Sunday, July 1, 2007

2007.5 - Way Forward Plan

With the Ontario Teachers Pension Plan and its U.S. backers, Providence Equity Partners and Madison Dearborn Partners LLC, winning the BCE auction, many Canadian investors will now be looking elsewhere to place their hard-earned dollars with most eyes likely looking at other dividend paying stocks. It will be interesting which companies will benefit the most from this large move of capital. Will it be BCE's competitors like Rogers and Telus, the banks, or the once high-flying income trusts?

One of my main strategies going forward will be to take advantage of dips in high-quality Canadian dividend paying stocks in order to develop a portfolio with reliable and steadily increasing dividend payouts.

With my recent change in employers, I will have to make changes to my RRSP and pension accounts within the next couple of months. Hence, the second half of the year is the perfect time to focus my efforts on setting out on a clear direction for my RRSP. Until now, I have contributed to my non-work-related RRSP account to reduce my income tax payments but haven't touched those cash deposits. As a result, I have missed out on a great opportunity to have my RRSP grow in value. Although, I'm still considering my options, I'm leaning towards making RRSP investments in one or two income trusts, and possibly a high-yielding American dividend paying stock. I don't have as much wiggle room inside my RRSP as compared to my non-registered account so I'll have to more disciplined in my approach.

Happy Canada Day!

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