GIVE AWAY !!!!!
I am thinking of starting a little give away here. All you have to do is pitch me a great dividend growth stock! Pitch me in my comments and by my next purchase next week I will select a winner or two. Free $10 Itunes gift card up for grabs that I can email you the redemption code for. Special consideration given to Canadian stocks and stocks I do not hold currently. Also special consideration given to other dividend growth stock bloggers as well.
Picked up 1 new stock AFL Aflac and added to my positions of TD td bank, CVX Chevron and sold GME Game Stop today.
AFL Aflac has great growth in the last 25 years consistently and a very low p/e right now of 9.63. The stock has not recovered from their 2008 levels yet but they are flirting with it. They do not have a very large yield of 2.4% but their dividend growth rate has been over 8% for the last 5 years with a very low payout ratio of 23%. I opened up a position of 100 shares and plan a long term hold.
TD TD bank is a bank I personally use so I have a bit of a bias. I enjoy their bank and I consider it the best in Canada after using multiple others. I really like their motto, their hours and banking experience . They have has great growth year after year and their 10 year dividend growth rate is 17% with a 49% payout ratio. I have increased my shares by 200 for a total of 300.
CVX Chevron is stock i previously owned but wanted a little bit more as I only added 20 shares for a total of 60. I was debating between Chevron or opening a new position on XOM Exxon but went with CVX cause of the small add.
GME Gamestop sold. Gme was an impulse buy and I am kicking myself, Suffered 10% loss in my portfolio and it lost me $300. I didnt want to hold onto it but I put that money toward my CVX buy instead.
Conclusion
I am looking to keep up the balance of my portfolio of between 30-35% Canadian stocks, 50-60% American companies and conglomerates with about 10-15% International stocks so these purchases somewhat reflect that. I am still looking to invest about 80k more into this market and should do so within the next few weeks. We are all prone to mistakes and I am kicking myself over the initial purchase of GME. It was stupid as well as my purchase of twitter earlier in this year. I have to learn from my own mistakes and I would like to follow a game plan of 95% dividend growth stocks strategy in the future going forward. It is easy to get sidetracked with such high flying stocks and caught up in the media hype. Part of the reason for this blog is for me to be accountable for my own actions and to think twice before hitting that trade button. I am very diligent when managing others portfolios and I quadruple guess myself when making stock selections however I do not often have the same discipline for myself. I am working on it!!!!!!!
Also my current watch list as follows MO TRP HSBC ACN NVS VIV PFE D KRFT LMT
| 52-Wk Range | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| GME | Gamestop Corporation Common Sto | 36.94 | 12.35 | 3.60 | 2.99 | 30.94 | 57.74 | |
|
| CVX | Chevron Corporation Common Stoc | 124.16 | 12.09 | 3.50 | 10.27 | 109.27 | 127.83 | |
|
| TD.TO | Toronto-Dominion Bank | 51.90 | 14.40 | - | 3.60 | 40.24 | 52.85 | |
|
| AFL | AFLAC Incorporated Common Stock | 62.17 | 9.63 | 2.40 | 6.46 | 54.02 | 67.62 | | |
You've got a solid portfolio and another $80k to invest is awesome. I've got about $25-30k although I'm still debating a rental property purchase. I keep going back and forth on that one. I really like V and SBUX although the starting yields are low and DG history is relatively short. I still like them. I think KMI still offers one of the best values in this market right now with a 5% yield and 6-8% growth. That's pretty hard to beat.
ReplyDeleteThose are some very solid buys! Of those three companies, I own CVX and the other two are on my shortlist of potential companies for acquisition.
ReplyDeleteGreat stuff!
Best,
Dividend Venture
You already have many Canadian stocks I own too like CPG, DOL, BCE, TD, BNS, COS, RY, REI.UN, T, ENB, and RCI.B.
ReplyDeleteOne stock I purchased last year and still have now is Tim Hortons (THI.) Timmies has increased its dividends every year in the last 5 years. Average dividend hike over this time has been about 26% per year. The majority of its shareholders are large institutions so the business probably won't go terribly wrong any time soon. This is a steady growth story. And it's pretty resistant to recessions :) Only issue is their forward P/E ratio is a bit high at 16.2x. I'm a bit biased when it comes to coffee servicing businesses. I own MCD, THI, and SBUX. I believe more people will drink coffee in Canada over time, so if I'm invested in all 3 of those companies, I can't lose in the long run because they can only take market share away from each other.
Another stock I have is Premium Brands Holdings (PBH) It's not a big company, only about $480 million in market cap, and it doesn't get much attention from analysts. But it's one of my better performing stocks. It's in the business of retail and food services such as deli, sandwiches, consumer discretionary, restaurant servicing, packaging and distribution, and it operates in B.C., Alberta, Ontario, Washington State, and a few other places. Very successful with its top line growth. Sales have increased every consecutive year for the past decade. Currently trading at 13.7x forward earnings. Good business and well run with very competent management. It doesn't increase dividends very often but with an attractive 5.7% yield I can't really complain :) Only issue is it has a fair amount of debt. Debt to EBITDA is over 3x.
Thanks for the input guys. Best of luck PIP on the rental property purchase, always a tough call on real estate. Its good to have it in a portfolio to replace fixed income instead of bonds or gics. I do like Visa as well, I have been in and out of visa stock a few times all with profit, but this time i think I might just acquire them for good and hold forever.
ReplyDeleteLI good call on Tim Hortons, as a canadian i understand their brand and it is very very strong. I think they will continue to grow and hopefully they can increase their profit margin. Their dividend growth is on fire and you persuaded me into looking into them further and make a purchase. That said you win the gift card! Send me your email and I get you the code! Grats!
I plan on doing ore giveaways in the future once I have more readers of my blog as well so check back here!