July 2018 Watchlist
July 2018 Watchlist
Well here we are almost the middle of July. There is a lot happening this month that can effect the market both in positive and negatives depending on what you are buying. This is my July 2018 Watchlist.
Tariffs, and More Tariffs
All the trade war stuff has started this month and recently I read Trump is thinking of putting more trade tariffs on China… I really don’t see much good coming from this. Nafta still hasn’t been dealt with and clearly that ain’t good. The market keeps chugging along though, although today my portfolio took a nice hit.
The Bank Of Canada Raised Benchmark Interest Rate a Quarter percent
I had a feeling this would happen as Employment is very high and things are looking good. Of course the trade wars are a big issue and I feel rates will very slowly rise. I mentioned this before when Utility stocks took a massive dive down. Canadian’s consumer debt is really high, having one of the highest debt rates in the world. This would be a big factor for the Bank of Canada to consider.
I’ll be honest the trade war stuff kinda scares me, especially with Trump at the helm. But the interest rate raise could create some good opportunity’s on the tsx.
Clearly the Banks and Insurance companies would surely benefit from the recent rate hike. Teleco’s and Utility stocks should take a little tumble as they generally carry a nice debt load. I wonder if this will take some steam away from Enbridge.
What Stocks Ill be watching this month.
Bank of Nova Scotia – This is my #1 stock I keep debating throwing another stack into. They have actually gotten a little bit cheaper since my last buy. They are now sporting a P/E under 11. Which is dirt cheap for a top 5 Canadian Bank. They are really diversified geographically and will benefit from the interest rate hike. Currently BNS offer’s up a 4.38% yield. Very nice!
Unfortunately their ex dividend date was at the end of last month, so I would have to wait 3 months to enjoy the dividends from this new purchase. This is a little factor. I know its minor, but do you factor this into your decision process when buying stocks?
Manulife Financial – This is currently a small holding of mine. One of my original investments from way back. I have done well with this one picking it up back when it was like 17 bucks. It is currently 22 cents off its 52 week low and has a 3.76% dividend yield. I really like what they are doing, jumping into the Asian market for insurance and financial services. There are a lot of rich people there and its always good to diversify around the world. Of course the rate hike would be a benefit to them as well. Ex dividend date will be sometime in mid August.
Sienna Senior Living – Another original position. I have wanted to add to them for awhile. Unfortunately they aren’t a dividend growth stock. They have taken a little dive lately and are trading just over their 52 week low. Their yield is currently 5.58% and paid monthly. I love the senior stocks, with the aging population of the baby boomer’s the retirement homes should do very well in the future, and Sienna is one of the best. Ex dividend Date end of every month.
All of those are existing positions, but if I were to add one.
Brookfield Property Partners – My Real estate sector is surprisingly one of my lowest at the moment. I love the brookfield group in general, they generally continue to do great things. I think BPY is undervalued and so does morning star giving it a fair value of north of 29 bucks. It’s currently $25.45 and offers a solid 6.33% yield. To be honest I don’t know if there will be a withholding tax on the dividend’s in a tfsa. I know there hasn’t been with my Brookfield Renewable stocks though. Do any of you know? Ex dividend will be sometime in August as well.
Well there you have it, the stocks on my radar currently to add to our TFSA this month. If one of the telco’s or utility’s I own took a nice dive, things may change though!
Which one would you pick? What is on your radar?
Have a great day.
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
BNS looks interesting to me. For some reason, the price hasn’t really gone anywhere the last little while.
yeah i guess its the south american exposure that may be scaring people. I like the diversification away from Canada. Theres a way larger population down there.
Hi Rob just to list a few that I like and bought,IPL,EIF,EMA and DR.
Could “H” be on sale or maybe wait?
great list, love seeing what others are interested in.
I was just mentionung hydro one today on my twitter account. Nice dip and its cheaper than ots ipo.
i have bought and sold it once or twice. Dunno if i will again, got to watch this dip and see how low it go’s.
I’ll go check out BNS metrics now, was always a fan but never was able to purchase at the price I wanted. I’ll see how they look now.
For sure check em out. And with the current currency differential it would be a even better buy for you.
I have a full position in both manulife and BNS. What I am underweight in is the technology sector. I was hoping to buy Google but it never seem to drop. Another sector that I am also underweight and wants to get in is the credit card companies. I am watching these two sectors very closely.
great that you have full positions in both them.
Tech is becoming lower and lower sectorwise for me. Its crazy how well the fang stocks are doing.
Rob, I’m not that familiar with any of them to give a meaningful recommendation. Do your research as always, go forth and prosper. Tom
haha feels like a star trek promo
surprised you havent heard of bns atleast. Its one of Canadas top 5 banks!