Dividend Growth Index Q1
Since September 2011, a group of dividend bloggers each selected 3 dividend growth stocks and combined them into a bigger portfolio. We are tracking the “Dividend Growth Index” quarterly and compare our performance to the Canadian and US dividend indices.
Here’s what happened with my picks for the past quarter:
Intel (INTC)
I already mentioned in my dividend goals that I’m putting INTC on my “sell watch list” this year. I hold INTC in my own portfolio in addition to following it in the Dividend Growth Index. The recent financial results show weak sales and the inability for PCs to compete with tablets at the moment. Weaker PC sales automatically results in weaker INTC processor sales.
Nonetheless, there are two positive aspects for INTC at the moment; they beat the analysts’ EPS expectations (okay… it’s not a big deal since they had previously dropped their expectations). The second point is definitely more positive; INTC is generating roughly 30% of its revenues from its servers and hosting services. The fact more people are going on the web with their smartphones and tablets will result in an increase of server demand. This is why INTC should benefit from the growth of this segment.
I’m not ready to drop the hammer on INTC just yet. The stock is still paying a strong dividend and the company remains the leader in its industry. This is why I’m holding on the stock for now.
Coca-Cola (KO)
Coke remains a pretty strong stock and should continue its slow progression in 2013. I’m not expecting to hit a homerun with this pick but it is good to have stocks offering strong dividend growth year after year.
Coca-Cola has been doing well in the past quarter and continues to grow through their expansion in the emerging markets. KO is definitely a keeper!
National Bank (NA)
The supra regional Quebec bank published, once again, strong results. A big part of their profits comes from their trading department which could be a source of volatility for the future. However, they are entering into their first phase of SAP implantation. This should improve their efficiency and provide a competitive edge since their technology will be brand new.
National Bank also positioned their wealth management services amongst the biggest in Canada after only three years of operation. This department should contribute to increasing their profit in 2013. National Bank is definitely a strong pick in the Canadian environment.
Dividend Growth Index Results
Here are the results of everybody’s picks. As you can see, we are still trailing the indices which is never good news. Unfortunately, we had a few stock picks that went sideways (including INTC!).
Blogger Stock #Shares-Sept 30 New Price Value Inception Return (30 sept 2011) YTD Return Dvd Dates DVD Price that day New Holding DVD Price that day New Holding DVD Price that day New Holding Price 12/31/2012 Value 12/31/2012 Quarterly return
My Own Advisor ABT US $20.23 68.56 $1,386.77 US 38.70% 23.90% 11/10/2012 0.51 69.42 20.379 20.379 65.5 1,334.80 -3.75%
BNS CN $19.77 53.92 $1,065.82 CN 6.60% 7.80% 28-Dec 0.57 57.43 19.966 19.966 57.46 1,147.26 7.64%
CLC CN $114.85 8.9 $1,022.18 CN 2.20% -2.90% 29-Oct 0.0629 8.48 115.702 0.063 6.500 116.822 0.063 6.670 117.923 6.640 783.01 -23.40%
The Dividend Guy Blog INTC US $48.41 22.655 $1,096.77 US 9.70% -5.50% 05/11/2012 0.225 21.8391 48.909 48.909 20.620 1,008.50 -8.05%
KO US $30.45 37.93 $1,154.79 US 15.50% 10.50% 28/11/2012 0.255 37.56 30.657 30.657 36.25 1,111.31 -3.77%
NA CN $14.91 74.4 $1,109.11 CN 10.90% 4.90% 21/12/2012 0.83 77.48 15.070 15.070 77.24 1,163.99 4.95%
The Dividend Monk ETE US $30.57 45.2 $1,381.91 US 38.20% 16.60% 02/11/2012 0.625 44.28 31.001 31.001 45.48 1,409.95 2.03%
NVS US $19.26 61.26 $1,179.87 US 18.00% 13.10% $19.26 19.260 63.3 1,219.16 3.33%
WMT US $19.76 73.8 $1,457.93 US 45.80% 24.60% 05/12/2012 0.3975 71.65 19.870 19.870 68.23 1,355.70 -7.01%
Dividend Ninja HSE CN $46.24 26.42 $1,221.78 CN 22.20% 10.10% 23/11/2012 0.3 27.36 46.747 46.747 29.4 1,374.36 12.49%
PEP US $16.67 70.77 $1,180.04 US 18.00% 9.10% 05/12/2012 0.5375 69.71 16.799 16.799 68.43 1,149.52 -2.59%
JNJ US $13.04 68.91 $898.51 N/A N/A 23/11/2012 0.61 69.56 13.154 13.154 70.1 922.12 2.63%
Passive Income Earner CNR CN $14.54 86.99 $1,264.91 CN 26.50% 10.70% 06/12/2012 0.375 89.58 14.601 14.601 90.33 1,318.90 4.27%
CNQ CN $32.92 30.33 $998.40 CN -0.20% -23.10% 12/12/2012 0.105 28.06 33.043 33.043 28.64 946.36 -5.21%
AFL US $29.45 47.88 $1,410.15 US 41.00% 9.00% 09/11/2012 0.35 49.62 29.658 29.658 53.12 1,575.42 11.72%
SPBrunner FTS CN $40.25 33.53 $1,349.46 CN N/A N/A 14/11/2012 0.3 33.28 40.613 40.613 34.22 1,389.77 2.99%
TIH CN $59.02 20.88 $1,232.32 CN N/A N/A 07-Dec 0.12 20.48 59.366 59.366 21.1 1,252.62 1.65%
SAP CN $30.58 42.25 $1,292.17 CN N/A N/A 30-Nov 0.21 46.04 30.719 30.719 50.31 1,545.50 19.60%
Dividend Mantra COP US $21.27 57.18 $1,216.00 US 21.60% 2.80% 11-Oct 0.66 56.63 21.518 21.518 57.99 1,247.82 2.62%
PM US $16.64 89.94 $1,496.20 US 49.60% 17.40% 24/12/2012 0.85 83.74 16.809 16.809 83.64 1,405.90 -6.04%
PG US $16.36 69.36 $1,134.77 US 13.50% 6.40% 17/10/2012 0.562 69.47 16.492 16.492 67.89 1,119.67 -1.33%
DividendGrowth Investor CVX US $11.16 116.56 $1,300.64 US 30.10% 8.20% 14/11/2012 0.9 102.5 11.258 11.258 108.14 1,217.44 -6.40%
MCD US $11.74 91.75 $1,077.32 US 7.70% -5.00% 29/11/2012 0.77 86.49 11.845 11.845 88.21 1,044.80 -3.02%
EPD US $26.20 53.6 $1,404.20 US 40.40% 19.20% 29/10/2012 0.65 52.71 26.523 26.523 50.08 1,328.28 -5.41%
$29,332.01 22.20% 6.60% 29,372.14 0.00%
Total Return
Index XIU 8.68% 5.39% 2.33%
XDV 7.07% 3.89% 4.76%
SPY 29.93% 16.43% -0.38%
VIG 25.08% 10.92% 0.64%
The End of The Index
Unfortunately, we will have to stop the Dividend Growth Index as we have a few bloggers who can’t continue this engagement. Since we are trying to manage a virtual portfolio, it became harder to do it with a blogger turnover. I’m thinking of “recycling” this idea of a virtual dividend portfolio with another concept but I’d like to know if you have any ideas or comments on the existing formula. let me know 
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Apple should be on the list. However, Apple Stock Plunges this week. It lost the ‘Most Valuable’ Status.