Weekend Reading – Undervalued stocks, right mindset, Air Miles alternatives and more!
Welcome to the weekend!
Welcome to my latest Weekend Reading edition that shares some of my favourite articles from the week that was across the personal finance and investing blogosphere.
Enjoy these articles and see you here next week with more fresh new content along with 5,000+ subscribers!
With real estate prices soaring in Canada, Freedom Thirty Five Blog highlighted how his rental property is doing. He makes a good point when it comes to holding real estate citing a Globe and Mail article:
“To prevent making this mistake I suggest renting out your property instead of selling it. This is especially prudent in a buyer’s market like in 2019 when it may not be a good time to sell. Stock investors are always encouraged to buy and hold. Why should real estate investing be any different?”
Wise words from Larry Bates on MoneySense recently regarding the right mindset for investing success.
“For most of us, investing is a multi-decade journey. Ignoring short term market moves, focusing on the long-term and maintaining the right mindset, including thinking like a business owner, finding the right asset mix and investing like clockwork, will help you achieve the investing success you deserve.”
FrugalTrader was back with an update on Million Dollar Journey about various Canadian undervalued stocks.
He also highlighted his top-10 individual stock positions in that post – dividend stalwarts in Canada like:
- TD Bank (TD)
- CIBC (CM)
- Canadian National Railway (CNR)
- Royal Bank (RY)
- Scotia Bank (BNS)
- Bank of Montreal (BMO)
- Fortis (FTS)
- Enbridge (ENB)
- Emera (EMA)
- TC Energy (TRP)
His approach to investing is similar to mine, although we own different companies in different quantities. You can check out how I built my juicy dividend portfolio – and how you can too here!
Like FrugalTrader, I own stocks that have rising cash flow, modest yield, and modest payout ratio.
For considerations about how to build your dividend portfolio, metrics to learn about, here is another fine post:
Always nice of GenY Money to share my content in her awesome reading list: PF Round Up about Net Worth.
Interesting to see how Fortis (FTS) returns compare with Berkshire Hathaway (BRK.A shares) via Henry Mah this week.
Thanks to Rob Carrick, Dale Roberts from Cut The Crap Investing found a new favourite Canadian Dividend ETF to enjoy: CI Wisdom Tree Quality Dividend ETF (DGRC).
Dan Kent and the team at Stocktrades.ca has a How to Buy Cryptocurrency in Canada primer for you.
My recent posts:
Speaking of juicy dividend income – here is my latest monthly income update. Wild that I’ve been posting these updates for almost 12 years now – the chart is proof!
I’ll be back in a few weeks to show you how April trends are coming along.
FIRE is best re-branded for many as: Financial Independence, Retire to Entrepreneurship.
Other Weekend Reads!
Stephen Weyman and the team at CreditCard Genius highlighted some Air Miles alternatives. My/our go-to points and rewards programs continue to be Aeroplan, Marriott and PC Optimum. What are yours?
Brian So offered 87 tips to save on life insurance.
I’ve worked with Brian regarding our life insurance needs. Check out my post about determining whether term life or whole life insurance is right for you.
Financial Independence – Retirement
As part of my ongoing commitment to share some financial independence, early retirement or retirement articles from the blogosphere, here are some links!
A Purple Life did a six-month check-in on her early retirement decision.
I liked her post-retirement goals in particular:
- Slow Down
- Time With Loved Ones
- Be Present
- Be Closer To Nature
Sounds like where I am trending to…
On Cashflows & Portfolios, we shared our latest profile about how to retire by age 60 even if you didn’t have a cent saved until age 45! Read on for that case study and see how you can catch-up between ages 45 and 60 for a good retirement all the same.
As always, ensure you check out my dedicated Retirement page where I have case studies about “how much is enough”, how other successful retirees are managing their portfolios and much more. They’ve been inspirational to me and shape where I want to be…
I’ve also updated my comprehensive Helpful Sites page to share some FREE FIRE-like, early retirement calculators, along with much more, to help you plan without any fees to do so.
Reader question of the week (adapted only slightly for the site)
This week, a new question!
I have been reading your blog for several years now, always great stuff, thanks for doing this.
My question is this: although I see the benefits of a portfolio of Canadian Dividend Stocks what about private REITs? I am thinking of investing in one, it’s locally owned and operated, been around for 10
plus years, wins lots of awards and it pays 7%. The company is Skyline Wealth here in Guelph, Ontario.
Your thoughts would be appreciated.
Thanks for your email!
First off, as you acknowledge, I have been and remain a fan of dividend paying stocks and then some low-cost ETFs for extra diversification for my portfolio. In investing this way, I feel I get the best of both worlds:
- Dividends = passive, growing dividend income I can spend as I please, and
- ETFs = growth and international diversification (such as from VTI and XAW in particular).
Don’t forget my lessons learned in diversification in this post – so you don’t make the same mistakes!
When it comes to private equity investing or REITs, I have a post on that too.
Now, with Skyline REIT in particular I’m not too familiar with them but a quick search tells me they “invest in a 100% Canadian diversified portfolio of retail properties with a focus on trusted national brands with long-term leases.”
Fine. Looks like their tenant base is overall, decent. I grabbed this link from their site
On their site they also highlight their REIT is eligible for registered accounts such as the TFSA, RRSP, RRIF – which is good – because this way you can avoid any unnecessary calculations with return of capital, interest, dividends, etc. that comes with taxable account investing when you own REITs.
Will Skyline be able to deliver sustained annualized returns of 12%? Not sure myself.
Which is why if you do want to speculate (fine by me!), just some caution: avoid putting more than 5% or so into any one individual stock, singular private REIT or alternative asset class (e.g., Bitcoin) inside your portfolio. While this individual decision might turn out great – even if it doesn’t, it won’t sink your portfolio. Past performance does not equate to any future results, so even if there is a miss-step, then you’ve got 95% of the rest of your portfolio to manage and succeed on. That’s good risk and reward odds.
These are just my thoughts since you asked but as always, would love to hear from 5,000+ subscribers on this one as well. Thanks for your readership!
Save, Invest, Prosper!
As always, check out my Deals page for a few personal promo codes you can’t find these codes or deals anywhere else in Canada – to save on investing and more!
Use that BMO code to get hundreds in cash back when you open investment accounts with BMO like your RRSP, TFSA, taxable account and more!
With LegalWills.ca use my personal My Own Advisor promo code for 15% off any services – that never expires.
I earn $600 in cash back every single year. Scroll down my Deals page to get the same credit card I use in your wallet.
On Cashflows & Portfolios, my partner and I can run your retirement draw down projections for your tax efficient retirement. Contact us for details!
Happy saving and investing!