The Derek Foster Interviews
It was a real pleasure to interview Derek Foster last week! He certainly is a personable guy who really knows his material. I think you will find a lot of prudent advice in the interviews, and some answers to questions you may have had. If you haven’t already, be sure to read my interview with Derek Foster: Part-1 and Part-2.
The Weekly Lineup
There were some really exceptional posts around the web this week. Here were my favourites:
- Million Dollar Journey wrote a quick tutorial on How to Write Covered Call Options – A Step by Step Guide. I have always been a buy what you pay for kind of guy, unless it’s a Line of Credit for investing, or an RRSP loan – so options is definitely something I need to learn. From what I understand Covered Call Options are considered quite conservative, and protect you in a downward market.
- Million Dollar Journey also continues his excellent series on Chart Patterns, with Stock Chart Reversal Patterns – Wedge and Triple Tops. If you need a review of technical analysis, this is a great series to get the basics.
- Andrew Hallam wrote an exceptional post on Can You Beat the Market with Dividend Paying Stocks? Since Andrew is a millionaire, and he has indeed beat the market several years in a row actively picking stocks – his argument certainly carries some weight. He also used to invest in Dividend Stocks. If you think picking a few good dividend paying stocks will beat the market on quality alone, then you should read this post.
- Thinking of buying Citigroup, even after the reverse-split? Then think again. Moneycone wrote a nice little post on the pitfalls of buying into this value-trap. This is something Derek Foster and I also discussed in my latest interview, financials are not the sound investments they used to be.
- Anyone notice that the big financials are pulling out of the U.S.? Apparently, ING Direct USA is Up For Sale. Also last week, as many investors have been aware, the Royal Bank is also putting it’s U.S. operations RBC Bank up for sale. This is shortly after S&P downgraded RBC Bank to a BBB rating, or virtually a notch above junk status, according to a recent article in the Globe and Mail. I’m surprised S&P has any credibility left after its rating fiasco in the recent financial crisis. However, as an investor in RY-T I think the sale is a positive for the bottom line.
- 20’s Money has an interesting stock pick to add to his DRIPs – Raven Industries (RAVN). He gives a detailed review of the stock, and why he thinks it makes a good long term investment for dividend investors.
- Echo wrote an interesting piece on Criteria for Selecting a Dividend Growth Stock. Using the TSX Composite as an example, Echo looks at screening criteria such as: Low Price / Earnings Ratio, High Dividend Yield, Value Ratio Approach, and 5 Year Dividend Growth, etc. A valuable insight I will add to my toolbox.
- The Canadian Couch Potato begins a series comparing Fundamental Indexing (RAFI) in The Promise of Fundamental Indexing. For those who aren’t familiar most ETFs and Index Funds are currently cap-weighted, by market capitalization. That was the whole problem with Nortel during the dot com bubble – the company was nearly 30% of the index before it collapsed. With Fundamental Indexing it would have only made up 4% of the index. However the long term verdict on performance is still out!
Have a great long weekend everyone! I don’t want to rub it in, but it’s warm and sunny in Vancouver