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For growth and income, Keyera is a solid candidate

Hello Lou,

I am 65, retired and I have designed my dividend portfolio for growth and income.

I have made some choices for my portfolio: 50 per cent KEY, 25 per cent PPL and 25 per cent IPL.UN.

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I like the monthly dividend and DRIP option. These three companies represent the same sector. Should I add some financial companies and do you recommend any banks?

I love your segment on AM640 Radio with John Oakley.

Andrew



Hi Andrew,

Congratulations on reaching the promised land! They say retirement comes at the end of your working career because it's the best part. Thanks for your support of the John Oakley Show on AM640. It is very much appreciated!

I will examine the case for Keyera Corp. and follow up on the other two in subsequent posts. Let's spend some time reviewing your choice of KEY.



The three-year chart certainly validates your evaluative process. This chart is what I would call a real oil painting! It has all the factors that you would want to see on a stock that you owned. There is a solid uptrend line that started in March of 2009, which has been tested but not broken in 31 months.

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There is also a golden cross that formed in August of 2009, indicating that the advance had some strength behind it. Finally, the stock has tested support along the 50-day moving average numerous times over the course of the uptrend. It doesn't get better than this given your twin objectives of growth and income.

Does this mean that you should put your statements in a drawer and never look at them? Obviously not. You have to watch your money every day to make sure that your position continues to meet your targets.





The six-month chart illustrates the sharp drop the shares experienced during the August 2011 panic selling, What is informative is that buying came in aggressively when the stock hit support at $39.00 and poured water on the fire. Currently, the MACD looks to be bending to the upside suggesting that there is more in the tank.

Make it a profitable day and happy capitalism!



Have your own question for Lou? Send it in to lschizas@globeandmail.com.

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About the Author
Lou Schizas

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality - and a true believer in the happiness-inspiring powers of capitalism. More

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