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Month: April 2019

Investing in Canadian Banks

Bank stocks in the USA have been suspect ever since they led us into the financial crisis with their predatory lending practices. However, right next door in Canada, the banks have followed more conservative practices and several are ideal long term investment opportunities. A common practice, among Canadians, is investing in Canadian banks when their stock price falls, dividend percentage rises, and P/E ratio drops. The three Canadian banks we have in mind are these. Toronto Dominion (TD) Royal Bank of Canada (RY) Scotiabank (BNS) These are the three largest Canadian banks. New banks are rare in Canada because...

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Can You Diversity Your Investments too Much?

It is a good idea to diversify your portfolio of investments. Doing so reduces the risk of loss by spreading out your investments over several vehicles and several sectors of the stock market. But, can you diversify too much? The answer is, yes. There comes a point where adding more stocks, for example, does not improve your risk profile but makes it harder to keep track of your individual investments. And it takes you away from investments that you understand. If you are a dedicated long term investor, you will routinely review your portfolio and assess intrinsic stock value....

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How to Buy Stock Directly

Long term investing works out well when you choose secure investments whose value appreciates over time. Investments like dividend stocks are a good choice because the dividends can be reinvested during the early years and taken as income during retirement. Many dividend stock investors take advantage of dividend reinvestment plans but these plans are also how to buy stock directly without ever going through a broker. How to Buy Stock Directly with Dividend Reinvestment Plans If you already own stock in a company that has a dividend reinvestment plan, all you need to do is sign up and the...

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Would “Medicare for All� Kill Your Health Care Investments?

The next U.S. presidential election is 19 months away and politicking is already in full swing. An issue that was raised by candidate and Senator Bernie Sanders in the 2016 presidential campaign has come back with a bang. It is “Medicare for all.� Sanders, and now several others, are proposing that all Americans be covered by a health care program run by the U.S. government instead of private insurance under the current Affordable Care Act (aka Obamacare). While this may or may not be a good idea for taking care of sick people, investors need to wonder, would “Medicare...

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Choosing Undervalued Investments

Choosing undervalued investments that the market has ignored or misunderstood can be very profitable. But, the key to this manner of investing in stocks is to find investments with hidden value and not just use a stock screener to find cheap investments. There are always reasons why the market prices a given stock as it does. Investments that are really undervalued are being ignored by the market because they are small stocks, stocks that no analysts are following, or stocks that the market in general does not understand and therefore gives them a too-low stock valuation. Because the stock...

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