Back at the beginning of 2012, I made 29 dividend growth stock picks for the year claiming that they would outperform the market (here’s the list of the Best 2012 Dividend Stocks). Although I’m publishing this article on December 31st, results are as of December 10th at closing. The difference shouldn’t be too important.

 

I selected 20 US stocks and 9 Canadian stocks. Each portfolio has been treated separately to compare them against a major Dividend ETF. For the US market, I selected the Vanguard Dividend Appreciation Dividend ETF (VIG) and for the Canadian market, I made the comparison against the iShares Down Jones Canadian Dividend ETF (XDV).

 

I calculated the portfolio value and considered the dividend payout received. I attributed the virtual value of $1,000 per stock for a total portfolio of $20,0000 US and $9,000 Canadian. The overall results are showing the combination of both growth from dividend payouts and capital appreciation/loss.

 

US Stocks

 

Portfolio Value as at December 10th: $21,651.49

Portfolio Yield (on Cost of Purchase): 4.11%

Total Dividend Payouts Received: $821.86

Total Investment Return: 12.37%

 

Portfolio Value 100% invested in VIG as at December 10th: $22,241.95

Portfolio Yield (on Cost of Purchase): 2.63%

Total Dividend Payouts Received: $525.34

Total Investment Return: 13.84%

 

 
Company Name
Ticker
Price
Shares
Amount
Dividend Per Share
Dividend Received
Dec 10th
Stock % YTD
Current Value
Avon ProductsAVP$16,9958,86$1 000,00$0,75$44,14$14,42-15,13%$848,73
AT&TT$30,2433,07$1 000,00$1,76$58,20$33,7311,54%$1 115,41
Black RockBLK$178,075,62$1 000,00$6,00$33,69$195,729,91%$1 099,12
ChevronCVX$106,419,40$1 000,00$3,51$32,99$106,960,52%$1 005,17
Conoco PhillipsCOP$53,8418,57$1 000,00$2,64$49,03$57,887,50%$1 075,04
Flowers FoodFLO$18,9852,69$1 000,00$0,63$33,19$23,6424,55%$1 245,52
GarminGRMN$39,0025,64$1 000,00$1,75$44,87$42,168,10%$1 081,03
General MillsGIS$40,0124,99$1 000,00$1,28$31,99$41,002,47%$1 024,74
HasbroHAS$31,0132,25$1 000,00$1,38$44,50$37,6021,25%$1 212,51
Harris CorpHRS$36,0427,75$1 000,00$1,40$38,85$49,0236,02%$1 360,16
IntelINTC$24,2241,29$1 000,00$0,88$36,33$20,08-17,09%$829,07
Johnson & JohnsonJNJ$65,0015,38$1 000,00$3,01$46,31$70,608,62%$1 086,15
Lockheed MartinLMT$79,9812,50$1 000,00$4,15$51,89$92,4115,54%$1 155,41
MicrosoftMSFT$24,9840,03$1 000,00$0,83$33,23$26,947,85%$1 078,46
PepsiCoPEP$66,0415,14$1 000,00$2,14$32,40$70,216,31%$1 063,14
RadioShackRSH$9,71102,99$1 000,00$0,26$26,78$1,97-79,71%$202,88
Seagate TechnologySTX$16,3961,01$1 000,00$1,14$69,55$28,9176,39%$1 763,88
Sunoco Logistics PartnersSXL$38,9425,68$1 000,00$1,37$35,18$48,6724,99%$1 249,87
Wisconsin EnergyWEC$33,9729,44$1 000,00$1,20$35,33$37,5710,60%$1 105,98
Waste ManagementWM$32,7230,56$1 000,00$1,42$43,40$34,334,92%$1 049,21
$20 000,00$821,868,26%$21 651,49
Dividend Yield (%)4,11%Total $$22 473,35
Return12,37%
Vanguard App Div ETFVIG$54,06369,96$20 000,00$1,42$525,34$60,1211,21%$22 241,95
Dividend Yield (%)2,63%Total $$22 767,30
Return13,84%

 

Performance Compared to the Index: -1.47%

 

Trailing the index is not really a good thing when you are trying to put together the “best dividend stock portfolio for 2012”. What sucks is that I show this performance due to a single stock: RadioShack (RSH). I know, you were many to tell me that it was a dead horse and that it shouldn’t be part of my book. I was looking too much at the past numbers and not enough at the future. To be honest, RSH had shown strong financial metrics for the past 5 years… until everything went sour at the beginning of 2012 and the company even cancelled its dividend.

 

If I take this stock out of my virtual portfolio, I show a total investment return of 17.07% or 3.23% better than the index. This shows you the high importance of avoiding the big miss when building your dividend portfolio!

 

Besides my overall performance, I’m also happy about the dividend yield provided by this portfolio. At 4.11% compared to the ETF at 2.63%, this dividend portfolio is clearly producing higher revenue. I’ll just have to make sure to avoid the big miss in my 2013 edition and I will beat the index next year!

 

Canadian Stocks

Portfolio Value as at December 10th: $9,910.99

Portfolio Yield (on Cost of Purchase): 4.57%

Total Dividend Payouts Received: $411.54

Total Investment Return: 14.69%

 

Portfolio Value 100% invested in XDV as at December 10th: $9,179.47

Portfolio Yield (on Cost of Purchase): 4.38%

Total Dividend Payouts Received: $393.97

Total Investment Return: 6.37%

 

Company Name
Ticker
Price
Shares
Amount
Dividend Per Share
Dividend Received
Dec 10th
Stock % YTD
Current Value
BCEBCE$42,4723,55$1 000,00$2,22$52,27$42,820,82%$1 008,24
Corus EntertainmentCRJ.B$20,0050,00$1 000,00$0,96$48,00$23,9219,60%$1 196,00
GamehostGH$11,3388,26$1 000,00$0,84$74,14$12,7512,53%$1 125,33
IGM FinancialsIGM$44,2322,61$1 000,00$2,16$48,84$40,98-7,35%$926,52
Leon\'s FurnitureLNF$12,4080,65$1 000,00$0,40$32,26$12,772,98%$1 029,84
Magna InternationalMG$33,9729,44$1 000,00$1,12$32,97$47,1938,92%$1 389,17
National of CanadaNA$71,9813,89$1 000,00$3,12$43,35$77,006,97%$1 069,74
TelusT$57,6317,35$1 000,00$2,41$41,82$64,1911,38%$1 113,83
TD BankTD$76,2613,11$1 000,00$2,89$37,90$80,255,23%$1 052,32
$9 000,00$411,5410,12%$9 910,99
Dividend Yield (%)4,57%Total$10 322,53
Return14,69%
iShares Dow Jones Cdn DivXDV$20,56437,74$9 000,00$0,90$393,97$20,971,99%$9 179,47
Dividend Yield (%)4,38%Total$9 573,44
Return6,37%

 

Performance Compared to the Index: +8.32%

 

My performance in “my own” market is very good and I’m very proud of it! Out of 9 stocks, I have only one showing a negative return over 2012. I have 4 stocks showing a double digit growth (5 if you add dividend payout!). The overall portfolio is paying a healthy 4.57% dividend yield.

 

While I admit that I have been lucky with MG soaring by 38.92%, my other picks were solid too as I would still beat the index without that pick (total return of 11.25% vs 6.37% for the index). Now I’m building some pressure for 2013 edition! Hahaha!

 

Best 2013 Dividend Stocks Book is Going Live on January 1st! ***FREE DOWNLOAD FOR FIVE DAYS ONLY***

 

Tomorrow morning, newsletter subscribers will receive an email with a link to download the Best 2013 Dividend Stocks eBook FOR FREE FOR FIVE DAYS ONLY. I’ve put countless hours into researching and building this eBook so you can benefit from a good pre-screening in the beginning of the year. This is why I’m offering the book for free to my most loyal readers and then it will be on sale at the cheap price of $2.99 after that.

 

Just make sure to be a subscriber by the end of the year ;-)

 






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5 Comments   |  

5 Comments

December 31, 2012, 12:50 pm

13.84% is still quite good for the year. From the US list, many stocks fluctuated greatly. 77% gain from Seagate is quite nice. Happy New Year!

Mike
December 31, 2012, 1:09 pm

Happy new year!

yeah, I’m pretty happy about my results! I’ll make sure not to pick another RadioShack for 2013 ;-) hahaha!

January 1, 2013, 9:50 pm

Overall, great results :)

Mark

July 29, 2013, 7:13 am

[...] beat dividend ETFs that I use as a benchmark. On December 31st, 2012, I made my last update on the Top 2012 Dividend Stocks. I was slightly behind my benchmark with my US stock picks (1.47% behind) but was way ahead with my [...]

September 9, 2014, 2:16 am

[…] Best Dividend Stock Picks 2012 (-1.47% vs VIG (US dividend ETF), + 8.32% vs XDV (CDN dividend ETF) […]

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