The Weekly Lineup: Easter Egg and ETF Edition

Easter EggsHope 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:

My Own Advisor (not really my advisor) gave us his 2012 Q1 Dividend Growth Index update, and shared his 2012 Personal Finance and Investing Goals.

The Passive Income Earner reviewed the S&P 500 Dividend Aristocrats, as well as his 2012 Q1 Stock Picking Contest results.

One of my favourite bloggers, Dividend Mantra, gave his updates for both the Q1 results of the Divided Growth Index and his results in the 2012 Stock Picking Contest.

Have a great long weekend everyone! :)

8 Responses to “The Weekly Lineup: Easter Egg and ETF Edition”

  1. Dividend Mantra

    Apr 06. 2012

    Thanks for the kind mention my friend!

    I love where you’re going with the portfolio. I think you’re making some fantastic choices that will serve you well over the coming years. Nice choice on CNI. I think the railroads are great buys right now for the long-term. Canadian banks are also very strong.

    Have a great weekend!

    Reply to this comment
    • The Dividend Ninja

      Apr 06. 2012

      Hey Mantra, Thanx a bunch – I feel the same way as well. I’m even hoping for more declines, so I can come back and buy CNR for even less than it is now. BMO has a 4.7% yield ;)

      Have a nice weekend!

      Reply to this comment
  2. Thanks for the link love. CNR is very high on my list too but I won’t have cash until after June or so – I need to sit tight.

    Reply to this comment
  3. My University Money

    Apr 07. 2012

    Can’t go wrong with Canada’s banks eh? Glad to see that the ETF debate is healthy and well. Just out of curiosity DN, do you always buy in 100-share lots like some people recommend when you purchase stocks?

    Reply to this comment
    • The Dividend Ninja

      Apr 07. 2012

      Hey MUM, in the old days before the internet and online trading, brokerages traded in lots – i.e. 100 shares. Now of course you can buy 1 share or 500 shares with your online trading account.

      Generally a 100 shares in a company will give you enough to be able to DRIP (reinvest your dividends) into new shares.

      IMO a much better approach is to put equal amounts of each company in your portfolio i.e. 10% each for 10 stocks, or 5% each if you are investing in 20 companies. Right now I have cash to top up my holdings, so I am going to add to my position with BMO with 25 shares. ;)

      Cheers!

      Reply to this comment
  4. My Own Advisor

    Apr 08. 2012

    Thanks for the mention Ninja!

    I own a few BMO shares but like you my friend, I would love to own a railroad. Like monopoly, once you start owning some railroads, utilities, some good REITs and you avoid hitting the luxury tax part of the board, you’re in good shape :)

    What’s your price point for CNR? I’d like to see CNR in the 60′s for a buy.

    I look forward to your posts next week.

    Happy Easter and hope you’re having a great weekend!

    Reply to this comment

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