Investment capsule: equities; mutual funds; fixed income; mortgage rates
Money Digest, June, 1998
EQUITIES
The common stocks mentioned here trade on Canadian stock exchanges and pay dividends that are above 3.5%. If the stock is of a qualifying Canadian corporation, the dividend is equal to an interest yield of 4.375% or above.
STOCKS THAT PAY HIGHER DIVIDENDS
STOCK SYMBOL PRICE DIVIDEND YIELD
$ $ %
BC Gas BCG 31.60 1.12 3.5
Centrefund Rlty CFE 20.70 0.84 3.9
Dofasco DFS 25.75 1.00 4.1
Fortis FTS 46.50 1.80 3.9
Nova Scotia Power NSI 19.40 0.82 4.2
TransAlta Utilities TA 23.05 0.98 4.1
TransCanada Pipelines (TCPL) TRP 32.65 1.24 3.8
Westcoast Energy W 33.40 1.24 3.7
Stocks with dividend reinvestment plans (DRIPs for short) will allow you to reinvest your dividends automatically into the company's shares. This will save you commission. Some companies will even offer a discount if you use DRIPs. The companies listed here have an additional feature--they will also let you buy additional shares in the company with no commission. This feature is called the Share Purchase Plan (SPP).
The stocks listed in the right panel have both DRIPs as well as SPPs.
STOCKS WITH DIVIDEND REINVESTMENT PLANS (DRIPs) STOCK SYMBOL RECENT PRICE $ DIVIDEND $ YIELD % Alberta Energy AEC 33.80 0.40 1.2 Alcan (1) AL 45.60 0.60 1.9 BC Gas BCG 31.60 1.12 3.5 BC Telecom BCT 55.50 1.40 2.5 BCE Inc. BCE 64.85 1.36 2.1 Bank of Montreal BMO 77.25 1.76 2.3 Bank of Nova Scotia BNS 38.35 0.80 2.1 Bruncor BRR 30.00 0.65 2.2 Cdn. Imperial Bank (CIBC) CM 49.85 1.20 2.4 Canadian Pacific CP 43.20 0.48 1.1 Chrysler C 75.25 1.60 3.1 Dofasco DFS 25.75 1.00 3.9 Echo Bay Mines ECO 4.50 0.08 2.5 Fortis FTS 46.50 1.80 3.9 IPL Energy IPL 63.50 2.18 3.4 Imasco IMS 27.40 0.68 2.5 Imperial Oil IMO 26.55 0.73 2.8 Inco (1) N 22.60 0.10 0.6 Island Tel IT 52.00 1.44 2.8 MDS Health `A' (B) MHG.A 29.85 0.10 0.3 MacMillan Bloedel MB 18.65 0.20 1.1 Maritime T&T MTT 39.50 1.32 3.3 Molson MOL.A 28.00 0.72 2.6 Moore (1) MCL 22.95 0.20 1.3 National Bank NA 29.40 0.68 2.3 NewTel Ent NEL 45.00 1.36 3.0 NorTel (1) NTL 93.40 0.30 0.5 Nova NVA 16.65 0.40 2.4 Nova Scotia Power NSI 19.40 0.82 4.2 Suncor Energy Inc. SU 52.75 0.68 1.3 Telus T 39.50 0.92 2.3 TransAlta Utilities TA 23.05 0.98 4.1 TransCanada Pipelines (TCPL) TRP 32.65 1.24 3.8 Westcoast Energy W 33.40 1.24 3.7 (1) Stocks whose dividends are paid in U.S. dollars.
MUTUAL FUNDS
Funds listed in this section are open-end mutual funds. They have been selected on the basis of their previous 12-month performance. Mutual funds should be judged on their long-term, and consistent performance. The listing here is mainly intended to point out the current trends. You may want to compare your fund's performance with the top-performing funds. But do not switch in a hurry.
Equity Funds include funds whose objectives are long-term capital appreciation or a combination of capital appreciation and income. Lists of both RRSP and non-RRSP-eligible funds are given here.
Real Estate Funds invest primarily in commercial real estate.
Bond and Mortgage Funds invest in bonds, mortgages, or both. Many of these funds are RRSP-eligible.
Balanced Funds emphasize long-term goals. Traditionally, they invest 50% of their assets in bonds and 50% in Canadian equities
Preferred Dividend Funds are designed to provide high after-tax income. They invest mostly in high-yielding shares of Canadian corporations
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