Saturday, 11 October 2014

Next Buy Watchlist: Oct. 2014

    Markets have been heading downwards recently, but that also means there are some better deals to be had. And so with some extra cash sitting around I'v decided to move about into my brokerage account and see what pops up within the next week or so. Normally when I move money into my brokerage account I have a clear purpose as to what I am buying already, down to sending pretty much exactly the amount I need for the targeted number of shares within $10 to account for small market fluctuations in the stocks price. This time however, with the markets being so volatile I'v decided to move an amount that can buy a nice amount of a group of particular stocks, but I don't have a single accusation in mind.

    Generally speaking though due to my current heavy weighting in Energy I am looking to avoid it, except perhaps more of Algonquin Power and Utilities as it has no stake in the Oil market which has recent seen its prices declining.

So my list of current stocks that I am watching are:

Algonquin Power and Utilities (AQN): I like this company quite a bit, they've been growing their company steadily and safely, including their dividends! In my post on dividend increases I go into further detail of just how they've increased their dividends and why the current weakness in the Canadian Dollar is making them even more desirable for me! Additionally with another purchase I would probably set it up with a dividend reinvestment plan(DRIP) since I would receive roughly 2 shares a quarter and I like this company for the long run and its growth potential in renewable energy.

Royal Bank of Canada (RY): Canada's largest bank by market capitalization and a dividend paying and raising machine! Currently with a dividend yield of 3.77%

Bank of Nova Scotia (BNS): Another of Canada's big banks, also very well diversified globally and trading at a pretty low P/E of 11.61, with a dividend yield of 3.88%.

Dream Office REIT (D.UN): Another current holding of mine which has been recently down a bit as markets have plunged, although not nearly as badly as the market at large. Real estate investment trusts are great income producing tools, especially if you want to invest in real estate but dont have the time, inclination or start up capital to buy and rent a property. Current D.UN has a dividend yield of 8.1%! Their market cap is 3billion and trading at a P/E of 12.25.A relatively small investment can generate a nice monthly pay deposit.

RioCan REIT (REI.UN): Canada's largest REIT is more diversified than D.UN in that it also manages shopping and retail centers in Canada and the States. REI's market cap is 8billion with a P/E of 11.25, and its actually been gaining in stock price this past week. Currently has a dividend yield of 5.41%, not nearly as high as D.UN but still provides a great source of income. Buying this one would also diversify my portfolio a bit more as it would be a new position for me.

Roger's Communications (RCI.B): A large diversified public communication and media company. Their shares have also been on the lower end of where I'v seen them in the last few months and are currently trading at around $42 which is roughly where I would buy them at. Last year they bought the broadcasting rights to the Toronto Maple Leafs for quite a bit of money and it will be interesting to see how that works out for them. There is also the threat of new entrants into Canada's telecom oligopoly. Buying RCI would further diversify my portfolio within the Telecommunications industry. RCI is currently trading with a P/E of 14.57 and a dividend yield of 4.34% which is pretty good.

    So those are the company's I am currently keeping my eye on over the next few weeks. If I see one drop by a good amount then perhaps I will pull the trigger and get them on the cheap. If the market wasn't quite so volatile at the moment I would just pick one of them up and be done with it. However the opportunity to get one for less seems likely(here's hoping).

Happy Thanks Giving Weekend(Canadian) everyone and good luck and research for your investing!


  1. Interesting choices. As an American, it's always interesting to get exposed to Canadian/other international companies. And most importantly, the Detroit Red Wings are infinitely better than the Maple Leafs, just throwing that out there ...

  2. Haha yeah, I like checking out what American's are putting into their portfolio's. I usually try them out some in my Simulated portfolio on Investopedia :)
    Haha, yeah.... The Leafs need a lot of work.... Management traded away all our 1st round draft picks for years!