Retirement stocks are meant to be reassuring. But choosing stocks that one can comfortably forget about isn’t always an easy task. As pundit Jim Cramer would say, “Don’t act on your emotions, and don’t go against your homework.” Of course, this mantra, while useful, relies on two things: one, that investors can emotionally detach from their assets; and two, that investors have actually done their homework.
But it’s not always that simple. For instance, take the low-risk forever investor with an RRSP packed with dependable dividend stocks such as Fortis (TSX:FTS)(NYSE:FTS). This type of later-years investment vehicle represents a large part of what constitutes a comfortable retirement. And that’s something that a lot of shareholders will find themselves invested in in more ways than one.
However, so long as a prospective stakeholder in a company has done their due diligence, those forever stocks should be fairly safe, or, at least, as safe as a basketful of equities can ever be during times of economic crisis. That’s why Canadian investors need to peek under the hood of every company they plan to go long on. Doing so will allow investors to sleep a little easier at night.
Do your homework and know what you’re holding
An overall health score can be achieved by looking at a handful of characteristics. Would-be Fortis shareholders should consider the company’s balance sheet, its track record, and its outlook. They should also look into a company’s dividend. Another key facet of a solid buy-and-hold stock is its value for money. Within each of these categories, investors will find a number of sub-factors to weigh up.
Fortis scores high on two fronts: dividends and track record. However, its balance sheet could be a little healthier, and its valuation could be a touch more appealing. Utilities stocks tend to operate in a saturated market, though, so the outlook is less of an issue with this asset type. However, earnings are still set to be positive for the foreseeable future, which tips the overall balance in Fortis’s favour.
Buy stocks that reliably outperform the market
Consumer staples stocks are always a good play for all-weather investing. Utilities have also proven stubbornly defensive. Gold never goes out of fashion during times of uncertainty, and some names are still undervalued. Investors should also consider other strongly diversified business types, such as infrastructure stocks. Supply chains have become must-have assets to buy and hold during the pandemic.
Another way to gauge which dividend stocks are the best ones to buy and hold for the long term is to go back and consider the market itself. Income investors should peruse the TSX and see which names are up from last year. Despite the bullishness and the headline blur, there aren’t many names that have seen strong returns in the last year. A higher number have managed to remain flat, though. This resilience to market uncertainty is key to building a sleep-easy portfolio.
Buying quality stocks for retirement? The following report could significantly improve your portfolio.
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Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.
The post RRSP Investors: How to Buy the Best Dividend Stocks appeared first on The Motley Fool Canada.
Monday Morning Markets – Moving Past 5 Million Virus Cases
That's how many cases the US officially has (not that we are counting). 162,938 Americans are dead, that's much harder to cover up. Globally we are about to cross 20M cases at 19,877,261 with 731,570 deaths so the US has more than 25% of the global cases and 22% of the deaths - despite having just 3.7% of the population so Trump is right - America is leading the world by a factor of 6 - no one transmits the virus or dies from the virus like we do! MAGA!!!
The markets don't seem to mind and we're still up around record highs as the worst things are for the American people, the better things are for American Corporations, apparently, as the stimulus fairy comes and pays them visit after visit. President Trump played the fairy this weekend, waving his executive action wand and unconstitutionally wishing for various bribes to the voters:
- $400/week supplement to unemployment checks (states need to pay for it and Federal supplement comes from Disaster Fund that's meant for hurricanes, etc).
- Suspend payments on Student Loans through 12/31 (but not the interest).
- Extend eviction protection through 12/31 (the courts can't handle the backlog anyway)
- Defer Payroll Taxes through 12/31 (a disaster for the Social Security and Medicare System and also puts a huge tax burden on the employees at the end of the year they are unlikely to manage for, which will be blamed on Biden as a tax increase, of course)
In other words, Trump's Executive Orders are a whole lot of nothing but Congress and the White House have still failed to reconcile Democrats' $3.4Tn coronavirus-relief plan and Senate Republicans' far smaller $1.1Tn proposal. The Paycheck Protection Program expired Saturday. The future of the small business rescue plan is in limbo. “Meet us halfway and work together to deliver immediate relief to the American people,” Pelosi and Schumer said in a joint statement. “Lives are being lost, and time is of the essence.”
Joe Biden, noting that Trump signed the “half-baked” orders at his golf club in New Jersey, said they short-change the unemployed and trigger a “new, reckless war on Social Security." “These orders are not real solutions,” soon to be President Biden said. “They
The IPOX® Week, August 10th, 2020
- IPOX Indexes fall towards week-end, many still set weekly all-time Highs. Track SPACs with the IPOX® SPAC (SPAC).
- IPOX 100 U.S. (ETF: FPX) adds +0.80% to +12.64% YTD. IPOX International (ETF: FPXI) rises +2.31% to +40.58% YTD. IPOX 100 Europe (ETF: FPXE) gains +0.80% to +17.14% YTD.
- Issuer Flexibility matters: Rackspace (RXT) tanks while Rocket (RKT) rocks. More deals lined up.
Now track SPACs live with the IPOX® SPAC (Ticker: SPAC). IPOX is pleased to note the launch of the IPOX® SPAC, a benchmark portfolio focusing on Special Purpose Acquisition Vehicles.
IPOX Indexes fall towards week-end, many still set weekly all-time Highs. The IPOX Indexes rose last week to close at or near weekly-all-time highs. Trading Sentiment deteriorated towards the weekend on increased China-U.S. tensions with encouraging U.S. and European economic data driving some asset allocation away from the hugely outperforming growth-focused portfolios to conventional benchmark exposure and U.S. small-caps (RTY: +6.00%). In the U.S., e.g., the IPOX 100 U.S., underlying for the $1.5 billion “FPX” ETF, rose +0.80% to +12.64% YTD, lagging the S&P 500 (SPX) by -165 bps. on the week. Amid earnings and renewed corporate actions activity, weekly returns of portfolio holdings diverged sharply: While medical devices maker Irhytm Technologies (IRTC US: +62.33%) and security services provider ADT (ADT US: +41.70%) soared on strong earnings and an investment from Google, respectively, profit taking after earnings pressured infrastructure software makers Datadog (DDOG US: -19.80%) and Fastly (FSLY US: -17.70%). Abroad, we note a fresh weekly all-time
High recorded by number of IPOX Portfolios. The IPOX International, e.g., basis for the $220 million “FPXI” ETF, rose +2.31% to +40.58% YTD, extending the YTD lead vs. its benchmark to +4932 YTD. Here, big gains in Japan-traded exposure including leading courier services provider SG Holdings (9143 JP: +24.55%) and e-commerce firm Mercari (4385 JP: +16.97%) after blow-out earnings more than offset declines in some of the European-domiciled portfolio holdings including Swiss pharma products retailer Galenica (GALE SW: -6.99%) and German medical devices maker DAX-30 candidate Spin-off Siemens Healthineers (SHL GY: -6.07%) which fell after announcing the buy-out of U.S. medical equipment maker Varian (VAR US: +21.69%) last week-end.
|Select IPOX® Indexes Price Returns (%)||Last Week||2019||2020 YTD|
|IPOX® Indexes: Global/International|
|IPOX® Global (IPGL50) (USD)||1.63||27.93||32.47|
|IPOX® International (IPXI)* (USD) (ETF: FPXI)||2.31||31.37||40.58|
|IPOX® Indexes: United States|
|IPOX® 100 U.S. (IPXO)* (USD) (ETF: FPX)||0.80||29.60||12.64|
|IPOX® ESG (IPXT) (USD)||1.66||-||-|
|IPOX® SPAC (SPAC) (USD)||0.93||-||-|
|IPOX® Indexes: Europe/Nordic|
|IPOX® 30 Europe (IXTE) (EUR)||0.98||34.55||24.77|
|IPOX® Nordic (IPND)||3.70||38.52||37.05|
|IPOX® 100 Europe (IPOE)* (USD)||0.80||30.97||17.14|
|IPOX® Indexes: Asia-Pacific/China|
|IPOX® Asia-Pacific (IPTA) (USD)||4.12||4.41||23.31|
|IPOX® China (CNI) (USD)||3.44||26.31||44.31|
|IPOX® Japan (IPJP)** (JPY)||5.63||37.91||6.06|
* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM0). Source: Bloomberg L.P. & Refinitiv/Thomson Reuters. For IPOX Alternative Strategies Returns, please contact [email protected]
|IRHYTHM TECHNOLOGIES||62.33||DATADOG INC||-19.80|
|ADT INC||41.70||FASTLY INC - CLASS A||-17.70|
|SG HOLDINGS CO LTD||24.55||EVERGY INC||-14.92|
|CARVANA CO||23.91||ASSETMARK FINANCIAL||-13.03|
|MERCARI INC||16.97||CORTEVA INC||-11.34|
|SOLARWINDS CORP||16.88||BLACKLINE INC||-10.85|
|INARI MEDICAL INC||16.10||TWILIO INC||-10.24|
|VARTA AG||15.91||CROWDSTRIKE HOLDINGS||-10.11|
|MEITUAN DIANPING||15.89||CERIDIAN HCM HOLDING||-10.07|
|ASTON MARTIN LAGONDA||15.46||DYNATRACE INC||-9.54|
Issuer Flexibility matters: Rackspace (RXT US) tanks while Rocket (RKT US) rocks. More deals lined up. At least 11 companies went public across the global regions last week, with the average (median) equally weighted deal adding +40.37% (+13.30%) based on the difference between the final offering price and respective Friday’s close. Reception to last week’s deals was mixed: While Apollo-backed cloud company Rackspace (RXT US: -26.67%) fell, Detroit mortgage giant Rocket Companies (RKT US: +38.33%) climbed strongly after its 1/3 scaled-back, below-range offer. Shopify (SHOP US: +2.92%) competitor BigCommerce (BIGC US: +229.17%) tripled. China’s largest CRO Tigermed (3347 HK: +13.30%) also debuted strongly in HK, marking the largest healthcare-related IPO in Asia YTD. Insurtech unicorn Duck Creek (DCT US), Tencent & SoftBank-backed Chinese real estate broker KE Holdings (BEKE US), PE-backed Brazilian home furnishing retailer Lojas Quero-Quero (LJQQ3 BZ) and Philippine’s first REIT IPO AyalaLand REIT (AREIT PM) are lined up to list this week. Other IPO news Include: 1) Chinese EV-maker XPeng to add on recent EV-maker IPO fest, 2) Lufthansa’s Technik maintenance unit spin-off IPO still on the table, and 3) KKR reported to revive IPO of defense supplier Hensoldt in Germany.
Track global deal flow live on: https://bit.ly/2WMvnT9
The post The IPOX® Week, August 10th, 2020 appeared first on Low Cost Stock & Options Trading | Advanced Online Stock Trading | Lightspeed |.
FAQs for First-Time Resellers
How can I start my reselling business online?
Reselling liquidation lots can be a fun, fascinating, and profitable business. Many people would like to get in on such a venture but don’t know where to start.
The first and most important step is to determine what your niche will be. “Reselling liquidations” is far too broad for a brand new business, so you’ll want to narrow it down a bit. You may choose to resell items in a particular category such as clothing, electronics, or home goods. Some prefer to instead target resales from a specific retailer. If you choose to pursue this route, it’s best to select a retailer with a focus such as a home goods store or an electronics seller, rather than a broader catalog of general merchandise like Amazon or Walmart.
Once you’ve determined your niche, it’s important to research it thoroughly. Familiarize yourself with the types of products you’ll be selling and the current trends surrounding them. Find a good source of information on the direction your products are heading so you can anticipate coming changes in your market.
Finally, you’ll want to figure out where and how you will resell the items. Will you make them available online or have a physical presence in your town? There are a number of websites that are excellent for resellers such as eBay and Amazon. For local businesses, it may be best to start out with a stall at a local flea market or consignment mall.
When is the best time to start my reselling business?
While liquidation lots are available year-round, and it’s possible to start a resale business at any time of your choosing, it’s widely accepted that January is the best month for liquidation auctions. This is because retailers have a huge number of post-holiday season returns to process and many of these are still brand new products in perfect condition. Additionally, many retailers are liquidating merchandise they only carry on a seasonal basis, as gifts for the holiday season. For this reason, you’ll find the best selection of inventory, and often the highest discounts too, because of the sheer number of auctions going on after the first of the year.
What products can I sell to make money?
The truth is, almost any nonperishable good that is for sale in a retail store can also be found in a liquidation auction. Here is a list of some of the most common categories:
- Apparel, Footwear & Accessories
- Automotive Supplies
- Books, Movies & Music
- Cell Phones
- Computer, Equipment & Software
- Consumer Electronics
- Health & Beauty
- Home & Garden
- Industrial Equipment & Building
- Jewelry & Watches
- Mixed Lots
- Office Supplies
- Toys, Kids & Baby
What retailers should I consider purchasing returns from?
The good news is that there are dozens of top retailers and manufacturers who sell returns and other products through liquidation auctions. One good approach is to focus on a retailer you shop regularly. This way you will likely be more familiar with the types of products they carry and better able to gauge the market. Some of the most popular include:
- Best Buy
- GE Appliances
- Eddie Bauer
- JC Penney
- Sam’s Club
- Nordstrom Rack
- The Home Depot
Where can I purchase goods to resell on my own?
The B-Stock network is an excellent place to start. Our sourcing network features liquidations from dozens of leading manufacturers and retailers. We offer returns, liquidations, and overstock auctions as well. With our large selection, you’re sure to find plenty of auction lots to fit your inventory needs and your business budget. And since our network is so vast, you only need to apply for a reseller account once to gain access to auctions of all sizes and price points, located in warehouses across the country.
How much money can you make reselling goods online?
Some seem to believe that reselling auctioned goods online is a quick and easy way to make a buck. While it’s true that this can be a lucrative business, it can also be a lot of hard work, so it’s best to go into it with a good understanding of the process and its requirements. The best way to maximize your profits is to do plenty of research before you begin. Understanding your market, your target buyers, reselling requirements, and the sites you’ll be selling on is key. The more information you gather about your business before you begin, the better prepared you will be and the more likely you are to make reselling a success.
B-Stock works with nine of the top 10 U.S. retailers to help resell their returns, overstock, and other liquidation merchandise. We have dozens of private retailer marketplaces across different categories and conditions to suit your business inventory needs.
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