Investing

Investing Idea - Dividend Growth

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  • Jan 24th, 2021 10:21 am
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Jan 16th, 2021 5:37 pm
georvu
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Feb 4, 2015
6321 posts
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Canada, Eh!!

Jan 16th, 2021 5:37 pm

alanbrenton wrote: ↑ Start trading cryptocurrencies to be a true disciple. :)
Right now above my knowledge level :)

But perhaps Wealthsimple Crypto??
.......
July 13, 2017 to October 25, 2018: BOC raised rates 5 times and MCAP raised its prime rate next day each time.

2020: BOC dropped rates 3 times and MCAP waited and waited to drop its prime rate to include all 3 drops.
+2
Jan 16th, 2021 11:30 pm
freilona
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Aug 4, 2014
3159 posts
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Toronto, ON

Jan 16th, 2021 11:30 pm

georvu wrote: ↑ Right now above my knowledge level :)

But perhaps Wealthsimple Crypto??
Since you won’t be truly owning your coins at Wealthsimple anyway, check out Crypto HISAs which are really HI (5%+) and easy to set up: https://medium.com/blockinfluence/block ... bb2b3ed083 (I just signed up for BlockFI today and transferred bitcoin fractions from Shakepay - not harder than online banking :))

But back to regular programming.. :)
+3
Jan 17th, 2021 9:55 am
thetipster
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Dec 13, 2010
1975 posts
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Jan 17th, 2021 9:55 am

georvu wrote: ↑ Right now above my knowledge level :)

But perhaps Wealthsimple Crypto??
If I ever invest in crypto, it will be through wealthsimple or I'll just buy some QBTC
+2
Jan 17th, 2021 10:52 am
Raela
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Dec 22, 2007
320 posts
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Thornhill

Jan 17th, 2021 10:52 am

thetipster wrote: ↑ If I ever invest in crypto, it will be through wealthsimple or I'll just buy some QBTC
QBTC mirrors the actual bitcoin pricing pretty well?
Jan 17th, 2021 12:35 pm
thetipster
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Jan 17th, 2021 12:35 pm

Raela wrote: ↑ QBTC mirrors the actual bitcoin pricing pretty well?
I would think so, but don't take my word for it.
Here's their site, read their prospectus.
https://3iq.ca/the-bitcoin-fund/

And as said above... this is Off topic so let's move discussion of Bitcoin to the appropriate thread.
+6
Jan 18th, 2021 8:47 am
jalaram
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Oct 26, 2003
1195 posts
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Mississauga

Jan 18th, 2021 8:47 am

thetipster wrote: ↑ I would think so, but don't take my word for it.
Here's their site, read their prospectus.
https://3iq.ca/the-bitcoin-fund/

And as said above... this is Off topic so let's move discussion of Bitcoin to the appropriate thread.
Is "The RFD - Cryptocurrency Mega Thread" the correct thread for the discussion?
+1
Jan 18th, 2021 11:07 am
Lavaris1
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Jul 4, 2018
365 posts
279 upvotes

Jan 18th, 2021 11:07 am

Riocan cut its dividend by 33%
Is it still good to hold ?
Jan 18th, 2021 12:14 pm
Capt.
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Sep 2, 2004
2277 posts
597 upvotes

Jan 18th, 2021 12:14 pm

Chance7652 wrote: ↑ Thanks for your analysis on utilties @rodbarc . I'm very bullish on utilities in the long term and own about half of these names.

For discussion, I'd like to run this by you for CU. I've been quite disappointed in CU since buying it in 2017 and their recent 1% dividend raise adds to that. I've traded in and out of it but it looks like my IRR has been around 5-6%. CU looks like a great buy from FFO but in looking at the earnings its 0.77% yearly growth over the last 10 years. Its a current hold for me with a 1/2 position but the thesis of why I bought it (yield + dividend growth) is almost broken. The 1% dividend raise also shows a company struggling to grow and I don't like how they dropped from 10% raises to 1% in 3 years. My question is how do you weigh looking at FFO vs PE for CU and utilities in general?

As for AQN I think part of the reason for the dividend cut was the conversion from an income trust. I own a 3x position in AQN but think they're overvalued now and wouldn't buy them currently. I look at them on fastgraphs from their US listing as they're about 95% US revenues which looks slightly better. Agreed that CPX is more risky as its all power generation and they have price risk. I'm thinking they may trade at higher multiple in the future as they're about 25% renewables. I'm suspecting renewables will be a big focus for their growth strategy and think people will start to look at the company more positively as this happens and also when they get completely out of coal.
Not Rod, but CU has been a question mark for me too. You've done better than me on this one. I've owned it for years and the SP is currently below where I bought, so the only positive has been the dividend income. Overall it's one of the worst performers in my portfolio. I was very close to dumping it recently, but the forecasts show a decent amount of growth and therefore a reasonable future return in FAST. Plus they are continuing to pay (and slightly raise) the dividend. I'm still thinking about this one and may sell to focus on better names.

And your question about OCF vs PE in FAST, I personally look for whatever has the best correlation historically to the share price. This is pretty easy to do visually with the FAST charts. I really like the graphical representation and easy analysis it affords. I don't necessarily have a predetermined metric for each sector. I treat it more on a case-by-case basis, although obviously there are certain industries where it's easy to say go with cash flow instead of earnings. (REITs for example) Again, not Rod and I recognize he obviously has a lot more experience and expertise on this than I do.
+1
Jan 18th, 2021 12:19 pm
Sanyo
Deal Guru
Feb 9, 2009
10196 posts
8264 upvotes

Jan 18th, 2021 12:19 pm

Chance7652 wrote: ↑ Thanks for your analysis on utilties @rodbarc . I'm very bullish on utilities in the long term and own about half of these names.

For discussion, I'd like to run this by you for CU. I've been quite disappointed in CU since buying it in 2017 and their recent 1% dividend raise adds to that. I've traded in and out of it but it looks like my IRR has been around 5-6%. CU looks like a great buy from FFO but in looking at the earnings its 0.77% yearly growth over the last 10 years. Its a current hold for me with a 1/2 position but the thesis of why I bought it (yield + dividend growth) is almost broken. The 1% dividend raise also shows a company struggling to grow and I don't like how they dropped from 10% raises to 1% in 3 years. My question is how do you weigh looking at FFO vs PE for CU and utilities in general?

As for AQN I think part of the reason for the dividend cut was the conversion from an income trust. I own a 3x position in AQN but think they're overvalued now and wouldn't buy them currently. I look at them on fastgraphs from their US listing as they're about 95% US revenues which looks slightly better. Agreed that CPX is more risky as its all power generation and they have price risk. I'm thinking they may trade at higher multiple in the future as they're about 25% renewables. I'm suspecting renewables will be a big focus for their growth strategy and think people will start to look at the company more positively as this happens and also when they get completely out of coal.
I dumped my CU. 1% div increase told me to get out. I buy utilities as the "bond" portion of my portfolio and while this stock has gone no where cap appreciation wise in the 5 years, the 1% divy increase just had me throw in the towel.
+1
Jan 18th, 2021 12:53 pm
thetipster
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Dec 13, 2010
1975 posts
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Jan 18th, 2021 12:53 pm

Lavaris1 wrote: ↑ Riocan cut its dividend by 33%
Is it still good to hold ?
Wow, I'm shocked the stock did not go down on this news. Why not continue to hold?
Jan 18th, 2021 1:06 pm
charliebrown
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Dec 21, 2005
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Markham

Jan 18th, 2021 1:06 pm

thetipster wrote: ↑ Wow, I'm shocked the stock did not go down on this news. Why not continue to hold?
It did drop when the cut was announced in Dec 2020

https://www.globenewswire.com/news-rele ... lders.html

FWIW, First Capital REIT also cut distribution and its share price didn’t drop as much after the announcement (basically back to mid $14 after briefly going below $14)
:idea: :) :lol: :razz: :D
+3
Jan 18th, 2021 4:17 pm
stillmatic11
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Jul 11, 2007
1316 posts
344 upvotes

Jan 18th, 2021 4:17 pm

thetipster wrote: ↑ If I ever invest in crypto, it will be through wealthsimple or I'll just buy some QBTC
Wealthsimple is pretty much the worst option IMO. You can only deposit/withdraw in CAD meaning you don't own the actual asset and can't move it around as you wish. It's also 150 bps for buying/selling which isn't great.

At least with something like QBTC, you get the benefit of not paying any potential capital gains taxes if you use your TFSA. There is a price premium over buying actual Bitcoin, but the tax savings could end up quite significant if you ever decide to cash out.
+1
Jan 18th, 2021 4:48 pm
EuRaFree
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Dec 2, 2017
472 posts
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Jan 18th, 2021 4:48 pm

stillmatic11 wrote: ↑ Wealthsimple is pretty much the worst option IMO. You can only deposit/withdraw in CAD meaning you don't own the actual asset and can't move it around as you wish. It's also 150 bps for buying/selling which isn't great.

At least with something like QBTC, you get the benefit of not paying any potential capital gains taxes if you use your TFSA. There is a price premium over buying actual Bitcoin, but the tax savings could end up quite significant if you ever decide to cash out.
Except I don't think that CRA will allow to hold it in a registered account.
Jan 18th, 2021 6:03 pm
rodbarc [OP]
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Dec 14, 2010
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Jan 18th, 2021 6:03 pm

EuRaFree wrote: ↑ Except I don't think that CRA will allow to hold it in a registered account.
QBTC is eligible for all registered accounts in Canada.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
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Jan 24th, 2021 10:21 am
rodbarc [OP]
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Dec 14, 2010
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Jan 24th, 2021 10:21 am

hellohello wrote: ↑ Hi Rod,

I hope all is well.

How is your US watchlist review coming along? I am waiting with baited breath.

Thx
Soon, finishing the review of the watchlist as US watchlist will have more changes than the Canadian ones.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
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