or Connect
HotStockMarket › Forums › HSM Stock Forum › Trade Journals & Stock Tips › AgentBearBulls Ride to Early Retirement
New Posts  All Forums:Forum Nav:

AgentBearBulls Ride to Early Retirement

post #1 of 65
Thread Starter 
Ladies & Gentlemen.. This thread is going to follow my long term portion of my portfolio which is geared towards an early retirement.

A bit about me and where I am starting. I am a 22 year old Canadian (Yes almost all of these stocks are going to be Canadian) I am professionally employed and make a well above average salary for my age & home province. I am already a home owner, with mortgage and rental income.

I am involved with a company pension plan & stock plan, both returning me double what I put into them up to the maximum amount I can contribute - Based only on what my company is contributing - this does not take into consideration actual growth of each.

I also of course have a Canadian Pension Plan as required by the Government.

The plan is to invest $416/mth ($5000 a year) into my Tax Free Savings Account (this is the maximum yearly contribution). I will then be purchasing stocks that follow roughly these guidelines:

-Pay Dividends of at least 3-4%
-Only invest in companies that are in the top of their industry
-Are a safe medium/long term investment - bit of both
-On a 1, 5 & 10 year history have every year continued upwards in value of at least 7% a year before dividends (average).
-Have increased dividends yearly for 5-10 years or since started on the market if less then 5 years.
-Are expected to keep increasing dividends.
-Scrap any company that cuts dividends
-Ask "Would I consider investing in this if it wasn't paying dividends" If the answer is "No" Then I would pass.

The dividends are all going to be in a DRIP account to reinvest them all back into the stocks.

I will be adding to my portfolio to spread around risk from one certain industry.

Long Term Goal is to comfortably be able to retire by 35-45 (depending how much additional money comes into my hands between 22 and when I went to retire, and how much more I am able to reinvest each year above and beyond the original $5000/yearly.) living off dividends, rental income, company stocks and pensions. However Pensions wont be available to me without penalty until 60 & 65.


post #2 of 65
Thread Starter 
The first Stocks I am considering putting in the portfolio are:

BMO & BCE - This is based on my guidelines above.

Any comments, suggestions, advice is all very much appreciated. I am new to the dividend side of things and would be happy to hear any input from a seasoned Veteran.
post #3 of 65
Quote:
Originally Posted by AgentBearBull View Post
The first Stocks I am considering putting in the portfolio are:

BMO & BCE - This is based on my guidelines above.

Any comments, suggestions, advice is all very much appreciated. I am new to the dividend side of things and would be happy to hear any input from a seasoned Veteran.
if you want canadien stocks you should check out PWE with a dividend of like 10%...i know its a canadien royalty trust and in the next year or two they wont be required to have such a high dividend but for a little while it could be good
post #4 of 65
Great plan good luck
post #5 of 65
Thread Starter 
Quote:
Originally Posted by Crazed98 View Post
Great plan good luck
Thanks! It's one of those Get rich, without being rich - start young plans.
post #6 of 65
Good luck man. Sounds like you have a good plan mapped out.
post #7 of 65
You can also look into a few mutual funds so you are well diversified. Target date funds might be good. Starts off mostly in stocks then gets more conservative as you get closer to retirement.
post #8 of 65
Thread Starter 
Quote:
Originally Posted by Drewett27 View Post
Good luck man. Sounds like you have a good plan mapped out.
Thanks Drew. No doubt you and I will be playing some Pinch's are slightly more high risk stocks outside of this plan.
post #9 of 65
Thread Starter 
Quote:
Originally Posted by Crazed98 View Post
You can also look into a few mutual funds so you are well diversified. Target date funds might be good. Starts off mostly in stocks then gets more conservative as you get closer to retirement.
What sort of return can be expected off a medium risk Mutual fund? This is not an area I am very familiar with. With a mutual fund I'd simply add funds to it and not manage it myself, is that correct?
post #10 of 65
Thread Starter 
Quote:
Originally Posted by richfarmer View Post
if you want canadien stocks you should check out PWE with a dividend of like 10%...i know its a canadien royalty trust and in the next year or two they wont be required to have such a high dividend but for a little while it could be good
As Per our convo - this is for PWT.UN

The dividends are pretty good, but I don't like the fact that they've been cutting dividends for the last few years instead of increasing. Maybe something to consider short term and keep a close eye on, but I don't think it would be the first I put in my long term account.
post #11 of 65
Quote:
Originally Posted by AgentBearBull View Post
What sort of return can be expected off a medium risk Mutual fund? This is not an area I am very familiar with. With a mutual fund I'd simply add funds to it and not manage it myself, is that correct?
There are mutual funds for everything high/low risk bonds, growth stocks, international stocks, divy stocks, commodities, or any combination you can think of. Basically you invest in the fund and a manager decides what to invest in within the limits of their investment policy. The benefits are that you are widely diversified, one stock tanking or industry failing will have less of an effect on your whole portfolio. Obviously, the opposite is true you won't be tripling your money any year based off one stock that took off. But, in the long run you will be making money as well as protecting yourself from huge losses.

A mix of a few mutual funds and few good dividend pay stocks would be a good choice. When picking mutual funds a few things to look for are no loads (no upfront payments or payments when you plan on selling), low expense ratios, and managers that have been running the fund successfully for a few years.
post #12 of 65
Thread Starter 
Thanks Craze, that sounds good.. I'm a bit concerned even with being in safe Canadian stocks and spreading the wealth around, that if the market tanks ill lose overall.

My Bank would likely be a good place to start looking at mutual funds, yes?
post #13 of 65
Quote:
Originally Posted by AgentBearBull View Post
Thanks Craze, that sounds good.. I'm a bit concerned even with being in safe Canadian stocks and spreading the wealth around, that if the market tanks ill lose overall.

My Bank would likely be a good place to start looking at mutual funds, yes?
Yea that is the one problem, there is no way to avoid a market melt down. Good news is you have 20+ years before you need the money so the market could crash a few times and you would still be fine in the end especially if you are contributing to it monthly.

Best place to look is online all the info is there. If you are really worried about which ones to select you can always see an investment advisor, but only use ones that are fee based (one time charge) not commission based (paid every time you buy/sell). Your personal bank may not be as helpful they may push you onto something that is more profitable for them instead of you. One place to start though is growth funds and emerging market growth funds. Since you're young you can take on more risk growth stocks/funds can give you the best risk/rewards ratio.

Here is a link to HSBC Canada

http://www.hsbc.ca/1/2/en/personal/i...erging-markets

They are one of many mutual fund families.
post #14 of 65
WTE.UN is one i have been watching recently but i just have a hard time buying into it without knowing what the dividend is gonna look like.
post #15 of 65
Thread Starter 
Quote:
Originally Posted by Datemike View Post
WTE.UN is one i have been watching recently but i just have a hard time buying into it without knowing what the dividend is gonna look like.
Jesus.. Wouldn't mind haven picked that up at the start of 2009. You think dividends are being cut in 2011?
post #16 of 65
Thread Starter 
I am considering adjusting my buying plan slightly for a short time. Since I am buying with Canadian dollars and the dollar has now reached parity for the USD and expected to possibly reach 1.15 within 2011, I figure I should buy buying American stocks and holding until the USD overtakes the Canadian again.
post #17 of 65
Thread Starter 
After looking over several dividend stocks (Canadian right now) I have decided to jump in BCE.TO this morning. Picking up shares at 33.88. This is a small dip in price from the average for the last couple of weeks. Considering this will be a long term hold small fluctuations are not a major concern for me overall.

My reasoning behind this purchase:

-Dividend: 5.4% - Above the 3-4% Minimum I'm looking for
-a Leader in their industry
-(Seems like) Safe Mid-Long Term investment
-Stock is up 28% over the last 5 years - Steady Growth for the most part
-Have Kept dividends the same or increased each payout (mostly increased)
-Expected to keep increasing div's
post #18 of 65
Thread Starter 
Although this doesn't exactly meet my criteria, I like it for a mid term hold. - Purchased DAY.TO yesterday on the dip. This has a dividend paid monthly and a yearly total of 6%. I expect over the next 12-18mths it to reach the $15 level.
post #19 of 65
Thread Starter 
Looking at a few different stocks this week to jump into if I don't buy more BCE or DAY.


Bank Stocks
NA.TO
CM.TO
BNS.TO

Energy Stocks
POW.TO
EMA.TO

All input appreciated.
post #20 of 65
Thread Starter 
I like this is a long term Div stock as well as a short term pinch play.

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: Trade Journals & Stock Tips
HotStockMarket › Forums › HSM Stock Forum › Trade Journals & Stock Tips › AgentBearBulls Ride to Early Retirement