Sunday, 7 September 2014

Next Buy Watchlist: Sept. 2014

    So in August I wasn't able to make any new investments, but this month I will be making an investment and so I have a few companies I am keeping my eye on. Last time I bought more shares of Toronto Dominion Bank (TD), which I am quite happy about since its gone from $55.50 to $57.48 today. Although that does mean it will be more expensive to buy more shares of it in the future.

    For the moment I want to further diversify my holdings and not add to any current positions so my watchlist will not have any of my current holdings; although if a very good opportunity occurs then I might add to a current position. The main one I would be looking to add to is AQN with the aim of having enough shares to DRIP two shares a quarter, as I really like this renewable energy company.

    So my current watchlist includes: Suncor, Manulife, Roger's and REITs

Suncor (SU): Is Canada's largest energy company, with $40.2 billion in revenue last year. Suncor explores, acquires, develops and produces crude oil and natural gas mainly in Canada, but also internationally. The only main concern for SU is any regulatory change in the Canadian Oil Sands or sustained lower oil prices. SU also benefits as the Canadian dollar drops in comparison to the USD as it is paid in USD for most of its oil sales. Its been paying dividends for quite a long time and better yet consistently raising them. Analyst consensus gives them a rating of Outperform with a target price of $50.4; SU is currently trading at $44.07 with a dividend yield of 2.54%.

Manulife (MFC): Is a large Canadian, internationally diversified provider of insurance and wealth management. They've a history of consistently raising dividends, although during 2009's financial crisis were forced to cut dividends in half. Interest rates have remained low which hurts their insurance side of business due to low bond yields, which is being mitigated by further development in their wealth management divisions. Analyst consensus gives them a rating of Outperform and a target price of $24.5; MFC is currently trading on the TSX at $21.92 with a dividend yield of 2.83%.

Rogers (RCI.B): Is a large, diversified public communications and media company. They have four key business segments: Wireless, Cable, Business Solutions and Media. They are one of the 'Big Three' wireless carriers in Canada and definitely one of those company's everyone up here loves to hate yet cannot get rid of due to lack of any truly better or different options. I have my cellphone plan with them and would certainly change if I could find something better. On that note it would be nice to 'get some of my money back' through dividends to offset my cellphone plan! In the past I had my eye on Rogers when it was trading closer to $42.5 after posting a disappointing quarterly results and a slightly lower than expected dividend increase. There is also the ever looming threat of additional competition entering the Canadian market, as it is a priority of the government to add competition to the wireless market. Analyst consensus is currently putting RCI on Hold with a target price of $44.5; it's currently at $44.77 with a dividend yield of 4.09%.

Real-Estate Investment Trusts(REITS): Since last week when the Bank of Canada (BoC) announced that they would be keeping interest rates steady I have been considering adding another REIT to my portfolio for some additional income. While I don't have any single one to point out besides perhaps RioCan (REI.UN), I'v also been looking at Brookfield (BOX.UN), Canadian REIT (REF.UN) and Cineplex (CGX). Basically in the long run I would like to mimic part of XRE, which is a REIT ETF.

1 comment:

  1. Wisp,

    I don't know much about some of these companies, but SU is intriguing. They've done really well over the last few years, and the dividend increases have come fast and furious.

    Happy shopping! :)

    Best wishes.