In the past, I’ve both nicely and not so nicely disagreed with what certain bloggers have had to say. I’m not afraid to bring down the gauntlet of mocking to a post that deserves it. You’ll notice I never insult the blogger themselves, but I have no problem taking it to the steamer of their idea. We’re all friends, I know. But friends don’t let friends write stupid blog posts.

Saying that, there one particular blog that stands out in its ability to consistently bore us with the most basic of frugality tips, the most pedantic of writing styles and the ability to not be the least bit entertaining, even by accident. If I didn’t know any better, I’d say this particular writer farmed out all his content to Mumbai.

And yet, I continue to consume his content. Admit it, you do too. Yes, I’m talking about The Simple Dollar.

I’ve crapped on Trent many times before. I made fun of his stance on ads. I pointed out the flaws of his investment strategy. My dislike of his blog is apparent, at least to long term readers. Nothing new to see here, but feel free to click some of the links if you’re a newer reader.

Anyway, just when I thought Trenty couldn’t outdo himself, along came his latest steaming turd series of blog posts. A few years ago, Trent wrote a book called “365 Ways To Live Cheap” and for some reason a publisher decided it would be a good idea to go ahead with it. So, instead of actual content, Trent is rehashing these 365 tips, one per day, for the entire day.

And let me tell you, 96% of it is pure comedy gold. Let’s take a look at a few samples, shall we:

Several months ago, I was curious about how much heat was lost when I opened up the oven to inspect a dish cooking in there. I put an oven thermometer in the oven, waited until the dish I was cooking was almost finished (a casserole cooking at 400 F), then opened the oven door for about ten seconds to inspect it.

During those ten seconds, the thermometer dropped almost 20 degrees. When I closed the door, the temperature slowly returned to 400 F, but during that period, the oven had to put in some extra work to return that heat.

How much? It’s really difficult to exactly calculate that without a meter running specifically for the oven. My best estimate, using a lot of math and thermodynamics, is that you lose about $0.02 worth of energy every time you open the oven door.

Come on people! Do you not know the reason why you’re all poor? Because I do. Personally, I’ve opened the oven door at least twice per month for the past 5 years. AT LEAST! At 2 cents per opening, I’ve literally wasted $1.50. Over a 5 year span. No wonder I’m not rich yet.

Gee, I wonder how much food I’ve thrown out in that 5 year span. WHO CARES! I’M SAVING LITERALLY PENNIES A WEEK!

Oh, there’s more. Have you ever thought of how you’re affecting your gas mileage by the stuff you carry in your trunk? Yeah, me neither. Still, Trent’s got you covered.

For example, let’s say you’re matching the extra weight that a friend of mine (who we’ll call Cathy) carries in her car. She consistently carries (mostly) unused car seats in the back seat of your car, plus she hauls around a box of books in the trunk along with a few other excess items. The sum total of that extra load is about 70 pounds.

That means, depending on the model, Cathy is burning an extra 0.7 to 1.4% in gas just due to this extra weight. Let’s say it’s 1%.

If her car gets 20 miles to the gallon with the weight in it and she commutes, putting 20,000 miles on it per year, she’s burning 9.9 extra gallons of gas per year just due to carrying the extra junk.

Say goodbye to $33 or so a year in just fuel costs, Cathy.

Man, don’t you all just hate Cathy? Why wouldn’t she take out those car seats? I’m sure her kids don’t really need them anyway.

Did you notice how Trent used pretty much the worst case scenario to prove his point? Who only gets 20 MPG anymore, unless you’re driving a big-ass SUV or pickup truck? 20,000 miles per year? But the average American only drives 13,000 miles.

Even the worst case scenario means you lose an entire $33 per year. Don’t you people get it? That’s literally tens of dollars. How long would it take Cathy to take out those car seats all the time? WHO CARES! THERE’S SAVINGS AT STAKE!

But wait, there’s more. Ever wonder about the cost savings of keeping your tires properly inflated? Of course you haven’t. Take it away Trentster.

Right next to the gas station is a free air pump, which I use about once a month or so. After I fill up, I drive over to the air pump, pull out my air gauge, check the pressure in each tire, and fill it up to the maximum recommended pressure as suggested in my car’s manual (see – there’s that car manual mentioned again).

Quite often, I’ll stop there before dropping off my daughter. She’ll get out of the vehicle with me, talk to me while I’m airing up the tires (she doesn’t quite have the finger strength to actually air them up, though we’ve tried), and often she’ll help me pull the air tube around to the proper position so that I can air up each tire.

It’s a bit of father-daughter bonding, sure, but it’s also saving me some money and subtly teaching her about a really valuable tip for auto maintenance.

Look, I’m no parent, at least I think. Nothing’s been proven, anyway. So take this with a grain of salt. But Trent’s daughter is all of 3 years old. He’s dropping her off at preschool. The last 3 year old I met could barely put together an entire sentence. They, as a group, still crap their pants occasionally. And yet he’s teaching her about basic car maintenance? Stay tuned for his next post, teaching his kids the fine points of dating. (2-1 coupons and plenty of free picnics in the park. And condoms? A waste of money, and you can easily make your own using discarded balloons.)

Oh, and also, if there’s a small leak in your tires if you’re needing to fill them up once a month.

There’s more, but let’s not go nuts. Next Friday, the thrilling conclusion.

 

And you know what? It was delicious.

Yeah, I know that their burgers are 32% soy, or horse, or whatever. And yeah, I saw Super Size Me. I know McDonalds is probably worse for you than crack mixed with crystal meth mixed with cancer. Most of the time, I avoid the place. But once a month or so, I end up there for a meal, and it is fantastic. Do I care if it’s bad for me? OH HELL NO. Those new angus burgers they have are pretty solid. It’s like McDonalds finally figured out that grown ups like burgers too.

I’m trying to write this as I watch a documentary about Steve Bartman and his infamous interference during the 2003 NCLS between the Cubs and the Florida Marlins. And it is fascinating. They’re showing footage from inside Wrigley Field that night, and AT LEAST half of the people there legitimately wanted to kill the guy. It security hadn’t intervened, I’m pretty sure the guy would be dead. It’s been close to 10 years now, and Cubs’ fans just can’t forget about this. Yet, nobody remembers Cubs shortstop Alex Gonzalez dropping a tailor made double play ball which would have gotten the Cubs out the inning with their lead intact.

Besides Cub fans, the reason your team can’t win isn’t because of some stupid goat curse. It’s because God hates Cubs fans.

Song I Like And Therefore You Should Too

As much as it pains me to say this, I’m going to anyway. The new Nickelback song isn’t terrible. I’m not going to make you listen to it or anything, it just had to be said. Instead, in honor of how cold it was this week, this Arcade Fire song probably could have been my theme song.

Simpsons Quote

Troy McClure: Hi! I’m Troy McClure – you may remember me from such Fox TV specials as ‘Alien Nose Job’ and ’5 Fabulous Weeks of the Chevy Chase Show.

Gambling Is Fun

I went 2-1 last week. Nice work by Tim Tebow screwing me over. All he needed to do was keep it close, but apparently God does not approve of me making imaginary money off his boy.

I think the Giants will beat the 49ers, so I’m going to take them plus the 3 points. I’m going with Chicago to go into Nashville and beat the Predators. And finally, let’s go with Kim Clijsters to beat whoever she’s playing, since she has a funny name. Is betting on Tennis a new low for me? Discuss in the comments.

So I’ve booked my holidays, I’m heading to the lights of Sin City exactly 2 weeks from today. Will I wager actual cash on sports while I’m there? YOU KNOW IT. I will also place some cash on some of those ridiculous Super Bowl prop bets, because apparently I like throwing money away.

Overall record: 16-21-2

A Post You Might Have Missed

Wednesday will mark the 2nd anniversary of Financial Uproar. I know, I can’t believe it either. Considering my work ethic and attention span, I gave this thing a month, tops.

Anyhoo, go check out my first ever post in celebration. And would one of you buy me a cake, dammit? Also, don’t laugh at how bad that first post is. Please. I’ll cry if you do. Nobody wants to see that… again.

The More You Know

Good thing I’m not doing this on Wednesday, or my random Wikipedia goodness would have been useless. USELESS I TELLS YA!

Eli Herring is a former Brigham Young University (BYU) offensive tackle who decided not to play in the National Football League for religious reasons involving working on the Sabbath and made his intention clear to all NFL teams prior to the 1995 NFL draft. Nonetheless, the devout Mormon was drafted in the 6th round by the Oakland Raiders. He is one of few people to get drafted in the NFL after declaring an intention never to play. He now is married with seven children and works as a school teacher and assistant football coach at Mountain View High School in Orem, Utah.

Really Eli? You’d rather be an assistant football coach than an NFL star? Nice decision making process.

Pick A Stock. Any Stock.

My favorite guest of all (Benj Gallander) was on Market Call Tonight this week. And yes, I enjoyed the crap out of it.

Anyway, one of his top picks was ATS Automation. They’re a auto parts manufacturer, who has been having some problems lately, due to a partially owned subsidiary in France. But they still make money, have a pretty solid balance sheet and should recover once they can deliver better results to the market.

Babe Loosely Related To Finance

Let’s go back to the well that Ms. Nose In Book left us, shall we?

Sofia Vergara has a new clothing line at Kmart, which is part of Sears Holdings, which was a stock pick a few years ago. Do you see how it all fits together? Also, Kevin Bacon.

Is there anything sexier than leopard print? Well, besides if she took off the leopard print?

Time For Links

Less than a full week after my guest post, Money Rabbit is quitting blogging forever. But who am I going to awkwardly hit on/stalk them while doing yoga now? Does anyone know if Young and Thrifty does yoga?

Speaking of Y&T, she got her blog redesigned this week. It’s a good thing it looks better, cause she’s still writing the same old crap! Hey-o! Nah, I kid. Go check out her bloggers for charity post, about kids in Nepal or something. I stopped reading after I saw her address was blocked out on her donation receipt. She clearly saw me coming.

Hey, we’re gone a whole 2 links without linking to something I wrote. Well, that’s truly a shame, so I order invite you to go check out my own take on the boring old risk tolerance quiz over at My University Money. It’s funny, at least to the guy who wrote it.

It’s nice to see Small Steps for Big Change isn’t dead. But she still won’t sleep with me. Still, go congratulate her on finally achieving a positive net worth. That’s pretty exciting.

More Nelly? Well, if you insist. I crapped all over the Chevy Volt over at Sustainable PF. So to summarize what I’ve wrote there, I’ve taken shots at a) sustainable investing and b) electric cars. And yet, I still keep getting invited back. Go figure.

I think Sandy from Yes I Am Cheap hates baby boomers. |Well Sandy, I’m going to tell my Mom, who is totally a baby boomer, who will talk to your Mom, who is also a baby boomer. And then you’ll totally get grounded or something.

Greg (of Control Your Cash fame) and Paula (Afford Anything) wrote a piece for Problogger that I agree with completely. Should bloggers be aiming for pageviews, or pageviews that matter? You go read now.

Over at Canadian Finance I asked if there’s really such thing as passive income. I’ll tell you what, blogging sure isn’t.

Finally, we have Random Thoughts and Acronyms, with a bunch of pretty pictures from Paris. I’ll show her, I’ll take a bunch of pretty pictures from Paris in Las Vegas. Totally the same, right?

Carnivals

YES! Control Your Cash and Diva In Debt accepted my crap finest offerings. Random aside – Diva in Debt only has women bloggers included in her blog roll. THAT’S SEXISS!

Have a good week everyone.

 

I’m actually not, but I figured that’d be a delightfully awkward image to make you forget about how this dump is about 12 hours late. Have you forgotten yet? How about… NOW?

It snowed here yesterday, the official start of 6 months of dreary, cold, dark Canadian winter. Every November I start thinking about how great it would be to avoid winter forever. It’s really not that hard to do, maybe I’ll write a post on it. Anyway, winter really sucks, especially when you work outside like I do. (well, sort of) There’s been snow for all of a day and I’m already tired of it. What did we ever do to you, Mother Nature? Oh, right, global warming.

I went and watched the local junior hockey team with a buddy last night, and there was popcorn at the game. Oh man, I love popcorn at the hockey game. I don’t know what it is about popcorn from a popcorn machine, but that stuff is better than crack. If given the opportunity, I would eat my weight in that stuff and get fat again. Totally worth it.

Song I Like And Therefore You Should Too

Not that this has anything to do with this week’s song, but I bought a Taylor Swift autographed CD. You’re not surprised, are you? I’ve considered sleeping with it.

If you’re not listening to the Arcade Fire, drop everything and go pick up their first 2 cds. They’re about as good as music gets.

Simpsons Quote Of The Week

I spent a great deal of time watching old Simpsons halloween specials this week, all of which were delightful.

Kang (the alien) My name is Kang, and this is my sister Kudos.

Kudos: (in a very deep voice) Hello!

Gambling Is Fun

I went 0-2-1 last week, further evidence you shouldn’t listen to me about anything.

This week I’m going to pick the Tampa Bay Bucs to cover against the Saints, plus the 8.5 points. I’m also going to take the Jets to cover against the Bills, plus 2. And finally, I’m going with some odd sport, betting on Spanish Primera Division soccer. I’m taking the over in the Real Madrid/Osasuna game at 3.5 goals. Let’s hope for some offense kids!

Overall record: 2-6-1

A Post You Might Have Missed

If my archives were snacks, they’d be delicious potato based. Because all snacks should be potato chips.

Did you know you can hold your mortgage in your RRSP? It’s kind of complicated, but it’s possible. Even if you’re not even remotely interested, you should still click through to the post. I want pageviews, dammit.

The More You Know

This might be my favorite new category. Wikipedia wheel of fortune, show us what you’ve got:

A school bus is a type of bus designed for student and teen transport. The first school bus was horse drawn, introduced by some British guy back in 1827. They’re distinguished from other buses by their yellow color and the fancy stop signs with the flashing lights. Usually, students are transported to and from school for free or next to free. I’m not really sure why school buses don’t have seatbelts, and I’m clearly too lazy to look this information up.

Pick a Stock, Any Stock

I think I’m going to go with Manulife this week, the struggling Canadian life insurer.

Low interest rates and crummy stock markets are not good for life insurers, and Manulife’s results show. They just released 3rd quarter results, losing more than a billion dollars. I’d be looking to pick up some anywhere under 12 bucks a share and collect the juicy dividend while I wait for the price to go up. Business will eventually improve for the insurance business, and we could easily see a double from such depressed levels.

Babe Loosely Related To Finance

Hazel Mae is coming back to Sportsnet. Why should you care? Because she’s pretty damn hot.

She’s over 40. Can you believe it? She looks about 28. Her presence will automatically make Sportsnet 87% more tolerable.

Time For Links

Easily the best post of the week was by MD over at The Financial Blogger, which was a very candid look at his failure launching an e-book. If you ever want blogging to become a very profitable endeavor, I’d recommend that reality check. Well done.

I made my debut over at Sustainable Personal Finance, asking why everyone talks about giving up lattes, but no one ever talks about giving up booze.  Look for me over there every couple of weeks. It just might be the best part of your Friday. Maybe.

Speaking of places I was this week, I also appeared at Canadian Finance Blog yet again, pointing out that not everyone needs life insurance.

This whole link dump is just posts I did for other sites. I had a guest post over at Give Me Back My Five Bucks, which pondered whether it’s better to be attractive. Duh, of course it is. I would know, I’m a beautiful person.

Okay, onto posts that I didn’t write. The cheapskate Sandy writes about creating niche sites and her competition with some other bloggers to make the most on their particular sites. If the competition was being awesome, Sandy would clearly win.

Paula from Afford Anything got the point of my Friday post… on Wednesday. Go read her post on finding a niche and conquering it. It’s solid advice, like most everything she writes.

This post from Finance… Say What shows why you should never argue with Occupy Wall Street types. Or have a Facebook account.

Boomer and Echo thinks we should eliminate the penny. I tend to agree.

Via Money Mamba, a great article about now anal Steve Jobs was.

Carnivals

#1 at the Best of Money Carnival! Go me!

An editors pick over at the Carnival of Personal Finance? Nice.

And finally, I was only included in the Totally Money Carnival. Oh well, 2 out of 3 ain’t bad.

Have a good week everyone.

 

Yesterday, I went to the fine credit union where I do my banking. I’m such an exciting person.

Now, as I’ve discussed before, there’s basically only one reason why I continue to go to this particular credit union. They continue to hire the hottest chicks. That’s it. The girls are relatively competent, but not impressively so. The service charges are no better than any other bank. As long as I continue to enjoy the scenery, I will continue to do my banking there.

So while I was there yesterday, I was checking out the big board at the front of the building, the board that shows you the interest rates charged for mortgages and the interest rate paid on GICs. I know interest rates are really low right now, so I didn’t expect much from the GIC rates. It’s a good thing I didn’t expect much, because wow are GIC rates really bad. My credit union is paying out 2.25%/year only if you lock up your money for 5 years. I just checked on the internet, and that’s the best rate in town.

As you probably guessed by the title, this post is going to take a look at some stocks that yield more than twice as much as a 5 year GIC. Before we get to it though, I just want to say that you need to just suck it up and put your cash in a GIC (that’s a CD for my American readers, but you probably already knew that) if you’re going to need that cash in the next 2 years.

Anyway, let’s get to it. Your obsessive quest for yield has almost been quenched.

1. Roger’s Sugar (current yield 6.56%)

Being in the sugar business in Canada is awesome. To protect the domestic producers, the feds have ruled that any imported sugar be hit with a steep tariff, thereby making any imported sugar automatically uncompetitive. So the business is shared by Roger’s and their lesser competitor, Redpath. It’s a remarkably steady business, and Roger’s just passes any price increases in sugar onto it’s customers. I’ve been a happy shareholder of Roger’s for years.

2. Husky Energy (current yield 5.12%)

One of Canada’s largest energy producers, Husky has been plagued with some operational issues lately. That, combined with a weaker oil price has pushed the value of the shares down to the $23 range, thereby pushing the dividend yield above our magic 5% threshold. If you’re a believer in higher oil prices long term, this could be a great time to pick up shares in Husky. The dividend will warm your cold, cold heart as you wait for the stock to appreciate.

3. Reitmans (current yield 5.21%)

Reitmans is a chain of women’s clothing stores, operating in just about every shopping mall across Canada. They also own other banners such as Smart Set, Penningtons and Addition Elle (that last one is for fat chicks). The recession obviously hurt Reitmans, but women will continue to shop for clothes. Just as long as they don’t use my money to do so. I’ve owned the stock for a few years, and it’s done nothing in that time. But I have collected a nice 5% dividend as I’ve waited.

4. Great West Life (current yield 6.01%)

One of Canada’s largest insurance companies, Great West Life has gotten hammered lately, as any weakness in the stock market translates into weaker results for any life insurance company, since they invest the premiums they get each month. Low interest rates are negative as well, for the same reasons. So if you buy it now and forget about it, you’re getting 6% just to wait. It’ll bounce back when the market does.

5. BCE (current yield 5.44%)

Canada’s oldest telecom is next on the list. This bad boy isn’t going to give you a whole lot of growth, but offers a steady, highly profitable business, and a dividend that’ll just keep on chugging upwards. They are getting some growth from their media division, and we all know that text messaging is ridiculously profitable.

6. Transalta (current yield 5.25%)

As I type this, the light is on in the living room, my laptop is plugged in and the TV is on. I just got done eating toast and drinking chocolate milk. All of this stuff requires power to run, meaning power generator Transalta’s business looks pretty secure. Plus, like Roger’s Sugar, they can just pass on any cost increases to their customers. What are you supposed to do, sit in the dark?

7. Inter Pipeline (current yield 6.02%)

Okay, so maybe you don’t want to own a business like Husky that’s exposed to oil prices. So why not own a pipeline then? The “toll roads” of the oil business, pipelines get paid a fixed fee, no matter how low the price of oil gets. Building the pipeline takes a huge upfront cost, and then it collects a small fee over and over again. This is a great business model to invest in, it almost acts like a bond. This stock has done quite well for me.

8. AGF Management (current yield 6.81%)

AGF is one of Canada’s largest mutual fund companies. Yes, I know, I hate mutual funds. And hopefully, you do too. Their high fees make them a bad idea for investors. As long as there’s the current network of mutual fund salespeople (who are solely compensated by commission) who continue to push these funds, they’re not going to go away. So why not invest in the company that charges the outrageous fees? Besides, you probably held some of these crummy mutual funds at some point. You’re just getting your money back.

9. Chartwell Senior’s Housing REIT (current yield 7.35%)

Not me personally, but the rest of you are getting old, especially those pesky baby boomers. There will come a point where you will not be able to control your bowels anymore, and will therefore be a burden to your family. Luckily for all of us, we can just put you into a home once you become an inconvenience. Until that happens, invest in Chartwell, where hopefully you’ll get some of that dividend money, which will eventually be paid to them for taking care of you. It’s a full circle.

10. Groupe Aeroplan (current yield 5.02%)

You’re a sucker for Aeroplan points, so why not invest in the company? A warning on this one though, it doesn’t look like the company is earning enough to cover that dividend.

So, there you go, you can stop whining about minuscule GIC yields. Finding a 5% yield is pretty easy.

 

 

Dividends have been said to be the only free lunch in investing. For many investors, getting their quarterly dividend cheques is almost the best part of investing in a stock. These type of investors tend to be long term buy and hold types, rarely selling their positions. Some of them even have blogs, touting the glorious dividend every opportunity they get. I imagine these people would be boring dinner party guests.

I make fun of dividend lovers, but I’m basically one myself. I enjoy getting a dividend off my investments. As Benj Gallander says, dividends allow me to be stupider, longer. As a contrarian investor, I can often hold investments for years while I wait for the fundamentals of the business to turn around. Getting paid to wait is a nice bonus while killing time for that catalyst that’s needed to increase the share price.

Even though I like dividends, they aren’t a mandatory thing for me. I’m happy to hold a company that doesn’t pay a dividend. I’m usually investing in beaten up names, companies that may not be terrifically profitable for whatever reason. I’m much more interested in the condition of the balance sheet than the condition of the dividend. I’ve invested in companies that have recently cut their dividends. What I care about is whether the company’s balance sheet is strong enough to whether the hardship that any contrarian investment is going through.

Saying that, I understand that most investors don’t invest like me. For dividend investors, they like the stability of putting their money in stable companies that have been around for a long time. These companies have predictable earnings and dividends. A lot of time though, even mature companies have better things to do with their money than to pay out dividends. Let’s look at a few.

Pay Down Debt

When I’m screening names to put on my watchlist, I’ll often come up with a couple hundred that pass all the criteria. Out of these couple hundred, 10 or 15 names may make the list. Companies will get eliminated from consideration for all sorts of reasons, but one reason stands out from the others: debt.

A company will often pay a dividend for years as it begins a slow demise. General Motors did. So have all sorts of others I can’t think of right now. This dividend money could be much better spent on paying down debt, yet it’s given out to shareholders. Even though the dividend might not be in the best long term interest of the company, management knows that the share price will get hammered if the dividend gets cut.

Usually a company will eventually cut the dividend. By that time though, the market has clearly priced in a dividend cut. The bottom line is a company with lots of debt shouldn’t be paying a dividend. They should be using that money to improve the balance sheet.

Better Opportunities

In many situations, it’s better for a company to reinvest any money they would have paid out in a dividend back into the business.

If a company pays a 3% dividend, investors like it. But if a company doesn’t pay the dividend, they can reinvest that back in the business. If the business can generate a return on equity of say 10%, then the company can grow the earnings over time simply by reinvesting the dividend.

That 3% dividend might represent 25 or 50 percent of total earnings. This reinvestment can create a significant compounding effect quite quickly.

As a bit of an aside, one area I generally don’t like companies spending money on is acquisitions. Some work out quite well. Others fail miserably. This crapshoot is one reason I don’t really like companies to do them. The other is companies are usually pretty bad at buying underpriced assets. They’ll pay fair price and then some for a competitor that often does things very differently, meaning the synergies are weak at best.

I Don’t Hate Dividends

Dividend lovers sometimes forget that all of a company’s earnings belong to the shareholders, whether those earnings are paid out in the form of dividends or whether they stay with the company in the form of retained earnings. Each of these has value. The value of each depends on all sorts of factors, from the investor’s point of view or the company’s point of view. My Dad should view dividends more positively than I should, since his portfolio should be more conservative, as an example.

I like getting dividends just as much as the next guy. If a company is mature, has minimal debt, and doesn’t see any glaring opportunities to spend all of their capital, then by all means they should pay a dividend. There are many companies out there that should be much more aggressive in paying out dividends, like major tech players. Others though, like Yellow Pages, really have no business paying out such aggressive dividends.

And just maybe, some of those dividend investors will buy something that doesn’t have a dividend.

 

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