Ryan Irvine spoke in a Friday evening session on "Do it Yourself Stock Investment". Ryan Irvine is the President of Keystone. Part of this session had Aaron Dunn as the speaker. Their site is www.keystocks.com. I went because Keystone has given good talks in past Money Shows. It was a long session so I have broken my report into four parts.
Keystone also likes Dividend growth stocks. These are exciting because they work. Dividends provide a constant stream of income and will reduce losses. Growth dividends help total return. Why dividend growth? The difference between dividend growth and other stocks is the dividends. Over the longer term you can lose money on companies that do not pay dividends.
Another reason to like dividend growth is volatility. These stocks have lower volatility. Less volatility means less risk. The same rules apply that is the companies need to show profitability and cash flow. They need to grow in per share earnings and dividends. They need to be in a healthy financial position and have a reasonable valuation.
Avoid companies with high payout ratios. A payout ratio of 90% or above is high. Also avoid heavy concentrations in one industry in your stock picks.
What you want is a hybrid portfolio of 8 to 12 stocks across the 3 risk categories of Aggressive Portfolio, Moderate Portfolio and Conservative Portfolio.
One stock recommended is Brookfield Infrastructure Partners (TSX-BIP.UN). It is a global infrastructure company. It has very high quality assets. They continue to increase dividends or distributions. They are driven by organic growth investment and accretive acquisitions. They have recently bought a Brazilian gas transmission company and an Indian Telecom business. There is demand for high quality infrastructure. This is a long term investment.
Another pick is Algonquin Power and Utilities (TSX-AQN, NYSE-AQN). It is into renewable power and regulated utilities. They have had 6 straight years of dividend increase and focuses on North America. It is a solid company.
On my other blog I wrote yesterday about Canadian Pacific Railway (TSX-CP, NYSE-CP)... learn more. Next, I will write about Medtronic Inc. (NYSE-MDT)... learn more on Wednesday 25, 20157 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.