I’m not an economic expert. It’s impossible for me to filter all the macro factors and how they impact each of my stock holdings. Thankfully, there’s a way to still get good returns on my stock investments.
One powerful tool is the financial information that’s available at our fingertips for anyone with access to the internet. You can dig out a company’s annual report and look at the trends of the key metrics. FAST Graphs provides a more useful graphical representation of this information.
Sorry, I went off the grid again. Last month, I started taking a post-secondary accounting course at BCIT, which is already enhancing my financial statement reading skills. I’ve been primarily focused on juggling the course and my jobs (mostly writing for Motley Fool Canada and Sure Dividend). And I’ve been enjoying every moment of it! …except I feel bad for not updating this dividend stock focused blog.
So, thank you for your readership! You’re in for a treat! You should consider buying STORE Capital Corp. (NYSE:STOR) for income. It’s a quality net-lease real estate investment trust (REIT) that has pulled back recently, making it reasonably priced for buying again.
About my last article discussing Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) as a high-yield stock, some readers gave feedback about the fact that rising interest rates are negative for utilities like Algonquin that have high debt levels because of the nature of their businesses. Rising interest rates imply that their borrowing costs are going to increase, which can dampen their growth.
In contrast to utilities, banks are expected to benefit from rising interest rates. Currently, the highest-yield Big Six Canadian Bank is Bank of Nova Scotia (TSX:BNS)(NYSE:BNS). It yields 4.3% at writing.
Just like its big Canadian bank peers, BNS stock did not cut its dividend through the last two recessions. It did freeze its dividend periodically (like its peers) because of restrictions from the regulatory body, the Office of the Superintendent of Financial Institutions (OSFI), in Canada.