The TSX/S&P dropped 2.9% this past week and year to date is now only up a meager 2.6%. With spring usually signaling market softness, maybe it’s time to reflect on some more conservative stock and bond picks for longer term growth and income ? Take a look at some of the following:
Preferred Shares: Top tier: Bombardier BBD.PR.C 6.538%, BBD.PR.D 6.125%, Brookfield Properties BPO.PR.L 6.436%, Canadian Western Bank CWB.PR.A 6.536%. 2nd tier (all paying over or close to 5.9%): BPO.PR.N, + Bank/Financials: CM.PR.L & M, LB.PR.D, MFC.PR.D, NA.PR.O & P, PWF.PR.I.
Corporate Bonds: The benefit of corporate versus government bonds must be a substantially higher yield to offset lower security of the guarantee. In addition, long term bonds in general can be very dangerous as yields presumably will rise over the next few years thereby causing their prices to fall. In the mid-term category, Calloway Reit offers annual yields of 4.56% (Oct 2016) & 4.15% (June 2015). In short term category, Citigroup Financial 2.34% (Mar 2013) & 2.06% (Nov 2012), along with Riocan Reit 2.63% (Mar 2013) & 2.04% (Sep 2012). An anomaly worth considering for RSP’s is CIBC’s Strip Bond May 2014 paying 2.91%.
Dividend Paying Stocks: Many of the pipeline and real estate trusts (REIT’s) still offer reasonable 6% type yields. My favourite high paying dividend common stocks include the following: BCE (5.55%), Bank of Montreal (BMO) 4.52%, CIBC (CM) 4.22%, Crescent Point Energy (CPG) 6.34%, National Bank (NA) 3.46%, Pengrowth (PGF) 6.42%, Russel Metals (RUS) 4.24%, Telus (T) 4.28%, & TSX Group (X) 4.0%.
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