The Weekly Lineup: Bonds, Banks, and the Dividend Toolkit

I hope everyone is enjoying their long weekend. I don’t know about you, but I’ve never liked the name of this holiday – Labor Day? It reminds people of all their dutiful obligations such as work (which is called employment) and school. While everyone enjoys having an extra holiday and day off, Labor Day is certainly not a holiday most people relish with joy. It’s the day before a busy day back to work schedule, with kids back to school, and other family obligations before the onslaught of the 9-5 grind. It would be much nicer if Labor Day was the second or third week in September, when people really need the break. Regardless, I hope everyone had a great summer and nice break! :)

dividend-toolkit-ebookThe Dividend Toolkit

There have been a lot of new eBooks around the blogosphere this summer. But when Matt from the Dividend Monk sent me an email to let me know he had written a new eBook for dividend investors, I knew it had to be good! Matt is very detailed and methodical, very knowledgeable, and he really knows how to break down fundamentals and company statements. His stock analyses and posts over the years have clearly indicated that.

I’d like to review The Dividend Toolkit later this month, but for now there are two great reviews on the book you can read. Dividend Mantra wrote a review on the eBook in, The Dividend Toolkit: Review. Dividends for The Long Run also wrote a great review at Book Recommendation: The Dividend Toolkit. Both these dividend investors have given the eBook a raving review with two thumbs-up!  I’ve perused the eBook and it certainly looks impressive. If you are a serious dividend investor, then I definitely think you will want to get yourself a copy.

For more information, or to purchase and download, you can visit The Dividend Toolkit: How to Efficiently Analyze Dividend Stocks. This is not being sold through any affiliate program, and the 200 page eBook sells for only $16.00 USD.

The Canadian Banks

Bank of Montreal

courtesy of www.financialpost.com

When looking for investments to purchase last month, I had decided to top up on my Canadian bank holdings, and wrote up on that in Recent Buy: CLF, BSN, and RY. I was certainly expecting the banks to be profitable come their earnings reports in late August, so topped-up my holdings accordingly. But the Canadian banks performed much better than analysts and investors had anticipated – exceeding expectations. That’s also good news for index investors who hold ETFs such as XIU and XIC, or index funds such as TD Canadian Index Fund.  The Canadian banks make up a large position of the TSX Composite Index.

Three of my bank positions, BMO, BNS, and RY did very well. Canada’s fourth largest bank, The Bank of Montreal (BMO) reported a 37% increase in profits – or $970 million dollars.  BMO raised its dividend by 2 cents per share, from 70 to 72 cents per share, a 2.8% increase resulting in a dividend yield of 4.99%. This was the first dividend increase for BMO since late 2007.

The Bank of Nova Scotia (BNS) posted third-quarter profit of $2.05-billion last Tuesday, slightly beating analysts’ expectations. BNS hiked its dividend up by 2 cents to 57 cents per share, a 3.6% dividend increase, giving BNS a current yield of 4.36%.  Even the Royal Bank (RY) surpassed analyst’s expectations, making its highest quarterly profit ever with earnings of $2.2-billion. RBC boosted its quarterly payout a whopping 5.3% from 57 to 60 cents a quarter. The Royal Bank (RY) now yields 4.35%.

I have a detailed post planned on the Canadian banks for next week, so stay tuned. ;)

The Weekly Lineup

Dividend and Investing Links:

The Canadian Capitalist wrote an informative post on Canadian Stocks Paying US Dollar Dividends (mostly resource). This can cause some confusion for investors who may be hit with various foreign exchange charges on their dividends. CC provides info on how to journal your dividends – specifically with TD Waterhouse.

My Own Advisor wrote a controversial post on bonds in, why now is probably the wrong time to sell your equities to buy bonds.  When equity markets are on a tear it’s pretty easy to be down on bonds, and not surprising either.  From 2007 to 2008, before the crash, stock markets were also on a tear. Bonds were also considered a bad and underperforming investment. Its times like these investors simply forget why they hold bonds in the first place – to provide stability, a cushion in times of panic, as well as monthly income. There will indeed be a time to sell a portion of your bonds, but we are not there yet. But as MOA suggests, selling your equities to buy bonds is not really the best move either. ;)

At Vix Money, Vicky reminds us why consumer debt is not a good thing. Check out her recent post, Average Consumer Debt in Alberta – $33,564!

So where’s the profit to be made for investment companies offering low-cost indexing ETFs? In the U.S. the smaller players can’t compete and are winding down. What’s in store for the Canadian ETF landscape? Check out the Couch Potato’s recent post, More ETFs Close Their Doors.

A couple of great posts last week by Sigma Swan. He looked at one of his favourite holdings AAPL, in Apple’s Monopoly Survives. He also looked at Buffett’s recent moves in, Buffett’s Next Move: His Biggest Yet?

Blogging and Monetization Links:

Over at my other site The Web Ninja, I discussed the importance of when Should You Send Out Your Blog Posts. It’s something many bloggers don’t even think about. But sending your blog posts or email newsletters on the right day and at the right time is essential. It can have a big impact on not only on your open rate, but also in the follow-up involvement from your readers.

I also concluded my FeedBurner series. In Part-4 I showed bloggers how to make a better impact with their feed’s post title. Check it out the post at, How to Setup FeedBurner:  Part-4.

Have a great long weekend everyone! :)

Disclaimer: As well as the long weekend, I am long on BNS, BMO, and RY.

13 Responses to “The Weekly Lineup: Bonds, Banks, and the Dividend Toolkit”

  1. Trader Rob

    Sep 02. 2012

    Great links, especially the one about US dividends.

    Reply to this comment
  2. My Own Advisor

    Sep 02. 2012

    Thanks for the mention Ninja! Hey, what’s a blogpost with some controversy now and again?

    Congrats on your bank dividends…that made my weekend as well. :)

    Have a great long weekend!
    Mark

    Reply to this comment
    • The Dividend Ninja

      Sep 02. 2012

      Hey MOA, Cheers! Yah I never get into anything controversial… for example I never discuss index investing or bonds on this site. I certainly never discuss yield-on-cost. ;)

      Enjoy the rest of the weekend
      Cheers

      Reply to this comment
  3. S. B.

    Sep 02. 2012

    I agree the results were very strong from TD, RY, BMO, BNS, as they trickled in last week, with dividend hikes across the board. Thanks for the reminder to update my spreadsheet. After that, time to turn on the grill…

    Reply to this comment
  4. Vicky

    Sep 04. 2012

    Thanks for the mention!

    I like how you mention XIC getting a boost as well from the bank earnings. It’s a good reminder that even though I will get a bit of a boost, it is not as big as if I were to own the actual shares. :P

    Hope you had a great weekend!

    Reply to this comment
    • The Dividend Ninja

      Sep 04. 2012

      Hey Vicky, I guess that’s why us dividend investors love dividends! :) On the other hand your portfolio requires a lot less work…

      Cheers

      Reply to this comment
      • Steve

        Sep 08. 2012

        Only if you consider updating spreadsheets and counting my pile of dividends as a lot of work ;0

        Reply to this comment
  5. TM @ Young and Thrifty

    Sep 15. 2012

    Those Canadian banks and their durable competitive advantage eh? The really interesting thing will be which Canadian bank uses their windfall right now to make the best long-term investments. Scotiabank obviously just made the high profile acquisition of ING Direct, but the other players have been focused on expanding geographically and in terms of the services they provide as well. With assets at depressed prices, financial institutions looking to shore up balance sheets, and the Canadian banks with such great cash flow, the potential is there for them to grow even more profitable over time if the current circumstances are taken advantage of in my opinion.

    How goes the web ninja project these days buddy?

    Reply to this comment
    • The Dividend Ninja

      Sep 15. 2012

      TM, thanks for the comment! It’s timely, because I have a big in depth post planned on the Canadian Banks. The only thing is, we have to trust the Canadian Banks are as well regulated and immune from financial instability as we think. However, they are excellent dividend payers, and make up a good chunk of my portfolio.

      Just been busy with things, such as FinCon and other site work. The Web Ninja is going great, and I have another awesome announcement for early next week! Thanks for stopping by…

      Cheers
      The Dividend Ninja

      Reply to this comment
  6. Marvin

    Sep 26. 2012

    Thank you for the blogging and monetization links. I am getting my newsletter together right now and you’re exactly right. I didn’t even think about a specific day or time to send it out.

    Keep up the good work!

    Reply to this comment
  7. The Dividend Ninja

    Sep 26. 2012

    Marvin, Cheers! I’ll be back to writing on the Web Ninja soon. ;)

    Reply to this comment

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