I normally.. actually, NEVER do these posts, because they are time consuming, but I have been meaning to do this since I quit my job earlier this year, but you know.. summer hit.. mental slowdown.
But I have been talking for a while about my little Dividend Project where I want about $12,000 in yearly dividend income, spread out over many stocks so that I diversify.
I don’t need the income right now, so I’ll just plow the earnings right back into buying more stock on a DRIP (Dividend Reinvestment Plan).
I am at around $7300 as of this post (2019), but after my next contract, that should bump up significantly because I’ll have about $100K to plow into this and that should pull in about an extra $3000 – $4000 in income if I assume an average of 3% – 4% as a yield.
Then after my contract, depending on how much I make, I’ll plow more money into more dividend stocks, etc etc.
Here is my short list of Canadian Stocks I am interested in buying for Dividend purposes, ranked in order.
I have been spending the past month just gathering the list, getting the stock ticker symbols, the names, and then going to Globe & Mail to pick out their 52-week Lowest and Highest price.
I just want to be prepared for what I think I might like to buy once I start my second contract, and will have free cash ready to plow into the market. I haven’t read up on any of them, but the ones highlighted in red, are ones I already own, I just might want to buy more.
If you want to copy and paste, here is the table (hope it works):
|TRP.TO||TC Energy Corporation||49.02||67.27||4.48%|
|GSY.TO||Go Easy Financial||30.42||59.81||2.20%|
|CAR.UN.TO||Canadian Apartment REIT||43.03||54.65||2.59%|
|CP.TO||Canadian Pacific Railway||228.35||323.71||1.08%|
|DRG.DB.TO||Dream Global REIT||11.58||16.6||4.15%|
|FN.TO||First National Financial||25.38||37.93||5.10%|
|QSR.TO||Restaurant Brands Intl||68.34||105.93||2.72%|
Those were Canadian stocks. Here are the American ones in $US (U.S. Dollar / USD):
And the copy and paste table:
|RDS.B||Royal Dutch Shell||54.64||72.06||6.44%|
|JNJ||Johnson and Johnson||121||148.99||2.93%|
|PG||Procter & Gamble||78.49||123.43||2.49%|
|LMT||Lockheed Martin Corp||241.18||399.96||2.24%|
I don’t always just look at the dividend yield
I don’t want the stock to tank and to lose my capital / holdings for just a few dollars per stock, now do I?
I want stocks that will last the test of time.
I am looking at more Canadian stocks than American ones because of taxes
Withholding tax is 30%… and then I have to convert a depressed Canadian dollar up to an American one, which means I have to pay about 30% more… it sort of just piles on the cost of U.S. stocks higher and higher.
If our Canadian dollar was a bit more at par with the American one, I’d definitely buy USD and then buy some American holdings.
But for now, I’m staying closer to homegrown stocks.
I want to diversify out of banking stocks
A lot of what I own as dividend stocks are banks / financial companies. I want to NOT be so heavily concentrated in this, so I’ll be buying in other industries first.
I need to go through and make a list of all my dividend-specific stocks, and see where they fall, before deciding what to do.
I want to stay under $25,000 in each stock
Not that I am even there, but I don’t want to put in more than $10,000 – $25,000 MAX for really “stable” ones like banks into each stock. Once I ‘max’ out what I put in as capital, I am going to move on to another stock.
I don’t want to lose more than $10,000 – $25,000 per stock if it goes sideways. I am okay with losing a max of $25K but not let’s say $100K concentrated in one stock, no matter how stable it may seem.
I don’t want too many stocks to babysit
..which is why I don’t want too many little stocks. I am thinking 5-10 big blue chip companies, and then 5-10 smaller companies that I will keep an eye on to make sure they don’t go belly up.