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Author: Saarkhx Two stars, 250 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 130  
Subject: Re: Looking to add ballast Date: 7/11/2012 12:02 PM
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Hi Nathan,

I'm Canadian and a couple of my "ballast positions" are, understandably, Canadian stocks. Besides a few GG recs, I own:

a) Penn West Petroleum Ltd.
symbol PWE (on NYSE), PWT (on TSX - Toronto Stock Exchange)
close price of yesterday: 12.97 CAD
dividend: quarterly 0.27 CAD
dividend yield: 8.3%

It's already around 5% of my stock portfolio, so I shouldn't buy it, but the temptation is there; at least I'm DRIPping it.

TMFDeej is a great fan, maybe he'll chime in.

b) Ag Growth International, Inc.
symbol AFN (on TSX)
close price of yesterday: 38.00 CAD
dividend: monthly 0.20 CAD
dividend yield: 6.3%

It's a former GG wild card, and overall one of my most performing positions among those I bought before August 2008.

c) Royal Bank of Canada
symbol RY (both on NYSE and TSX)

The dividend yield is 4.3%. The dividend was frozen (but not cut!) during 3 years, but since then it's increased 14% in one year. I except the average annual increase to hover between 5% and 10%.

d) Canadian Imperial Bank of Commerce
symbol CM (both on NYSE and TSX)

This one is a bit murky. Its problem began before 2008; the dividend was frozen (not cut; there would be riots in Canada if a chartered bank dared to cut its dividend!), and since the "melting" it increased only 3%. Its yield is now 5.0%, and I'm not sure it's high enough for the additional risks (additional with respect to e.g. RY which is more stable). I'm not sure I'd open a position, but I'm holding what I already have.

Sorry for the shallowness of my thoughts, but I'm sure you can dig those ones better than I do :-)

Best,

Saarkhx
long PWE, AFN, RY, CM
I'm also a client of RY

P.S.: maybe I'll write another post with non-Canadian stocks, but I'll need to check my portfolio first (those above were from the top of my head, except yesterday's quotes).
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