Over the past 12 months, the TSX gained about 20%. Some well-known Canadian companies went the other way, with double-digit losses. So are they falling knives that will cut you, or good buying opportunities? Some of them are in my portfolio. Around Thanksgiving, I looked at what happened over the past year and reviewed each name. The numbers below are 12-month price changes as of October 29. *Disclosure: I own Stella-Jones (SJ), Brookfield Corporation (BN), Brookfield Renewable (BEP), …
Why a 2% Dividend Yield Portfolio Beats a 25% One
Who puts $750,000 into a portfolio paying 2% when the same money can buy a 25% yield? That is $15,000 of income a year against $187,500. Written that way, nobody picks the $15,000. I pick it. One of those two portfolios is still paying me in twenty years. The other one runs on a distribution nobody has proven can last. *Disclosure: I own Apple (AAPL), National Bank (NA.TO) and Royal Bank (RY.TO). This is education, not advice. Do your own due diligence. What Is the Point of a 2% …
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Royal Bank vs National Bank: How to Pick When Both Stocks Are Great
A member asked me this during a private webinar at Dividend Stocks Rock, and I have not stopped thinking about it since. I know how to compare two stocks. I know how to look at metrics. But how do I pick the right company when the two companies I am looking at are both amazing? That is a better question than it sounds. Most investing content teaches you to tell a good company from a bad one. Almost nobody tells you what to do when both pass every test you know how to run. So I picked the …
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“Why Is It Down?” — The Investor Question That Never Goes Away
If you’ve ever joined one of our webinars, you’ve seen this moment coming. The presentation is done. The Q&A starts. And within minutes, someone asks the question that always shows up: “Why is it down?” Sometimes it’s a stock you own. Sometimes it’s one you’re watching. Sometimes it’s a company that shouldn’t be down because, on paper, it looks “fine.” The dividend is still getting paid. The business isn’t bankrupt. Yet the market has decided to take a chunk out of the …
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Why Cash Flow from Operations Isn’t My First Screen—and Where It Wins Big
Cash flow is powerful—but as a first screen, it’s too volatile. I start with the Dividend Triangle—multi-year trends in revenue, EPS, and dividends—to find steady compounders across cycles. Then I bring in cash flow to confirm my thesis and verify the safety of the dividend. If you want CFO mechanics and the BCE visuals, see Part 1: Operating Cash Flow vs Free Cash Flow: Follow the Cash (Case Study). The Dividend Triangle Comes First Your first pass should be fast, comparable, …
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Operating Cash Flow vs Free Cash Flow: Follow the Cash (Case Study)
Cash is king—and operating cash flow (OCF or CFO) is the clearest look at how much cash the business actually generates from day-to-day operations. It’s the money that hits the bank after customers pay and the company covers the costs of running the business, before financing and investing decisions. Many investors watch cash flow because it’s harder to “polish” than earnings. When margins are stable, CFO tends to follow revenue trends. That’s why management often talks about revenues and …
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