I recently discussed the reasons I sold some of my stocks in my portfolio. In 2011, I want to turn my investing strategy to combine growth and dividend investing. I kept a few of my previous investments based on potential growth and I am now going forward with dividend stock picking. With the money left in my account, I processed my first 2 trades of the year:
Trade #1: 25 Shares of Johnson & Johnson (JNJ)
My first pick was JNJ. I have discussed this stock a few times already and I think that any dividend portfolio should have a few shares of this company. JNJ has a solid balance sheet, awesome dividend record and is more diversified than a balanced mutual fund! Since they operate in several countries, that they are vertically integrated and they offer tons of products, I think JNJ has everything to face any kind of situation (and this is without mentioning the huge stack of cash resting in their bank account!).
Trade #2: 25 Shares of Chevron (CVX)
Back in December, I looked at Chevron and did a full CVX stock analysis. I won’t say much about it as I have a full article written on Chevron. Let’s just say that I think that this is a strong company and a strong dividend achiever. With the price of resources going up, Chevron seems to be in a good position to benefit from the economic timing we are facing. While cashing in profit from the lucrative oil industry, they are developing alternative energy at the same time.
This is what my portfolio looks like right now:
Ticker Name Market Cap Price 1Y Return Dividend Yield
REI-U RioCan Real Estate Investment Trust $5,718,694,000.00 $22.13 22.78765 6.23
HR-U H&R Real Estate Investment Trust $2,864,070,000.00 $19.64 28.14426 4.01
CWT-U Calloway Real Estate Investment Trust $2,702,908,000.00 $23.65 30.57648 6.5
BEI-U Boardwalk Real Estate Investment Trust $2,205,670,000.00 $42.00 21.72624 5.45
BOX-U Brookfield Office Properties Canada $2,152,773,000.00 $21.75 N/A 2.92
REF-U Canadian Real Estate Investment Trust $2,092,598,000.00 $31.38 20.80782 4.46
D-U Dundee Real Estate Investment Trust $1,485,945,000.00 $30.23 60.89588 7.24
PMZ-U Primaris Retail Real Estate Investment Trust $1,360,410,000.00 $19.79 32.25037 6.23
CAR-U Canadian Apartment Properties REIT $1,319,796,000.00 $17.24 25.22318 6.26
CUF-U Cominar Real Estate Investment Trust $1,304,211,000.00 $20.84 14.52305 6.88
CSH-U Chartwell Seniors Housing Real Estate Investment Trust $1,199,403,000.00 $8.40 23.04563 6.41
More trades to come
I will be receiving my end of year bonus in the upcoming weeks and I will then invest another $5,000 in my RRSP (retirement saving plan) account. I will then review my stock analysis to see which stocks I will buy. I am aiming at increasing the number of companies in my portfolio. One of them will surely be Canadian since we benefit from a strong economy. Do you have any thoughts on good dividend stock picks?
These are 2 nice picks. They are both on my watch list but their price makes it hard to DRiP which I like to do with my investments …
I agree with you that dripping is a great investment strategy. I will actually use my dividend to invest in other stocks since I expect to invest more money each year anyway.
Two Dividend payers that I think you should look at are Bank of Nova Scotia (BNS) and Fortis (FTS). You can DRiP with these two as well.
Hey JP,
BNS is already on my radar… I’ll take a look at Fortis too!
thx!
JNJ and CVX are excellent.
I second the BNS selection. I think you need to own a Canadian bank or two. They are consistent money makers and dividend payers; they’ve paid investors for over 100 years!
read a recent (last week or so) article in the Globe or NY Times..can’t remember which…detailed significant quality control problems with J&J products and numerous recalls in the last year
Great trades.
I’m bullish on both of those, and as such, both are holdings of mine as well.
@Rob,
I have missed this article. On the other side, I’m sure that JNJ will overcome this problem. They have a solid history behind them.
thx for the notice!
Why do you call yourself “Dividend guy”? Your portfolio has little or no dividend in it.
For my next buy, I’m leaning toward Abbott Labs,Novartis, Colgate Palmolive or Pepsico. Not decided yet. I already have positions in Novartis, JNJ and Pfizer. I’m not sure i will invest in pharma this time. Pepsico and Colgate Palmolive are tempting.
I’m canadian too but i’m not sure i will pass on the opportunity to buy US or foreign blue chips while i can afford them (low valuation and weak US dollar). BNS is a good pick in the long run no matter what.
@Nean,
It is because I am going to build a dividend portfolio. I will be making several trades in the upcoming year. cheers.