Wednesday, March 7, 2012

Here is something a little more rewarding than the casinos!!!


Company
Symbol
Share Buyback
Expected Dividend Growth (%)
Expected Yield (%)
Market Caps ($M)
Payout Ratio
MacDonald Dettwiler
MDA-T
22.6%
30.0
2.9
1,4010.8
34.2
Nordion Inc.*
NDN-T
7.8%
33.3
4.0
614.8
26.0
Tim Horton’s Inc.
THI-T
6.5%
23.5
1.6
8,422.9
33.1
Rogers Communications
RCI.B-T
5.5%
11.3
4.2
19,907.8
40.5
WestJet Airlines Ltd.
WJA-T
4.8%
20.0
1.7
1,904.4
9.4
GMP Capital Inc.
GMP-T
4.2%
17.6
4.4
637.2
32.4
Magna Int’l Inc.*
MG-T
4.2%
10.0
2.3
10,996.3
40.4
Cdn. National Railway
CNR-T
3.9%
15.4
2.0
33,731.5
31.0
Pan American Silver*
PAA-T
3.1%
50.0
0.6
2,586.2
3.9
Ailment’n Couche-Tard*
ATD.B-T
2.5%
33.3
1.0
5,457.1
10.5


*Reports in USD. Source: Wickham Investment Counsel

Look at the long-term performance off all eleven dividend-paying companies that have had share buybacks.

Company with the highest share buyback: MacDonald Dettwiler (22.6%)
Company with the highest expected dividend growth: Nordion Inc. and Ailment’n Couche-Tard (tied at 33.3%)
Company with the highest expected yield: GMP Capital Inc. (4.4%)
Company with largest market caps in the dividend/buyback combo category: Canadian National Railway ($33,731.5 M)
Company with highest payout ratio in the dividend/buyback combo category: Rogers Communications (40.5)


In order to wisely look for stocks with high-paying dividends and buybacks, do some more research.  In the previous page, the table featured the top-performing companies in the dividend/buyback combination category.  If you want to look for a more “affordable” stock that does not perform nearly as brightly as those featured, go online, check some of those stocks that pay both high dividends and buy back the highest permissible percentage of the stock invested.  It is a great idea to do some research on those stocks of interest before buying any one of them.  

You see, gambling in the global market is a high risk, especially if you are just testing the waters.  The last I heard, foreign markets were not faring too well, with the exception of Asia, which, although the market growth has slowed down a bit, is faring well by comparison.  In order to win, you have to know your target market.  If you don’t, you will always rely on your luck, which may either make you end up winning (like that maniac from Two and a Half Men) or losing (like that same maniac from Two and a Half Men).

Effective strategies you should use when buying/selling stocks:

-       Swing investing (short-term)
-       Trend investing (long-term)

One is short-term and one is long-term.  But both, when used properly, can give you a higher return on your investments.  Myself not being the most experienced or seasoned investor, I still need to do a little homework on how to get the “feel” of the market before I can go about swinging my investments hitherto.  The one thing I do know, though, is that some upswings/downswings take longer to establish themselves than others.  This makes it even harder to find short-term swingers because once you start looking for them at various times, they are back to where they started again.  Not that I am sounding like a pessimist or anything.  One thing is certain though: it is always easier to invest long-term than it is to invest short-term.

As to swinging and trending, one could also make a gamble in commodities, asset, and currency trading.  Same strategy - different playing field.

Choose whichever playing field you like.  You will always win if you gamble right.


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