Skip to Content

Are You Putting Money To Work in This Market?

Are you people putting money to work in these crazy markets? In this post I discuss where I see value and where I’m putting my money to work.

Asset Markets have been on quite the roller coaster ride the past few years. The ups and downs have everything to do with inflation and rising interest rates.

Higher rates have made traditional cash type investments like savings accounts, Guaranteed Investment Certificates (GICs) and Money Markets much more appealing for investors. As I’ve said before, I don’t mind earning 5% on cash at all. Prior to 2022, earning 5% on dividend stocks was pretty good.

Today the passive income investor is in a great position to earn outsized income on a variety of investments in different asset classes. Not that I’m a huge fan of bonds, but they are yielding in the 4% to 5% range. Those are the best yields we’ve seen in 20 years.

Same goes for GICs. You can lock in under 2 years for about 4.5% and for 5 years around 3.25%. Nothing to brag about but definitely better than the pitiful sub 1% we saw throughout the last decade.

Money Market Funds and ETFs are all yielding around 5% which is substantially better than the 0.1% of the last decade.

investing in dividend stocks

Finally, I’m seeing a lot of dividend paying stocks that have yields in the 5% to 8% range. And this is where I’ve been putting my monthly savings. I’ve stayed away from the big Canadian Banks because I think there is a real risk of financial crisis in Canada. If Banks stocks collapse (like they did in 2020 and 2008) then I’d be buying some starting with Royal Bank.

I see real opportunity in the beat up pipeline, utility and telco sectors. Enbridge, TC Energy, Fortis, Emera, Telus and BCE. Energy is also looking decent here, especially if we get a growth scare. Many big names like Canadian Natural Resources and Suncor are yielding around 5%.

Finally, for risk takers, gold miners are incredibly out of favour and left for dead. It was recently reported that Stan Druckenmiller sold some tech to buy Barrick and Newmont. Sell high, buy low…right?

Since becoming debt free I’ve made it my mission to rebuild my family’s passive income portfolio. Last year we earned a little over $32k. This year I’m shooting for $43k. With stocks like BCE and ENB yielding 8% and our cash earning 5%, we should hit that number with ease. If rates come down then we’ll also get a nice capital gain to boot!

Save, Invest, Build Wealth and Prosper

In case you’re wondering here’s where we park our money and some financial services that we use (please note these are affiliate links where we receive small compensation for signups and sales):

For our precious metals and coin capsules, we use Silver Gold Bull because they price match and offer fast, insured, delivery.

We also own some crypto currencies like Bitcoin and Ether through Shakepay. If you’re interested in buying some here is our referral link to Shakepay and get $10 to try it out. We buy Bitcoin on Shakepay and transfer it to a Ledger cold storage wallet to keep our crypto secure.

For our Daily banking we use Tangerine because they offer incredible products and no-fee banking.

For investing we use Questrade because it offers incredible value with low cost stock purchases and free ETF purchases.  If you haven’t done so already, check out my Questrade Review to see why it’s the best deal around.  Get $50 in Free Trades when you signup for Questrade through this link.

Please note: this page contains affiliate links.  As an affiliate, this blog receives a commission for each sign up for Tangerine, Shakepay, Borrowell, Questrade, Amazon, Silver Gold Bull and Bluehost.