What are you buying today?

[Ross812]

Trimmed half a % off DG which ran up 12% in the passed week. Sold half of my META stake. Restarted a 2.5% position in MSGE today and added a little to ADSK. Mostly I have been looking into KMX and TXRH. 

[Gregmal]

Yea I’m looking to free up some stuff and hit puts. Can get $2 on the Jan 24 $30 which creates a synthetic double digit yield all for the privilege of buying this for 30c on the dollar.

[Gregmal]

There’s one settlement for 3M

[rkbabang]

1 hour ago, Castanza said:

This premiums looked a little pricey no?

yes, but if this makes a move towards $30 or beyond later this year the premiums will be pricey as well.  The sooner this happens the pricer the premiums.  I’ve already made some money buying and selling long dated out of the money calls on MSGE.  I’m hoping to sell these way before January.

[Viking]

8 hours ago, Jaygo said:

Hi Viking.

are you doing this through an etf?  

@Jaygo No ETF; i want to control which stocks and weighting. I am using the shotgun approach:

- telecom: Telus, Bell, Rogers

- Can banks: BNS, CM, Canadian Western & Laurentian. They are the cheapest right now with the highest dividend yield. Will add the other big banks if/when they sell off.
- Can pipeline stocks: Enbridge, TC Energy, Pembina

- REITs: these i am still learning about… very small positions as i learn more. Primaris, Chartwell, Roican, European Residential. 
 

i am weighting telecom and Canadian banks higher than pipelines and reits as i think they offer higher total return potential (dividend plus capital gains). Also, i am weighting my positions based on how cheap i think they are.
 

I will also add to names on weakness: increase position about 30% for every 2.5% they fall from here. I would love to double my position in every holding if they fell another 8-10%. 
 

I am about at an 8% weighting in the names above (in total). I would be happy increasing to a 20% weighting on a 10% sell off (from current levels). 

 

i am also looking into Freehold Royalties, Chemtrade Logistics, Gibson Energy. I held Dexterra but sold it after it popped 10%. Anything with a high dividend yield. 

 

As i add new names of companies i have not followed i am doing more due diligence and trying to find the better managed in a sector. 

 

Please let me know of any other high dividend stocks that you like / think look interesting. Especially stuff that is out of favour due to rising rate fears. 

—————

i could also include the following as they also have very good yields. But these also have big capital appreciation potential over the next couple of years (i hold them more for the capital appreciation).

 

- US banks: Citi, MTB, BAC (4% weighting)

- energy: Suncor (7% weighting)

—————

i am stuffing the basket of high dividend payers mostly in my big LIRA which i will be converting shortly to a LIF. I like the idea of potentially having a dividend yield on the LIF (6%) that is similar to my max withdrawal rate (6.7%). Kind of like putting that income stream on autopilot… forever (as the account balance still continues to grow due to modest growth in stock prices). I need to start draining my LIRA given its size.  
 

I know the dividend stuff should probably be in my taxable account, given the very favourable tax treatment. But i like to keep my best total return ideas (like Fairfax right now) in my taxable accounts (capital gains also gets very favourable tax treatment in Canada). I also want to limit my trading in taxable/TFSA accounts so Revenue Canada does not deem me a ‘professional trader’; they don’t care how much you trade in RRSP/LIRA/LIF accounts. Makes sense for me. And has worked out very well the past few years given Fairfax has been a double. My RRSP/LIRA accounts are much larger than my taxable accounts - so strategically i want to grow my taxable accounts as fast as possible and start draining my tax-free accounts.

Edited June 23, 2023 by Viking

[bizaro86]

@viking have you considered preferreds? Canadian floaters are paying double digit rates.  SLF.PR.J, ALA.PR.B etc.

 

The spreads have blown out the last while, so I think in the mid term your chances for cap gains might be comparable to a diverse group of dividend paying big caps 

 

I bought some with borrowed money in my wife's name recently - her lower tax bracket, the dividend tax credit, and the deduction on the interest paid works out very favorably tax wise and the spread is material.

 

Edited June 23, 2023 by bizaro86

[thowed]

@Viking Have you considered Prairie Sky?  An HK darling.  Doubled their divi this year & still relatively low pay-out so could increase further.  Management seem decent (esp. with comparative low bar for Oil Royalty cos......).  Not ostensibly cheap, though if oil went up, this might matter less.

 

Of the Oil Royalty cos, personally I like DMLP best in the US (quality management), though for us non-US people, the tax can be a pain, though at double digit yield, it can potentially still work.

 

Thanks for all the FFH stuff, been a huge help in the research.

[Malmqky]

More MSGE at some point today. Pretty much a full position yet I keep adding..

[lnofeisone]

Bought SNOW puts. Databricks has a more complete product and is out in the market hustling and beating SNOW out on sales. I suspect this will start showing up in the SNOW renewals. 

[gokou3]

More OXY.WS.  Expecting Uncle Warren to keep adding OXY at these prices.

[CorpRaider]

ITIC, KHC for the boy (he likes Ketchup, I will let him know about his ownership interest).

[LC]

Msge, oxy

Silly Schwab didn’t execute my clipper order at 5.0x a few days ago

[Paarslaars]

5 hours ago, LC said:

Msge, oxy

 Same

[Spekulatius]

Bought some shares in Reply last week. Consulting co listed in Italy with an impressive track record. It’s not super cheap, but not expensive either (<20x earnings)  and looks like a mini Accenture. They growth through acquisitions and organic growth. annual report and recent press releases mention AI a lot and it does not just seem all hollow talk.

https://www.reply.com/contents/REP23-Bilancio_ENG_2022-1.pdf

 

 

I do think that Consulting cos like ACN and possibly Reply will benefit from AI, as many companies who want to use it need guidance and expertise.

[lnofeisone]

On 6/24/2023 at 7:53 AM, Spekulatius said:

I do think that Consulting cos like ACN and possibly Reply will benefit from AI, as many companies who want to use it need guidance and expertise.

I think it's a bit early for consulting companies to benefit. All are heavily investing in AI talent and overpaying for scarce talent. Right now, all major consulting companies are taking heavy losses on the AI game and trying to feel out the right dance partners.

 

I also think AI will rock consulting world. Most consulting companies relied on cheap lower-end talent to make up the margins on higher-cost talent. Recent AI developments heavily tilt to high-cost talent where it's almost impossible to get profitable on the "people" side of the business. At best, AI can be used as an entry for bigger engagements but that game is mature where it no longer resembles "make the market" and looks more like "take the market." That's a game of margins.

 

In parallel, a lot of companies go straight to MSFT and GOOGL, where the backlog is months out. 

[ICUMD]

BNS

[Luke]

Opened a position in Fairfax India!

[Spekulatius]

13 hours ago, lnofeisone said:

I think it's a bit early for consulting companies to benefit. All are heavily investing in AI talent and overpaying for scarce talent. Right now, all major consulting companies are taking heavy losses on the AI game and trying to feel out the right dance partners.

 

I also think AI will rock consulting world. Most consulting companies relied on cheap lower-end talent to make up the margins on higher-cost talent. Recent AI developments heavily tilt to high-cost talent where it's almost impossible to get profitable on the "people" side of the business. At best, AI can be used as an entry for bigger engagements but that game is mature where it no longer resembles "make the market" and looks more like "take the market." That's a game of margins.

 

In parallel, a lot of companies go straight to MSFT and GOOGL, where the backlog is months out. 

@lnofeisone thank you for the feedback and something to ponder. I like the business but you are correct that the AI may not be the catalyst I thought, at least not short term. The fact that investment in AI probably exceeds the cash flow from AI activities is probably true for many business in the short term (Except NVDA).

[giulio]

TEDU

[newtovalue]

followed Buffett and bought some COF

[Spekulatius]

7 minutes ago, newtovalue said:

followed Buffett and bought some COF

I bet this buy wasn't Buffett but T or T. I don't know if it matters though.

 

 

[newtovalue]

6 minutes ago, Spekulatius said:

I bet this buy wasn't Buffett but T or T. I don't know if it matters though.

 

 

 

yea fair point. Stock is cheap - doing a lot of buyback and have a engaged long term CEO

[KPO]

PFE

[Whensthepaintdry?]

I bought BOC. I’ll have a little faith around reported book. 

[Red Lion]

I bought CLPR today. This is an example of tax loss harvesting that actually worked. I sold my highest basis CLPR shares at between $5.82-$5.90 for a short term loss on May 26. Just replaced all of those shares today plus a little more (my limit price moved the market a bit I think because this is so illiquid, so it remains to be seen whether my full order fills).