Best Dividend Paying Stocks

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Sensei
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Re: Best Dividend Paying Stocks

Post by Sensei »

Hi,

I've had a look at AGF within the last few months. The dividend was certainly eye catching and it has a reasonable record of dividend increases. However, the retail business model leaves much to be desired. Funds are expensively priced and feature 20th century gimmicks of front and back end loads and deferred loads. It is hard to see how a much more savvy generation of fund buyers would choose this type of investment with so much negative information on fund fees so easily available.
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"A dividend being paid today is always a positive return." Josh Peters, Morningstar
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Re: Best Dividend Paying Stocks

Post by Shine »

Thank you for your assessment sensei:

My full service broker was pushing this firm last week - perhaps on the apparent strength of the dividend. Also they were pushing Dundee.

I remain nervous and linger in cash.

Any thoughts on inflation protected products/RRB's given Gate's move into that product last week?

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Re: Best Dividend Paying Stocks

Post by George$ »

Sensei wrote:Hi,

I've had a look at AGF within the last few months. The dividend was certainly eye catching and it has a reasonable record of dividend increases. However, the retail business model leaves much to be desired. Funds are expensively priced and feature 20th century gimmicks of front and back end loads and deferred loads. It is hard to see how a much more savvy generation of fund buyers would choose this type of investment with so much negative information on fund fees sI shareo easily available.
I share this view and do not expect that their retail AUM wil grow and might decline slowly. Thus this is not a "forever" stock. I do think there is a built in inertia againt redemptions and so any decline in AUM (apart from market declines) will be very slow - and so can provide the high dividend yield for quite a few years (I hope :roll: ).
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Re: Best Dividend Paying Stocks

Post by Bylo Selhi »

Shine wrote:Any thoughts on inflation protected products/RRB's given Gate's move into that product last week?
According to How Bill Gates is betting on inflation, he's not buying TIPS but rather closed-end funds that invest in TIPS and other inflation-indexed bonds. The funds were trading at a significant (~11%) discount when news of his purchases hit the media. He may merely be trying to generate a capital gain when (if) the NAV of the shares approaches the market value of the underlying TIPS (e.g. once his interest in these funds becomes public.)

I wouldn't try this at home.
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Sensei
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Re: Best Dividend Paying Stocks

Post by Sensei »

Hi,

I remain committed to a dividend strategy, so have no interest in inflation protected products. Indeed I think dividend stocks are a form of protection against inflation. I have difficulty in choosing stocks or investments in the Canadian space although I do have a modest portfolio that yields about 5% in dividends. I'm always looking, but looking abroad for the time being. Some stocks that have caught my attention recently are:

Avon AVP (with another dividend increase it will become a dividend aristocrat)
Marks and Spencer MAKSY
Telefonica TEF (adding to my current position)
Scottish Southern SSEZY
Cheers

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Re: Best Dividend Paying Stocks

Post by deaddog »

Sensei wrote:Hi,

I remain committed to a dividend strategy, so have no interest in inflation protected products. Indeed I think dividend stocks are a form of protection against inflation. I have difficulty in choosing stocks or investments in the Canadian space although I do have a modest portfolio that yields about 5% in dividends. I'm always looking, but looking abroad for the time being. Some stocks that have caught my attention recently are:

Avon AVP (with another dividend increase it will become a dividend aristocrat)
Marks and Spencer MAKSY
Telefonica TEF (adding to my current position)
Scottish Southern SSEZY
Sensei: You might want to look at NPK
They regularly pay a special dividend which brings it up above the 1% yield that Yahoo shows.
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Re: Best Dividend Paying Stocks

Post by pmj »

deaddog wrote: Sensei: You might want to look at NPK
They regularly pay a special dividend which brings it up above the 1% yield that Yahoo shows.
Have I spotted someone else who's on the Motley Fool mailing list? :P http://www.fool.com/investing/general/2 ... trust.aspx
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Re: Best Dividend Paying Stocks

Post by Sensei »

deaddog wrote: Sensei: You might want to look at NPK
They regularly pay a special dividend which brings it up above the 1% yield that Yahoo shows.
Thanks. I have looked at it since you mentioned it. There is a lot to like about the company. Standouts would be:

1. 0 debt
2. It is growing.
3. It has a seven year record of increasing dividends.
4. The stock price has been as high as $137, so at $96 or so it is trading nearer the bottom ($83) than the top.
5. Quite a high percentage of institutional ownership (50%) (Small Cap)
6. Insider ownership significant

Things to consider for me:

1. Very small cap <500 million
2. Irregular dividend
3. Cuts in military spending could be a factor

Anyway, I'll watch. I'd prefer a lower entry point.
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"A dividend being paid today is always a positive return." Josh Peters, Morningstar
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Re: Best Dividend Paying Stocks

Post by deaddog »

pmj wrote: Have I spotted someone else who's on the Motley Fool mailing list? :P http://www.fool.com/investing/general/2 ... trust.aspx
Unfortunately; I get a lot of spam. :)
I picked the stock up on a Finvis scan and followed a link to the Fool.
I also use the Fool for quick fundamental research.
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Re: Best Dividend Paying Stocks

Post by Thegipper »

We are the process of converting our holdings in our TFSAs into a dividend paying stocks. In addition to a number of large caps I am looking at some smaller stocks. A&W.un, Boston Pizza,Superior[propane], MSI , BIP, Corby and Chartwell. Is there any way to determine their history of dividend growth?
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Re: Best Dividend Paying Stocks

Post by FinEcon »

Thegipper wrote: 23 Jul 2017 08:31 We are the process of converting our holdings in our TFSAs into a dividend paying stocks. In addition to a number of large caps I am looking at some smaller stocks. A&W.un, Boston Pizza,Superior[propane], MSI , BIP, Corby and Chartwell. Is there any way to determine their history of dividend growth?
Why you would want to do this? Done in isolation, it's a complete waste of time.

Not the answer you are looking for but the best way is to compile the data yourself from annual reports. Off the top of my head you will run into problems gaining meaningful insight from doing so with several you listed for a variety of reasons. Good share issuance, bad share issuance, asset sales into specials, REIT 'div' growth is often plain BS, etc.
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Arby
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Re: Best Dividend Paying Stocks

Post by Arby »

Thegipper wrote: 23 Jul 2017 08:31 Is there any way to determine their history of dividend growth?
The following free websites provide a history of dividends:

http://ca.dividendinvestor.com/
Enter the stock symbol. Then in the left column under "Dividend Information", click on the blue highlighted link for "10yr Dividend Yield".

https://finance.yahoo.com
Enter the stock symbol. Then click on the column heading for "Historical Data", then under column subheading "Show", select the dropdown item "Dividends Only"
Last edited by Arby on 23 Jul 2017 13:07, edited 1 time in total.
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Re: Best Dividend Paying Stocks

Post by kcowan »

Thegipper wrote: 23 Jul 2017 08:31Is there any way to determine their history of dividend growth?
I use FP: 5 year dividend growth history
and I have the previous 5 years in a spreadsheet. So for example, here was my analysis for what banks to buy:
DivGrBanks10yr.jpg
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deaddog
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Re: Best Dividend Paying Stocks

Post by deaddog »

Thegipper wrote: 23 Jul 2017 08:31 We are the process of converting our holdings in our TFSAs into a dividend paying stocks. In addition to a number of large caps I am looking at some smaller stocks. A&W.un, Boston Pizza,Superior[propane], MSI , BIP, Corby and Chartwell. Is there any way to determine their history of dividend growth?
For a visual, I plot dividends on a stock chart.

I use stockcharts .com which will chart dividends paid each period (quarterly or monthly)
The free version will give 5 years of info.

By far the best database I have found for Canadian stocks is VectorVest. Pricey but well worth the money.

Are you limiting yourself to Canadian stocks? There is a lot more data available online for US stocks.
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Re: Best Dividend Paying Stocks

Post by Sumaco »

Thegipper wrote: 23 Jul 2017 08:31 Is there any way to determine their history of dividend growth?
Intro from site:
Canadian Dividend All-Star List

The Canadian Dividend All-Star List is comprised of Canadian companies that have increased their dividend for 5 or more calendar years in a row. I used the dividend record date to determine the length of streaks. Each month I update the excel spreadsheet which can be downloaded below.
Canadian Dividend All-Star List
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Re: Best Dividend Paying Stocks

Post by Thegipper »

deaddog wrote: 23 Jul 2017 12:12
Thegipper wrote: 23 Jul 2017 08:31 We are the process of converting our holdings in our TFSAs into a dividend paying stocks. In addition to a number of large caps I am looking at some smaller stocks. A&W.un, Boston Pizza,Superior[propane], MSI , BIP, Corby and Chartwell. Is there any way to determine their history of dividend growth?
For a visual, I plot dividends on a stock chart.

I use stockcharts .com which will chart dividends paid each period (quarterly or monthly)
The free version will give 5 years of info.

By far the best database I have found for Canadian stocks is VectorVest. Pricey but well worth the money.

Are you limiting yourself to Canadian stocks? There is a lot more data available online for US stocks.
Just Canadian stocks . I want to thank everyone for the valuable information provided. I am reaching the stage were I want to be a couch potato and spend the dividends. Our combined TFSAs should be in the 220 /230 range when this is setup and I expect an overall yield of something like 4.5% and about $850 per month in tax free money. Thank you Harper and Flarety for TFSAs.
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Re: Best Dividend Paying Stocks

Post by Thegipper »

Thegipper wrote: 23 Jul 2017 08:31 We are the process of converting our holdings in our TFSAs into a dividend paying stocks. In addition to a number of large caps I am looking at some smaller stocks. A&W.un, Boston Pizza,Superior[propane], MSI , BIP, Corby and Chartwell. Is there any way to determine their history of dividend growth?
I have made the transition. I have had a lot of healthy returns buying small caps with top level growth and 20% ROE. It was time to reduce my risk and go with a diversified selection of dividend payers.. Will be able to draw out about $ 850 per month tax free. As the stocks that I have purchased have a history of growing dividends this amount will increase over time. It's couch potato time for our TFSAs. I did buy Corby's. They have a history of paying special dividends every year or two. Their last one was in November 2015 so it may be time for another. Thanks again for your help.
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Re: Best Dividend Paying Stocks

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Thegipper wrote: 24 Jul 2017 13:44 I did buy Corby's. They have a history of paying special dividends every year or two. Their last one was in November 2015 so it may be time for another. Thanks again for your help.
Must be a straight dividend play. Aside from the special dividend I don't see much dividend growth and the price is still below where it was 10 years ago.

It's tough to find stocks that yield the return you want that are considered safe. I manage a portfolio for a non profit that needs 6% and have managed to achieve that but it is actively managed to control the risk. Very few stocks in that portfolio grow their dividends. We trade in and out using dividend yield as our main criteria.
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Re: Best Dividend Paying Stocks

Post by Thegipper »

deaddog wrote: 25 Jul 2017 00:10
Thegipper wrote: 24 Jul 2017 13:44 I did buy Corby's. They have a history of paying special dividends every year or two. Their last one was in November 2015 so it may be time for another. Thanks again for your help.
Must be a straight dividend play. Aside from the special dividend I don't see much dividend growth and the price is still below where it was 10 years ago.

It's tough to find stocks that yield the return you want that are considered safe. I manage a portfolio for a non profit that needs 6% and have managed to achieve that but it is actively managed to control the risk. Very few stocks in that portfolio grow their dividends. We trade in and out using dividend yield as our main criteria.
I took out the calculator and did the math and my portfolio yields 4.8%. It has a far big stake in bigger stocks like TD, Ry , BCE, Enbridge , PPL,AQN, Fortis and a variety of smaller plays such as Superior, Boston Pizza, AW.UN, MSI, Chartwell, BIP.UN and a couple of Reits namely Pure Residential and Hot.UN Altogether it is about 16 stocks. Most have a good record of increasing their dividends. Corby is a small position. Their special dividends have been more then their regular dividends over the past 5 years. I was thinking it may be the type of stock that might be taken over by one of the big distillers. I am still hoping for a 3 or 4 % annual capital fain on this type of portfolio over the next 5 to 10 years and . I would expect the average annual dividend increase to exceed the inflation rate. I am just looking at withdrawing on a monthly basis about 850 -900 per month on dividends . The capital gain over time will preserve the capital amount. Hopefully my expectations are reasonable. My taxable investments are on their last leg and I decided on this as away of using our TFSAs.
Last edited by Thegipper on 25 Jul 2017 08:59, edited 1 time in total.
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Re: Best Dividend Paying Stocks

Post by SQRT »

Will you put funds into your TSFA each year to replace the withdrawals and the yearly limit, or forgo some of the allowed limit? Is your tax rate on taxable dividends much higher than zero? Cheers.
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Re: Best Dividend Paying Stocks

Post by Thegipper »

SQRT wrote: 25 Jul 2017 08:35 Will you put funds into your TSFA each year to replace the withdrawals and the yearly limit, or forgo some of the allowed limit? Is your tax rate on taxable dividends much higher than zero? Cheers.
I will be 72 this fall and I am running out of taxable accounts . I understand that the tax rate on these dividends would be very low in a taxable situation. It will be nice not to go through the hassle of keeping track of gains, losses and dividends and making those entries on our tax returns My wife has another three years before she must convert her RRSP into a RRIF. If we have excess income will consider putting more into the TFSAs. With the benefit of pension splitting my net taxable income is in the region of 70k and my spouses is around 45.
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Re: Best Dividend Paying Stocks

Post by Taggart »

I've owned Corby since 2013. It's done pretty well what I expected when first purchased. Some year's (not all) they increase the dividend. Occasionally we see a special dividend which I'll take. The only other Canadian consumer discretionary stock that I've seen with a yield of around 4% is Shaw Communications but they haven't had a dividend increase since early 2015. I also own Richelieu Hardware and it's done well over the years but with a dividend yield well under 1%, not a lot of income. The other consumer discretionary stock I own is Leons Furniture, but ever since they acquired the Brick, the stock has been basically treading water with a dividend increase finally announced back in February after quite a number of years of nothing going back to 2011. That's about it for that sector.
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Re: Best Dividend Paying Stocks

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Taggart wrote: 25 Jul 2017 09:21 I've owned Corby since 2013. It's done pretty well what I expected when first purchased. Some year's (not all) they increase the dividend. Occasionally we see a special dividend which I'll take. The only other Canadian consumer discretionary stock that I've seen with a yield of around 4% is Shaw Communications but they haven't had a dividend increase since early 2015. I also own Richelieu Hardware and it's done well over the years but with a dividend yield well under 1%, not a lot of income. The other consumer discretionary stock I own is Leons Furniture, but ever since they acquired the Brick, the stock has been basically treading water with a dividend increase finally announced back in February after quite a number of years of nothing going back to 2011. That's about it for that sector.
The issue with Corby is growth. It has a solid share of the Canadian market but little room to expand. It has been trying to get growth in the USA through it's Wiser brands of whiskey .To date I believe the results have been limited. . I see it as a very stable business with a lot of FCF and they have a history of giving the shareholders this cash in the form of special dividends. If I can average 6 or 7 % total return I won't complain. Like I said I am in couch potato mode .
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Re: Best Dividend Paying Stocks

Post by AltaRed »

A steady 6-7% income return is almost as good as the TSX TR on a historical basis, so if it all comes in income....so be it, eh?
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Re: Best Dividend Paying Stocks

Post by jay »

AltaRed wrote: 25 Jul 2017 12:47 A steady 6-7% income return is almost as good as the TSX TR on a historical basis, so if it all comes in income....so be it, eh?
:thumbsup: my thoughts as well in general.
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