Investing

Investing Idea - Dividend Growth

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  • Nov 19th, 2020 5:54 pm
Sr. Member
Nov 16, 2013
635 posts
162 upvotes
GTA
freilona wrote: see if NFI recovers (or sell at a loss - have two capital gains to offset)
I also have NFI and now thinking on same lines.

How do you track of loss ( Through excel or any tool) and mention it on tax papers? I have never done it hence wanted to check
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Aug 4, 2014
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vivmk20 wrote: I also have NFI and now thinking on same lines.

How do you track of loss ( Through excel or any tool) and mention it on tax papers? I have never done it hence wanted to check
Sorry, have never done it, either! Thought Questrade will send me some tax form that I’ll enter in Turbotax that hopefully will remember the number if I have to carry a portion of a loss forward “indefinitely” :)
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Feb 4, 2015
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Canada, Eh!!
luking wrote: These two have very attractive yields. Are their any downsides?
MERs are on higher side and need to look if comfortable with the companies [especially top 10 or 25] inside the ETFs.

Believe they are pretty passive so that might be pro or con. Might be companies you would rather not hold but can't pick and choose with ETFs.

You could make your own ETF basket by buying individual stocks so no MERs other then commissions to buy/sell, if any. BUT imho that is more when you have a bigger $$ portfolio and even then no assurance can beat ETFs.
.......
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Jr. Member
Feb 17, 2014
140 posts
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Calgary
georvu wrote: MERs are on higher side and need to look if comfortable with the companies [especially top 10 or 25] inside the ETFs.

Believe they are pretty passive so that might be pro or con. Might be companies you would rather not hold but can't pick and choose with ETFs.

You could make your own ETF basket by buying individual stocks so no MERs other then commissions to buy/sell, if any. BUT imho that is more when you have a bigger $$ portfolio and even then no assurance can beat ETFs.
If you're talking about covered call ETFs, there is more to it than just MER and the basket of stocks.

A covered call strategy will do well when the stocks are trading relatively sideways. They can be significantly capped on the upside though. If the stocks go up significantly, you're going to miss out on those significant gains.
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Oct 14, 2015
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vivmk20 wrote: I also have NFI and now thinking on same lines.
How do you track of loss ( Through excel or any tool) and mention it on tax papers? I have never done it hence wanted to check
freilona wrote: Sorry, have never done it, either! Thought Questrade will send me some tax form that I’ll enter in Turbotax that hopefully will remember the number if I have to carry a portion of a loss forward “indefinitely” :)
CRA will receive a T5008 from the broker; you will likely receive one as well.

Ultimately, the onus for accurate reporting falls to the individual, so I use Excel to track Capital Gains/Losses.
At tax time the T5008 can be corrected if necessary.
Deal Guru
Jan 27, 2006
14774 posts
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Vancouver, BC
IrwinW wrote: CRA will receive a T5008 from the broker; you will likely receive one as well.

Ultimately, the onus for accurate reporting falls to the individual, so I use Excel to track Capital Gains/Losses.
At tax time the T5008 can be corrected if necessary.
While the onus is on the individual (always has been for taxes really), the discount brokers can and should do a better job of keeping records and forwarding them to the account holders especially if those securities were purchased through them in the beginning - ie they know how much the purchase was, the commission, the date, the exchange rate on that day, as well as any dividends or stocks obtained in the DRIP situation. With all of the competition for discount brokerage customers, you would think that at least one would provide this level of service.
Sr. Member
Nov 4, 2015
976 posts
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Ontario
craftsman wrote: While the onus is on the individual (always has been for taxes really), the discount brokers can and should do a better job of keeping records and forwarding them to the account holders especially if those securities were purchased through them in the beginning - ie they know how much the purchase was, the commission, the date, the exchange rate on that day, as well as any dividends or stocks obtained in the DRIP situation. With all of the competition for discount brokerage customers, you would think that at least one would provide this level of service.
I love when T5008s only include the proceeds of disposition.
Deal Guru
Jan 27, 2006
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RichRFD wrote: I love when T5008s only include the proceeds of disposition.
So do I. The strange thing is that they include the cost in most statements! What screws me up are those T5008 which are in US funds and include cost but doesn't include the exchange rate! If you are going to include everything else, why not include the exchange rate as that's exactly what all of the T5/3 include which are also supplied by the brokerage?
[OP]
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Dec 14, 2010
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whatyoulookinatbud wrote: Hey @rodbarc any new picks for the Dividend growth portfolio lately?

Your growth stocks have been doing very well!
I am patiently waiting next earnings season and valuation to drop, although Fed will keep injecting liquidity. In this environment of low interest rates + the biggest companies of the market having lots of cash available, it drives overvaluation overall.

So far I added 1 company to my Canadian dividend list (NWC.TO) and 4 companies to my US dividend list (DLR, EQIX, SYK, ICE). The list will be updated for 2021. But valuation is still high for these companies.


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

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Member
May 18, 2017
431 posts
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Toronto, Ontario
rodbarc wrote: I am patiently waiting next earnings season and valuation to drop, although Fed will keep injecting liquidity. In this environment of low interest rates + the biggest companies of the market having lots of cash available, it drives overvaluation overall.

So far I added 1 company to my Canadian dividend list (NWC.TO) and 4 companies to my US dividend list (DLR, EQIX, SYK, ICE). The list will be updated for 2021. But valuation is still high for these companies.


Rod
Nice pick on ICE! I added a similar pick, NDAQ as well during the dip.

Im guessing you're expecting an earnings run up and then a drop as Q2 earnings come out?
[OP]
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Dec 14, 2010
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whatyoulookinatbud wrote: Nice pick on ICE! I added a similar pick, NDAQ as well during the dip.

Im guessing you're expecting an earnings run up and then a drop as Q2 earnings come out?
Next quarter will have better insight of results given covid situation. Maybe some guidance. Valuation is either high or I’m already enough allocated, so I need to wait for fair valuation to show up, which is a matter of time.


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

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Member
Jan 30, 2017
491 posts
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rodbarc wrote: Next quarter will have better insight of results given covid situation. Maybe some guidance. Valuation is either high or I’m already enough allocated, so I need to wait for fair valuation to show up, which is a matter of time.


Rod
Hi Rod

Great advice. I am trying to be patient as well but it is hard.

For now just trying to research diff companies
Can you advise on the following companies, are they fairly valued right now
All in Canada
IFC.to
Tmx
Atco

Thanks!
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Nov 9, 2013
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Enghouse is nose bleed right now - anyone else think the valuation is crazy?
Keep calm and go long
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Dec 14, 2010
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treva84 wrote: Enghouse is nose bleed right now - anyone else think the valuation is crazy?
I think so. But I also think it’s related to their recent acquisitions. There’s a part of me that thinks that ENGH might need to be valuated like MSFT or other growth companies based on top line. Excellent results reported recently, with 58% revenue growth, 74% growth on results from operating activities, 64% growth on net income and 73% growth on cash flow from operating activities.

Companies with lots of cash in this low interest environment tend to be priced at high valuation multiples - and ENGH ended the quarter with $168MM in cash (after paying $60MM in the acquisition + dividends), and they have no long term debt. Time will tell if that’s the new normal.


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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