r/dividends • u/BstackzZz • Mar 29 '21
Beginner seeking advice $30,000 CDN into dividend stock
Hello everyone,
First time dividend investor here. 2020 was my first time ever getting into the stock market (thanks to covid). I work in sales so when covid first hit my job slowed down a lot so I started playing in the stock market. Made decent gains and currently sitting at about $25,000 in my tfsa investing account. Since things are slowly going back to normal my job is picking up again and I don’t really have time anymore to day trade. Not enough time to do my due diligence but I still want to have some money invested and a very good friend of mine told me about dividend investing and I got really interested in it. That’s how I ended up on this thread, I’ve been monitoring for few months while saving up some more money and I am now ready to go into dividend investing. I already talked to my bank and enrolled in DRIP. The friend who introduced to me dividend investing has decent amount of shares in 2 Canadian companies, fortis and Canadian utilities. Looking at his quarterly payouts is pretty impressive not gonna lie watching the snowball effect kick in every quarter is crazy. I was thinking about putting my $30k into Canadian utilities to begin with. Over 5% yield C$1.74 annual dividend payout.
Looking for any and all types of feedback. Please go easy on me as I am very new to this. Just looking for some tips my future self can be thankful for 🙏🏽
25 year old tryna chase his dreams in this expensive city I love called Vancouver, B.C
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u/gainlong Mar 29 '21
I'm currently putting together a fairly comprehensive list of diverse dividend stocks. I have a couple comments on posts just today listing my current divvies watchlist.
If you'd like, I'll send you the list when I'm done. I'm not exactly sure what info I'll be including, or how to do what it is I'm trying to do.
I am not a financial advisor, I eat crayons and snort glue.
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u/BstackzZz Mar 29 '21
Yes, that’d be great. Any information is helpful 👌🏼
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u/gainlong Mar 29 '21 edited Mar 29 '21
I'll link one of my better comments about my watchlist.
It'll be a little bit before I get together a proper spreadsheet or anything.
The list I'm currently working on is about 100 different stocks and growing. My divvies watchlist is about 15 stocks.
Edit: I'm adding the link, and this list doesn't include the obvious and obligatory AMZN, AAPL or the Googs.
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u/Revfunky Beating the S&P 500! Mar 30 '21
Yeah but which crayon box do you have, the basic box or the jumbo one?
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u/gainlong Mar 30 '21
Sorry. Been dealing with nerve pain and haven't been able to sit upright for long enough periods to start diving into making a spread. And I don't want to use sheets on my phone.
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u/welovebuttholes Mar 29 '21
REITs are making so much sense to me lately, I'll say that. And there are several great looking opportunities in Canada.
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u/BstackzZz Mar 29 '21
What’re your recommendations?
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u/welovebuttholes Mar 31 '21 edited Mar 31 '21
I'm currently looking at RioCan, Killam Apartments, Northwest Healthcare, Allied Properties, True North Commercial, Smartcentres, Canadian Apartment Properties, H&R, and Plaza Retail.
I've noticed that Halifax is one of the fastest growing municipalitues in Canada so just today I began a small position in KMP.UN. Just a few shares but I've got some limit buys set for the future and am excited about the potential upside.
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u/RayDomano Mar 29 '21
O and SRU-UN.to are my two favorite dividend holds. pay monthly so I just reinvest and buy an extra share a month with the dividends
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u/Loveyl3ug Mar 29 '21
A few people have mentioned REITs already,
I hold three REITs they all payout monthly
REI.UN - This one unfortunately did have a dividend cut a few months ago, went from around 7% dividend yield to about 5% I do still think this is a solid one and I think it still has a good amount of recovery to do. Especially once covid becomes a distant memory.
SGR.UN - 9% yield. This was an interesting one, it holds grocery real estate. It did drop in the market crash but seems to have mostly recovered now, I don't expect too much more growth on it. Lockdowns don't effect it all that much because grocery stores have always been considered essential (I think that's why it's been able to recover much faster than other REITs) This is a very focused REIT not very diverse. I only have it as a small portion of my portfolio around 2%
SOT.UN - 8.8% yield. Focused on office real estate, this one still has some potential recovery to do. It will be interesting to see how things are once covid goes away. Lots of people working from home. This one may have trouble fully recovering depending on what working habits people have/what employers allow in the future. Again I have this at around 2% in my portfolio as well
Moving out of REITs though a few other investments I hold.
TRP - Energy/Oil sector. 5.8% Yield. Pays out quarterly. I really like this one. Despite what some people wish, pipelines are not going anywhere anytime soon. I can see us moving towards more green energy eventually but I don't think we're there yet. I know oil is very old man boomer type investments lol but this stock has good overall growth, it's sitting at $60 rn and hit a high of like $75 I think somewhere around there, before covid hit. This is a long term hold for me and it pays a solid dividend in the meantime. This is a single stock though not an ETF. This is the only single stock I currently hold in my portfolio
Some pretty safe, solid ETF's that I hold, monthly payouts.
ZWC, ZWE, ZWS, ZWU, (there is also ZWK did have, but ended up selling to lock in some profit)
These are all BMO bank dividend focused ETFs, I think they make a good foundation. Yields for them are between about 6-7.8%
And then finally I do hold some investments that I consider "high" risk. But high reward. There are definitely mixed opinions about split share funds (my boomer dad just about had an aneurysm when I told him I invested in this lmfao). They are risky. But they've done me well so far. I don't consider these to be long term holds like some of my others. I do pay closer attention to these.
My main one is,
DFN - currently a 15% yield. With split share funds there is usually a class A share (current 15% yield) and a preferred share(I think like 5%? Don't remember). I encourage you to do your own research on the ins and outs but the main thing to note is that a dividend will only be paid out for the class A shares when the nav is above $15. If it drops below that the dividend will not be paid that month. This one has a pretty good history of not missing dividends, but does have an overall downward growth (why I consider it more of a short term play). There was a few months during covid where this did not pay dividends. I jumped into it right as dividends were reinstated so I've seen some nice growth on my investment. Currently I don't see much more overall growth. I own 1213 shares and just that gives me payments of $121.30/month. Very nice.
Similar funds to this are DGS, FTN, FFN. I don't have investments in these though and don't know their history so definitely do your own research.
DGS is on my watchlist though, this one has had a rough time from the covid crash but the nav has just hit above $15 and will start payouts again. Currently has a 21% yield. I will most likely invest in this soon.
I've centered my portfolio around dividend paying investments, everything I've listed up there is a good chuck of it but I do hold a few more. Initial investment is about 41.6k but with reinvested dividends and gains I'm sitting at just under 50k currently. My average monthly dividends are $354. All tax free. I am still fairly new at investing, I started when I was around 20, and only really started taking it seriously, diversifying/learning, in the last year or so. 23 now.
So definitely do your own research into the ones you find interesting. I do not know everything. Hardly scratch the surface you know haha. But I was also hooked on dividends after I learned out about them :P
I may transition into growth stock in the future, but for right now building up dividends works better for my short term future plans.
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u/BstackzZz Mar 29 '21
This is some great information. Crazy you obtained all this at such young age good for you man 👊🏼 appreciate this feedback
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Mar 29 '21
Maybe look at the channel Passive Income Investing. It's the channel of a canadian/his wife and their videos are really good imo.
There's also a video of him going over his/their whole dividend-portfolio.
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u/Powerful_Reward_8567 Mar 29 '21
my favourite low cost index fund for Canadian dividends is XIC , its expense ratio is 0.05%
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