Summer is the perfect time to NOT take a vacation from your portfolio Investors often tend to leave their portfolio “as is” for the period between May and September. First, there is the old saying about selling in May and going away since summer months are not the most profitable on the market. Second, there isn’t much activity on the stock market in general. Q2 earnings are not that exciting and economic stats are not at their best. Third, most people take vacations, therefore, their mind is …
Best 2015 Dividend stocks Mid-Year Results
As you probably know already, each year I select 20 US and 10 Canadian dividend stocks that will outperform the dividend index (and hopefully the overall stock market). I started this tradition back in 2012 and so far, I’m almost always right. This means that almost all my portfolios have beaten their benchmark year after year. Some folks may think I’m doing this to show off, but that’s not the purpose. I carefully choose these companies based on my 7 dividend investing rules. The purpose of …
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I Prefer the Small Telus over the Giant Verizon
David Vs Goliath Challenge – how a $25B market cap stock can beat a $202B market cap stock? Both Companies show strong customer loyalty, but only one evolves in an Oligopoly One company is trading at a 10% discount, the other at a 10% premium Last week, I wrote a stock analysis for Seeking Alpha on Verizon (VZ), you can read the analysis here. While I was writing this article, I kept comparing this telecom giant vs one of my holdings; Telus Corporation (T.To or TU on the NYSE). …
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Investment Bias 101
As the market is going a bit sideways after a mild earnings season, we are entering the famous “sell in May and go away” period, I thought of revisiting some investment biases we all experience at one point or another. When I did my financial classes, everything seemed so well calculated and rational. Financial theories are so simple, so easy to understand, it’s impossible to mess up the application in the real world, right? Investors are rational individuals making sound decisions based on …
Finding the Right Stock in The Current Market
Have you taken a look at the recent earnings? It is without any surprise that many US companies posted slow revenue growth due to either a “challenging” environment or (an even more common excuse: due to a strong US dollar. I follow primarily dividend stock results and many of them are international businesses. No need to explain that a strong US dollar is hurting many dividend stocks in particular. The market didn’t overreact as it was more a mild earnings season without many …
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Stock Valuation – The Mystery of the Discount Rate
After offering the Dividend Toolkit at a rebate for the whole month of April, I’ve had many questions about stock valuation, most precisely about the discount rate. The discount rate is used to determine a stock value through the Discounted Cash Flow (DCF) model and the Dividend Discount Model (DDM). The problem is that depending on which number you use as the discount rate, the stock you are analyzing could look like the perfect underdog just because you didn’t put a high enough discount …
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