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Wednesday, October 3, 2012

Dividend income are for playmates who like it easy

Following my new investments in HealthLease Properties Real Estate Investment Trust (HLP.UN) and Bombardier Inc. (BBD.B), my non-registered is at $124 652.31 and my book value is of $124 607.97. Not so bad knowing that involved a portfolio with a flop of 4k in Timminco (TIM). I am on th right track. I was thinking of investing more in Fortis (FTS). Such a great stock.

I was wondering about my dividend income so I took time to proceed with the enormous calculations aand my new annual dividend income is of $7 028.80. For 2013, I would like to hit the $8 400 (for the magic $700 per month). I didn't wrote anything about it but Susan Brunner post a review of ATP and its not a good one. Its almost like ATP has stuff to hide. Its not very normal. I have more than 3k invested in ATP and I am seriously thinking of decreasing what I own in the company while I can still do so and sell at profit. But if I do so, it will decreased my dividend income. Fortis doesn't pay as much as ATP in dividend.

For retail investors, dividend income is a huge deal. But dividend is not all. The investments need to of quality. I am scared that ATP will get sooner or later in trouble for whatever reasons. A guy from Just Energy is from ATP. Is that good or bad. Susan doesn't like one or the other, but I like both just because of the juicy dividend and now, I am where I want to be; I am exceeding the 7k in dividend income. Happy? Yes, but... Is ATP a good investment at all?

It take a fortune in cash to be able to generate a great passive income from dividend investment. My silver investments are slowing gaining in value, so its not time to sell.

In other words: dividend investment is HARD and more complex that it appears. High dividend yield are tempting, but be aware of all stuff paying more than 8%: its RISKY stuff. I am aware, and I am now facing some tough love dividend choices. Safety or dividend income? Can I have both PLEASE? Someone!



Ruth said...

question for are pretty good at figures..i bought into SSL.V Sandstorm gold and it has a nice run , what i would like you to do for me is look at the financial statements and give me your opinion as i think it looks great but am always learning and like opinions from others. Sunny, am so concerned over JE..i am even with dividends..means i have had dead money for 3 years , thinking about waiting just a bit and perhaps get into a growing stock.

Ruth said...

u know Sunny , am thinking perhaps your better to put more money into a stock like BCE or Enbridge , 100 shares for instance...dividend not as high as those ones in JE and of course some others , i have made money on the stock itself and i never worry over them like JE and i sold Pengrowth..why the hell i hung on to it as long as i did , i will never won't happen kevin o'leary says..the loss burns an image into your mind. ps..Enbridge has made roughly 10% a year since the fifties.

Liquid said...

I have BBD.B too. Great company. Dividend investing is a slow process for sure. But it's only a matter of time before you make thousands of dollars a month from dividends and reach your goal. You never know what companies will do in the future or if they'll get in trouble, but I think as long as you diversify your stocks and don't hold more than 5% of your portfolio in any one company then you'll be okay :D Keep it up.

Ruth said...

there is one thing about dividends i have said before..if the stock is way down, all your doing is paying yourself , it makes NO sense.

Anonymous said...

Good job, Sunny. Your dividends are adding up fast! Getting $7k or more in dividends/distributions is pretty impressive as long as it is sustainable. Income outweighs interest expense. Always better to hold onto good stocks than duds.

Anonymous said...

The company raised 150 million lately and has had a real nice run up. If I where you, I would look into taking profit. If you don't want to sell all of it, look into selling half of it.
PS: You don't have to be a genius in math to know that a 50% loss on a 50$ stock or a 4$ stock is the same.

Anonymous said...

Looked again at the portfolio. Its time to clean the fridge.

Anonymous said...

Investing without an exit plan is a plan for disaster. Whether you decide to invest for dividend income, or long term, there is always a possibility of an unforeseen, and often, rapid price decline. Its happened to me, it happens to everyone. All it takes is a downward re-statement of earnings (or several), some unfavorable analyst reports, big fund dumping of the stock, a change in corp management, or some insider messing around. Share prices can also go sideways, sometimes for years. Making "thousands of dollars a month" from divi's isn't easy. Diversification isn't a total answer when most Cdn co's are paying between 3-4% divi yield. The Cdn playing field is limited when it comes to stable,yield increasing companies. Higher yield in most cases means higher risk. Leveraging to attain divi income & higher yield is risky. Summation: use stop loss orders when entering a trade, use trailing stops to exit and always be willing to exit to preserve gains/limit losses.

Ruth said...

I wish i had used stops especially for Rim and Manulife. man..they are never going to make money for a long time. thanks for BCE and Enbridge, money made back...JE ..dividends makes break even but wondering if to sell and put into something that moves.

Ruth said...

what does one think of penny stocks as i bought into one the other day ,,,am up and find it fun , never have done this before...just small time..though.

Anonymous said...

Ruth: hanging onto losers is a problem for most investors. Even the market pros. Its far easier to set a predetermined sell point & liquidate & forget emotion. As for penny stocks: most don't pay divi's but a few like ICE do. If the purpose of this blog is to create wealth through stable divi income, then penny stock discussion doesn't have a place here IMHO. Anony-mashed-potatoes.


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