Wednesday, 1 July 2015

Next Buy Watchlist: June 2015

    Monday's news items made for an interesting day to put up a watchlist. With the current market fallout of Greece's potential missing of its IMF repayment date and the looming possibility of its unprecedented retreat from the European Union stock markets have taken a hit. I have been closing in on the stocks that I want to get, but with these events I am glad to have been taking my time. I am also going to be waiting on the result of tomorrow Bank of Canada report on the Canadian economy, as that could also affect financial companies. Now, while preparing and researching for my next addition to my portfolio I have had a few objectives in mind.

My objectives loosely are:
- Add additional dividend income within the 3-4% range
- Avoid additional oil exposure, unless a great opportunity arises
- Possibly add a new holding to the portfolio
- Building towards larger positions to take advantage of a DRIP


Bell (BCE)
    Enduringly still one of Canada's big telecom companies, paying out a juicy and steadily growing dividend. BCE also just announced plans to roll out fibre optic connections to major cities in Canada; including an estimated 1.1million customers in Toronto. Higher speed, higher pricing capability?

Telus (T)
   A bit more of an up and comer when compared to BCE or Rogers, but is the 3rd of the big three telecoms in Canada. It has the best customer service reputation of the three, and is primarily operating within the mobile phone segment, which has great margins and growth compared to the landline phone business.


The banks: TD, BNS, RY

    TD, BNS and RY are my three main bank holdings which I keep an eye on. Of these three I am leaning towards adding more to BNS, as prior to this post it was down 8% over the year and an additional 3% today, putting it close to its 52week low.

Manulife Financial (MFC)
    Manulife Financial is a large, geographically diversified insurance company, and I have had my eye on it several times in the past. Its currently priced a little bit more than I would like to get it, but since my last look at it MFC has been raising its dividends and has promising growth in Asia. MFC is currently sitting on a market cap of 47 billion and a dividend yield near 3%, which is a bit higher than I remember seeing in the past.


    I find that opportunities for adding Consumer based companies is fairly limited in Canada, particulary companies I would want to hold within my TFSA.

Pizza Pizza RC.

    My current holding of Pizza Pizza (PZA) could be added to again; especially if I could add enough shares to activate a monthly DRIP, although at the moment, short of a price drop I don't have quite enough cash on hand to do that.

George Weston ltd.

     I also would like to diversify with a new holding as well though. Around a year or so ago I was looking at Shoppers Drug Mart, which is a combination pharmacy, beauty product and high end convenience store. However, they have been bought out by Loblaw's (L) which is in turn a segment of George Weston (WN). So the decision there now would be whether to buy Loblaw's, or the holding company George Weston which also owns distribution, processing and the properties of its subsidiaries locations.It also runs a frozen baking business


    I am considering Cineplex (CGX) again as well. Canada's premier movie theater operator, as well as a quickly growing entertainment and events company. CGX pays out a steady monthly divided that has also been growing with the business. Currently CGX has a market cap of almost 3 billion and a dividend yield of 3.36%, with its $.13 per month dividend.

    Finally, the last category of sorts that I am looking at is where good potential value can be found. Where the stock has taken an overly unwarranted beating in its stock prices. Those companies that I hold are
- Suncor (SU)
- Pembina Pipeline (PPL)
- Dream REIT (D.UN)
- RioCan REIT (REI.UN)

    Those four have taken a bit of a plunge in prices over the past couple months. For SU and PPL its due to shaky oil prices, but overall I think it is a bit exaggerated as SU is a large, integrated company that can survive and make use of lower prices. And PPL mainly moves the oil under contracts and since demand for oil hasn't particularly dropped its pipes should still be full. Additionally within the Canadian oil industry the newly elected NDP in the province of Alberta, has announced corporate and carbon tax increases. Although from what I have read, many of international oil companies factor in a higher carbon tax rate than what is currently being charged. Many oil sands companies have taken a bit of a beating due to the political uncertainty.


  1. That's a good list! Especially like Telus and the banks! ;-) Nice to see a lot of CAD stocks too!



    1. Thanks! I am starting to lean towards Telus as my second telcom holding when I get around to it. And those banks are all pretty solid and with their stock price pullbacks are all yielding around 4%!! Love it!

      Thanks for stopping by!