The 2-5 year update on the DRIP/SPP Portfolio

[selkirk]

back in the mid 1990s, remember back then, I started a DRIP/SPP portfolio (DRIP/Dividend Reinvestment plan, and SPP/Share purchase plan.

basically you would buy one share registered, in my case from people in the same shareclub, (now you can do on the internet, though some charge $10). You would send that share to the trustee in Canada CIBC mellon, or Computershare (whoever dealt with the program) and you had an account set up.

it was easy just write a letter along with a bank employee signing and stamping the share, (person selling the share went through that). maybe include your sin number.

now you have to fill out forms and forms, after 9/11. they say it is safety after to stop criminals and terrorists from using this, that is BS, since you needed to include so much information and the amounts are small, ie. largest investment $25,000-$30,000 in most cases.
and that would have been flagged if every stock was always maxed out.

when I did it commissions were $40 a trade, sometimes more, and those are for the discounts, times have changed internet and competition have lowered these to under 10 dollars.

also brokers will now let you reinvest the dividends for whole shares the rest is in cash. and no spp share purchase plan.

so next post will update my buy and hold portfolio, or drip/spp, should note every stock have held for at least 12-15 years.

by the way in the US ING offers sharebuilder, which looks not to be a bad option for small investors, or ones to begin. or now you can also choose a good discount brokerage.

not to many options beside the do it yourself method in Canada but looking into one currently.

thanks
selkirk

 

[selkirk]

the DRIP SPP portfolio

the DRIP SPP portfolio

these are all in CDN $, though both the US and CDN are roughly the same, will give earnings and projections, yields, also if it trade in the US.

and my thoughts on the stock, most are hold these are long term holdings.

1. FAP First Australia Prime (now Asia Paciific)
Cdn. yield 8.37% div .05 monthly

this invests in asia and australian bonds, now about 70-30 used to be the other way around. the div used to be .075 monthly but was cut in 2008.

a good closed end bond fund for people wanting int. bond exposure.
not good for US investors as it has 70-75% money in US dollars. also hold some in a TFSA account
have had for 13 years.

2. CGI Canadian General Investments
Cdn. yield 6.53%

they issue preferred shares, so in a way this is a leveraged though less than before 2008 way to play the market, mostly long. they pick the stocks.
mostly stocks.

liked this better before 2008 but was surprised how quickly this got crushed in 2008, they did not react very quickly, if at all.

still long term not a bad record, a closed end equity fund. note in the mid 90s used to trade this back a forth a few times a year, discounts could hit 30-35%, to nav. and then back to 20-25% nav. was a good trade.

does not seem to do that as much. a small holding, even smaller than fap.

3. Rei.un Riocan
Cdn. yield 5.52%

have held this reit, now cdn. biggest (retail, big box), since 1998. then yielded 11.5%-12%. they have increased the div, and now trading at $25, bought in at $7-11.

the div is reinvested at a 3% discount for new shares, every little bit helps. great management, strong positon in Canada, and in the past two years slowly went into the US with partners, the investments so far have worked out well.

Target and other US retailers coming to Canada should also help them.

last year they did not earn their div, however this year they will, there will be not div increases until the div is covered even better...though not a major concern going in the correct direction.

long term buy, short term hold. (will be saying that alot)

4. BCE Cdn. US
yield 5.26% earnings 2011 $3.15-3.18 2012 $3.18-3.20.

BCE was a large play for me back in 1999 bought it for 78-84 and sold for 120-125. they owned a large portion of Nortel and you could buy a share and were only paying 1/3 for the largest telco in Canada.

they split the stock off, most nortel shares to shareholder and the stock went from 80-120 quickly.

bought a small position in around 38 and sold covered calls after that, after one year and many options later loss around 5%. for my trouble the second time around. they did many dumb mistakes.

bought back in low 30s, again small positon, better this time now $39.

two ceos later they finally have good managment (say that everytime) they have increased the div the last 5 times in two years.

earnings should grow slowly, so mainly for yield and a chance that the div will slowly rise.

a hold at these levels, if it corrects 10% will add to my positon. beats a bond, or GIC/CD.

more later

thanks
selkirk

 

[selkirk]

5. CM CIBC Cdn. US yield 5.15% 2011 6.85-7 2012 7.10 -7.40
6. BMO Cdn. US yield 4.88% 2011 4.75-4.80 2012 5.25-5.50
7. BNS cdn. US yield 4.20% 2011 3.85-3.95 2012 4.25-4.55

the cdn. banks that you can get through the drip/spp TD and Royal are not available, or at the time were not.

so CIBC, Bank of Montreal, and Scotiabank.
Scotiabank give you a strong cdn. franchise and has holdings around the world, well mostly south America, they for the most part have done good investments. and if one blows up, just means you lose a quarter of earnings...ie. Argentina.

BMO is cdn. and expanded in the illnois region.
CIBC used to be much bigger in the US, never worked out as well and now mostly cnd. retail bank.

these are imporotant holdings for cdn. especially ones who complain about service fees, ect. or put all their money in the bank and get next to no interest.

they yield 5% in 2008 these yields spiked to 8%. div increases will continue but at much slower rate than before, also earnings growth probably slows.

still 4-5% yield, div is safe, not been cut even in the 1930s.
long term buy, short term hold, in 2012 if they stay here will add to the positons in the drip/spp portfolio.

last time I added was a small amount in late 2009.

hard to screw up a cdn. bank but then again you never know, would have said you could not lose money on a swiss bank, bad management can do anything.

final note: retail business will stay strong but in weak markets their trading/security divisions will suffer, ie. less ipos, offereings, ect.

still good investments long term. low end trade at 8-12PE high end 15-20 PE.

8. SU Suncor cnd. US yield 1.50%
2011 1.70-1.90 2012 3-3.60

bought this in 1998 most in 1999 at prices $42.50-$45 has split, and split, ect.

so now one share then is four shares now trading at 29.35 not counting div.

since 1999 costs have gone up in the oil sands, remember in the early 1990s they thought they could produce for 18 a barrel, those dreams are over costs are around 75-80 a barrel.

guess what that is the new reality for oil production, deep sea drilling is expensive to, tell me what oil will do and that is their earnings.

in the oil sands they are a good operator but their costs would be higher than CNQ and cenovous, more leverage to oil up or down.

only pure resource play in my drip/spp portfolio.

9. ENB Enbridge cdn. US $35.64
yield 2.75% earnings 2011 1.30-1.35 2012 1.45-1.55

I say this quite often, why do I not own more enb., this pipeline will grow at 10% every year for the next five years. since I owned it in the mid 90s has returned to investors 10-15% on an annual basis, my return counting div is close to 15%.

it just that the stock never looks cheap, it always seems fully priced, like it currently is, of coarse said that back at 26-28-32, well you get the picture.

short term hold, long term buy (small amount)
in 2012 will add to my positon in the stock, a small amount but if the stock drops 10-20 on market weakness will buy more.

it would probably pop back less than others, but somethings hardly ever go on sale.

those are my holdings, by the way drip/spp is my third biggest account only following two trading accounts. pay far less attention to the DRIP/SPP portfolio.

next update : the stocks no longer in the account, or the good (GREAT), and the UGLY.

thanks
selkirk

 

[Doc Holiday 12]

EFT's & Stocks

EFT's & Stocks

Hello Selkirk,

I have been Swing Trading for the past 10 Months.

I'm really starting to get into this. My system is

a VERY common one. 10 sma ,30 ema, 200 dma

I'm sure you are familiar with this system. I did not

know M.J. had this in there venue. I'm VERY glad to

stumble upon this. There is ALOT to share and

conversely alot to learn. I just want to bounce some

things off of you because I've read some of your

post and like your input to this venue. I will list

some of the symbols I have been trading and if you

feel like adding value to it please do so.

1..... RIC

2...... SSO

3....... SDS

4.......SLV

5.......TZA

6.......SH

7.......NVDA

8........SQNS

9........PERI

10......TWO


:toast:

 

[selkirk]

Greetings Doc, welcome to the stock forum, though I read a few books on swing trading do not do it much.

mainly divs, and options. however please share any info, there is a lot to learn, and it never stops.

as for the stocks listed below

ric : owned Richmont mines a much lower levels, bought that at the same time (around) as Aurizon, another jr. gold.

did very well, of coarse sold way, way, ....to early, scary to think of how much money I left on the table.

I do not play leveraged etfs, though they can be good for short term trading in general they scare me, also do not play short term trades on the market.

nothing wrong with that, but I would be about the worse at that...

the silver etf is interesting, but I just buy silver wheaton (note: own far more silver than gold bought it cheap, gold mostly missed)
Silver wheaton has good options on the stock, great, since it is so volatile.

welcome, note: took out three books on investing last week, will talk about them when I finsihed reading them...

- as for trading there is ussually one or two stocks that trade in a range, that I follow, and will do a few trades a week. sometimes nothing.

thanks
selkirk

 

[Doc Holiday 12]

Thanks for the feedback

Thanks for the feedback

Hopefully WE can learn ALOT about the ins and

outs of trading......I too am reading a book.

It's called "The Way of the Turtle". Im sure

you have heard of this ICONIC book.........Cheers!!!

:0008