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Sunday, October 25, 2020

Here are some new investment ideas inspired by Susan Brunner

This past Friday had been acceptable over the TSX, in the sense that we closed the day in the 16 000 points. My non-registered portfolio closed the session at $102,546.60, my TFSA portfolio at $93,699.99, and my RRSP portfolio at $50,226.05. As announced previously, my credit line debt had now been paid off, but I currently have no saving - just the amount it takes to pay off my rent next month and the unfortunate bank fees. My margin debt is currently at $47,375.

I have over $500 in cash inside my TFSA portfolio. At first, my idea was to transfer that amount over my margin debt, but I now prefer to place a small investment using that money. For the moment, I was thinking about JFT Strategies Fund Class A Units (JFS.UN). I would like to invest in JFS.UN before the units hit on the $20 value. And I would only place a small investment in JFT Strategies Fund Class A Units (JFS.UN) because most of the years, that Jean-François Tardif fund doesn't pay any dividend distribution.


Other than JFS.UN, I had come with a few investment ideas that I tracked down on Susan Brunner's blog. I had found my inspiration in those three posts: herehere and here. Here are a few stocks that I could pick as a future investment. When I check on a list of stocks like those lists, I always check on first the overall chart. By the overall chart, I mean the chart since the really first day that the X stock began is live on the TSX. I need a good-looking chart that says that the X stock had recovered from past crises, like the stock market crash of 2008. I need to see that the stock had exceeded the value of before the 2008 crisis. I also need to see a continuous rise in the price of the stock. I need to see steady growth. A perfect overall chart will speak for itself in terms of the quality of the stock that I am looking into. I am also only looking into stocks that I am not currently holding as an investment. I came with that list:

National Bank of Canada (NA)
Dividend distribution: 4.237%
Sector: Financial Services
Stock price: $67.03

Algonquin Power & Utilities Corp. (AQN)
Dividend distribution: 3.97%
Sector: Utilities
Stock price: $20.66

PFB Corporation (PFB)
Dividend distribution: 2.163%
Sector: Industrials
Stock price: $16.64

Premium Brands Holdings Corporation (PBH)
Dividend distribution: 2.343%
Sector: Consumer Defensive
Stock price: $98.61

Innergex Renewable Energy Inc. (INE)
Dividend distribution: 2.848%
Sector: Utilities
Stock price: $25.28

Empire Company Limited Non-Voting Class A Shares (EMP.A)
Dividend distribution: 1.384%
Sector: Consumer Defensive
Stock price: $37.57

CCL Industries Inc. Unlimited Class B Non-Voting Shares (CCL.B)
Dividend distribution: 1.315%; 
Sector: Consumer Cyclical
Stock price: 54.75$

Ritchie Bros. Auctioneers Incorporated (RBA)
Dividend distribution: 1.444%
Sector: Industrials
Stock price: $81.16

Kirkland Lake Gold Ltd. (KL)
Dividend distribution: 1.078%
Sector: Basic Materials
Stock price: $61.26

Enghouse Systems Limited (ENGH)
Dividend distribution: 0.775%
Sector: Technology
Stock price: $69.70

Waste Connections Inc. (WCN)
Dividend distribution: 0.725%
Sector: Industrials
Stock price: $136.09

In that list, I am less interested in Algonquin Power & Utilities Corp. (AQN) and Innergex Renewable Energy Inc. (INE) because I already hold FTS, BLX, and EMA, which are also in the same Utility sector.

I am less attracted by stocks who are expensive, like Premium Brands Holdings Corporation (PBH), Ritchie Bros. Auctioneers Incorporated (RBA), and Waste Connections Inc. (WCN). I would be tempted to invest a smaller amount in those expensive stocks. I don't know if you remember, but PBH used to be in my portfolio back in the days. I had displayed my list by stocks that had the highest dividend distribution, but I had written this quite often: you shouldn't only consider the dividend when it comes time to pick investment for your portfolio. Dividends are important, but many things come to play. I already have many bank stocks in my portfolio, but adding National Bank of Canada (NA) in my portfolio couldn't hurt.

In that list, I think that my favorite stock pick is Empire Company Limited Non-Voting Class A Shares (EMP.A).

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