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Sunday, May 4, 2014

For dividend easy cash, easy investment choices

In this rainy weekend, I calculate my dividend income by counting only the regular dividend that supposed to be paid quarterly or monthly. It make a total of $6 177.71 for both my non-registered and TFSA, an equivalent of $514.81 per month. Not too bad, but I want more! But how to do it while staying away of those stocks that pay too super high dividend yield?

Stocks that pay super high dividend yield - more than 6% - tempt to decrease their dividend overtime and at the same time, they decrease in value. And I don't want that to happen in my portfolio anymore. So I came with a DIVIDEND SUPER HOT PLAN.

With only $3 562.73 on student loan debt and $70 466.39 margin debt, I decided to invest all extra money available rather than paying debt because paying debt doesn't provide the same excitement as investment. In my search of new investment, I look at Susan Brunner investment list and made a few picks. Among my requirements: a good looking chart going all the way up-up-up for the past 10 years, a dividend yield of not more than 6% and not less than 4%. Basically, it was it. Also, I find I already have some REIT stocks in my portfolio so I ignore all REITs from Susan list.

I first came around with those stocks:

National Bank of Canada (NA)
Stock price: $45.65
Dividend yield: 4.04%

Inter Pipeline Ltd. (IPL)
Stock price: $29.85
Dividend yield: 4.33%

Morneau Shepell Inc. (MSI)
Stock price: $16.19
Dividend yield: 4.851%

Parkland Fuel Corporation (PKI)
Stock price: $20.12
Dividend yield: 5.235%

Thomson Reuters Corporation (TRI)
Stock price: $39.20
Dividend yield: 3.629%

The North West Company Inc. (NWC)
Stock price: $25.34
Dividend yield: 4.578%

Chemtrade Logistics Income Fund (CHE.UN)
Stock price: $20.51
Dividend yield: 5.851%

Russel Metals Inc. (RUS)
Stock price: $32.53
Dividend yield: 4.304%

Valener Inc. (VNR)
Stock price: $15.78
Dividend yield: 6.333%

Following what, I reduce my list for two immediate investment: National Bank of Canada (NA) and The North West Company Inc. (NWC).

I have a contribution room of more than 21k inside my TFSA and its very terrible. In the immediate time, I hold a few things in my TFSA that had slow down the raising value. The only thing I can do right now is to invest in high quality stocks inside my TFSA and National Bank of Canada (NA) is an easy and good option. Another option would be Inter Pipeline Ltd. (IPL). And also Thomson Reuters Corporation (TRI). I find that Thomson Reuters Corporation (TRI) is an enigmatic company.


Arun said...

Glad to see that you invest in high quailty stock rather than high yield. Keep it up DG.

Anonymous said...

I love how your brain does not work properly. You seem to think you are making $6177.71. however, you need to deduct your interest on your huge debt $3190.77 (I actually think this number is more as I do not believe your calculations)

With this 50% of your dividends are actually disappearing to your debt. Every time you don't pay down debt, its costs you even more.

I can't wait to see what will happen when your margin debt gets called - should be funny to watch your melt down.

Sunny said...

Margin debt, as well as student loan debt are tax deductible so money is being made.

That you like it or not, all number are accurate, this is my investment diary. Seem like you didn't have figure it out yet.

If you wish me a margin call, watch out the boomerang effect your moron.

Anonymous said...

Hey Sunny,

You are doing great with your investments.

The morons always get the boomerang effect!


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