Over the past year, I have shared several dividend stock analyses. I’m trying to analyze both Canadian Dividend Stocks and US Dividend Stocks as I think it is important to hold both of them in your portfolio (regardless if you are American or Canadian!). Since both markets are accessible and have different strengths, why not benefit from both worlds and invest on both sides of the border?
Since we are at the end of the year, I wanted to recap each stock I’ve analyzed throughout the year. I don’t remember who asked me, but one of you told me that it would be nice to have a follow-up on previous stock analyses. In 2011, I have analyzed 14 stocks (5 Canadian and 9 US). Among them, I have made a few dividends stock battles to help you chose between 2 stocks from the same industry. Speaking of which, I’ve also tried to select different sectors so you can have a better idea of a “diversified portfolio”. Overall, the dividend stocks that I have chosen to look at in 2011 have beaten their index without accounting their dividend yield. I think this proves, once again that dividend investing is among the best investing strategies in uncertain times. And believe me; uncertainty will last for a few years at least ;-).
9 US Dividend Stocks + 5.86% paying a 4.10% dividend yield
Here’s the performance as of December 2nd (closing price) for each stock:
US Market Stock Performance Dividend Yield
MSFT -9.64% 3.17%
INTC 17.17% 3.41%
PEP -1.61% 3.20%
KO 0.61% 2.83%
BTI 14.09% 4.20%
PM 28.94% 4.08%
VZ 5.79% 5.28%
T -1.43% 5.94%
ETR -1.19% 4.77%
Average 5.86% 4.10%
If you want to look back at the individual analysis, you can read them here:
I might be pretty lucky but I told you that I prefer Coca-Cola over Pepsi and Intel over Microsoft and the year 2011 proved me right. I might just be luck though ;-). Across all these analyses, I decided to pick INTC and KO in my own portfolio. I wanted to add a safer stock (KO) and more growth from a techno stock. KO is a very solid company that is diversified geographically. I benefited from the market slump to add shares at a lower price. I think that keeping KO for a while in my portfolio will be a good play.
I don’t think that INTC will produce crazy growth in term of sales or revenue but the stock was definitely undervalued when I bought it back in August. On the other hand, INTC has declared a great profit jump in the last quarter. Maybe there are more surprises to come from this company!
5 Canadian Dividend Stocks +1.66% paying a 3.97% dividend yield
When I did a round-up across my site to see how many Canadian stocks I have taken a look at, I was surprised to discover that I covered only 5 stocks. I promise I will cover more in 2012! In the meantime, you can also check at my list of Best Canadian Dividend Stocks I shared according to strict ratios.
Here’s the performance as of December 2nd (closing price) for each stock:
Canadian Market Stock Performance Dividend Yield
BCE 4.96% 5.14%
T 10.35% 4.16%
GCG 5.24% 1.56%
HSE -4.14% 4.72%
BNS -8.11% 4.25%
Average 1.66% 3.97%
If you want to look back at their individual analyses, you can read them here:
In 2011, I’ve added 3 Canadian Dividend Stocks to my portfolio: T, HSE and BNS. While HSE and BNS are getting beaten up big time, explained by the economic context. Both companies continue to post solid results but the market is concerned about oil companies (as oil consumption is directly linked to the well being of the economy) and banks haven’t enjoyed good press for some time (and Europe does nothing to improve the situation!).
As for Telus, it is definitely a strong pick for 2011. While posting a solid dividend (that will increase over the next 2 years at a rate of 10%), the company is also showing solid revenues as well. The stock soared by 18% while paying a dividend over 4%. In a bad market, this is a great keeper!
What are you looking for in 2012? Any stocks you want me to look at?
In 2012, I would like to be able to go through 2 stocks per month and then bring my total to 24 stocks per year. If you have any stocks in mind (Canadian or American), please post a comment on this article as I will use it for inspiration ;-D.
Thanks for the article Mike. Enbridge and TransCanada would make for a good analysis! I like both a lot, had them for years. Should I keep them?
Good question! I’ll take a deeper look at them before answering 😉
I love all these as well, but with the sector rotation and big herd trading going on these days industry correlation is a big deal so I look at a more broad group for portfolio modeling. On the Canadian side my favorites are Rogers Sugar and Bonavista Energy. Sugar has been good to me, I always say a prayer of thanks when I put the sugar in my coffee each morning. I am worried that with all the oil coming on line in Brazil that they might shift some of the sugar away from ethanol, that would hurt some, so, as always, no rest in these stocks. On the US side, i would only look at Chevron to add to this group. Always nice to see Philip Morris hanging around too, those guys really came through this last dip strong. General Mills and Jonhson and Jonhson can add some low beta. General Mills beta is very low (i just looked and yes i saw 0.20, wow)!
i have held TransCanada for awhile as well, no plans to sell. Soon we should see a pipe line running all the way to the gulf cost and that will put some heat on the WTI vs. BRENT price gap. That helps the infrastructure guys and the producers in Canada. Can you imagine that $20/per barrel premium disappearing all at once and WTI jumping up to BRENT pricing? Get that oil to the coast!
How about a closer look at Suncor. They have taken an absolute beating since may. Lucky me, I made a big purchase right around their 52 week high, and a few times since. Seeing as the are the biggest in Canada I have faith!
INTC is growing like gangbuster in foreign market. I think they will do very well in 2012, but over the long term I don’t know… They can’t seem to break into new markets.
Comforting to know I own a handful of these stocks 🙂
As for the 2012, I’d like to see a review of some industrial stocks here in Canada, namely BIN, MTL and RUS.
Looking at buying at least one of these guys in 2012 for my TFSA.
@Retirebyforty – totally agree with INTC.
Good post Mike, I will include this one in my Weekend Reading edition later this week!
Mark