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As there's lots of high quality , dividend paying stocks out there going for half of their 5 year average is anyone investing? And if you are, what are you buying?

 

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I got nervous a few years ago and move my investments into TSFAs and GICs the idea being that I could survive on what I had but IF something happened loosing my principle could leave me in trouble.

At my age I knew I couldn't afford to wait for markets to recover and I  would have no way to rebuild my portfolio. I am sure glad I did now, my returns aren't great but at least I am still on the plus side of the equation 😊

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As a long term investor, I tend to mimic what the pros do, mainly Warren Buffet and Carl Icahn.

I went ahead and bought more Boeing.  They are basically 50 cents on the dollar since Feb. 

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The word is we’re having a temporary rally within a bear market.   I think there is more downside coming when the horrible economic news really hits home  

If you’re brave, nibble away at hardest hit money making companies that pay a good dividend.   Banks, utilities, telecoms.  

Eventually stocks will come back. Where else is capital going to go. 1% GICs?  😳

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1% beats a double digit loss, I don't think we on the road to recovery yet, thinking on bailing on this brief run , gotta do the R.I.F. thing next year.

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10 hours ago, captpierre said:

The word is we’re having a temporary rally within a bear market.   I think there is more downside coming when the horrible economic news really hits home  

If you’re brave, nibble away at hardest hit money making companies that pay a good dividend.   Banks, utilities, telecoms.  

Eventually stocks will come back. Where else is capital going to go. 1% GICs?  😳

Well right now I am making 1.6% on a 1 year term not great but at least I am making and its guaranteed.  I feel sorry for the people who had their money in mutual funds and were relying on the income for retirement.

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2 hours ago, Big Cliff said:

Well right now I am making 1.6% on a 1 year term not great but at least I am making and its guaranteed.  I feel sorry for the people who had their money in mutual funds and were relying on the income for retirement.

GICs are great to allow you to sleep at night but really you’re still losing  money because the  inflation  rate is higher than 1.6%, especially after taxes. Good solid companies  pay a 4-6% annual  dividend and have the likely potential to appreciate in value. Plus capital gains and dividends are taxed less than interest. It takes discipline to resist buying stocks when the market is hot but wait for the inevitable correction to buy them on sale. 

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18 minutes ago, captpierre said:

GICs are great to allow you to sleep at night but really you’re still losing  money because the  inflation  rate is higher than 1.6%, especially after taxes. Good solid companies  pay a 4-6% annual  dividend and have the likely potential to appreciate in value. Plus capital gains and dividends are taxed less than interest. It takes discipline to resist buying stocks when the market is hot but wait for the inevitable correction to buy them on sale. 

And you are so right, when I was younger I did invest in other things, I guess I am loosing with the cost of inflation, but because I am maxed out on TSFAs and when Sue passed away I inherited hers as well a large portion of the intrest I earn is non taxiable and doesn't count as income. I do have some shares that pay decent dividends but I  do like sleeping at night LOL. 

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Just read a piece on Bloomberg BNN that many companies will likely be reducing or stopping their dividend payments due to reduced revenues. 

Beware for now. 

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1 hour ago, captpierre said:

Just read a piece on Bloomberg BNN that many companies will likely be reducing or stopping their dividend payments due to reduced revenues. 

Beware for now. 

Well maybe my GICs at 1.6% aren't such a bad investment right now 😉

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I said previously, that I bought more Boeing knowing they had temporarily suspended dividends, but at 50 cents on the dollar compared to late Feb, I think I will be fine with it.

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7 minutes ago, Big Cliff said:

Well maybe my GICs at 1.6% aren't such a bad investment right now 😉

Sometimes it is better to sit on the sidelines, my experience is things fall much faster than they recover. Retired 2008 and had time to recover from that one but not this time. I'll jump back in, but I'm betting this recent upturn is false and the real SHTF is still ahead.

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