Hope everyone is enjoying their days off from work this long weekend! Who wouldn’t be? What I enjoy most about long weekends is that everyone else is out of town. That means no lineups at your favourite breakfast digs and less people at your favourite hangouts as well. While everyone else gets a break, tonight is my Monday, back to the grind! However I can’t complain. Work has been generous with hours over the last couple of months, and that means a lot more moola for investing!
On The Buy List
Speaking of which after selling my index equity funds last month, I’ve been sitting on some cash waiting for my next purchase. It was nice to see markets take a breather last week, especially when I have cash to buy. Bank of Montreal (BMO) and Canadian National Railway (CNR) are at the top of my buy list – and I’ve already placed an order for shares of BMO at $58. Back in the day when I held mutual funds, and index funds for that matter, watching markets decline was depressing. It essentially meant I was losing my overall portfolio value. Now that I invest primarily in dividend stocks, watching markets decline this last week made hardly a dent in my overall plans. The reason being of course is dividend income. Regardless of share price I still receive the same monthly income from my holdings. When you combine that with the income from bond fund and bond ETF distributions, it’s a solid plan IMO.
What the ETF?
So after selling my modest amount of index funds last month to invest in dividend stocks, and bantering with Teacher Man™ on ETFs versus Dividend Stocks last week, why would I want to discuss ETFs? Well that is exactly what I have planned, and I’ve invited Vicky at Vix Money who really digs ETFs to author this section. She will be writing her first post on iShares XIC scheduled for Monday morning. This is a great back to basics post for Canadian investors who want to add solid ETFs to their portfolio.
Not the Index Debate Again!
The bottom line is whether you want to invest in dividend stocks or ETFs, or even a combination of both, I feel learning as much as you can about both strategies is the key. And my friend Dimitri over at Sigma Swan, also holds index ETFs, and he will be presenting a post on that next week.
Posts Around the Web
Here are some great posts from around the web, this weekend everyone gets a double mention!
Speaking about ETFs, The Canadian Couch Potato interviewed Mary Anne Wiley, the new head of iShares Canada, on their recent acquisition of Claymore Investments. As you may have noticed in your portfolio, any Claymore ETFs you were holding have now been exchanged for an iShares branded ETF. These are a couple of interesting interviews you should check out in What’s Next for iShares, Part-1 and Part-2.
The Dividend Monk writes stellar dividend stock analyses, and his posts are top quality. Check out his two most recent posts on 5 Dividend Payers with Very Strong Balance Sheets, and why he thinks Enbridge Stock Looks Expensive (I agree with you DM!).
There is certainly lots of stock-picking fever in the air this Easter long weekend. With both the Dividend Growth Index and 2012 Stock Picking Contest quarterly results, the dividend bloggers are all abuzz with their picks and performance:
Have a great long weekend everyone!