Today I want to look at three blue chip dividend growth stocks that are solid names currently on sale here in Canada. I am going to be buying them sometime this month while they continue to wallow around during the dog days of summer. Since February of this year they are all down significantly.
They are; BNS down 7%, BCE down 5% and RY down 4%. If you have any new investment dollars, I would start here for a long term holds. This is what I recommended when a poster asked for any new summer buying opportunities.
These are all high quality companies and you can now pick them up on the cheap. Keep in mind, these are the kind of stocks that are perfect for retirement accounts and income investors, like me. This is what I look for and opportunities I look for.
Let's look at some other numbers and what they have done for the last 5 years.
Scotiabank (BNS)
Yield: 4.3%
Dividends 2012 =$2.19
Dividends 2017= $3.04
5 year DG rate = 6.8%
BCE
Yield: 5.5%
Dividends 2012 =$2.17
Dividends 2017= $2.84
5 year DG rate = 5.5%
Royal Bank (RY)
Yield: 3.7%
Dividends 2012 =$2.28
Dividends 2017= $3.48
5 year DG rate = 8.8%
You can see the double digit dividend growth records of all of these blue chip solid companies just in the last 5 years. No ETF wil give you that type of growth. They just can't deliver those types of returns. You now have the chance to pick them up while thEy are on sale.
Are they the only ones on sale this summer?
There are others so let's try and tick some more of the boxes. Now that we have banks and telco's covered let's look for some utilities and other notable mentions.
On the utility side both CU and FTS are strong candidates and on my buy list to add to existing holdings.
There are others so let's try and tick some more of the boxes. Now that we have banks and telco's covered let's look for some utilities and other notable mentions.
On the utility side both CU and FTS are strong candidates and on my buy list to add to existing holdings.
Canadian Utilities (CU)
Yield: 5%
Dividends 2012 =$.89
Dividends 2017= $1.43
5 year DG rate = 9.9%
Fortis (FTS)
Yield: 4.19%
Dividends 2012 =$1.20
Dividends 2017= $1.62
5 year DG rate = 6.3%
Stable steady and growing and this out of boring utility stocks. FTS is down significantly off it's high of the last 52 weeks.
Stable steady and growing and this out of boring utility stocks. FTS is down significantly off it's high of the last 52 weeks.
Transcanada (TRP)
Whatever the noise of the day contains, here in Canada we need pipelines to deliver our oil and gas. As long as we have winter these companies are essential to our economy and everyone in my opinion should own at least one pipeline.
Yield: 5%
Dividends 2012 =$1.76
Dividends 2017= $2.44
5 year DG rate = 6.8%
I also like infrastructure and governments everywhere do nothing but talk about repairing and replacing their roads and bridges to move people and goods faster and more efficiently. My pick is;
I also like infrastructure and governments everywhere do nothing but talk about repairing and replacing their roads and bridges to move people and goods faster and more efficiently. My pick is;
Brookfield Infrastructure (BIP.UN)
Yield: 4.76%
Dividends 2012 =$.88
Dividends 2017= $1.54
5 year DG rate = 11.8%
This to me would be a great starter portfolio and all these companies provide good value here. BIP has bumped up on news that it is buying some assets from Enbridge. That is a signal that ENB is getting smaller and BIP is set to become a bigger company. I like that news unless you hold ENB. I do in some accounts and would buy more if it gets cheaper or at least stabilizes in price.
Banks, utilities, pipelines and telcos. All on sale and value plays based on history and growing yields and dividend increases. I'm a retiree so I like income stocks that grow over time. As you can see from the stats above these 5 year growth records are impressive. You don't need exciting, boring will do just fine for your portfolio.
This is how I buy value and what I look at. How about you? What metrics do you use before you commit to a stock? Do you think these stocks represent good value?
This to me would be a great starter portfolio and all these companies provide good value here. BIP has bumped up on news that it is buying some assets from Enbridge. That is a signal that ENB is getting smaller and BIP is set to become a bigger company. I like that news unless you hold ENB. I do in some accounts and would buy more if it gets cheaper or at least stabilizes in price.
Banks, utilities, pipelines and telcos. All on sale and value plays based on history and growing yields and dividend increases. I'm a retiree so I like income stocks that grow over time. As you can see from the stats above these 5 year growth records are impressive. You don't need exciting, boring will do just fine for your portfolio.
This is how I buy value and what I look at. How about you? What metrics do you use before you commit to a stock? Do you think these stocks represent good value?
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Blog Photo courtesy of bingeclock.com
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