I was happy that the weekend finally was over because I had worked all weekend long on a little job for my self-employed work. I am just happy to be done with it. and this weekend, they had their first snow at home in New Brunswick. These days, when I leave work at 5 pm.... its dark. And its getting a lot colder too. So this is really the perfect time to get back on my feet in term of self-employed work and see what I can find. Despite what I work before, I haven't try to get on anything. Fact is, I love to have my weekend offs and I love to have my evenings...
But now, because the Stop Working is almost dead in the sense it will require me another 100k to 200k in portfolio to make it easy, I decided its time to go. And especially now, because my Data Group Inc. (DGI) had decreased in value AND dividend income. To catch up from such disaster, there's not too many ways... got to invest again some fresh new cash in a new better investment.
At this point, if I sell my Data Group Inc. (DGI) shares, I will be loosing too much. and there's could be change it got better there. I like what the CEO said about the company, that they had a nice client portfolio but they needed to develop their technical side. If they add Internet stuff with their current printing activities, it could work well. Like a big communication firm. At a point, the company need to make money. I understand that - I have a business myself lol...
I am getting my pay this week, its probably going straight to my margin, which is at $54 500 at this time, with a margin value left of 17k+. I need to decrease the using of my margin to at least 50k, and if possible 40k. I think I am more in control now of my margin, its just I need to decrease its using.
I haven't update my dividend income because f, its going low AGAIN. So I am just ignoring the numbers for now and I am going to work. I wake up earlier today, that's why you are getting this morning post. And its a surprise because I usually really enjoy my morning sleep beauty. There's no better time, even alone in bed.
All your readers told you that buy high quality dividend growth stocks. You don't listen..
ReplyDeleteYou have too many of stocks like DGI, SII, CHR.B, JE, EIF, RSI, STB, GCL, FR, K, HRX, MMP.UN and sprott silver funds that are not stable. You are afraid to sell now because you are afraid to miss out if they go back up, but on the other side, some more will be like DGI and will go lower from where they are now.
ReplyDeleteIf you want to hold blue chip stock, why not reduce your position in these stocks. You could pay your line of credit. This would remove the stress of dividend cuts and you wouldn't have to worry about margin calls.
Yes some will probably go up eventually, but more will go down like DGI that will only cancel the ones that goes up. Sell and pay off your line of credit before it's too late like DGI. You should also be ready for interest rates to go up in the future.
A good investor should be able to take a look at their portfolio and analyze the performance. From where I stand, the use of credit hasn't helped your performance, it's not helping you accumulate dividend income but the opposite. As these stocks go down in value and cut their dividend, you're stock paying interest on the original amount you invested in these stocks. You invested $4,000 in DGI and now it's worth less than 500$. Not only did you lose $3,500, you're paying interest on 4,000 that you took on your margin and you can't even claim a tax deduction because you transferred it in your TFSA. You're not even suppose to claim the interest because that stock is in your TFSA and not in your non registered account.
Another investor with their foot cause in the high yield trap. Sucks cause you just took a cut with Encana too. At least you got an increase with Telus but that goes back to buying quality..
ReplyDeleteThis company was such a poor buy. 'Board of Directors has decided to suspend dividend, effective immediately, until further notice. The funds will be redirected to debt repayment.' They are drowning - take your losses.
ReplyDeleteYou will probably be suffering this outcome with many other companies you have as well. It's fun to watch you lose money that you actually don't have because you buy on margin. The hole your in just gets bigger...
Protecting your money is more important than trying to make money. Invest in companies like Wal-Mart, Coke, etc. and you will have a lot less surprise than with stocks like Data Group
ReplyDelete