I don’t know about your stock portfolio, but mine has been showing great results in 2013. I’m obviously not as good as my 2013 Best Dividend Stock Book as I don’t hold all of them, but I’m still pretty happy with my results so far. After the first quarter, it’s time to look at my positions and look forward to the future. You can check the details of my dividend portfolio here. Dividend yield are shown as at April 11th.
5N Plus – TSE: VPN 0% Div
What a mess… this is my last and only non-dividend stock in my portfolio and I definitely regret holding it right now. I was making a healthy profit a few months after my purchase. I should have sold my position while the stock was riding the wave. Since then, they have completed a big acquisition in … Europe! The company is highly dependent on the cost of resources which continues to drop due to the economic slowdown. Lately, the stock took another hit because the company had to reduce their stock value and goodwill creating a $200M loss for the last quarter.
I am keeping the stock right now as I’ve lost too much to quit on it. The company is not that bad considering they are under serious pressure from the market. I will continue to be patient in this case since I don’t have much left to lose. This is a good example of a stock I should have sold!
Apple – NASDAQ: AAPL 2.45% Div
So far, I’m not happy nor feeling bad about my newest acquisition. When I bought Apple, it was for 3 reasons:
#1 It now pays a dividend
#2 It has plenty of cash in its bank account
#3 Its P/E ratio had fallen under 10
For these three reasons I’m confident the stock will bounce back. At least, I don’t see the value going down any further and the dividend will ultimately be increased. Apple is definitely a keeper!
ScotiaBank – TSE :BNS 4.15% Div
Canadian banks are currently facing their first sign of a headwind. I recently discussed how the Cyprus situation may affect banks in general. Nonetheless, I like BNS because it’s the most international bank in Canada and their financial statements are strong. They recently beat the analysts with their most recent results and they showed an increase in profits. I’m expecting BNS to increase its dividend every year from now on.
Chevron – NYSE :CVX 2.98% Div
Chevron has been on a roll since the beginning of the year showing a double digit investment return since then. As long as the FED is pumping money into the market, there is confidence the economy will continue to rise. When the economy goes up, the price of oil follows sooner or later. CVX is part of my core portfolio and will be there for a while.
Coca-Cola – NYSE :KO 2.72% Div
Another great acquisition, I’m under the impression that I will keep KO for the rest of my life! The dividend will continue to increase over time and is already paying over 3% on my cost of purchase. Since I’m already up by 20% in my portfolio, I will keep KO and ride the market with it.
Husky Energy – TSE :HSE 4.08% Div
This is among my most volatile stock I hold. I decided to buy HSE even with shakier financial statements compared to other picks. I believe in the sector in the first place and think Husky will continue to pay its high dividend yield. Recently, they have increased their financial performance and the stock is now up these days. I’m ready to pay the price of volatility as long as I don’t see the dividend coming under pressure.
Intel – NASDAQ :INTC 4.16% Div
Another volatile stock! Intel is constantly under the pressure of technological improvements. I guess this is a key point when you consider buying such a company. Being a leader in the industry is not enough to guarantee growth. After a strong performance in the months following my purchase, the stock started to go up and down based on mitigated results and rumors from everywhere.
Then again, the level of cash in their bank account coupled with a low payout ratio makes me keep this high paying dividend stock. I don’t believe we will stop using the PC tomorrow morning even if tablets and smartphones are very useful.
Johnson & Johnson – NYSE :JNJ 2.96% Div
I consider JNJ as one of the “bonds” in my holdings. A company that is so diversified in terms of products and geography definitely makes it a keeper. It seems that they have solved their quality control problems as no major recalls were made so far this year. I expect JNJ to hold on during an eventual market correction and continue to increase its dividend over time. I do not plan on selling this company in 2013.
Seagate Technology – NASDAQ :STX 4.17% Div
STX pick is made for those who love rollercoasters! Since I bought the stock when it was in the $20 range, I don’t really mind seeing the stock going up to $37 before dropping down to $32 a few months later.
The company continues to post solid sales and profits. It may disappoint analysts from time to time but the stock is still hovering under a 5 P/E ratio! How could this be possible? People simply have lost interest in this techno stock and believe Seagate can’t evolve from their “classic” hard drive mentality. I can’t wait to see their next earnings report at the end of April! In the meantime, their high dividend yield and my paper profit make me ride the stock. It doesn’t mean it doesn’t hurt when I see the stock at $32 when I could have sold it at $37 ;-).
Telus – TSE :T 3.68% Div
Telus is probably one of the favorite pick in my portfolio. It is a strong and growing telecom in Canada. Surprisingly, in a “boring” market such as Canada, Telus finds the way for growth and this is why the stock keeps reaching new highs.
Telus is paying a dividend based on my cost of purchase over 4%. There is no way I’m letting this stock go.
National Bank – TSE :NA 4.43% Div
National Bank is facing the same problem as the other banks. Considering that it’s the smallest of the big 6, there is a possibility of seeing NA being hurt first. On the other hand, it is not really involved in the housing bubble in Toronto, Calgary or Vancouver. If there is a mortgage hit to be taken, TD will be the first to cry. I believe National Bank will continue to make money and pay a healthy dividend. After all, it was the first Canadian bank to raise its dividend since the 2008 crisis.
What Do You Think? Which Stock Would You Sell?
Tell me, if you were in my position, are there any stocks you would say goodbye?
I would dump 5N. I’ve been in that same position with stocks before and the sooner you get rid of it, the better you’ll feel. Taking the loss hurts, but once a stock turns bad it’s usually not getting better for a long time.
Looking at your portfolio are you only up $277 since 2009?
@My Financial Independence Journey,
I think you may be right, I’m holding on and it’s not going well! hahaha!
@Brian,
No… I actually need to update my dividend holding page, prices are not up to date.
I made more than that but each time I sell, I don’t show my profit on this page. This is only showing my profit/loss on existing position.
I just updated my dividend holding page to reflect my positions. thx for the reminder!
If that were my portfolio, I would dump both 5N and Apple. 5N because what been lost already is known, and investing is an emotionless endeavor. Apple because they don’t have a wide enough moat for my taste, and they historically keep cash instead of giving to their shareholders (while they probably have very good reason for behaving that way, it doesn’t do me any good if I’m building an income from dividends). That’s my $0.02 on the list.
Hey Josh,
I want to ride Apple for a few months, just the time to get a few good Quarters and the stock will go up. the P/E ratio is so low right now I don’t think I can go wrong with it.
On the other side, there is definitely an emotional factor linked to 5N Plus. It has been dragging my portfolio down for the past 2 years and I would have made a lot more money without it!
thx for your thoughts!
AHH Mike! You deviated from your moniker “dividendguy” and are now paying the price. Been there, done that so I am no wiser than you although I did question your lapse when you bought this. LOL
Best book I read was The Motley Fool in which they stated that if a stock can not afford to pay a dividend then you can not afford to own it. After all, you are just speculating on the market if you are looking for an upside to sell in to the market. Have I been tempted? You bet. Luckily I have resisted. I like things that I know have staying power. Bell (sorry Mike I still prefer it over T-T)the banks, some oil, JNJ (bought when our $ was above par- a double whammy on purchase price and dividend pay out with a low dollar)and pipelines. Things that will “always” be around. They may swing in price but as long as they pay dividends then what the hell. Good reasoning was ” if you buy an appartment building, in five years from now will you be worrying about the value of the building or how much rent it pays you every year (dividends)”
So now I sit on a little cash “almost” hoping for a larger correction as I still find the majority of stocks over priced. Hate to see the value of the portfolio (appartment value) go down as retirement approaches but as long as the dividends (rents) keep rolling in who cares so to say.
Live and learn Mike. No one knows it all, we are all learning. Which makes life worth living.
Appreciate your blogs Mike. Read em every day.
Richard
P.S. May just buy T after the split if it wallows alomg with the rest of the stocks.
This is definitely no time to sell Apple. Only panic investors are selling right now. Personally I just bought back in to Apple.
I like your holdings (except for 5N which you seem keen on holding) so if I had to pick one stock to sell it would be Seagate just because demand may be slowing.
I would drop Apple. Not because their products are bad (I have a couple of them!), but because the future is too uncertain. Apple is yet to roll out a new outstanding product since Steve Job’s death. All the recent products are improved versions of current products. Maybe they are preparing something (a iWatch?) but we don’t know. As for 5N, well, it’s probably already written off in your mind so why not keep it. At this point, the downside is pretty low. However, in my mind, National Bank is a keeper. According to my calculations, it’s significantly undervalued. I own it myself.
@Richard,
thx for your kind words and yes, 5N was my “last” non-dividend pick! I come from trading growth stocks like this one and I was able to buy a house with my trades back in 2003. The market is not on my side anymore, I rather forget about hitting a homerun!
@Zack,Dividend Engineer,
I’ve no intention of selling Apple at this point. it will come back to a higher evalution (seriously, below 10 P/E??) and it will increase its dividend. I’m expecting Apple to become another “microsoft”. I think I bought it at a right price.
I love National Bank too 😉
I am only interested in dividend that pay monthly. Your choices are good, but many do not parallel my needs. I am getting close to retirement and working hard to make a second monthly income. As said your choices are good, but not great. I live in the U.S., so that imaginary but real divide makes a very big influence on my system. As far as apple, I am no longer one to follow the crowd just for the sake of doing so. Usually when you follow the crowd, you are no longer behind the 8 ball, so miss the real benefits. most of these articles are predicated on the past and how great the stock did. That is nice, but that does not help a lot. Hind site is always better than foresight.
in response to your question, which stocks would i get rid of?
it looks like you have 11 stocks. 2 of which is in technology, 2 in financial, and 2 in energy.
that works out to about 50% of your equity portfolio in just 3 industries. that would not be my choice unless you are really good at watching what is going on with the industry and the companies in particular, i am not. i don’t watch my choices that close and because of that i hold alot more stocks, about 30 and i suffer more because of it. i also don’t try to beat the market, meet the market or anything else. i just make my own decisions with a little bit of knowledge and common sense and let my investment boat float with the market waves. yet i still seem to do ok and my worth has increased over the years. i hope it continues to do so. i never buy a stock that is way overvalued regardless of how great the company, the mangagement or the product. as uneasy as the market can make me feel i just keep plugging along.
i think apple will be fine long term but i would not be surprised to see it drop alot more should a good scare come along. i also, never put more that 4% in any one pick just in case my incompetence gets the better of me. your portfolio, like mine is just fine as long as you are watching yours alot more than i watch mine.
i enjoy reading your blog.
Regards the question…as a dividend type investor, you are loaded with steady winners except VNP. It is not a bad stock just doesn’t pay while you wait. I agree with Jeff Marshall that you may not be diversified enough (Intel and Seagate?). However, with the exception of NA (RY or TD are more stable), they are some of the best.
Personally I think APPL is a deal right now. Once you are in the Apple ecosystem it is hard to leave. Remember Apple is more then a tech company, they are also a large retailer. I’m not seeing the reason why their PE is so low.
I would personally sell Seagate if I was in your position. I don’t see it’s place in a conservative portfolio. Even though the dividend is high now I don’t see how they can keep it up.
Hi Mike, since you own Apple already I’d hold it at this point. I did a write up on my blog on Apple last year. seen here http://stockrenter.blogspot.ca/2012_03_01_archive.html
I believe Apple is going to test the $335 range before it’ll recoup. Don’t forget earnings and cfp is slowing down and the share price should follow that decline.
Sometimes it is a good idea to look at your dividend investments like they are a house that you have purchased. You have great tennants,and while you wait for the value to go up, you are getting paid. You are creating cash flow, and if you like, you can use your income to wealth build. There are a lot of good reits out there, that pay nice dividends as well. I would turf apple just because of the fundamentals. Always a good idea to to have some energy stocks that pay divs.
i got rid of aaple around 630, never looked back again might rebuy after earning dont want to risk .most likely aaple will miss earning with weak outlook.
At this point, i could have my high school kid throw darts at the board and achived better result than this. A little descriptive basis of my thoughts- I have developed my own mutual fund, where i own 200+ companies with generally 300 to 600 shares each. In the past 3 years, i have had 8 stock splits in year 3, 8 in year 2 and this year i am on track for another 8, plus i beleive this year it maybe as hihgh as 10 to 12. (This so called mutual fund is my own and i do not invest for others)
Why in the world you want to own seagate techology, when it is high risk credit issue is beyond me. Value line rates than a B+ with a 4 for timliness.
Also for owning apple even if you own 100 shares, you are leveraging your account towards a very risky meltdown which is basically what has occurred. You do know there are savy fund companies that stay away from industries such as the computer/cell phone just because you never know whcih comppany will come up with the latest fad and the company you oown then becomes worthless. Remember the company lotus 1,2,3 and blackberry seems to be heading down this path.
Not sure if i understand the need to own a Husky type company when its more prudent to own another Chevron,Exxon or maybe ConocoPhillips to get the dividend you want. (Both Chevron and exxon increase their dividend yesterday)
I would not own a bank, with one minor exception, and that is Commerce Bacshares in KC.Commerce did not have the meltdown, as they refused the tarp funds and for the last 20 years they have been paying a 2%+ cash dividend on top of a 5% stock dividend every december. I know you might say that Canada has more control over their banks, but situations occur in canada as well and Commerce Bank has been through the touphest time and in 2008 and 2009 and kept raising their dividend during this time. I think i will stick with my tried and true one bank in America i still have faith in.
Well you asked for opinions and I am giving it to you- maybe a bit to harsh, but I really like my stock position going into Obama’s last 3 years.
Hey Carl,
can you tell me how you can follow 200+ stocks? do you do this full time? from that comment, it seems that you are managing a few millions. It would be interesting to see how’s your portfolio is doing. Would you mind sharing more info on this blog?
thx!
Mike.
Great questions, Mike and sure I am glad to help-
1st-I retired two years ago at 55 so i manage my own and do not pay the 1-2% managed mutual fund fees or finanical planners fees, so i am paying myself those fees tax free. Also I was monitoring the 200 compnies prior to retirement.
2nd-I have an accounting degree, with MBA, so i subscribe to only one advisor, which is Value Line. If you look at how Value Line presents the material weekly, it is fitted perfectly each week for a business person, to quickly get to the high points and move on to the next current owned or potential stocks i own or want to own. They have approximatly 15 years of key finaical data on a one page summary.
I have read value line for 20 years and can tell you even what their key words are, of a description of a company’s current finaancial position, when others might not pick up on it, as you get use to their methodology.
3rd- I have a special needs daughter, but even with those medical costs, i retired at age 55 and paid several financial planners their meeting fees to determine if they agreed with me that i could retire at 55. Each one said to me , if work is boring go to the house and have fun, which is what i am doing and enjoying every minute. My wife and I travel when we get tired being home. Also, the anwer to your next question is no, i did not inherit trust funds.
4th- Financial planners once ask a question of a normal working person in China who had become a millionaire by the time he was 35 and they asked how he did it? His answer was simple and the same strategy i used, do not listen to or get hooked up with a mutual fund manager or financial planner. Ignore all of the “noise”. Invest every $100 you have and stay away from fees. “His words not mine”
5th- In college, i recognized the compunding impact of dividend companies who increase their dividend rates at anywhere from 5-20% annually, so it really does not take a rocket scientist to figure out, buy the best dividend stocks which are compunding and then do not , under any circumstance, pay any financial fees or expenses. After 35 years of these strategies ,maximizing revenues and minimzing expenses, guess what happens to your portfolio———-you get the option of retiring.
6th-You asked what my portfolia is comprised of which is very easy to describe. Look at Values Lines companies Summary and Index, normally on pages 30 and 31, which list the safest company’s ranked #1 and #2, and those are the stocks that i own.
I know it is boring, but guess what, the boring accountants who stayed conservative with investments and stayed working with one company for 35 years, while others were jumping from one company to the next, but, I came home at age 55 with the prize , a wholly funded pension plan.
Once again, it was boring on the investments and only working for one company for 35 years, but look at what Colgate palmolove,Phillips Petroleum, WW Granger,Johnson and Johnson, Chevron, etc…. have done over the years.
Mike, i hope this helps and i know this process works so hope others might benefit from my luck, success or whatever you want to call it.
Life is fun!!!
Your portfolio has some solid picks. Obviously, 5N Plus should be gone. Otherwise, I am curious about your diversification though by sector and risk.
I stayed away from Intel because of the roller coaster – just too annoying to see it go up and down between 20 and 25 every 3 months. I’d rather buy a Canadian bank with the same dividend yield. Growth will definitely be slower. IBM might be worth looking into but the yield is much lower.
Apple is interesting. I think many love Apple and when it started paying a dividends, many jumped in. Financials are so strong that it will not go away tomorrow but it’s all about future products. It will take years to eat through the cash and it will take years to see if there is a declining business or not. New products will raise the price and based on that, it is too speculative for me. I’ll find another that pays the same amount of dividend yield instead. The visionary is gone and investors are waiting to see what comes out next. It’s worth noting that Android is growing faster than Apple.