In this series, I am sharing what my holdings are (or what I bought) in my Tax Free Trading Account for 2011. I had income trusts in 2010 and sold them all off due to being weary about what might happen come January (which is now a few months ago– time flies!) when they slash their distrubutions due to them being incorporated.
Here goes- put on your thinking caps:
I’ll give a major hint first. It’s a very boring stock (just like My Own Advisor’s Enbridge Stock) and it was never an income trust (so no conversions involved for this big guy).
- The P/E ratio is about 11.19
- The dividend yield is about 4.51% annually (I know it’s not like the 8-9%’s but this is a much bigger company with much more trading volume)
- That 4.51% annually is about $1.44 per share annually
- Its 52 week high was $34.39 a share and the low was $23.58 (which would have been a very good entry point! Hindsight’s always 20/20 🙂 )
- They have increased their dividend yield consistently (which is a very good thing for investors)
- This is an even bigger hint- it’s primarily known as an insurance company.. but also has diversity in selling mutual funds, annuities, pensions, invstment management and even banking around the world.
- And unlike their competitor, Manulife, they didn’t slash their dividend in half when the going was tough (though Manulife’s earnings is heavily based on the stock market)
- I’m sure you have guessed it by now!
- I should have probably held it in my non-registered portfolio because of the preferential tax treatment on the dividend income, but it’d be nice not to pay capital gains when I sell.
Have you guessed it yet? This is by far the easiest one to guess because everyone knows or has heard of this major Canadian corporation.
It is.. Sunlife! Yeah.. the picture associated with this post was a big giveaway.
Yes, the same Sunlife you see in those commercials about life insurance and investing with a financial advisor, because “Life’s brighter under the sun”.
I held Manulife in the past outside of my registered portfolios and decided on Sunlife this time because of its low P/E and sense of stability. I also prefer Sunlife to Manulife because first off, Manulife pissed everyone by slashing their dividends back when the economy was in worse off shape than it is now, and Manulife’s earnings are heavily affected by the stock market. Also, Manulife’s P/E is something ridiculous like 155!
Readers, do you hold Sunlife in your portfolio? What do you think of it?