Just when I am back to my evening shift and have all the time of the world to focus my interest on my portfolio, the stock market is getting hit by a correction! Yesterday was pretty bad, but today is worst. My non registered stock portfolio is now at 112 319.16$, compare to 113 666.22$ on April 16, 2011. For that part of my portfolio so far, I am experiencing a loss of 1 347.06$. Not too bad. It will jump again once the market will go up again.
Titles like the following hold in my non registered portfolio are helping me to go through this market correction without too much trouble: Sprott Inc. (SII), Bank of Nova Scotia (BNS), Methanex Corporation (MX), Fortis (FTS), Pembina Pipeline Corporation (PPL), Just Energy Group Inc. (JE), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A), Premium Brands Holdings Corporation (PBH), EnCana Corporation (ECA), iShares S&P/TSX Capped REIT Index (XRE), Canfor Pulp Products Inc. (CFX), Exchange Income Corporation (EIF), Student Transportation (STB), Colabor Group Inc. (GCL), TD Toronto Dominion (TD), K-Bro Linen Inc. (KBL), Westshore Terminals Invest Corp (WTE.UN), WesternOne Equity Income Fund (WEQ.UN), Davis + Henderson Corporation (DH) and TMX Group Inc. (X).
Dividend Girl troublemakers stocks
On a completely opposite view, some stocks I hold are making things a bit more difficult:
Horizons Gold Yield Fund (HGY.UN), New Flyer Industries Inc. (NFI.UN), Capital Power Income L.P. (CPA.UN), Rogers Sugar Inc. (RSI), Data Group Income Fund (DGI.UN).
Horizons Gold Yield Fund (HGY.UN)
I initially invested 2 000$ in the Horizons Gold Yield Fund (HGY.UN) in their initial public offer in December 2010. I didn’t pay the original commission fee of 9.99$ since I made the investment inside a public offer. Currently, my investment in HGY.UN worth 1 948$.
Horizons Gold Yield Fund (HGY.UN) pays a monthly dividend of 10.84$. Horizons Gold Yield Fund (HGY.UN) dividend yield is of 6.88%. The first dividend payment that I earn in February 2011 was a bit more 14.40$. At the end of December 2011, HGY.UN reached its highest ever, which was around 10.10$. Since December, HGY.UN never reached by expectations in term of grows. By now, I taught my units would had exceed the 10$ per unit. But it’s not the case. Most of the time, HGY.UN value is under the 10$. The frustration with Horizons Gold Yield Fund (HGY.UN) comes from the fact the investment on itself never gain value. For that reason, I had classed Horizons Gold Yield Fund (HGY.UN) as a troublemaker stocks.
New Flyer Industries Inc. (NFI.UN)
In January 2011, I had invested in 200 stocks of New Flyer Industries Inc. (NFI.UN). I initially invested 2 393.99$ in NFI.UN. NFI.UN was a stock recommendation purchase made by the mountain lion hero. At the time, I was into increasing my dividend income. And with its dividend yield of 11.14%, New Flyer Industries Inc. (NFI.UN) was the perfect fit. A couple of weeks ago, New Flyer Industries Inc. (NFI.UN) published its financial result for 2010 and announced they had experiment a 10% loss. 10% is not that much, but it was enough to make the title loss in value. Currently, my investment in NFI.UN worth 2112.92$, which represent a loss of 281.07$.
New Flyer Industries Inc. (NFI.UN) didn’t cut their dividend, which is a good +. Also, NFI.UN first quarter results for 2011 were positive. New Flyer Industries Inc. (NFI.UN) is a leader in its field and I consider NFI.UN for a long term investment. Experiencing a 281.07$ is nothing at all. But of course, I would have preferred to experiment a gain instead of a loss. For that reason, New Flyer Industries Inc. (NFI.UN) is a troublemaker stock.
Capital Power Income L.P. (CPA.UN)
Capital Power Income L.P. (CPA.UN), is another one coming from the mountain lion hero. By the way, it’s the same man who recommends the super Canfor Pulp Products Inc. (CFX). Canfor Pulp Products Inc. (CFX) is one of my top performers. Anyhow, things are a bit different for Capital Power Income L.P. (CPA.UN).
I invested 1 978.99$ in Capital Power Income L.P. (CPA.UN) back in February 2011. It pay me a good and steady dividend of 14.67$ per month. Capital Power Income L.P. (CPA.UN) is absolutely perfect, but I find the title volatile, always running between 18$ to 20$+. Currently, my investment in CPA.UN worth 1 861$ and I find that hard to take. BUT a volatility is always good and in this case, we are only talking here of a 117.99$ loss. On good days, the title reached 20$+. But because of its volatility, Capital Power Income L.P. (CPA.UN) is one of my troublemaker stocks.
Rogers Sugar Inc. (RSI)
Back in February 2011, I was investing 1 696.71$ in Rogers Sugar Inc. (RSI). I invested in Rogers Sugar Inc. (RSI) for its dividend. Rogers Sugar Inc. (RSI) dividend yield is of 6.37% the yield appears to be reasonable. Currently, my investment in Rogers Sugar Inc. (RSI) worth 1 620.32$, a loss of -76.39$. Since February 2011, my investment in RSI never really gain in value. But I appreciate the dividend. On a long term, RSI may be a winner, but at this time, it’s not. For that specific reason, Rogers Sugar Inc. (RSI) is a troublemaker stock.
Data Group Income Fund (DGI.UN)
In February 2011, I invested 4 064.01$ in Data Group Income Fund (DGI.UN). Data Group Income Fund (DGI.UN) investment idea came from a reader, the same one that suggested me Exchange Income Corporation (EIF). Data Group Income Fund (DGI.UN) offers an excellent dividend yield. I am receiving more than 30$ every month on a 4 000$ investment.
The problem I am having with Data Group Income Fund (DGI.UN) is with the volatility of its value. Currently, my investment in DGI.UN worth 3 678.36$, a loss of 385.65$. Nothing to be very stress knowing DGI.UN title had suffered stocks manipulation. I am confident about DGI.UN. But because of its volatility, Data Group Income Fund (DGI.UN) is a troublemaker stocks.
Conclusion
I name Horizons Gold Yield Fund (HGY.UN), New Flyer Industries Inc. (NFI.UN), Capital Power Income L.P. (CPA.UN) and Rogers Sugar Inc. (RSI) troublemaker stocks, but they are stocks that worth being hold in a portfolio. However, I find those titles difficult to hold, compare to some stuff like Methanex Corporation (MX), Fortis (FTS), Pembina Pipeline Corporation (PPL), Just Energy Group Inc. (JE), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A), iShares S&P/TSX Capped REIT Index (XRE), Canfor Pulp Products Inc. (CFX), Exchange Income Corporation (EIF), Student Transportation (STB), Colabor Group Inc. (GCL), K-Bro Linen Inc. (KBL), Westshore Terminals Invest Corp (WTE.UN) and WesternOne Equity Income Fund (WEQ.UN), just to name a few. My troublemaker stocks are more volatile and sensible to the stock market condition than the vast majority of my non registered holding.
I got into those troublemaker stocks mostly in the first quarter of 2011, at a time where I was into increasing my dividend earning. A high dividend yield may be appealing, but it comes with a high dose of risk and volatility. And those can quickly become troublemaker stocks. I don’t anything again the companies I name as being troublemaker stocks, it’s just they are showing sign of an internal volatility – something I prefer to avoid when I invest. I think the fact I present here shows the importance of diversification inside a portfolio and, as well, the importance of not focus too much on dividend.
Interesting fact, all the holding I borrow from Derek Foster had gain in value and had paid a constant dividend. Inside my non registered portfolio, my Derek Foster stock picks are: Bank of Nova Scotia (BNS), Pembina Pipeline Corporation (PPL), Pengrowth Energy Corporation (PGF), Enbridge Income Fund Holdings Inc. (ENF), Corby Distilleries Limited (CDL.A) and EnCana Corporation (ECA).
If I would still hold them, Yellow Media Inc. (YLO) would have be in the list of my troublemakers stocks. Yesterday, I sell my units at 4.65$. I did not loss the initial capital invested, but because I was registered to DRIP and that all dividend were reinvested, I loss around 300$. No big deal, but at this time, YLO is at 4.45$.
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3 comments:
You should add your silver stock in your troublemaker stocks. You lost more than 20% in less than 1 week. Silver and gold is more of a gamble especially at the high prices they where. They both still have lots of room to go down so be careful. Like Derek Foster says, invest in stuff people use everyday and that pays a dividend. I don't think that silver falls into that category. Silver is more like chasing the flavour of the day and when you get caught, it can be ugly.
Hi Sunny-I agree with Don(re: holding more volatile asset classes). If your investment goals are primary capital preservation than I would suggest sticking to what Don said( invest in what people use everyday), however if you want more lofty goals for your investments no reason to invest in silver. Personally I think that we are in a 20 yr + bull market for raw materials..yes there can be some steep corrections, but just remember to keep you eye on the ball.
-Mark
In this post, I wanted to post about stocks I had invested in, but had trouble to gain value overtime.
My investment in Sprott Silver did not belong in my "troublemaker stocks" list because since I started investing in the Sprott Silver, I made money out it.
What we are currently experiencing is the volatility of the market. Sprott Silver value double since November 2010. A little volatility is always benefit.
Derek Foster is good, but it's not all. There's a lot of things he doesn't cover. Adding silver and gold to a portfolio is a big +. It's just add to the diversification. Also, keep in mind that I am in for the long term. What happen on a short term does not interest me.
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