The Weekly Lineup

Sell in May and Go Away? A phenomenal article by Louis Basenese, chief investment strategist at Wall Street Daily, tells you exactly why you should not implement the strategy. In, Sell in May? Not According to These Three Charts, Louis clearly shows why you should ignore the short-term swings and remain a long term buy-and-hold investor. A must read post!

Buy and Hold vs Sell in May. courtesy of www.wallstreetdaily.com

Speaking of buy-and-hold, there’s buy-and-hold, and then there is really buy-and-hold! So what does long term investing really mean to you – 10 years or more? Time is irrelevant to Dividend Growth Investor, and he explains why he would not sell a dividend stock ever after a 1000% gain.

Dividend Mantra is bullish on dividend stocks no matter what the market is doing. Mantra discusses current difficulties in allocating capital, but also discusses the difficulty with paying a premium for top-notch companies.

Dan Mac at Dividend Growth Investing thinks many dividend stocks are actually overvalued, based on the Price-to-Earnings ratio. Dan discusses 20 stocks you should not be buying right now.

Over at A Wealth of Common Sense, Ben thoroughly discusses the lost decade and How to Invest 100% of Your Portfolio in the Stock Market.  But what if you had only invested in big blue-chip dividend paying stocks?  Was there a lost decade? Read Ben’s post and find out.

Over at My Own Advisor, Mark asks the question Is Coca-Cola the perfect dividend paying stock? Well, not much to say here – I think it is. Again, who cares what the stock market does, buy KO and enjoy the dividends.

The Passive Income Earner discussed International Allocation through Conglomerates.

The Dividend Guy (aka Mike) is bored of utilities and banks! So he’s written a couple of stellar posts on the toy companies this week. Check out his super-detailed dividend stock analyses on Hasbro and Mattel. Awesome!

Have a nice weekend everyone!

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Recent Comment

Dividend Mantra

Ninja,

Thanks so much for including me in your roundup!

I'm definitely bullish on high quality companies going forward. I'm sitting on a little cash right now and it's frustrating to not have any particularly compelling opportunities to use it on. I like a few names even at these elevated broader market levels, so we'll see. I noticed the Canadian banks haven't been enjoying the rally, so those could be potential opportunities.

Hope you have a wonderful weekend!

Best wishes.

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Bell Aliant: 7.11%

The telecom giant has gone through a much needed transformation over the last few years.  From multiple mergers to restructuring the company into deferent components, the company has transformed its self into a communication company giant. Based in Atlantic Canada, with over 9,000 employees, this company is still 44% owned by its larger parent company of Bell  Canada.

The fundamentals are what investors expect from a big telecom company. Steady earnings, a modest P/E and a good healthy dividend.

And for investors looking for low volatility, this is a good pick.  The beta is 0.027.  With earnings per share (EPS) at 1.44 and a P/E of 18.50, this is definitely not a growth story.  Valuations still rank in the top half of all telecom/utilities companies in Canada.

The big plus is the dividend.  There are few telecoms that can match the 7.11% dividend.

Technically, BA is slowly advancing over the last two years.  Currently at a resistance level of $26.50-$27.00, the stock is expected to continue its gentle rise in 2013 toward the year-end target of $29.

Bottom line: For investors looking for a low volatile stock with a high payout and a slow rise in price, BA is hard to beat.

Artis Real Estate Investment Trust

AX/UN is a diversified Canadian real estate trust that invests in office, industrial and retail properties since 2004.

Artis executives have planned an aggressive but disciplined grow strategy for the company.  They have built up an impressive portfolio of commercial properties in Canada and the U.S.  Most of their assets are located in Western Canada.

The fundamentals are on par with its competitors.  EPS is 3.21, trailing P/E is 5.20 and the beta is 0.879.

The dividend is the highest within the Canadian real estate sector.  With a 6.49% dividend payout, the yield from AX/UN is almost a full percentage point above its closest competitor.

The stock price is a little misleading.  At first glance, an investor would think that AX/UN is a growth stock verses a real estate trust.  The stock price has moved up 41% in the last 12 months.  Undoubtedly because of the aggressive growth of the company and the large dividend.

AX/UN is starting to breakout.

Bottom line: Artis Real Estate Investment Trust is expected to continuing to advance in this current business cycle.  With an experienced management team, an aggressive growth strategy plus an impressive dividend. this stock should appeal to a wide variety of investors.

ConocoPhillips: 4.6%

This major player in the global energy sector is both on a strong financial footing and it also has a hefty dividend yield of 4.6%.

Earnings from current operations remain robust but have lagged many of its competitors.  COP recently has sold some of its lower producing assets and have added some new assets, which are primarily in the Gulf of Mexico, will deliver long-term growth to the company.  Cash margins are also expanding in Q4 and Q1.

COP is trading at a reasonable multiple of 8.75 and forward P/E is expected to be 9.86.  Earnings per share (EPS) is a solid 6.72 and ROE is a robust 13.10%.

COP has broken out.  Price support is at $57.

The dividend yield is 4.60% which should keep most dividend investors content.

The outlook on COP is modest.  Our models point to a $64 target.  There is some price resistance building at $61.00-$61.50 and support at $56.

 Bottom line: COP has solid fundamentals and little reason to be worried about the dividend payout.  Though the stock price is not expected to advance too much further, there is still another 8%-9% upside anticipated. Coupling this plus the 4.6% dividend and COP could be an attractive addition to a portfolio.

Occidental Petroleum: 2.95%

Low payout ratios are not a guarantee of future dividend growth, but when a company only dishes out a small portion of its earnings, and those earnings are substantial, there is a very good chance that the dividends will increase.

Occidental Petroleum (OXY) has a payout ratio of only 35.83%.  This is fairly small compared to the thousands of U.S. companies that issue dividends.  The fundamentals are impressive on this company  too.  The p/E multiple is 12.22, EPS at 7.09 and a healthy ROE at 11.42%.

Q1 earnings also beat the street estimates by a good margin as new and existing production adds to the bottom line.

The outlook for the rest of 2013 is for a potential stock buyback.  Earnings should continue to increase into 2014.

Technically, this stock is just starting to move.  After bouncing  off of the $75-$80 base for most of 2012, OXY looks to be starting to rise.  Buying momentum has recently pick up as has buying volume.

The improving earnings appear to be catching investors attention.

Bottom line: This higher beta company (1.5) looks as if it is finally breaking out of a year long base. With improving earnings, a good dividend yield, this stock is a favourable bet for a both capital gains and future dividend increases.

With a target of $98, there is the potential for a 17% return, counting the 2.9% dividend.

Donald W. Dony, FCSI, MFTA is a technical analyst.  He is also an instructor for the CSI, frequent national and international speaker on stock market trends and editor of the Technical Speculator.com, a website focusing global economic and technical trends.   Through the monthly newsletter,  he also reviews individual equity opportunities for income and growth.

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Weekend Links – “Sell in May and GO AWAY!”

[...] For all those dividend investors out there, Ninja had a post about “Dividend Investing – Telecom, Real Estate and Energy.” There are a couple companies I never thought about, so it was a pretty interesting read! [...]

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  Artis Real Estate Investment Trust, Bell Aliant Communications, ConocoPhillips, featured, Occidental Petroleum

This presentation is from the Take Control of Your Financial Future Seminar, held on Saturday April 20th, 2013, at the University of British Columbia.

The seminar was sponsored by the Canadian MoneySaver. On behalf of Canadian MoneySaver, I would like to thank those who attended the seminar! I’d also like to thank CMS for the opportunity, permission to share my slides, and to those who came up and talked with me during the breaks. It was a pleasure to meet CMS readers!

My presentation was titled:

Sell Your Mutual Funds:
Buy Index Funds and Dividend Stocks, and Start Making Money Now!

The presentation was divided into four parts:

• Part 1 – Mutual Fund Fees and Performance
• Part 2 – Build Your Own Mutual Fund
• Part 3 – Buy What the Funds Buy
• Part 4 – Making the Switch

You can download my presentation slides and notes at:

Now available to newsletter subscribers only.

Note: Will only be available to newsletter subscribers after May 4th, 2013.

Be sure to read my copyright and disclaimer notice before downloading. If you found the presentation useful you can follow me on twitter, facebook, or subscribe to the Dividend Ninja Newsletter.

Cheers!

Recent Comment

The Dividend Ninja

Hey Ben, yes it certainly is!

You'd have to earn at least 2% returns per year, on the largest Canadian equity funds, just to break even. With a lower MER you still run into the problem of lagging behind the index - the odds are just not in your favor.

Cheers

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  Canadian MoneySaver, Dividend Stocks, ETFs, featured, Mutual Funds, UBC Seminar

Investment fraud isn’t something we consider until it is on the front-page news and media. But investment fraud is more common place than unsuspecting investors may realize. A 2012 National Investment Fraud Vulnerability Report, commissioned by the British Columbia Securities Commission (BCSC), found that 1-in-5 Canadians aged 50 plus, are vulnerable to a potentially fraudulent investment offer. According to the report, 23% of British Columbians said they had been a victim of fraud, pointing to a need for additional emphasis placed on education about the investment fraud warning signs.

The British Columbia Securities Commission (BCSC) specifically exists to protect B.C. residents and provide them with the tools and information needed to protect them against investment fraud.  BCSC recently launched an iPhone and iPad app dedicated to this mandate.

The Be Fraud Aware mobile application for iPhone and iPad helps to access real-time news, pertinent information, and on-the-go protection against fraud. Specifically the app helps investors to search for and report potential fraudulent schemes. There are some videos as well, to show what the app does and how it works.

Here are some of the app features:

• Get updated with the latest news and alerts
• Learn to spot investment fraud
• Check the CSA’s national disciplined persons list
• Access the BCSC’s Investment Caution List
• Use the Scam Glossary

Most of us who are DIY (Do It Yourself) investors purchase our securities through a discount broker via a stock exchange, which is regulated and monitored by various securities exchange regulations. Many fraudulent schemes however, exist in the “alternative marketplace” and with “private placements”.  This makes investors who don’t invest through an exchange, discount broker, or licensed dealer, even more susceptible to fraud and investment schemes.

The Be Fraud Aware web page has some excellent resources to help and educate investors. These include fraud warning signs, how to spot an investment scam, and how to identify a con artist. Most importantly, there is also a link on how to report investment fraud. Be sure to check out the videos on the Fraud Watch page to see how a potential fraudster works, and how they build an investment scheme.

Whether you invest in the alternative market place or not, being aware of how investment fraud works, and how you can protect yourself, is everyone’s business.  The Be Fraud Aware campaign, by the B.C. Securities Commission, is an excellent resource to educate and help investors.

Bottom line, if an investment offer is too good to be true, then it is!

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Friday fun: articles that sparked my interest this week. | Transforming the Now

[...] http://www.dividendninja.com/be-fraud-aware-protect-your-money/ [...]

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  BC Securities Commission, BCSC, Be Fraud Aware, featured, Investment Fraud

Last Saturday, on April 20th, I had the pleasure to be a speaker at the Canadian MoneySaver seminar – Take Control of Your Financial Future. I was delighted to meet Peter Hodson, organizer Lana, and other CMS writers as well. I especially enjoyed having the opportunity to meet and talk with Canadian MoneySaver readers. Thank you to those who came up and said hello, and for your positive feedback and support!

Next Tuesday, April 30th, I’ll be attending the Bloggers and Brands Conference, also being held here in Vancouver. I’m not a speaker at that conference, but I’m excited to make lots of new connections and get the word out on the Divided Ninja! It’s going to be interesting to connect with bloggers from other niches, as well as the conference sponsors and brands.

The Dividend Ninja Newsletter

The Dividend Ninja Newsletter

I’m also pleased to announce I have re-launched the Dividend Ninja Newsletter! Many of you may have subscribed previously over the last couple of years. I recently sent out an email inviting you back – and have had a great response so far. Thank you to those of you who signed up! I have a new format, and new plans for the newsletter. You’ll get a monthly market wrap-up, dividend stock analysis, lots of info, and some great resources as well. Don’t miss out!

You can sign up at the subscription form at the bottom of this post, via the top sidebar, or the subscribe page. Don’t be shy, it’s free!

The Weekly Lineup

Here are some great posts from around the web!

In Stocks Will Go Down, Ben Carlson wrote an excellent post reminding investors that markets do move in both directions. Ben writes, “After the largest weekly losses of 2013 last week it’s a good time to remind ourselves that stocks can and will go down.” Ben’s blog is quickly becoming one of my favorite blogs to follow. This post is a must-read!

Dividend Mantra has been doing exceptionally well this year with his blog, and being mentioned in high-profile media. You only need to visit and see the number of comments he gets on his posts, to realize just how fascinating his journey is. In is recent post, Dividend Investing for Beginners, Mantra provides an excellent list of dividend investing resources. Check it out!

In his latest post, March 2013 Dividend Income Update, Mark explains in detail why he uses both indexing and dividend paying stocks. I like the diversified approach between using both strategies! Markets are going to go down at some point, so Mark will be covered with his strategy. He’ll get the dividend income, as well as the cushion and income from bonds. More importantly as Andrew Hallam says, those bonds will give you dry-powder, to buy cheap stocks when markets tank!

Dan Mac had a nice recap of investing in Exxon Mobil. What Dan shows in his post, is how you would have done if you invested in this giant oil company for ten and twenty year periods. If it needs repeating, another clear example of buying stalwart dividend growth companies, and holding for the long term.

Have a nice weekend everyone!

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April Links: How Diversified Are You? | Dividend Growth Stock Investing

[...] Dividend Ninja Newsletter – The Dividend Ninja is starting up his newsletter again.  If your interested in dividend investing then I’d definately recommend signing up because it is sure to be good! [...]

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