I have $21,029.46 in cash in my retirement investment portfolio just sitting there. I don’t earn any interest on it either. At prevailing interest rates it would be small, but maybe $17/month. The bad news is that it’s been sitting there for over a year, I think.
My broker has been waiting for some good opportunities to buy something. Surely there has been something to buy within this time frame? I have bugged him about it but then I get busy and do nothing to follow-up. Sometimes he emails me with some options and then I sit on the email thinking I need to study it more and then I ultimately do nothing. You can start lashing me with a wet noodle now. I know I deserve it.
Last time I emailed him was May 29 and he gave me some options preferred shares, exchange traded fund yada yada yada yawn. I did nothing. Why does this stuff not interest me and why do I do nothing?
It’s seems like unless I have all my hands and feet on the topic, I feign interest. I’ve been talking about moving to a self-managed portfolio and I mean that, but it also means a lot of work to get educated and start tracking before I make the leap.
This is the first step in the direction.
I know it will take time, but with your encouragement, I’m hoping it will not take as much time as I am fearing. Baby steps… get some momentum and let the train gather speed as it pulls away from the station.
It’s really no different than debt repayment, but in the opposite direction. It’s my money! It’s my money as opposed to someone else’s which is how I see my debt.
Preferred Shares for Sale
OK, let’s start. So he (without my prompting I might add), emailed me this week and suggested to buy two preferred shares as follows:
- Enbridge Preferred shares series D (ENB.D). It is currently trading at $24.64 and a current dividend yield of 4.06%. In 2018, Enbridge will decide to either wind up the preferred shares and pay back $25 to the shareholders, or extend the preferred and give 2.37% above what a 5 year Gov’t of Canada Bond is paying at that time. He says the yield and quality are good and the fact that it trades daily on the TSX means it can be sold easily, when I want to.
- Brookfield Asset Management Series B preferred shares, (BAM.FB), is also a rate reset preferred, trading at $25.09, a current dividend yield of 4.19%, a reset date of March 31, 2019, and a reset spread of 263 bps over the five year Government of Canada bond yield. It is rated Pfd 2Low.
Looking at my portfolio now I see I already have ENBRIDGE common stock and Brookfield Renewable Energy.
I know you can’t see my whole portfolio in the picture above so you can’t see how I’m diversified.
I can’t figure out the markets still going gang busters with everything going on in the world.
But in the interest of not sitting on my hands, yet again, I told him to go ahead.
Any comments on these two stocks? Are your investments in index funds or do you have more individual dividend paying stocks in your portfolio? Do you have any recommendations on excel files for tracking your investments?
Part of Friday Jet Fuel #3