specially pipelines, utilities or telecom. Also, gains in the short term should be the focus of trading, not investing.

Lastly, it's important to remember that price movements alone can be very misleading. A rising stock price will often lull an investor to sleep creating a false sense of security where they believe that all is well. On the other hand, a falling stock price usually creates anxiety and sometimes leads to outright panic. These feelings can be rational as long as they are justified by sound fundamentals. Knowing the differences between rational and emotional reactions will make all the difference.


Rod
I totally agree.
but to see these tank -2% daily is still hard to watch no matter what

ENB, IPL -2%, all Canadian yield names continue lower
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Nov 20, 2016
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What do you think of Element Fleet Management "EFN.TO"? Dividend is now around 6% and they earn about $0.80 per share with an annual dividend of $0.30. Dividend seems maintainable given the earnings. Stock was hit recently with the announcement regarding the retirement of the CEO and change in business strategy (no longer looking for a buyer of the business). Thanks.
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Feb 13, 2008
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I own the big six banks and etfs XEI and ZWE in the Canadian side of my portfolio.
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May 25, 2008
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Anyone own AbbVie?
ABBV(NYSE) announced a 35% dividend increase + $10B stock buyback. This is on top of an 11% divvy increase announced last October. I have about 100 shares from the Abbott Lab spinoff a few years ago. Just wish I had more of this one....

https://seekingalpha.com/news/3331568-a ... -10b-stock
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Nov 9, 2013
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STP123 wrote:
Feb 15th, 2018 1:38 pm
Anyone own AbbVie?
ABBV(NYSE) announced a 35% dividend increase + $10B stock buyback. This is on top of an 11% divvy increase last October. I have about 100 shares from the Abbott Lab spinoff a few years ago. Just wish I had more of this one....

https://seekingalpha.com/news/3331568-a ... -10b-stock
I own ABBV - man o man I love this shareholder return plan. They are still killing it with Humira too.
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Nov 9, 2013
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Speaking of buybacks, TRI is planning to buy back ~ 10 billion worth of shares which is like 1/3 their market cap and yet they are at new 52 week lows - and they have a growing dividend!
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Nov 9, 2013
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treva84 wrote:
Feb 15th, 2018 1:43 pm
Speaking of buybacks, TRI is planning to buy back ~ 10 billion worth of shares which is like 1/3 their market cap and yet they are at new 52 week lows - and they have a growing dividend!
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Jun 3, 2009
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treva84 wrote:
Oct 26th, 2017 3:13 pm
Perhaps I'm one of the few welcoming the dip - I'm at risk of losing my DRIP if shares go above $33. Unfortunately this month's share DRIP was at ~ 32.xx rather than 29.xx Face With Tears Of Joy
treva84 wrote:
Feb 15th, 2018 1:42 pm
I own ABBV - man o man I love this shareholder return plan. They are still killing it with Humira too.
What is management' s plan once Humira patent expires in 4 years?
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Jun 3, 2009
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treva84 wrote:
Feb 15th, 2018 1:43 pm
Speaking of buybacks, TRI is planning to buy back ~ 10 billion worth of shares which is like 1/3 their market cap and yet they are at new 52 week lows - and they have a growing dividend!
I noticed the dividend had been cut twice in thr past 2 years. Any idea why?
[OP]
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cn_habs wrote:
Feb 15th, 2018 7:15 pm
I noticed the dividend had been cut twice in thr past 2 years. Any idea why?
No, they have been growing dividends every year steady. But dividends are paid in US$, so when converted to Cad$ it looks inconsistent.

Here are their dividend payments :

http://phx.corporate-ir.net/External.Fi ... BlPTM=&t=1


Rod
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[OP]
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Dec 14, 2010
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cn_habs wrote:
Feb 15th, 2018 7:13 pm
What is management' s plan once Humira patent expires in 4 years?
I believe the strategy is focused on 2 fronts: new generation of rheumatoid arthritis and psoriasis drugs + cancer drugs.

The anti-interleukin-23 (IL-23) antibody met all its objectives in the three late-stage trials, including showing superiority in clearing skin lesions compared to two blockbuster psoriasis therapies - Stelara (ustekinumab) from Janssen, an IL-12/IL-23 inhibitor, and AbbVie’s own anti-TNF drug Humira (adalimumab). On the rheumatoid arthritis side, the company has JAK inhibitor upadacitinib in development, and JAK inhibitor, IL-17 and IL-23 antibodies drug will likely lead to some market share losses for Humira.

Beyond immunology, cancer drug Imbruvica is the next-biggest sales contributor. Imbruvica's strong clinical data in several forms of blood cancer should lead to peak sales above $6 billion. AbbVie's remaining drugs are largely mature with patent expirations long past, but have manufacturing or specific dosing complexities which make generic competition less likely.

Furthermore, immunology drugs risankizumab and upadacitinib (both likely launching in 2019) should develop into blockbusters; additionally, new indications and further entrenchment for oncology drugs Imbruvica and Venclexta look poised to add close to $5 billion in incremental sales by 2021.


Rod
Everything about my Investing and automated Trading strategies to boost your income: https://boostyourincome.ca

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