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!).


BloggerStock#Shares-Sept 30New PriceValue Inception Return (30 sept 2011)YTD ReturnDvd DatesDVDPrice that dayNew HoldingDVDPrice that dayNew HoldingDVDPrice that dayNew HoldingPrice 12/31/2012Value 12/31/2012Quarterly return
My Own AdvisorABT US$20.2368.56$1,386.77 US38.70%23.90%11/10/20120.5169.4220.37920.37965.5 1,334.80 -3.75%
BNS CN$19.7753.92$1,065.82 CN6.60%7.80%28-Dec0.5757.4319.96619.96657.46 1,147.26 7.64%
CLC CN$114.858.9$1,022.18 CN2.20%-2.90%29-Oct0.06298.48115.7020.0636.500116.8220.0636.670117.9236.640783.01-23.40%
The Dividend Guy BlogINTC US$48.4122.655$1,096.77 US9.70%-5.50%05/11/20120.22521.839148.90948.90920.620 1,008.50 -8.05%
KO US$30.4537.93$1,154.79 US15.50%10.50%28/11/20120.25537.5630.65730.65736.25 1,111.31 -3.77%
NA CN$14.9174.4$1,109.11 CN10.90%4.90%21/12/20120.8377.4815.07015.07077.24 1,163.99 4.95%
The Dividend MonkETE US$30.5745.2$1,381.91 US38.20%16.60%02/11/20120.62544.2831.00131.00145.48 1,409.95 2.03%
NVS US$19.2661.26$1,179.87 US18.00%13.10%$19.2619.26063.3 1,219.16 3.33%
WMT US$19.7673.8$1,457.93 US45.80%24.60%05/12/20120.397571.6519.87019.87068.23 1,355.70 -7.01%
Dividend NinjaHSE CN$46.2426.42$1,221.78 CN22.20%10.10%23/11/20120.327.3646.74746.74729.4 1,374.36 12.49%
PEP US$16.6770.77$1,180.04 US18.00%9.10%05/12/20120.537569.7116.79916.79968.43 1,149.52 -2.59%
JNJ US$13.0468.91$898.51N/AN/A23/11/20120.6169.5613.15413.15470.1922.122.63%
Passive Income EarnerCNR CN$14.5486.99$1,264.91 CN26.50%10.70%06/12/20120.37589.5814.60114.60190.33 1,318.90 4.27%
CNQ CN$32.9230.33$998.40CN-0.20%-23.10%12/12/20120.10528.0633.04333.04328.64946.36-5.21%
AFL US$29.4547.88$1,410.15 US41.00%9.00%09/11/20120.3549.6229.65829.65853.12 1,575.42 11.72%
SPBrunnerFTS CN$40.2533.53$1,349.46 CNN/AN/A14/11/20120.333.2840.61340.61334.22 1,389.77 2.99%
TIH CN$59.0220.88$1,232.32 CNN/AN/A07-Dec0.1220.4859.36659.36621.1 1,252.62 1.65%
SAP CN$30.5842.25$1,292.17 CNN/AN/A30-Nov0.2146.0430.71930.71950.31 1,545.50 19.60%
Dividend MantraCOP US$21.2757.18$1,216.00 US21.60%2.80%11-Oct0.6656.6321.51821.51857.99 1,247.82 2.62%
PM US$16.6489.94$1,496.20 US49.60%17.40%24/12/20120.8583.7416.80916.80983.64 1,405.90 -6.04%
PG US$16.3669.36$1,134.77 US13.50%6.40%17/10/20120.56269.4716.49216.49267.89 1,119.67 -1.33%
DividendGrowth InvestorCVX US$11.16116.56$1,300.64 US30.10%8.20%14/11/20120.9102.511.25811.258108.14 1,217.44 -6.40%
MCD US$11.7491.75$1,077.32 US7.70%-5.00%29/11/20120.7786.4911.84511.84588.21 1,044.80 -3.02%
EPD US$26.2053.6$1,404.20 US40.40%19.20%29/10/20120.6552.7126.52326.52350.08 1,328.28 -5.41%
$29,332.01 22.20%6.60% 29,372.14 0.00%
Total Return

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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