Time To Buy Canadian Banks

With the banking industry continuing to be in free fall all around the world a new report has just come out that names Canada as the soundest banks in the world. As the banking situation continues to weaken around the world this puts Canadian banks in a good place. Royal Bank Of Canada is, and has been my favorite banking stock since even before this whole mess started. Their stock price has been holding up much better than most other banking stocks as well, but they have taken a hit in just the last week as the markets sunk. Still even off of their 52 week low this stock is still a buy. Royal Bank Of Canada provides a fat 5% dividend at this price level of $36.10 so this is a stock that pays you to own! While you might think it is crazy for someone to be recommended a banking stock in this environment, things will turn around eventually. There might even be a v shaped recovery if all goes well. As long as you have a long term view on things, now is the time to be buying, not selling. Concentrate on the future and you should do fine...

Riding The Royal Bank Of Canada To New Heights

As we continue to watch the banks here in The United States implode from the inside, I have been looking north for quite some time now to Canada for financial stocks that are actually worth owning. My favorite from the great white north is The Royal Bank Of Canada stock symbol (RY).


In my opinion this is one of the best, and safest picks out there in the financial sector right now. Not only is the Canadian dollar just killing the American dollar, but the subprime mess has hardly effected Canada, if anything it has actually help them. With the stronger dollar Canadian companies like The Royal Bank Of Canada can make acquisitions inside the United States and around the world for much, much cheaper than they could have years, or even months ago. Royal Bank Of Canada is taking advantage of this already by purchasing a Caribbean bank and Alabama National BanCorporation recently.

Not to mention, that juicy 3.65 dividend yield is payable in Canadian dollars so investors here in The States reap the benefits of a strong loony through the dividend payments! This is a company that consistently raises it's dividend and is all about creating shareholder wealth while growing the company core business at conservative pace.

As if that weren't enough reason to own (RY) they just announced that they will be buying back 1.6% or 20 millions shares of the company. This should provide a nice downside protection against any kind of negative price movement in the stock.

Royal Bank Of Canada is also one of the most respected corporations in Canada, and does a ton of work for it's communities and the environment, so you can even sleep well at night knowing you own this one... Overall, I would say this is one of the safest picks I have made so far and one of the best long term investments out there, but I would be slightly cautious going into their earnings report on 11-30-07. My suggestion would be to buy some here, and buy some after earnings this way you don't get burned if there is something in the quarter that investors don't like...

For more about Royal Bank Of Canada visit their website here or to learn more about why a good dividend like the one this company has is so important click here!

As I write this article Royal Bank Of Canada is trading at $57.77

The Importance Of A Good Dividend

While a lot of people are in the market just for growth stocks, there is a safer, less exciting way to build your fortune. Just look for stocks that pay a hefty dividend and that have consistently raised their dividend over the years.

A dividend is simply a payment that is issued to stockholders normally every three months. Most brokerages allow you to either take the dividend in cash or you can re-invest your dividends directly back into the stock. My favorite personally, is to re-invest those dividend payments. Think of it this way, you put $1000 into a stock that pays a 4% dividend. Three months or less later you get your first dividend of $40. As I stated above, you can take this in cash or simply re-invest it automatically.

This way you are technically buying stock every three months automatically without even raising your finger! As you can imagine this will really end up paying off in the long run. Plus, if a company is raising it's dividend it is always a sign that business is good so stocks like this tend to go up naturally as well! It is a win-win situation!

For me though, the idea is to eventually have so much stock that you can simply live off of the dividends as well. This way no matter if a stock goes up or down you still receive that dividend.

Yet another advantage of dividends is that in a market like we had on Friday, which was terrible in case you missed it, stocks that have high dividends tend to not be hit as bad as ones that do not. So while it is great to have growth stocks that shoot straight up there is nothing wrong with a good steady stock that pays a nice dividend. A couple that I would suggest looking at include Royal Bank of Canada (ry), Yum Brands (yum) or any other stock that has been increasing it's dividend consistently.

Find out more about why I like Yum brands here, or you can learn even more valuable information about the stock market here!

Traveling The World With Boeing

Just today it was reported that Boeing (ba) would have to delay delivery of it's Dreamliner series for at least 6 months. Incidentally, the stock fell by 3% almost immediately. This looks to me like a good entry point. The stock has pulled back from it's 52 week high of $107.83 and is currently traded at around $98.

The long term story with Boeing has not changed at all. Boeing doesn't just get orders from companies it gets orders from entire countries! It trades at a reasonable 21 PE and has a dividend of $.35 per share or dividend yield of 1.42% which should provide support for the stock.

As the developing countries progress they are going to need more airplanes and as the world becomes more aware of the problems that climate change is causing people are going to demand more fuel efficient planes. Boeing is already ahead of the game with it's Dreamliners which is much more efficient than the older planes that are on the market right now. Not only this, but Boeing is of course one of the largest defense contractors out there.

While this might not be the most exciting stock pick out there, it is certainly one of the safer picks that I would recommend. For more information you can always google Boeing and do some research yourself.

Yum Brands Continues To Grow In China!

This stock had a stellar performance today after releasing 3rd quarter earnings. Yum Brands beat analysis estimates by a full $.05 and the stock took off in after-hours trading to hit a new 52 week high.

In case you are not familiar with Yum Brands, they own a series of restaurants including Taco Bell, Pizza Hut, A & W, Kentucky Fried Chicken (KFC), and Long John Silvers and is a company that is quickly spreading itself across the globe. One little statistic I just love is the fact that they are opening up a new KFC at least every single day this year in China! Now that is what I call growth...

I realize that this company is already pretty huge though and therefore their stock could be hard to move, but the company just announced an addition to their buyback plan which should be a good support for this stock. Plus just shows the confidence the management has in the future of Yum Brands.

Overall, I would have to say that this is a pretty safe bet even at it's 52-week high. If that wasn't enough they also pay a dividend which is yet another reason to own this stock.

What does everyone else think about this massive restaurant chain? They seem to trade at a reasonable multiple and are looking better and better with all this global growth, so how far do you think this stock can run?

For more information you can always visit their website here.

Welcome To Stock Picky!

This blog will be dedicated to finding stocks that are actually worth investing in and have the potential to make you large amounts of money. We will try our best to find the best value stocks and growth stocks in the entire stock market!

Some of our favorite picks right now include Google (goog), Vasco Data Securities (vdsi), Royal Bank of Canada (ry), Yum Brands (yum), Boeing (ba), and Ormat Technologies (ora)! All of these stocks will be featured in detail in the coming posts, so stay tuned to this sites for more info on these great companies...

Remember though it is very important that you do your own research or contact your stock broker before making any investments. It is also important that you consider were you are in your life. Generally, the younger you are the more you can take risks in your stock picks. If you are nearing retirement you should be much more conservative with the stocks that you choose.

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