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Saturday, December 10, 2011

The American Dream or almost

Yesterday, I went for a visit to the country of Barack Obama, Lady Gaga and Annie Jean!


That’s right, yesterday, I went to the USA!

I didn’t went for a good 10 years+, because I was away. But while being back here in my hometown, I find it nice to own a passport to cross board like in the old days. Old days that are not that old. You can read about my cross boarding adventure right here. Also yesterday, I received 31.32$ in dividend from Fortis Inc. (FTS). Nice!

Following what, I had an idea about getting more US dollars in my portfolio. At this time, the exchange rate provided by my TD Waterhouse broker account is the following: $1.00 USD = $1.0325 CDN. A $1,000.00 CDN worth $968.52 USD. Not bad, but we had a better exchange rate for our Canadian dollars before. I want more of those:

For the past couple weeks, I didn’t invest. I had no idea what to do with my money. Getting more US dollars could be a good idea and it’s time more than ever to get some US dollars before it gain more in value. I am really happy about my finding. It took a trip to the US to get a plan for my money.

Hopefully, I will invest in US blue chips and get super rich, the American way.


Liquid Independence said...

I miss using our 2$ bills, but I still kept one before they disappeared. I've never been in a Marden before, but sounds like a good shopping experience.

Anonymous said...

The Toronto Stock Exchange is mostly Energy and financials. Canadians investing her get the dividend tax credit for Canadian corporations.

That being said, there is not much in the way of consumer staples. Companies like Coco-Cola (KO), Johnson&Johnson, Pepsi, Walmart and Proctor and Gamble. These a recession proof stocks, and its one of the reasons Derek Foster and many others invest in these companies.

I believe Derek Foster built up his portfolio with Canadian dividend payers first due mainly for the favored tax treatment. Then invest in the US. This what I think is the best root for any one to take.

Sunny, you should consider these type of companies as investments in the near future.

Sunny said...

Hi Liquid,

I don't recall the 2$ bills. Cool you still have one of these.

Marden is a fun store to go shopping. You never know what you can find. A visit every 1-2 week can really worth it as they renew their stocks on a regular basis.

A good store for bargain hunters!

Hi Anonymous,

For me at this point, it's getting more difficult to invest on the TSX. There's many reasons for that. That include a moderate knowledge of the Canadian companies there are out there. But also, at this point, I invested in pretty much in everything I ever wanted, so it's very difficult for me to find new companies to invest in. Maybe at this point ETF could do the thing.

The US dollars still low and I want to take advantage of this before it's too late.

I may consider investing in a US blue chip company, but I don't know which one yet. However, I got some good info from a reader about US ETF, going to be from the next post :)

Anonymous said...

Realize u have US withholding tax when u get a US dividend. Its not the same preferential dividend treatment as a Cdn holding a Cdn stock. There are ETF's that do some fancy footwork to get around it.
As for the US recession proof stocks...there are none, especially when divi's r a driving investor force.
The mega conglomerate GE is a lesson that should have been learned, its value dropped to half when its divi dropped & it continues to trade well below what it was. Look at the Chart.
Not understanding or keeping current what a divi represents to a specific company & the company's present cash flow/liability stressors can hurt an investor only seeking yield or a guaranteed yield.
Its the same sort of ignorance that promotes investors to chase Preferred Share divi's without realizing that all or even most aren't created equal.

Ruth said...

There is a 15% withholding tax on the US dividend. i own Sea Drill with an excellent dividend but if the American dollar climbs, i will make money there also..bought this when the canadian dollar was up to $1.07 so the stock was even cheaper...i would certainly buy something else US..if i can make my mind up.


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