almost 20 years ago, time flies, about 1989/1990 there was a story on the morning radio, a short segment about an old man (have trouble remember important items, memory hard to explain).
anyways he was giving away 48 shares of imperial Oil (cdn. oil company), good track record intergrated, paid a nice div, and growng earnings.
they were then around $45 (have split a few times), he also provided information on how to enroll in the companies DRIP/SPP Dividend reinvesmtnet plan and shareholder plan.
this was a great idea, sadly the media story only interviewed a few seconds, and pointed out the $48 value. the next year he stopped because some parents would send their children up more than once,....sad how stupid people can be....if they just took the one share and learned...read, they could have started their children investing in equities, the younger the better.
anyways here is my DRIP/SPP portfolio which I started over 15 years ago....it now makes up about 14% of my overall liquid portfolio (stocks/bonds/cash), use to make up over half.
most trade in the US as well, except FAP, REI.un.
the banks have all returned on average over 15% year over year, these returns should avg. 10% counting div going forward.
1. BMO 62.09 cdn. 13.32 PE 4.51%
BMO has had a rough year, it is cheap, they may have some large write downs in the 4 th quarter, so would wait to buy, for a drip/spp still a decent stock and may have the most upside if they do something with Harris Bank....big IF.
2. REI.un pays 11.2 cents a month for a yield of 5.81%, biggest commercial reit in Cdn. great management, not much growth anymore though the div will grow slowly. still how many bonds yield almost 6%, with a growing div....avg. price $7.80. current price 23.25. prefer CWT.un though no drip.
3. ENB 39.70 21.5pe 3.10% just a well run pipeline, biggest risk is if interest rates increase...also have to issue equity and debt to expand pipelines, great company, may buy some more through the drip/spp. TRP also has a drip/spp and would prefer it slightly to enb, both are conservative stocks. own TRP trading account.
4. CM $100.72 11.08pe 3.46%, still not sure why they have not split the stock, cdn.s hate expensive (dollar terms) stocks, well there is rim..... anyways this bank loss a few billion on Enron but has recovered and trading near its high. they have a good retail franchise. maybe a little overlooked.... have a good friend who bought this years ago, at first went down 30%, however is up over three times on the investment
.
5. BNS 52.73 13.22pe 3.41%, want a chicken way to play South America and Mexico (also a little Asia, well BNS is it. there int. operations have been hurt by the strong cdn. dollar, however they are still growing and cdn. results were good. Expanded recently in Chile and getting bigger in Mexico.
I own two Brazil banks that I have mentioned here BBD, and ITU, however watch what happens on a down day. so these two would be more for trading.
an example when Argentina blew up, BNS wrote off one quarter of earnings and the stock quickly recovered...... if Brazil had trouble would lose my gains quickly in BBD, and ITU.
would rate it a hold, might get it closer to 50, seems to be treading water, still look at what some other financials have done......yikes.....
6. CGI 29.90 5.02%, if you ever here the main manager being interviewed of cdn. General you could be concerned, however he does not BS...good in this business... the fund just beats Toronto year after year...incredible returns...
in the late 80s use to trade this, bought in at a 30% discount (close to) and sell when discount went to 20%, crazy..... wish I kept a ton of this.
anyways great fund, and will slowly add to posiiton until they stop performing....lucky if discount gets to 7% now, if that.
7.FAP 6.60 10.42% this use to do good, this is my int. bond fund. only problem 1/3 of their holdings int. bonds are in US dollars and that has not done well compared to the cdn. dollar.... still believe it is well run, and long term hold.
in the short term not buying more even in the DRIP/SPP since they may have to cut their monthly div.... if they do then it may be time to buy....so will wait.
the last two are going be taken over
8. BCE 41.13 15.52PE 3.55%
orginally bought this when they owned Nortel...you could buy BCE for what they owned of Nortel, boring but it worked, $75-84, then sold at 120-125. on avg.
after that I owned a big 25 shares in my DRIP/SPP account....
they then did some amazingly stupid things...bought CTV, overpaid 2 billion or so, however that was not so bad, when they bought Teleglobe and lost 8 billion or so....
Teleglobe which everyone thought they would sell, owned about 30%,they bought the rest...
yes in 1999/2000 I WANT A MONEY LOSING PHONE COMPANY, DEEPLY IN DEBT. 8 billion gone in just under two years.... Monty spun off Nortel, great, however buying teleglobe makes him one of the worse CEOs ever....
Teachers Ontario will take it private so will gladly take the 42.75.... I like the Teachers
they will turn it around and do another ipo..... probably the greatest pension fund in North America or the World....
thanks
selkirk
9.
anyways he was giving away 48 shares of imperial Oil (cdn. oil company), good track record intergrated, paid a nice div, and growng earnings.
they were then around $45 (have split a few times), he also provided information on how to enroll in the companies DRIP/SPP Dividend reinvesmtnet plan and shareholder plan.
this was a great idea, sadly the media story only interviewed a few seconds, and pointed out the $48 value. the next year he stopped because some parents would send their children up more than once,....sad how stupid people can be....if they just took the one share and learned...read, they could have started their children investing in equities, the younger the better.
anyways here is my DRIP/SPP portfolio which I started over 15 years ago....it now makes up about 14% of my overall liquid portfolio (stocks/bonds/cash), use to make up over half.
most trade in the US as well, except FAP, REI.un.
the banks have all returned on average over 15% year over year, these returns should avg. 10% counting div going forward.
1. BMO 62.09 cdn. 13.32 PE 4.51%
BMO has had a rough year, it is cheap, they may have some large write downs in the 4 th quarter, so would wait to buy, for a drip/spp still a decent stock and may have the most upside if they do something with Harris Bank....big IF.
2. REI.un pays 11.2 cents a month for a yield of 5.81%, biggest commercial reit in Cdn. great management, not much growth anymore though the div will grow slowly. still how many bonds yield almost 6%, with a growing div....avg. price $7.80. current price 23.25. prefer CWT.un though no drip.
3. ENB 39.70 21.5pe 3.10% just a well run pipeline, biggest risk is if interest rates increase...also have to issue equity and debt to expand pipelines, great company, may buy some more through the drip/spp. TRP also has a drip/spp and would prefer it slightly to enb, both are conservative stocks. own TRP trading account.
4. CM $100.72 11.08pe 3.46%, still not sure why they have not split the stock, cdn.s hate expensive (dollar terms) stocks, well there is rim..... anyways this bank loss a few billion on Enron but has recovered and trading near its high. they have a good retail franchise. maybe a little overlooked.... have a good friend who bought this years ago, at first went down 30%, however is up over three times on the investment
.
5. BNS 52.73 13.22pe 3.41%, want a chicken way to play South America and Mexico (also a little Asia, well BNS is it. there int. operations have been hurt by the strong cdn. dollar, however they are still growing and cdn. results were good. Expanded recently in Chile and getting bigger in Mexico.
I own two Brazil banks that I have mentioned here BBD, and ITU, however watch what happens on a down day. so these two would be more for trading.
an example when Argentina blew up, BNS wrote off one quarter of earnings and the stock quickly recovered...... if Brazil had trouble would lose my gains quickly in BBD, and ITU.
would rate it a hold, might get it closer to 50, seems to be treading water, still look at what some other financials have done......yikes.....
6. CGI 29.90 5.02%, if you ever here the main manager being interviewed of cdn. General you could be concerned, however he does not BS...good in this business... the fund just beats Toronto year after year...incredible returns...
in the late 80s use to trade this, bought in at a 30% discount (close to) and sell when discount went to 20%, crazy..... wish I kept a ton of this.
anyways great fund, and will slowly add to posiiton until they stop performing....lucky if discount gets to 7% now, if that.
7.FAP 6.60 10.42% this use to do good, this is my int. bond fund. only problem 1/3 of their holdings int. bonds are in US dollars and that has not done well compared to the cdn. dollar.... still believe it is well run, and long term hold.
in the short term not buying more even in the DRIP/SPP since they may have to cut their monthly div.... if they do then it may be time to buy....so will wait.
the last two are going be taken over
8. BCE 41.13 15.52PE 3.55%
orginally bought this when they owned Nortel...you could buy BCE for what they owned of Nortel, boring but it worked, $75-84, then sold at 120-125. on avg.
after that I owned a big 25 shares in my DRIP/SPP account....
they then did some amazingly stupid things...bought CTV, overpaid 2 billion or so, however that was not so bad, when they bought Teleglobe and lost 8 billion or so....
Teleglobe which everyone thought they would sell, owned about 30%,they bought the rest...
yes in 1999/2000 I WANT A MONEY LOSING PHONE COMPANY, DEEPLY IN DEBT. 8 billion gone in just under two years.... Monty spun off Nortel, great, however buying teleglobe makes him one of the worse CEOs ever....
Teachers Ontario will take it private so will gladly take the 42.75.... I like the Teachers
they will turn it around and do another ipo..... probably the greatest pension fund in North America or the World....thanks
selkirk
9.
