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Sunday, October 28, 2018

Welcome again, Bank of Nova Scotia (BNS) in my non-registered portfolio!

My non-registered portfolio closed this past Friday session at $171 515.28, but that's only because I invest in a few shares of Bank of Nova Scotia (BNS). The TSX had closed at its lowest level since November 2016, so I had to invest in a high-quality stock that would be push over the edge once the TSX decided to move back in the old 16 000 points. I am quite happy with the new investment in BNShappens because I purchased my new stocks at $69.14. My TFSA portfolio closed the session at $74 928.20, and my RRSP, stocks only, at $37 436.69.

BNS was among the first stocks I ever own, so it was just a natural move to invest once again in this one, especially now that it trades at a low price. I am looking forward to investing in other good quality stocks like BNS who are trading at a good price right now. I would like to invest again in Fortis Inc. (FTS). Fortis is also a stock that is from my non-registered portfolio since the early beginnings. I am looking for good quality stocks, reliable dividend and that are trading at a lower than usual price. Fortis Inc. (FTS) is a real easy stock to hold inside a portfolio. FTS is really reliable. And just recently, Fortis increased its dividend distribution. Another idea for investment on the low: Savaria Corporation (SIS). Other ideas: PLC, MX - but MX doesn't pay much in term of dividend. When you get hungry, hit on dividend stocks.

It's not pleasant to be on downslide market, but this is exactly how I started investing in stocks back in 2008 and its really how I had been able to create value over time. Its true that I am currently not at my best, but sooner or later, the TSX will be back in the 16 000 points and when it happen, this bitch will be back right on top, and just watch me hit on the not the 300k, but 400k net worth, ok? You need to pack the love at the right place.

This past Friday session, Aecon Group Inc. (ARE) gains over 11%, which is really good. I think that ARE may be on the right track for more great results. Fact is, there's alwyas great things going on for the TSX. Its your appreciation of the great TSX that will pay on your favor for the long run, and nothing else.


earthskync said...

Good move in adding Bank of Nova Scotia into your non-registered portfolio, it's selling at quite the discount right now, at P/E of 10. We haven't seen it this low since the end of the 2015 recession, and the 2008 stock market crash. And it also has low exposure to the US.

I'm freeing up some cash right now, and I might look to add to my BNS position. It's definitely inching towards the top of my list.

Anonymous said...

I think some investors are expecting a dividend haircut due to the impending aggressive rate increases that Bank of Canada plans to institute in the coming months to next year back to neutral. A rate hike usually follows a recession afterwards. We see this in 2009 where they reduce their dividend and not only 2 years later where BNS restored it to the 2008 level. We then see this again in 2015 recession where they haircut the dividend and you would only see that level again in 2017 (2 years later). So in hindsight, the P/E of 10 is an illusion. I think with Canadians being in debt more so compared to Americans during the mortgage crisis in 2006 would suggest that the P/E I think would be around 20+ for BNS. I like BNS, but it is still too expensive and I have learnt my lessons when US Bank Corp in the states, which had raised its dividend 36 years, suddenly slashed its dividend by 88% in 2009 and had never recovered its dividend to its former level in 2009 -- approx 10 years!
Also with Merck pharma, and when I tried to get my money back through a class action suit due to financial manipulation crap, I was not successful in proving my case because they kept asking me to present more documents for an investment I had since sold 10 years prior.

Sunny said...

US Bank, Merck - two US stocks right?

The USA is not great and it's not a good country to invest your money in. US stocks are much more volatile, it's very hard to find conservative stocks who are stable in their value, really hard to find.

Canada is safer. But I agree that we need to be careful with debt. Interest rates increased and it's exactly for this reason, so people won't get too much in debt. During a recession, money is easy to get because rates are low. It's not because interest is being raised that we are hitting ahead for a recession. Central banks are simply doing their job. And the job of investors is to invest when the stock markets are low.


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