Living in Canada, we share out border with the USA, the largest economy in the world so when there is some upheaval in their market place, the selling spills over into our stock market as collateral damage which is currently happening and the growing doubt in some investors minds about the billions of dollars being pumped into the AI craze with more talks of it being a bubble. Just one of a few issues that collided to bring down the markets for mid month November.
I keep up on the news coming up from the south but in my long term horizon, staying in the market is my goal with what I call, quality stocks for compounding returns into the future
It's different from the Dotcom bubble crash back in 2000, where the top tech companies today are already swimming in cash and it's about going with companies investors feel will benefit the most now and in the future with all the high valuations bringing on more risk.
I don't own these companies individually referred to as the MAG 7 but hold them in a NASDAQ based ETF for the monthly distributions, JEPQ.TO. I'll let the managers do the shuffling of companies based on weighting in their top ten.
With the financial/insurance sector in Canada, Manulife Financial had a record high 3rd quarter with more focus on India. MFC.TO has a rounded off 9% gain for the YTD and an ex-dividend date of November 26th.
Always welcome is the increase in dividends from Sun Life Financial after SLF.TO posted their 3rd quarter reports, a boost of 4.55% with the same ex-dividend date as MFC.TO.
Most of my stock holdings do business in the US such as banks, pipelines, energy and insurance for example. When they convert from USD to the lower CAD these days ... the additional currency exchange looks good on their books.
I plan to add 2 stocks to my portfolio keeping in mind the additions could dilute performance. Brookfield Energy Renewable Partners, BEP.UN.TO with a current 5% yield and dividends are in USD with a November 28th ex-dividend date.
ATCO will be an addition in early December. ACO-X.TO is the parent company of Canadian Utilities CU.TO. ATCO is an energy and infrastructure company doing business globally such as ATCO Australia. The stock has a gain of 16% over the last year.
Both companies I mentioned in my previous two articles are good additions for the Energy sector of the portfolio.
Upcoming in December, I'll be interested in and anticipating the Canadian big bank earnings reports. Normally with the Big 5 banks, there's usually a bank that's under performing compared to the rest which I focus on for additional buying but still bringing in billions in revenue.
For example, Bank of Nova Scotia with a welcome boost of 22.63% YTD after coming off a low in April of 63.50 to the current $94.66, perhaps looking to break that $100 plateau, depending on another favourable quarterly report.
I'll see what that all looks like in December, 2025 while there's many a bank related ETF which holds all the banks plus National Bank, NA.TO in equal weighted holdings or what managers work out in top to bottom weighted holdings plus covered call ETFs which usually produce more in distributions but less in performance returns compared to a non covered call ETF.
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