The 7%-Yielding Passive-Income Portfolio

Hand arranging wood block stacking as step stair with arrow up.

Generating an income portfolio of more than 7% from Canadian stocks is not inconceivable. There are a number of companies operating in a variety of industries that can give you a current yield of 6-9% with only moderately higher risk. The following six companies are trading at a decent value today, some at greatly reduced prices.

The 7% portfolio

Inter Pipeline (TSX:IPL): This Canadian dividend giant pays a yield upwards of around 8.2% at current price levels. The company has been raising its dividend regularly over the years as well, and that trend is set to continue. The company has been under pressure from lower oil prices, but it has an ace in the hole. In 2019, IPL will be completing work on one of its major projects, the Heartland Petrochemical Complex, which will diversify and add to the company’s revenue stream.

Alaris Royalty (TSX:AD): Alaris is a great holding for yield-hungry investors due to its diversified revenue streams and access to a variety of industries. Alaris currently receives revenue from a number of sectors, such as industrial and medical companies. The company’s stock has recently fallen back once again, leaving the yield at just under 9% at the current share price.

Cineplex (TSX:CGX): This movie theatre chain is known by practically everyone in Canada. With successful features like Avengers: Endgame putting bodies in its seats and the growing popularity of the company’s Rec Room venues, Cineplex could be a winning proposition. If you aren’t afraid of its high debt levels, you will appreciate the company’s almost 7% dividend.

H&R REIT (TSX:HR.UN): We can’t talk about Canada without talking about real estate, and this is one of the biggest real estate companies in Canada. This REIT has numerous office, retail, industrial, and residential properties across North America. It pays a healthy distribution yield of 6%.

Laurentian Bank (TSX:LB): While I am not a fan of the Canadian real estate market, the fact remains that it has been a money maker for banks over the years. And while Laurentian did not have fantastic results recently, the stock has been punished to the point where it is yielding 6% at current prices.

Whitecap Resources (TSX:WCP): Whitecap is a producer in the Canadian oil patch. It is currently increasing production, cash flow, and its dividend, leaving it with a yield of 6.5% as of this writing. If you think oil is going to be in demand for the foreseeable future, get some shares of this company

Get your 7% yield today!

With these stocks, you should be able to get a combined total yield of over 7%. In addition to the yield, over time many of these stocks should continue to grow their payouts as well. Be cautious, though, since these are small stocks that could be susceptible to significant volatility. Laurentian Bank, with its exposure to the expensive Canadian housing market, and Cineplex, with its reliance on the Canadian economy, stick out as relatively riskier stocks.

But if these companies continue to pay their dividends, in about 10 years you will have made your money back from the compounded returns of reinvested dividends alone. Put a portion of your money into a basket of these high-yield stocks, and you will likely be well rewarded in the long run.

Our #1 Stock to Buy in 2019 (and Beyond!)

When you buy heavily cyclical stocks at low prices… and then hold the shares until the cycle reaches its peak… you can make a very healthy profit.

Every investor knows that. But many struggle to identify the best opportunities.

Except The Motley Fool may have a plan to solve that problem! Our in-house analyst team has poured thousands of hours into their proprietary research – and this is the result.

Our top advisor Iain Butler has just identified his #1 stock to buy in 2019 (and beyond).

Click here to claim Iain’s new report, absolutely FREE!

More reading

Fool contributor Kris Knutson owns shares of ALARIS ROYALTY CORP., INTER PIPELINE LTD, and WHITECAP RESOURCES INC. Alaris is a recommendation of Dividend Investor Canada.

Continue Reading →

Taking a Fresh Look at RioCan REIT (TSX:REI.UN)

office buildings

On the surface, I can understand why some investors might be a little apprehensive about investing in RioCan REIT (TSX:REI.UN). It’s one of the largest REITs in Canada with a sprawling portfolio of retail properties that are primarily situated in…shopping malls.

Few people can deny that shopping malls are a remnant of a time long gone, with shoppers now preferring to browse on their smartphones rather than walking through massive malls and opting to order products on their devices rather than deal with limited availability and pushy salespeople.

So why should investors consider RioCan? Here are several compelling reasons to consider.

RioCan is diversified

While RioCan is predominately a retail REIT, that’s not the only segment that the company caters to (more on that in a moment). Additionally, RioCan’s tenant base is extremely secure, with many of those tenants constituting some of the largest retail players in Canada.

Adding to that diversified mix is the fact that no single tenant of RioCan provides more than 5% of the company’s revenue, appealing to investors that are looking for a more stable array of investments in their portfolio.

RioCan is changing

Recall the multiple-segment point I made above? RioCan is gradually adjusting its investment mix to include mixed-use residential towers sitting on top of several floors of retail.

The properties, known as RioCan living, are an interesting play on the lack of available (and affordable) housing in Canada’s major metro areas.

The long-term brilliance in this model cannot be understated. On the one hand, younger professionals, who have a desire to live closer to major metro areas where jobs and entertainment are in abundance cannot. On the other, we have the rapidly changing face of the large traditional retail store model that is in decline, leading to the need for additional revenue streams.

The developments are being funded through the sales of non-core assets of nearly $2 billion, and the first properties are set to begin receiving tenants this year. To date, the company has sold 75 secondary-market assets valued at $1.5 billion.

RioCan is the complete package

Perhaps one of the most compelling reasons to consider investing in a REIT has to do with the dividend, and in the case of RioCan, the company once again never fails to impress.

RioCan currently offers investors a monthly dividend that pays out a yield of 5.59%, handily making the company one of the better-paying investments on the market.

Turning to results, Riocan announced results for the first quarter earlier this month. Specifically, revenue came in at $324.1 million, surpassing the $290.1 million reported in the same period last year, while earnings came in at $194.5 million, or $0.64 per diluted unit in the quarter, compared with $137.2 million, or $0.43 per diluted unit reported in the same period last year.

Funds from operations for the quarter amounted to $142.2 million, or $0.47 per diluted unit, representing a drop from the $149.2 million, or $0.46 per diluted unit last year, a clear sign of the ongoing shift that the company is undergoing while building out its RioCan Living projects.

In my opinion, RioCan remains an excellent long-term opportunity for investors looking to diversify their portfolio with an income-producing stock with growth potential.

Our #1 Stock to Buy in 2019 (and Beyond!)

When you buy heavily cyclical stocks at low prices… and then hold the shares until the cycle reaches its peak… you can make a very healthy profit.

Every investor knows that. But many struggle to identify the best opportunities.

Except The Motley Fool may have a plan to solve that problem! Our in-house analyst team has poured thousands of hours into their proprietary research – and this is the result.

Our top advisor Iain Butler has just identified his #1 stock to buy in 2019 (and beyond).

Click here to claim Iain’s new report, absolutely FREE!

More reading

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned.

Continue Reading →

CIT Bank Promotions: 2.40% Savings Builder, 2.50% APY CD Term (Nationwide)

CIT Bank

CIT Bank promotions and bonuses are available nationwide online with some of the highest interest rates available on CD, Money Market, and Savings Accounts.

Earn 2.40% APY for a Savings Builder account, 1.85% APY for a Money Market account, 2.05% APY for a No-Penalty CD account, 1.55% APY for a High Yield Savings account, up to 2.50% on a Term CD account, and many other promotions.

All of these high-interest-rate accounts have a very low minimum requirement of only $100! CIT Bank has helped finance some of the world’s biggest dreams. See what CIT Bank can do for yours!

For more than 100 years, CIT Group Inc., a Fortune 500 company, has helped drive innovation as a leader in middle-market lending, and financing the retail, energy, healthcare, transportation and technology sectors.

CIT Bank is also perfect if you are looking for high interest rates to build up your savings account! If you want to check up on the internet’s most complete list of Bank Account Promotions, keep coming back to HMB!

CIT Bank Promotions Information


2.40% APY Savings Builder


CIT Bank Savings Builder Account

  • Earn a top tier, competitive 2.40% APY Rate on your money — one of the top savings rates in the nation.
  • Low minimum opening deposit of $100.
  • No opening, monthly servicing, online transfer, or incoming wire fees.
  • CIT Bank Savings Builder Review

How to Earn Rate:

Maintain at least a $25,000 balance OR make at least a $100 each month to earn the highest rate.

The higher interest rate can be earned by completing one of following requirements:

  1. Monthly Savers:
    • Make at least one single deposit of $100 or more during the first Evaluation Period which begins on the third business day prior to the end of the month the account was opened.
    • Additional deposits made between the account opening date and the beginning of the first Evaluation Period will not qualify.
    • In order to continue to earn the higher rate, make at least one single deposit of $100 every month.
  2. High Balance Savers:
    • Have an account balance of $25,000 or more on each Evaluation Day. The Evaluation day is the fourth business day prior to the end of the month.

Rate Tiers:

Tier Balance Requirement APY
Base $0 – $25,000 1.28%
Upper $0 – $25,000, but with monthly deposit of $100 or more 2.40%
Upper $25,000+ 2.40%

1.85% APY Money Market


CIT Ban Money Market APY Interest

  • Earn a 1.85% APY Rate that is higher than traditional banks and you can access your money easily.
  • Low minimum opening deposit of $100.
  • No monthly maintenance fees and up to 6 transfers per monthly statement cycle.
  • Free People Pay service allowing you to send money to almost anyone with an email address or mobile phone number.
  • CIT Bank Money Market Review


2.05% APY 11-Month No-Penalty CD


CIT Bank No Penalty CD Review: Earn 2.05% APY Rate 11-Month CD

  • Enjoy a high-yield rate of 2.05% APY.
  • Withdraw anytime during the 11 months with no penalty.
  • Minimum deposit of $1,000.
  • No monthly maintenance fees.
  • Easy to open.
  • Interest is compounded daily.
  • FDIC Insured.
  • CIT Bank 11-Month No Penalty CD Review


1.55% APY Premier High Yield Savings 


CIT Bank Premier High Yield Savings account bonus promotion

  • Earn the highest current rate of 1.55% APY. That’s over 25X the national average!
  • Minimum opening deposit of $100 opening deposit.
  • No monthly maintenance fees.
  • Comes with free online banking.
  • Interest is compounded daily.
  • FDIC Insured.
  • CIT Bank Premier High Yield Savings Review


2.50% APY 18-Month Term CD


CIT Bank CD CIT Bank Money Market Account CIT Bank Promotions Bonuses CIT Bank Savings Builder CIT Bank Bonuses Promotions Savings Builder CD No Penalty Bonus Money Market Savings Account


Bottom Line

If you don’t mind not having a not having a physical location, you can sign up for any CIT Bank promotion and enjoy these bonuses!

Also, get great interest rates on savings accounts that features a daily compounding of interest to maximize earning potential! Never worry about hidden fees, and bank on-the-go!

We’ve compiled all of the Bank Promotions from CIT Bank on one convenient post, so bookmark the page if you want to stay updated!

FEATURED BANK PROMOTIONS
PROMOTIONAL LINK OFFER REVIEW
Discover Bank Online Savings $200 Cash Review
HSBC Premier Checking Member FDIC $750 Cash Review
HSBC Advance Checking Member FDIC $350 Cash Review
Huntington Asterisk-Free Checking® $150 Cash Review
Huntington 5 Checking $200 Cash Review
Chase SapphireSM Checking 60,000 Points Review
Chase Total Checking® + Chase SavingsSM $350 Cash Review
Chase Premier Plus CheckingSM $300 Cash Review
Chase College CheckingSM $100 Cash Review
Chase Private Client $1,250 Cash Review
TD Bank Beyond Checking $300 Cash Review
TD Bank Convenience CheckingSM $150 Cash Review
Discover Cashback Debit Account (Cashback Match) $360 Cash Review
Capital One 360 $500 Cash Review

More

The post CIT Bank Promotions: 2.40% Savings Builder, 2.50% APY CD Term (Nationwide) appeared first on Hustler Money Blog.

Continue Reading →

Heng didn’t “study” Swiss pension system in his “study trip” to Switzerland

It was reported in the media that after Deputy Prime Minister Heng Swee Keat came back from his Switzerland “study trip”, he wants to look to the Swiss for lessons to take care of the welfare of Singaporean workers.

Wrapping up his five-day work trip there, Heng said Singapore companies can learn from their Swiss counterparts when it comes to workers’ welfare.

Even as firms there ramp up automation and change their business models, they remain committed to training workers, he said.

He told the media that two things have left a deep impression on him during his visit – how seriously Swiss companies take productivity, innovation and technology, as well as how willing they are to collaborate in areas where they have common problems to solve.

However, Heng failed to address the issue that many of our elderly have to continue to work for a simple reason that they do not have enough CPF to retire. This is unlike Switzerland which has a very healthy sustainable pension system to enable their senior citizens to retire comfortably.

Josephine Teo’s data shows Singaporean elderly get only average $355 per month from CPF

Three months ago (Feb), NCMP Associate Prof Walter Theseira asked Manpower Minister Josephine Teo in Parliament about the retirement situation in Singapore.

Prof Theseira wanted to know how much on average, the Singaporean elderly are getting their CPF payouts after they turned 65. He also asked what percentage of the elderly CPF members are receiving monthly payouts of less than $500, an amount hardly enough for the elderly to survive here.

Prof Theseira is the Associate Prof of Economics at the Singapore University of Social Sciences (SUSS). Thanks to Prof Theseira’s questioning, Manpower Minister Josephine Teo was forced to reveal the data.

She said that of those who are receiving their CPF payouts presently, 74% had monthly payouts under $500. The average monthly payout for CPF members were as follows as at Dec 2018:

Hence, these 3 groups of Singapore elderly would receive on average of about $355 per month from CPF Board, with nearly three quarters receiving less than $500.

But she did assure that with increased labour force participation and improvements to the CPF system made in the past decade, she expects younger cohorts to have higher CPF payouts. She cited that 60% of CPF members who turned 55 in 2017 two year ago would be expecting to get monthly payouts of $700 to $750 after they hit 65 in 8 years’ time.

PM Lee has been telling everyone that there are now $3 meals available in hawker centres. The government supposedly, assumes that based on 3 meals a day at $270 a month, even at less than $500 it should be enough for an elderly to survive in Singapore. This, of course, assumes that the elderly doesn’t have any other expenses in his or her life (for example, to save on toilet papers, he or she would use public toilets in coffee shops or hawker centres).

Superior Swiss pension system

According to an online article published in Jan this year, Switzerland has a healthy and sustainable national pension system, allowing their elderly to retire comfortably.

Ranked sixth in the world by the Mercer Global Pension Index (2016), the Swiss pension system is overall efficient and sustainable, putting it above countries such as Germany, the UK and Canada. In general, Switzerland’s pension scheme with its three-pillar structure can ensure sufficient living allowances for retirement.

The first pillar is the Swiss old-age pension and invalidity insurance funded by compulsory Swiss social security contributions by employees and employers. The second pillar is based on company Swiss pension schemes, which are mandatory for employees receiving a specific salary threshold. The third pillar is voluntary contributions to private insurance.

The payout from state pension (i.e, the first pillar) is determined by the number of years worked in Switzerland and the average income. A correction factor takes inflation into account. For a full pension (which is between 1175 to 2350 CHF per month or about S$1600 to $3200), it is required that the insured person pays into the 1st pillar every year from age 20 to 65 (or 64 for females). Each year spent abroad will reduce the pension by about 2.3 percent.

The Swiss federal constitution stipulates that the 1st pillar must meet the basic needs of the insured people. Because of the rise in living costs, in 1966 the federal parliament enacted additional pension payments. They are flexible and cover actual costs (e.g. health insurance, nursing home costs).

Anticipating the retirement will reduce the monthly pension, while continuing to work will increase it, the adjustments are as follow:

It’s not known if Heng paid attention to the Swiss pension system, enabling their elderly to retire gracefully, while he was spending time on his “study trip” there.

Meanwhile, three quarters of our elderly have to make do with less than $500 per month for retirement with an average of $355 per month per elderly. Is this the “Swiss standard of living” former PM Goh Chok Tong was referring to in the past?

 

The post Heng didn’t “study” Swiss pension system in his “study trip” to Switzerland appeared first on The Online Citizen.

Continue Reading →

Wells Fargo Propel American Express Card Promotion: 30K Bonus Points + 3X Points On Purchases In Many Categories + No Annual Fee

Wells Fargo Propel American Express CardWith this offer, the Wells Fargo Propel American Express® Card is an ideal card for those who spend heavily across several categories.

By signing up for this card, you can earn 30K bonus points when you use your new card to make $3,000 in purchases in the first 3 months!

With this card, you can earn 3X points for eating out and ordering in, 3X points for gas stations, rideshares and transit, 3X points for travel including flights, hotels, homestays and car rentals, and 1X points for other purchases!

What makes this card even more appealing is that there is no annual fee and you’ll get a 0% Intro APR for 12 months on purchases and balance transfers (fees apply), then a 16.24%-27.24% variable APR; balance transfers made within 120 days qualify for the intro rate and fee. Definitely consider this card if you’re a heavy spender in the gas and restaurant category!


Wells Fargo Propel Amex Card Summary


Wells Fargo Propel American Express Card B
With the Wells Fargo Propel American Express® Card:
• Earn 30K bonus points when you spend $3,000 in purchases in the first 3 months – that’s a $300 cash redemption value
• $0 Annual Fee
• Earn 3X points for eating out and ordering in
• Earn 3X points for gas stations, rideshares and transit
• Earn 3X points for travel including flights, hotels, homestays and car rentals
• Earn 1X points on other purchases
• 0% Intro APR for 12 months on purchases and balance transfers (fees apply), then a 16.24%-27.24% variable APR; balance transfers made within 120 days qualify for the intro rate and fee
• Select “Apply Now” to learn more about the product features, terms, and conditions


Wells Fargo Bonus Points 


The most prominent and salient feature of the Wells Fargo Propel American Express® Card is the bonus points that you can earn on every purchase. Not only will you have the opportunity to score 30K bonus points when you use your new card to make $3,000 in purchases in the first 3 months, you’ll be able to earn 3X points on your purchases!

Plus, the 3X points-earning categories are common categories that people use every day, so it should be easy to rack up those points in no time. No matter what you decide to use this card to purchase, you’ll be earning rewards nonetheless. With features like this, 30,000 bonus points, no annual fee, and more, it’s a win-win situation for all consumers and is hard not to appreciate.


All Year Round Rewards Card 


This Wells Fargo Propel American Express® Card is no doubt a great card for those that spend heavily across several categories. With this card, you won’t have to worry about any sort of annual fee. Plus, the 30K bonus points welcome offer holds a value of $300 (at 1 cent per point).

With the points you earn, you can redeem it for exclusive offers on airline tickets, hotels, car rentals, and cruises through the Go Far Rewards portal! Another reason I find this card appealing is that the rewards is year-round and not segmented into quarters and rotations. If you’re still using your debit card to conduct your purchases, definitely reconsider and apply for this card so you can reap the benefits and earn 3X points! If this card isn’t for you, no worries.

See our complete list of credit card bonus promotions to find the ideal card for you!

Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

More

The post Wells Fargo Propel American Express Card Promotion: 30K Bonus Points + 3X Points On Purchases In Many Categories + No Annual Fee appeared first on Hustler Money Blog.

Continue Reading →