Money Sense

[Anonymous]

Here are three good bets for dividend investors in 2016.



1) National Bank of Canada (TSX:NA) is the Rodney Dangerfield of Canadian banks. Even though it has a market cap of nearly $14 billion and total assets of more than $215 billion, it still trades at a much lower valuation than its peers. It gets no respect.



This is good news for the enterprising value investor. Where else in today's market can you buy a bank trading at nine times earnings and at less than 1.3 times book value? Oh, and one that pays a dividend of 5.3%? You might find another, but pickings are slim.



One of the reasons why investors are so pessimistic about the company is its Canadian-centric approach. If the market is concerned with the Canadian economy, it's only natural that investors would avoid the bank with the most exposure.



National Bank's management team knows this as well as we do. Look for it to make an acquisition in the United States relatively soon, following the path blazed by its larger peers. Such a deal could help bridge the valuation gap between National Bank and other Canadian banks.



2) Genworth MI Canada Inc (TSX:MIC) is Canada's largest private insurer of mortgages, which places it square in the cross hairs of Canadian housing bears. If Canada's real estate market implodes, they argue, the bankruptcy of Genworth is a distinct possibility.



I'm not sure it'll be that bad. Remember, Genworth has a guarantee from the Canadian government that gives it much of the same support offered to CMHC, its government-owned main competitor. Insurance premiums have been going up lately, and the company has a healthy $3.36 billion worth of book value compared to just $229 million in net debt. A lot will have to go wrong for it to chew through that much equity.



The stock is very cheap as well. It trades at just 72% of book value and has a P/E ratio of just 6.6, making it one of the cheapest stocks in the entire country on both metrics. The dividend has been boosted each year Genworth has been publicly traded, and shares currently yield 6.3%.



3) GM Financial Inc. (TSX:IGM) is one of Canada's largest money managers. It owns the Mackenzie Financial group of mutual funds and is the parent to some 5,000 Investors Group investment advisors.



Shares of IGM have fallen more than 20% thus far in 2015 as investors are nervous about upcoming rule changes that will force investment advisors to disclose the cost of mutual funds in actual dollar terms, rather than just a percentage of assets. This combined with the continued move away from mutual funds into ETFs could be bad news.



But I'm not convinced. People value the relationship they have with their Investors Group advisor. If cost was the real issue, they would have moved on long ago. Certain investors are more than willing to pay for the reassuring voice of an advisor. And having an army of salespeople to push its funds is a huge advantage for IGM.



Like the others, IGM is downright cheap today. Shares trade hands at just 12 times earnings, and investors are getting an attractive 6.2% yield.

[Ace]

Investing wisely is tough these days...  The Canadian banks are solid, by my returns are sluggish to say the least.



I try to diversify my portfolio with riskier holdings also, but these have proven to be a crapshoot also in the longer term.



I was always taught to be a "buy and hold" kinda guy, but I can seriously understand why the smart ones try to time stocks, and the markets...

[Ace]

I'm just having a hard time seeing the gains.  I have owned Petrowest shares for a couple of years now.  Now that the dam project has been approved, and Petrowest has been awarded a chunk of this project, one would assume a nice spike in value.



Again, I am not seeing this with my holdings.



It's almost like one must immediately sell all shares once the value goes up, and reinvest in something else that hopefully has bottomed.  I don't like gambling like this, but how else can an investor make money at like 2 or 3% return?

[Ace]

As an example, just after the Christmas holidays (so literally a couple of active trading days ago now) I bought shares in both Mogo (GO) and Newalta (NAL).



I believed both of these holdings had more or less bottomed...



Mogo is up 10.40%.

Newalta is down 10.12%



Essentially they have cancelled each other out.  Newalta does pay dividends, so it lessens the blow, but man it's tough!



Historical gains anywhere, it seems, are just that...  History!

[cc]

Here We Go Again



Fresh China Growth Worries Slam Stocks

Investors hoping to turn the page of 2015 Monday got a rude awakening as China growth worries resurfaced, and U.S. equity markets extended a global rout, tumbling more than 2%.



Click to Enlarge Image

[cc]

Wait Wait !! - It May be a lot worse apart from China



http://www.foxbusiness.com/markets/2016/01/04/stocks-facing-bigger-issue-than-chinese-slow-down/?intcmp=bigtopmarketfeaturesside">FBN - Stocks Facing Bigger Issue Than Chinese Slowdown



Monday's sharp stock selloff, an alarming opening to the 2016 trading season, is being blamed on renewed concerns out of China that the world's second largest economy is rapidly losing steam.



That's makes sense, but the downturn may be a sign of a larger issue for U.S. stock markets: investors are coming around to the reality that years of stock market gains fueled largely by the Federal Reserve's easy money policies are finally coming to an end.



In other words, the party is over and it's time to sober up. How appropriate then that this message is resonating so clearly on the first trading day after the New Year.





For me, as the TSX came down and US stocks continued to climb despite a very soft US economy underbelly, clearly "something"  did not fit south of the border.



This "could be the reconning for and the end of what many see as  HEAVILY OVERPRICED US Stocks" ???



Some are saying tomorrow depends on openings @ the 2 major Asian markets + how the day goes from there.



seoulbro - Your take on it all?

[Anonymous]

Wait Wait !! - It May be a lot worse apart from China



http://www.foxbusiness.com/markets/2016/01/04/stocks-facing-bigger-issue-than-chinese-slow-down/?intcmp=bigtopmarketfeaturesside">FBN - Stocks Facing Bigger Issue Than Chinese Slowdown



Monday's sharp stock selloff, an alarming opening to the 2016 trading season, is being blamed on renewed concerns out of China that the world's second largest economy is rapidly losing steam.



That's makes sense, but the downturn may be a sign of a larger issue for U.S. stock markets: investors are coming around to the reality that years of stock market gains fueled largely by the Federal Reserve's easy money policies are finally coming to an end.



In other words, the party is over and it's time to sober up. How appropriate then that this message is resonating so clearly on the first trading day after the New Year.





For me, as the TSX came down and US stocks continued to climb despite a very soft US economy underbelly, clearly "something"  did not fit south of the border.



This "could be the reconning for and the end of what many see as  HEAVILY OVERPRICED US Stocks" ???



Some are saying tomorrow depends on openings @ the 2 major Asian markets + how the day goes from there.



seoulbro - Your take on it all?

Oh gosh cc la femme, our investments and retirement did very poorly in 2015, but 2016 could be another poor year.

 

[Romero]

Once again, the far left "news" sources of the Prog Prince get shot down.

I am surprised Romero did not take a look at some real news sources and see that China's use of coal electricity is growing.

China, the world's largest coal consumer, has decided to halt new coal mines approval for the next three years while it continues cutting output at existing operations, in a new effort to shrink both oversupply and a worsening pollution crisis.



As part of the tough rules implemented by the national energy regulator, Beijing will shut more than 1,000 coal mines next year, taking out 60 million metric tons of unneeded capacity, state-run agency Xinhua News reported.



China's chronic air pollution generally gets worse in winter, when power consumption —much of it fuelled by coal — rises along with demand for heating. Earlier this month, capital Beijing issued its first-ever red alert for pollution. Poisonous air quality prompted the government to close schools, force motorists off the road and shut down factories for more than 72 hours.



The government has also readjusted its targeted energy mix for 2016. Under the new blueprint, non-fossil fuels will make up 13.2% of the country's energy, an increase from 12% this year. The ratio of natural gas will also increase to 6.2% from 6% while coal usage will be reduced to 62.6% from around 64.4% this year.



For the next five years, the Chinese government also aims to add over 20 million kilowatts of installed wind power and more than 15 million kilowatts of installed photovoltaic power.



http://www.mining.com/china-wont-approve-new-coal-mines-until-2019/">//http://www.mining.com/china-wont-approve-new-coal-mines-until-2019/

[Anonymous]

^Oversupply and a rapidly slowing economy. What's ur point?



In the mean time.

Germany Buys Most Russian Coal Since 2006 to Diversify

Russian coal imports rose 6.6 percent to 12.6 million metric tons last year, according to data from the Federal Statistics Office in Wiesbaden, Germany. That's more than a quarter of all foreign purchases. Total imports into Europe's biggest economy also rose to their highest level since 2006.

http://www.bloomberg.com/news/articles/2015-02-13/germany-buys-most-russian-coal-since-2006-amid-eu-diversity-push">http://www.bloomberg.com/news/articles/ ... rsity-push">http://www.bloomberg.com/news/articles/2015-02-13/germany-buys-most-russian-coal-since-2006-amid-eu-diversity-push

[Renee]

^Oversupply and a rapidly slowing economy. What's ur point?



In the mean time.

Germany Buys Most Russian Coal Since 2006 to Diversify

Russian coal imports rose 6.6 percent to 12.6 million metric tons last year, according to data from the Federal Statistics Office in Wiesbaden, Germany. That's more than a quarter of all foreign purchases. Total imports into Europe's biggest economy also rose to their highest level since 2006.

http://www.bloomberg.com/news/articles/2015-02-13/germany-buys-most-russian-coal-since-2006-amid-eu-diversity-push">http://www.bloomberg.com/news/articles/ ... rsity-push">http://www.bloomberg.com/news/articles/2015-02-13/germany-buys-most-russian-coal-since-2006-amid-eu-diversity-push

"Slowing"???? The economy of the world's greatest civilization has all but stalled. In fact it's shitty performance has been tanking markets all over the globe today.



I guess Rohammad hasn't been paying much attention of the financial front.  

[Anonymous]

^Oversupply and a rapidly slowing economy. What's ur point?



In the mean time.

Germany Buys Most Russian Coal Since 2006 to Diversify

Russian coal imports rose 6.6 percent to 12.6 million metric tons last year, according to data from the Federal Statistics Office in Wiesbaden, Germany. That's more than a quarter of all foreign purchases. Total imports into Europe's biggest economy also rose to their highest level since 2006.

http://www.bloomberg.com/news/articles/2015-02-13/germany-buys-most-russian-coal-since-2006-amid-eu-diversity-push">http://www.bloomberg.com/news/articles/ ... rsity-push">http://www.bloomberg.com/news/articles/2015-02-13/germany-buys-most-russian-coal-since-2006-amid-eu-diversity-push

"Slowing"???? The economy of the world's greatest civilization has all but stalled. In fact it's shitty performance has been tanking markets all over the globe today.



I guess Rohammad hasn't been paying much attention of the financial front.  

He wouldn't be the only one Renee..



More importantly, the last few posts seem more suited to the Money Sense thread.

[cc]

It "WAS" posted in Money sense



Something strange here  Fash -  I click pages 1 to 8 and I get "Money Sense Thread"



I click page 9 and I get - Re: Canada Sent More "Participants" To Paris Climate Talks Than Australia, the U.K. And U.S. Together

[cc]

Further - the last 3 posts on page 8 are titled "Re: Canada Sent More "Participants" To Paris Climate Talks Than Australia, the U.K. And U.S. Together"



My post followed directly by your post above those 3 posts are titled "Money Sense Thread"

[Anonymous]

It "WAS" posted in Money sense



Something strange here  Fash -  I click pages 1 to 8 and I get "Money Sense Thread"



I click page 9 and I get - Re: Canada Sent More "Participants" To Paris Climate Talks Than Australia, the U.K. And U.S. Together

It was thought that the last few posts were more about economic woes than environmental ones, so I  moved them here.

[cc]

You are correct, but that's not what I'm saying



Somebody cross posted and any quotes now read Re: Canada Sent More "Participants" To Paris Climate Talks Than Australia, the U.K. And U.S. Together