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Consolidating debt? Good business tips? Buying stock? How's our economy doing? Discuss and share advice and tools on everyday banking, investing, wealth management and insurance.
"How the dividends are paid:
The Preferred shares pay fixed monthly dividends of $0.04375 each. They are funded from the dividends distributed by the 15 companies in the portfolio. The preferreds do not participate in the growth of the 15-stock portfolio.
Class A shares participate in the growth of the 15-stock portfolio. They also receive monthly cash dividends of $0.10 each.
The Class A dividends are “predominately funded by the additional income earned from the covered call writing program,” notes a company publication. That is, income is collected from selling call options on the 15 stocks, and is supplemented with capital gains realized in the event the call options are exercised. Another source of income is the excess in dividends not required to fund the preferred shares dividend."
If I even make an attempt to explain why the split corp route can be dangerous it will just sound retarded... but here is food for thought...
The major risk IMO, is that as the life of the split corp comes to an end, there will be very rapid sell off, if you cannot get out in time you will see your share value plummet like a rock with no hopes of recovery. The trouble is, when will people start to pull out? 2012? 2013? 2014...? If you get caught on the slide down, it is very likely that all the profits from dividends paid will be lost thanks to the share value.
On the flip side you can go the preffered route and secure a share price that will not fluctuate, but you can kiss that 1% montly goodbye and take your 4.375% yearly... there are other, better preffereds out there at this yield.
In a rush!!!! G2G!
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Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
For gas I've been keeping an eye on CEX and coal, I own 2165 shares in CPT.ajority were purchased at 1.36/share. It will open for production in 2014 I believe. Posted via RS Mobile
Cex is another hopeless play. I don't know much about current news, but from last year - The only hope for this play is if CDH get's activity up in the area.
And if Shale begins to become hot again. If it does, Cex will rise with the tides.
Aside from that - Cex will be a play that will either make you +/- 15% easily (Then again, most penny stocks will do that - So, I would look elsewhere for a gas stock)
For the most part - Cex is another tax write-off if you don't play it right.
What would you recommend then? Posted via RS Mobile
Most major Canadian Financial institutions offer pref. shares, I believe that a few pages back another member mentioned that his GF had seen a 6.XX% return on her shares with TD? (In the form of dividends)
Preffereds protect you from market volatility and pay a much better dividend than the same financial company would pay in the form of cash collecting interest in "high interest" savings account.
If you're happy with a 5-7% yearly return, this is THE best route IMO, when comparing to traditional mutual funds etc... mind you I think most people on here would agree that 99% of MF's are garbage anyway.
TD or Scotia would be where I pick up my pref.s... not CIBC or RBC. Not sure what HSBC, ING, or others offer for pref.s
Having said all that, 5-7% return and low risk is not my cup of tea, and as such I have not researched this very much in the past... so take it with a grain of salt and do your own research (as you should anyway)
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Quote:
Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
I don't have the liquid cash or time to do day trading or anything so it's more long term investig I am looking to do. Posted via RS Mobile
then do your research and pick large cap companies that are well run & that provide a product/service/innovation that you believe is superior to their competition and that they can maintain that competitive advantage. also ensure their valuation is something you can live with (i love amazon, but can't live with its valuation, this was at $23x when i sold, its at $17x right now - i will pick that stock up again, though, as it is by far and away the premier online marketplace)
OR pick good dividend stocks that pay you 5-7% p.a., reinvest through a DRIP and forget about it (just look at big banks, or established oil & gas plays - there are many 8-10% dividend payers out there too, but usually smaller cap and higher risk)
almost all commodities opened gap up and are green today. gotta see tomorrow or thurs how things play out. I don't see any good trades at this moment technically wise.
Cll.to up 17%! Jason do you know why? Posted via RS Mobile
Honestly man, no clue.
I would assume it has a lot to do with the price of oil and the news on Athabasca Oil Sands selling out it's Mckay River to Petrochine.
I would also say it's fairly obvious that a lot of the holiday money that went away for xmas is coming back into play.
I'm a little torn right now about what to do with CLL, selling and buying back on a down day is tempting, as I would like to believe that there will not be a JV/Buyout now until after the next financials are out. CLL likely just wrapped up their best 1/4 in a long time and I'm sure they would like to have the influence of that quarter in the JV/buyout talks.
Then again selling and buying back in higher sucks, something I have already done once with CLL... I guess we will see as the day progresses.
Really though, I just need to chill, I bought this company based on fundementals, not rumors or hopes of a quick flip... so I should probably stick with Plan A...
Also, my next buy once CLL is sold/JV/share price hits my magic number will be Black Pearl Resources, PXX, they are also having a very good day.
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Quote:
Originally Posted by jasonturbo
Follow me on Instagram @jasonturtle if you want to feel better about your life
Thanks. Yah I could see CLL wanting positive quarter results revealed to strengthen their bargaining position. It's backed off a little today with people taking profits.
I bought some SU.TO a few weeks ago and am seeing nice gains. I still think Keystone XL will go ahead.
Edit: I am commodity heavy and was up 31% on the day
Last edited by TouringTeg; 01-03-2012 at 01:04 PM.
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