WilliamMLeighty634 blog

Many Canadians continue to use the Registered Retirement Savings Plan (RRSP) to save towards retirement. However, many also use it in quite a haphazard way. They make contributions here and there, and this can lead to a big problem: missing the RRSP deadline. The RRSP deadline came and went on March 1. Let’s figure out a way to make a plan for the upcoming year and never miss that deadline again. Start out with a goal Before you even start contributing what you can to your RRSP, make sure to have a goal in mind. That goal is going to be what you need in order to retire comfortably in the next few years or decades. This can be done by meeting with your financial advisor and should be revisited at least every few years. One thing you’ll discover is that you also can’t just put a huge chunk away. The RRSP also has a contribution limit, which you can find online through the Canada Revenue Agency (CRA) My Account. After you’ve discussed your goals and how much you’re able to con...

You can build your own dividend stock exchange-traded fund (ETF) with no recurring management fees by investing in commission-free accounts such as at National Bank of Canada or Wealthsimple. In terms of defensive dividend stocks to buy and hold for the next decade, you can consider these names. Fortis stock In the past, Fortis (TSX:FTS) stock has delivered market-like returns. For example, in the last decade or so, the utility stock has returned -7.6% in the worst year. And in the best year, it returned 33%. Its compound annual growth rate (CAGR) in the period was about 8.4%. This aligned well with the much diversified Canadian stock market, using iShares S&P/TSX 60 Index ETF as a proxy. The ETF’s worst year returned -7.8%, the best year returned 28%, while the CAGR was 8.5% in the period. Investors trust Fortis as a blue-chip stock, which has an achievement of almost half a century of consecutive years of dividend increases. Its 10-year dividend-growth rate is 6.1%. Thr...

It’s tax time, and while tax season may be filled with doom and gloom, remember that in many cases you may be entitled to a refund! In fact, there are also plenty of tax benefits and credits that Canadians are missing out on, with the Canada Revenue Agency (CRA) reporting over $1 billion in unclaimed credits in 2021 alone. However, once you get that tax refund, it can be so incredibly easy to spend it. This is cash you’re being given back from the government, and it’s finally yours once more! But before you go out and buy a new television, there are some things to consider. recession is coming Do you have an emergency fund? How about debt? These are the first places I would consider putting my tax refund as a recession looms. Paying down debt, in particular, is a solid choice. Now I’m not saying you should put every penny towards your mortgage. However, if you have high-interest loans from credit cards or student debt, this is a perfect place to put your cash. As for the eme...

Investing in quality growth stocks is a popular strategy on Bay Street, as it allows you to generate exponential gains. Moreover, the massive drawdown in the valuations of growth stocks now allows shareholders to go bottom fishing and buy the dip. Canadians can consider building a portfolio of growth stocks and holding them in a TFSA, or Tax-Free Savings Account. Any returns generated in the TFSA in the form of capital gains are exempt from the Canada Revenue Agency. The maximum cumulative contribution room in the TFSA has grown to $88,000 in 2023. So, let’s see how you can use this contribution room to own growth stocks and build your TFSA portfolio to $1 million by 2035. Shopify stock One of the fastest-growing stocks on the TSX, Shopify (TSX:SHOP) was also the largest Canadian stock in terms of market cap back in November 2021. However, a challenging macro-environment meant Shopify’s top-line growth decelerated rapidly in 2022, driving share prices lower by 80% from all-...

Shares of Cargojet (TSX:CJT) fell 10.8% following its fourth-quarter financial results. The company that offers time-sensitive premium air cargo services in North America missed Street’s earnings forecast, which didn’t sit well with the investors.  Cargojet’s revenue of $267 million increased 13.2% year over year and came ahead of the analysts’ expectation of $259.8 million. However, its adjusted earnings of $0.90 per share fell short of Wall Street’s consensus estimate of $1.96.  The company’s management blamed COVID-era extra costs and lower-than-expected volumes in November and December for the pressure on margins. However, this pressure on margins is transitory, and management has already taken cost-control initiatives, which will likely cushion its margins in the coming quarters. Meanwhile, this pullback in Cargojet stock is an excellent opportunity for investors to buy and hold its stock for the long term. Let’s look at factors that support my bull case.  ...

The North American construction sector has been a top performer in recent months. It’s caught many by surprise, so I thought it would be useful to shed some light on what’s going on. Two major forces are at play in propping up North American construction companies. The first is the aging infrastructure. With much of North America’s infrastructure having been built in the mid 1900s, it has become too old, too outdated, and ready for a face lift at a minimum. The second is the move toward sustainability. This is increasing demand for many new renewable energy projects, as well as non-energy projects in the fight against climate change. Of course, these projects need infrastructure. And construction companies like Aecon Group Inc. (TSX:ARE) are seeing increased demand because of it. In fact, 60% of Aecon’s 2022 revenue is tied to sustainability projects. But this is just the beginning, as Aecon and other North American construction companies continue to see strong demand i...

Retirement is a serious thing. It’s supposed to be enjoyable, but it can be incredibly stressful when it comes to the financial aspect. After all, your entire future rests in the ability of your finances to take on the load. That’s why creating $1,000 each month can be a lifesaver. Sure, you have income perhaps through pensions, the government, and your savings. But every bit helps — especially when you consider that your costs may not go down but up, as you age and need more assistance. Therefore, today, I’m going to focus on how to safely create that income each and every month. Don’t just choose one or two stocks! Instead of investing in one or two stocks for your retirement, it’s far better to have a diverse portfolio if you’re seeking passive income. Consider exchange-traded funds (ETF) for this reason. What’s great is that these funds are managed by financial advisors. It’s like have a whole team at advisors looking out for your best interest. What’s more, you can nar...