Tuesday, 10 February 2015

Next Buy Watchlist: February 2015

    I should be having money to invest within the upcoming weeks, so it is time to compile my watchlist of stocks that I am interested in! There are quite a few on my radar at the moment which I will be tracking and keep a closer eye on. For the most part I am mainly interested to adding to, and building up my current positions with an overarching goal of getting them to have payouts big enough to start a Dividend Re-Investment Plan. There are also some companies which I might start a new position in as well. And definitely some of these are familiar names from previous Watchlists.

    The main sectors/components of my portfolio that I want to build up are Financials, Telecoms, REITs and Consumer products, as well as selective Energy companies. I do eventually want to build up positions in Resources/Industrials, Healthcare, Technology and Transportation, but those areas I think I will leave for outside of my TFSA. I am also hesitant to enter into those areas as I do not currently have a lot of knowledge of them and their product/company life cycles.

So the companies I am looking at currently under the following sectors, with some quick stats are as follows:

Financials: Three of the big banks and my preferred Insurance company buy.
- Royal Bank of Canada (RY): Current price $76.4, Div $.75/ 3.93%, EPS 6.01, P/E: 12.72
- Bank of Nova Scotia (BNS): Current price $65.47, Div $.66/4.03%, EPS 5.66, P/E: 11.56
- Toronto Domion Bank (TD): Current price $54.52, Div $.47/3.43%, EPS 4.14, P/E: 13.18
- Manulife Financial (MFC):  Current price $21.89, Div $.16/2.83, EPS 2.15, P/E: 10.20

Telecommunications: Canada's big, stable well paying Telecoms.
- BCE Inc (BCE): Current price $54.8, Div $.62/4.51%, EPS 2.97, P/E: 18.43
- Telus (T): Current price $42.28, Div $.4/3.78%, EPS 2.26, P/E: 18.74
- Rogers Communication (RCI.B): Current price $44.62, Div .48

- RioCan REIT (REI.UN): Current price $28.61, Div .12 monthly/4.93%, EPS 2.42, P/E: 11.84
D.UN is also a consideration, but I did just add to it in my last Recent Buy and it is a large part of my portfolio so I will probably stay away from it.

-Saputo Inc (SAP): Current price $35.97, Div .13/1.45%, EPS 1.42, P/E 25.28       A Canada based dairy processor and cheese producer and distributes dairy products. SAP has steadily been growing its dividend and stock prices steadily creeping up. Saputo is also the dairy supplier of Starbucks Canada (at least in Ontario). Their products are also prominent in every grocery store.

- Veresen (VSN): Current price $15.74, Div .08 monthly/6.35%, EPS .21, P/E 74.37   Tempting to buy more of this one and cost average down and perhaps get enough to DRIP it for a new share every month.
- Pembina Pipeline (PPL): $38.58, Div .14 monthly/4.51%, EPS 1.15, P/E 33.6    Due to overall price, its unlikely I will be able to DRIP this one, but I would like to average down and its a good source of income.
- Most likely will be holding off on Suncor (SU) since it is has a higher dependance on oil prices than either PPL or VSN and I'd rather reduce my exposure. I also feel that AQN has perhaps shoot up a bit more in price than I would like, so unless it drops a bit first I will hold off some. Although that increases price might be due to its dividends being paid in $US, and therefore paying more due to the exchange rate.

    Either way, I think it will be a couple weeks before pulling the trigger so we will just have to see how the market moves over the coming days and see what opportunities are presented.

Happy Investing and Saving Everyone!


  1. Great list! You might want to take a look at NA too for the Financials. Smaller bank but great fundamentals for those you want to buy this year. BCE is my favorite from the three you have. Can't wait to see what you pick!

    1. Thanks for posting! NA is certainly a good bank to be sure! And I do actually already hold a few shares of them in my portfolio as well. And yup, BCE has definitely been a star, and I am glad it was my first telcom to build up into of those choices. I only see Rogers as being favorable atm/the last little while closer to $42.

      I can't wait to decide :P This buy might be put off a bit later than I usually like to do after I post a watchlist, but C'est la vie.

  2. I too am watching the big Canadian banks. TD, BNS and RY are on my list. Still haven't made a February buy but those names are high in my list. VSN is a new name for me. Never heard of that one before. Look forward to seeing what you will buy.

    1. Agreed, I'v been keeping a close eye on them as well :) Shame I didnt have the extra cash a couple months ago to buy them when they were ~5% lower! VSN is an interesting company, its been fairly up and down in the past few months, making think I might be able to trade it a bit more actively depending on the situations. The last two times it swung 14% within a day, I could have made some good gains(in hindsight). Happy to stick with it and hold onto it, with a good FFO and div yield :)

      thanks for dropping by.