Here are great Dividend paying stocks I am considering in the event of a downturn!

Here is a breakdown of 10 excellent Canadian dividend-paying stocks, ranked by attractiveness for conservative portfolios, with all key metrics included. 

1. Royal Bank of Canada (RY.TO

• Yield/Payout: 3.3–3.7%, Payout ~43–46% 

• Valuation: P/E ~13.9×; P/B ~2.0× 

• ROE: Industry standard ~12–14%

• Sharpe: ~1.1 (5‑yr)

• Pros: Big‑5 stability, dividend safety, modest valuation, strong risk-adjusted returns

• Cons: Growth tied to domestic economy; interest sensitivity

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2. Toronto-Dominion Bank (TD.TO)

• Yield/Payout: 4.33–4.4%, Payout ~43% Valuation: P/E ~12.7×

• ROE: ~7.7% TTM (banks average higher) Sharpe: ~1.0

• Pros: High yield with strong dividend growth (12‑year streak), buyback-friendly

• Cons: Slightly lower ROE than closest peers

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3. Canadian Pacific Kansas City (CP.TO)

• Yield/Payout: ~0.9%, payout ~20–30%

• Valuation: P/E ~18–20× (rail sector)

• ROE: ~20%+

• Sharpe: ~1.0

• Pros: High efficiency, strong earnings growth, low leverage vs equity

• Cons: Minimal income component, exposure to cyclical trade volumes

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4. Manulife Financial (MFC.TO)

• Yield/Payout: ~3.8%, ~50–60% payout 

• Valuation: P/E ~10–12× typical for insurers

• ROE: Strong fiscal health (leverage ~23.9%) 

• Sharpe: Very low risk-adjusted returns

• Pros: A-rated balance sheet, 11-year dividend hikes, Asian growth engine 

• Cons: Underwhelming stock performance, sensitivity to credit/claims cycles

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5. Fortis Inc. (FTS.TO)

• Yield/Payout: ~3.66–3.7%, payout ~73%

• Valuation: P/E ~19.6×, P/B ~1.2× typical for utilities

• ROE: 7.4% 

• Sharpe: ~0.55–0.66

• Pros: 51-year dividend increase streak, low volatility, inflation hedge

• Cons: Slow growth, regulated earnings

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6. Pembina Pipeline (PPL.TO)

• Yield/Payout: ~5.3–5.5%, payout ~90% 

• Valuation: P/E ~16.8×

• ROE: ~11.6%

• Sharpe: ~0.35 (5‑yr), ~0.98 (1‑yr)

• Pros: Monthly cash flow, pipeline stability, covered dividends

• Cons: Commodity-linked cash flow; high payout

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7. Enbridge (ENB.TO)

• Yield/Payout: ~5.7%, payout ~140–142% IFF earnings 

• Valuation: P/E ~23.6×, ROE ~9.4%

• Sharpe: ~0.8

• Pros: 30-year dividend growth streak, fee-based contracts, secured backlog

• Cons: High accounting payout; exposure to regulatory, tariff risk

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8. TC Energy (TRP.TO)

• Yield/Payout: ~4.9–5.1%, payout ~88–97%

• Valuation: P/E ~16×

• ROE: ~13% (midstream avg)

• Sharpe: Moderate risk-adjusted; 1-yr ~1.5, 5-yr ~0.36

• Pros: Asset expansion in Mexico, utilities diversification

• Cons: Capital intensity; marginal earnings coverage

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9. Bank of Nova Scotia (BNS.TO)

• Yield/Payout: ~5.6–5.9%, payout ~89% 

• Valuation: P/E ~15.5×

• ROE: ~7.9%

• Sharpe: ~0.5

• Pros: Best yield among Big‑5, international footprint

• Cons: High payout; lower profitability

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10. BCE Inc. (BCE.TO)

• Yield/Payout: ~11–12%, payout astronomical (~600–900%+)

• Valuation: P/E ~71× trailing, forward ~10×

• ROE: ~15.5%

• Sharpe: Low due to financial leverage

• Pros: Highest yield, low beta (~0.6)

• Cons: Unsustainable high payout; reliance on debt, free cash flow issues

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How I might use these in my Conservative Portfolio

50% Core (Stability & Yield)

• RY, TD (15% each): Diversified bank income & safety

• FTS (10%): Low-growth anchor

• CP (10%): Blue-chip growth with little volatility

• MFC (5%): Insurance diversification and balance sheet strength

30% Income Enhancers

• PPL (10%) & TRP (10%): Monthly/quarterly cash flow with pipeline leverage

• ENB (10%): Stable, price-consensus income with growth potential

15% Income Booster (Risk Aware)

• BNS (7.5%): Extra yield balancing banks

• BCE (7.5%): Ultra high yield play—only in small position, tightly monitored

5% Tactical Cash Reserve

• Hold as cash or government bonds to hedge volatility or deploy opportunistically

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How This Works in a conservative portfolio

• Yield ~4–5%: Blended yield provides solid income with reliable coverage

• Diversification: Banks, insurers, utilities, pipelines, rail and telecom reduce correlation risk

• Valuation discipline: P/E focused on value vs growth; banks/utilities at ~12–20×, pipelines mid-teens

• Balanced volatility: Core holdings have Sharpe ~1; income enhancers moderate risk, tactical reserve cushions shocks

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Ed Note:

Depending on Political considerations going forward, we may consider moving Enbridge up!

How institutional trading algorithms “hunt” predictable retail behavior at scale (Protecting your stops)

 Some pointers for more advanced investors/traders!

Trailing Stops: How They Can Be Exploited (But Not Personally)

Concern	Explanation
Stop-Hunting by Algos	Algorithms can detect clustered stop zones (e.g., below technical levels or round numbers) and temporarily “sweep” the book to trigger stop-losses before reversing.
Order Book Visibility	Your trailing stop becomes a market order once triggered — it's not visible beforehand but creates predictable liquidity points.
Liquidity Gaps	In low-volume names (e.g., junior miners, small caps), trailing stops can be triggered by small trades due to thin order books.
AI-Driven Volatility Exploits	Sophisticated HFTs and quant funds model common retail behaviors (including trailing stops) to induce false breakouts or breakdowns.

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🧠 But to Be Clear:

• AI models do not and cannot know your personal trading activity.

• Brokerage firms, market makers, and hedge funds may see patterns, not individual identities.

• You're not being “watched” — but you're part of millions of patterns that models analyze.

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✅ Best Practices to Use Trailing Stops Wisely

Tip	Why It Helps
Use %-based stops on volatile names	Avoid predictable dollar thresholds
Place stops outside obvious zones	Not just under 50DMA or recent lows
Don’t auto-stop everything	Use mental stops or alerts in thinly traded names
Consider option collars	For hedging instead of stop-triggering in volatile stocks
Use trailing stops on ETFs or liquid names	Algos are less likely to manipulate high-liquidity instruments

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🔐 In Short:

• You are not personally at risk of AI systems tracking or targeting your trailing stops.

• But trailing stops in predictable zones can be “swept” by large players’ algorithms — so awareness and smart placement are key.

  TRY A VOLATILITY-ADJUSTED STOP SYSTEM

  This system uses each stock's average true range (ATR) or beta to place smarter stops — not just random 5% or 10% levels that algos can sniff out.

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  1. ATR-Based Trailing Stops (Preferred for Volatile Stocks or ETFs)

  Step	How to Do It
  Find ATR (14-day)	Use any charting platform (e.g., TradingView, StockCharts, Yahoo)
  Set trailing stop	1.5× to 2.5× ATR below recent high or purchase price
  Example	SMCI ATR = $16 → Stop = $32 to $40 below high

  ✅ Adapts to daily volatility. Gives room to breathe, avoids random wicks.

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  2. Beta-Weighted Stop Ranges (Good for Portfolio-Level Planning)

  Beta Range	Suggested Stop %	Notes
  0.0 – 0.7	4–6%	Lower-risk defensive/utility names
  0.7 – 1.2	7–10%	Average-volatility equities
  1.2 – 2.0	10–15%	Tech, biotech, high-growth
  2.0+	15–20%+	Ultra-volatiles: AI, biotech, crypto stocks

  ✅ Good for position sizing and risk control across different risk buckets.

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  📉 3. Technical-Level Stops (Supplemental Logic)

  • Use pivot lows, trendline breaks, or support zones for “technical” backup.

  • Combine with ATR: e.g., “whichever is lower: 2× ATR or break below 20DMA.”

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  💼 4. Position-Specific Application Example

  Ticker	Volatility Measure	Suggested Stop Type	Notes
  NVDA	ATR = $28, Beta = 1.6	2× ATR or ~12% trailing	Liquid, earnings-sensitive
  NXE	ATR = $0.55	Use fixed % stop: 15%	Thin volume; avoid tight stops
  PLTR	Beta = 2.0+	15–20% mental stop only	Avoid auto-trigger; fades/whips common
  CCO.TO	ATR = $1.20	1.5× ATR (~$1.80 stop)	Moderate volatility, good for physical stop

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  🚨 5. Do’s and Don’ts

  ✅ Do	❌ Don’t
  Use volatility metrics to size stops	Place arbitrary % stops (e.g., 10%)
  Trail stops only after breakout	Use tight stops in low-volume names
  Use alerts to monitor levels	Depend 100% on automated execution
  Adjust stops weekly (not daily)	Chase price with stops intraday

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  🧮 BONUS: Excel Formula Template (Pseudo-code)

  If using a spreadsheet:

  = IF(Volatility = "ATR", EntryPrice - (2 * ATR), EntryPrice * (1 - Stop%))

Income and Capital appreciation are the two aims of The Amplify CWP Enhanced Dividend Income ETF (DIVO)

 

The Amplify CWP Enhanced Dividend Income ETF (DIVO) is an actively managed exchange-traded fund designed to provide investors with a combination of current income and capital appreciation. It achieves this through a strategic blend of high-quality, dividend-paying U.S. equities and a tactical covered call options strategy.Amplify ETFs

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📌 Fund Overview

• Inception Date: December 13, 2016

• Expense Ratio: 0.56%

• Assets Under Management: Approximately $4.35 billion

• Management Style: Active

• Primary Objective: Current income

• Secondary Objective: Capital appreciation

• Amplify ETFsBarron's+12Dividend.com+12Investopedia+12Kiplinger+5U.S. News Money+5FT Markets+5ETF Database+22StockAnalysis+22MarketWatch+22

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💰 Income & Yield

• Dividend Yield: Approximately 4.78% as of June 2, 2025

• Annual Dividend: $1.96 per share

• Distribution Frequency: Monthly

• Recent Payout: $0.165 per share on May 30, 2025Amplify ETFs+2StockAnalysis+2Seeking Alpha+2ETF DatabaseTipRanks

DIVO's income is derived from dividends of its underlying equity holdings and premiums collected from writing covered call options. This combination aims to provide a steady income stream for investors.

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📊 Performance Snapshot

• 1-Year Return: +12.27%

• 3-Year Return: +9.76%

• 5-Year Return: +11.22%

• Since Inception: +11.89%YCharts+8Yahoo Finance+8Dividend.com+8Amplify ETFs

These returns reflect DIVO's strategy of balancing income generation with potential for capital growth, making it appealing to investors seeking a blend of both.

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🧠 Investment Strategy

DIVO focuses on investing in high-quality, large-cap U.S. companies with a history of dividend and earnings growth. The fund's sub-adviser, Capital Wealth Planning (CWP), employs a tactical covered call strategy, writing call options on individual stocks within the portfolio when market conditions are favorable. This approach aims to enhance income without significantly sacrificing upside potential.Morningstar+2Amplify ETFs+2MarketWatch+2

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🏢 Top Holdings (as of May 29, 2025)

Company	Ticker	Weight
Invesco Government & Agency Portfolio	AGPXX	8.04%
Visa Inc.	V	5.23%
IBM	IBM	4.99%
CME Group Inc.	CME	4.98%
The Home Depot, Inc.	HD	4.93%
JPMorgan Chase & Co.	JPM	4.89%
The Goldman Sachs Group, Inc.	GS	4.82%
American Express Company	AXP	4.55%
Microsoft Corporation	MSFT	4.53%
Honeywell International Inc.	HON	4.41%

These holdings reflect DIVO's emphasis on financially robust companies across various sectors.

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🧭 Suitability

DIVO may be suitable for investors seeking:

• Consistent monthly income

• Exposure to high-quality, dividend-paying U.S. equities

• A tactical approach to covered call writing

• Potential for capital appreciation alongside incomeAmplify ETFs

However, investors should be aware that the fund's use of covered calls can limit upside potential in strongly bullish markets. Additionally, the fund's performance is subject to market risks associated with its equity holdings.

Here's an aggressive way to enter the Agentic Ai stock race if you're seeking high reward that carries high risk!

 

here's a high-conviction Agentic AI stock watchlist for an aggressive portfolio, including ideal buy ranges, key catalysts, and what to watch for each company. This is geared toward catching breakouts or deep-value setups before broader institutional moves.

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🔧 AGENTIC AI CREATORS (BUILDERS)

1. C3.ai (Ticker: AI)

• Ideal Buy Range: $22 – $28

• Catalyst to Watch:

  • New generative AI enterprise product launches (esp. AI agents for defense/oil & gas)

  • Major U.S. government contract renewals or expansions

• Why it’s on the list: First-mover advantage in enterprise AI platforms; if execution improves, the upside is enormous.

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2. Symbotic (Ticker: SYM)

• Ideal Buy Range: $33 – $38

• Catalyst to Watch:

  • New mega-retailer partnerships (Amazon, Target, etc.)

  • Expansion into full-agentic warehouse orchestration

• Why it’s on the list: Already profitable and scaling; its tech uses autonomous decision-making across supply chains.

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3. Recursion Pharmaceuticals (Ticker: RXRX)

• Ideal Buy Range: $5.50 – $7.50

• Catalyst to Watch:

  • New AI-discovered drug candidates entering clinical trials

  • Further expansion of NVIDIA partnership

• Why it’s on the list: One of the few companies using AI agents to autonomously identify disease-drug interactions.

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🚀 AGENTIC AI BENEFICIARIES (ADOPTERS)

4. Tempus AI (Ticker: TEM)

• Ideal Buy Range: $30 – $36 (as a new IPO, use limit orders around pullbacks)

• Catalyst to Watch:

  • Major hospital system deals

  • Partnerships with genomic leaders (e.g. Illumina, Roche)

• Why it’s on the list: Early innings of precision medicine + AI agents = potentially massive future upside.

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5. Axon Enterprise (Ticker: AXON)

• Ideal Buy Range: $275 – $295

• Catalyst to Watch:

  • Release of AI-powered real-time monitoring or predictive tools

  • Federal/DoD AI safety tech contracts

• Why it’s on the list: Dominates public safety; building autonomous surveillance systems in-house.

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6. Samsara (Ticker: IOT)

• Ideal Buy Range: $30 – $34

• Catalyst to Watch:

  • Launch of AI co-pilots or agents for fleet automation

  • Expansion into non-logistics industries (e.g. construction, food supply)

• Why it’s on the list: Already uses agentic loops for logistics and safety — sticky B2B model with scale potential.

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📋 Summary: Watchlist Snapshot

Ticker	Name	Ideal Buy Range	Key Catalyst
AI	C3.ai	$22–$28	New enterprise AI agents/contracts
SYM	Symbotic	$33–$38	Expansion into new retail/logistics
RXRX	Recursion	$5.50–$7.50	Drug pipeline + Nvidia push
TEM	Tempus AI	$30–$36	Genomics/healthcare expansion
AXON	Axon	$275–$295	AI-enabled law enforcement tools
IOT	Samsara	$30–$34	AI co-pilot expansion to new verticals

Ed Note:

We own several of the stocks listed here with the rest on our watch list!

Here is a list of cutting edge, smallcap biotech stocks we own and in order!

 

Generative AI is transforming healthcare faster than almost any other sector, according to a new McKinsey report

Here is a ranked analysis of cutting edge healthcare/pharmaceutical smallcaps, based on (1) proximity to a breakout therapy and (2) investment attractiveness as of now — combining clinical pipeline momentum, FDA progress, partnerships, recent data, and stock performance potential.

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🔬 Ranked by Breakout Therapy Proximity

This is based on the likelihood of a near-term breakthrough therapy (FDA fast-track, pivotal results, major data readouts).

Rank	Ticker	Company	Breakout Potential Highlights
1	VKTX	Viking Therapeutics	Breakthrough obesity/NASH drug (VK2809, VK2735) with massive upside in GLP-1/obesity boom. Phase 2 data strong; entering late-stage.
2	CABA	Cabaletta Bio	Autoimmune pipeline (CABA-201) showing transformative early results in lupus and other autoimmune diseases. Similar strategy to CAR-T, now with safety upside.
3	NTLA	Intellia Therapeutics	In vivo CRISPR for ATTR and hereditary angioedema (HAE). First-ever systemic CRISPR success in humans. Pivotal trials advancing.
4	CRSP	CRISPR Therapeutics	Exa-cel approved for SCD and TDT (partnered with Vertex); potential for next-gen CRISPR 2.0 programs. Already a breakout, but priced in.
5	BEAM	Beam Therapeutics	Base editing platform; BEAM-101 for SCD in Phase 1/2; AATD candidate recently dosed. Long runway but slower than CRISPR/NTLA.
6	VERVE	Verve Therapeutics	Base editing for cardiovascular diseases (e.g. PCSK9, ANGPTL3). First-in-human data still early, but long-term potential.
7	ARCT	Arcturus Therapeutics	Self-amplifying mRNA platform. Has vaccine deals (Meiji, CSL) and cystic fibrosis program in preclinical. Earlier stage, undervalued.
8	PHAT	Phathom Pharmaceuticals	Gastrointestinal therapies (e.g. Vonoprazan) targeting acid-related disorders. Recently got FDA approval — modest market.
9	IMMX	Immix Biopharma	Early-stage oncology and rare disease company. Some interesting candidates, but very speculative at this point.

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💰 Ranked by Investment Attractiveness Right Now

Factoring in upside potential, stock price discount, market trends (GLP-1s, gene editing), and partnerships.

Rank	Ticker	Reasons to Consider Buying Now
1	VKTX	Best GLP-1/NASH play outside of LLY/NVO. Stock is below recent highs. Phase 3 path = massive upside.
2	CABA	Autoimmune breakthrough potential. Stock pulled back after big run = possible entry. Partnered with BMS.
3	NTLA	Undervalued after pullback; ATTR and HAE pipeline solid. First-mover advantage in in vivo editing.
4	ARCT	Undervalued RNA tech with global partners. COVID mRNA success + pipeline optionality.
5	CRSP	Already approved drug; priced in, but pipeline optionality and Vertex partnership still strong.
6	BEAM	Long-term value play. Base editing unique, but needs human data.
7	PHAT	Revenue coming in from recent approvals, but upside more limited. Good as a value biotech.
8	VERVE	Promising pipeline, but long timeline. Recent safety setbacks = wait for reentry.
9	IMMX	Pure speculation. If investing, do so in very small amounts or avoid unless speculative appetite is high.

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🧪 Conclusion – Top 3 Right Now:

1. VKTX – Leading obesity/NASH contender; huge upside, fast-moving.

2. CABA – Emerging autoimmune disruptor; next-gen cell therapy.

3. NTLA – First-in-class CRISPR success; attractive valuation now.

Here’s a suggested portfolio weighting if you're investing across these nine biotech stocks, with emphasis on balancing breakthrough potential, clinical proximity, market trends (e.g., GLP-1/NASH, gene editing), and risk-adjusted upside:

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🎯 Suggested Portfolio Allocation (100%)

Ticker	Company	Weight (%)	Rationale
VKTX	Viking Therapeutics	22%	Flagship position. Strong GLP-1/NASH pipeline with large-market potential and near-term catalysts.
CABA	Cabaletta Bio	18%	High-upside autoimmune play. Early but transformative CAR-T-like therapy with major big pharma interest.
NTLA	Intellia Therapeutics	15%	First-in-human systemic CRISPR success; undervalued after pullback; strong ATTR/HAE path.
CRSP	CRISPR Therapeutics	12%	Approved therapy (Exa-cel) + broad pipeline. Still solid but partially priced in.
ARCT	Arcturus Therapeutics	10%	Undervalued RNA tech; good optionality via partnerships and CF/mRNA platforms.
BEAM	Beam Therapeutics	8%	Base editing pioneer; longer-term play with promising science but needs more human data.
VERVE	Verve Therapeutics	6%	Base editing in heart disease = big TAM, but safety setbacks suggest caution for now.
PHAT	Phathom Pharmaceuticals	5%	Recently approved drug, small but growing market; value-oriented slice.
IMMX	Immix Biopharma	4%	High-risk/high-reward microcap. Small speculative exposure only.

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🧠 Notes:

• You could simplify this into a Core + Satellite approach:

  • Core (70%): VKTX, CABA, NTLA, CRSP

  • Satellite (30%): ARCT, BEAM, VERVE, PHAT, IMMX

• If you prefer a higher-risk/reward tilt, increase weightings in CABA and ARCT, and trim CRSP or PHAT.

• If you want more defensive biotech exposure, boost PHAT or CRSP slightly, as they’re closer to revenue or approval stages.

  How Beam Therapeutics (BEAM) in collaboration with researchers at the University of Pennsylvania and Children’s Hospital of Philadelphia saved baby KJ