The “…considerable time” remains in the Fed’s statement and interest rate outlook. Market and investors were looking for change in tune to the Fed speech, but its status quo for now. While the Fed indicated that the bond buying program will end in October, the indication of interest rate rise is still on hold – meaning that the party continues. However, the lack of bond buying will induce some volatility in the market, so having some cash on hand will be prudent of investors.
Outlook for October 2014
Monthly Contributions: I add to my positions in the following stock and funds on a monthly basis:
- Claymore S&P US Dividend Growers ETF (CUD.TO) is an ETF of 83 dividend growers and provides me with exposure to excellent corporations across all sectors. The ETF has a 1.8% yield and pays distributions monthly.
- iShares Canadian Financial Monthly Income Fund (FIE.A.TO) is an ETF of 24 Canadian financial equities (70%) and bonds (30%). The fund yields 6.5% and pays distributions monthly.
- The Bank of Nova Scotia (BNS.TO) is the third largest of the Canadian banks by deposits and market cap. BNS is also the most international of the Canadian banks with exposure in 55 countries outside Canada. BNS saw a pause in its dividend growth during the financial crisis. However, BNS has started raising dividends after the crisis with a 5-yr DGR of 5.15%. I have a DRIP plan in BNS and invest monthly to this holding.
While this was originally scheduled for September, a busy scheduled around work and house have kept me away from writing more and evaluating this step. As part of re-structuring my wife’s portfolio, we will finally be starting to move her investments from expensive mutual funds to low cost ETFs. I will be putting together a balanced index fund portfolio this month. Look forward to reading my evaluations of various index funds in different categories over the coming days/weeks.
What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist? What do you think of the current market levels and buying here? Make sure to leave a comment below as I deeply value reading your questions and comments.
Photo Credit: Tambako The Jaguar