Dividend Growth Index Q1
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Hey! It’s good to be back!!!
First things first, if it’s your first time on this blog in 2012, you want to check my Best Dividend Stocks for 2012 article (I give a 29 analysis eBook for free 
).
Back in September, a group of dividend bloggers launched The Dividend Growth Index. This is a dividend portfolio of 24 stocks (US and CDN). Each quarter, we follow our picks and the overall portfolio results. By following our blogs, it allows you to track closely 24 great dividend stocks and how they perform over time.
Intel – NASDAQ:INTC
Intel had surprised everyone by beating analyst’s expectations this summer with great financial results. Unfortunately, the company has lowered its Q4 revenue outlook due to a hard disk supply shortage. No hard disks, no computers. No computers… no computer chips needed from Intel! However, future outlooks remain unchanged as Intel believes the shortage will end during the first months of 2012. Being part of the Dogs of the Dow, INTC is still a good pick in my opinion.
Coca-Cola – NYSE:KO
Over the past few months, KO has made some interesting moves by using its liquidity for something better than earning 1% in a money market fund! In October, Coca-Cola announced they established a plan to spend $3bln in Russia followed by another announcement to spend $2bln in India in November. Most recently, they bought stakes in the Saudi Drink Company for $980 million. The 3 examples mentioned above make a clear statement: Coca-Cola is after emerging markets in order to keep growing. Since they have plenty of cash and the economy is not doing so well at the moment, this sounds like the perfect timing to use its liquidity for future growth.
National Bank of Canada – TSE:NA
National Bank posted strong financial results back in early December and increased its dividend from $0.71 to $0.75 per share at the same time. During their last quarter, NA was able to beat financial analysts’ estimates and show great results from wealth management and commercial banking. Since most revenues had previously come from trading operations, it is good news to see other segment contributing to the overall results. Finally, National Bank is looking to fully integrate their recent acquisitions (Wellington West and the brokerage segment of HSBC) in the upcoming months.
How the overall portfolio performed?
Here are the Dividend Growth Index performance compared to a mix of the Canadian and US index:
Blogger Stock New Shares # New Price Live-CAD$ Live-USD$
My Own Advisor ABT US Equity 19.72932352 56.72 $1,131.02 $1,119.05
BNS CN Equity 19.16579992 51.59 $988.76 $978.30
CLC CN Equity 108.4407012 9.71 $1,052.96 $1,041.81
The Dividend Guy Blog INTC US Equity 47.27672314 24.54 $1,172.58 $1,160.17
KO US Equity 14.9050914 70.14 $1,056.63 $1,045.44
NA CN Equity 14.4590418 73.12 $1,057.25 $1,046.05
The Dividend Monk ETE US Equity 29.24446203 40.54 $1,198.26 $1,185.57
NVS US Equity 17.93 58.18 $1,054.33 $1,043.17
WMT US Equity 19.39021108 60.33 $1,182.33 $1,169.81
Dividend Ninja HSE CN Equity 44.62997459 24.87 $1,109.95 $1,098.20
PEP US Equity 16.2900375 66.4 $1,093.23 $1,081.66
SPLS US Equity 75.72477952 14.215 $1,087.95 $1,076.43
Passive Income Earner CNR CN Equity 14.3387766 79.71 $1,142.94 $1,130.84
CNQ CN Equity 32.58354756 39.86 $1,298.78 $1,285.03
AFL US Equity 28.8230738 44.88 $1,307.42 $1,293.58
Wealthy Canadian RY CN Equity 21.04372296 52.82 $1,111.53 $1,099.76
FTS CN Equity 55.72287528 33.18 $1,848.89 $1,829.31
BIN CN Equity 46.65521141 19.8 $923.77 $913.99
Dividend Mantra COP US Equity 15.94545048 74.17 $1,195.33 $1,182.67
PM US Equity 16.19092699 78.59 $1,286.06 $1,272.44
PG US Equity 15.95795612 66.83 $1,077.88 $1,066.47
DividendGrowth Investor CVX US Equity 10.886571 110.37 $1,214.41 $1,201.55
MCD US Equity 11.47530922 98.84 $1,146.36 $1,134.22
EPD US Equity 25.24942992 46.67 $1,191.00 $1,178.39
$28,719.39 $28,415.34
Dividend Growth Index Performance So Far
When I looked at the portfolio at first, I thought it was great. But you don’t know how great it is if you don’t compare it, right? So here are a few more thoughts on the Dividend Growth Index:
All stocks have paid dividends at least once except Novartis (pays annually), CLC pays monthly.
All dividends are reinvested on ex-date.
We had our first trade made in October when Wealthy Canadian sold DAY after a healthy profit. He then decided to buy FTS.
I wanted to look at the portfolio from 2 points of view (Canadian and US) since there is a difference in the currency rate:
In CAD:
Portfolio 09/30 $CAD 25,513
Portfolio Now: CAD$28,720 (would be about $800 more if FX had not moved)
Using last dividends paid, index pays $899 CAD per year (very conservative since NVS has not paid and many have already announced dividend increases)
In USD:
Portfolio 09/30 $USD 24,290
Portfolio Now: USD$28,415 (would be about $400 less if FX had not moved)
Using last dividends paid, index pays $890 USD per year (very conservative since NVS has not paid and many have already announced dividend increases)
Comparison:
If someone had bought DVY (big US dividend ETF) with the same amount, he would now have $27,355, that position would give $900 in dividends per year.. To be fair though, a large part of the outperformance is the DAY pick, but still good:)
You can read about the other participant picks by clicking on their name below:
Disclaimer: I own shares of NA, INTC & KO
You are interested in dividend investing? Check out my Free Dividend Investing eBook and don't forget to sign-up to my RSS Feeds!
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9 Comments on this post
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Anonymous said:
If you compare The numbers from the Dividend Growth Index link and these new numbers, the new shares amount are less than the original numbers. They are suppose to be equal or higher due to DRIP shares.
January 4th, 2012 at 11:07 am -
retirebyforty said:
Great job on the index.
Can KO grows much in emerging market? I thought everyone already know about and have access to Coke. Aren’t they already world wide? Maybe they are growing with other drinks they own like… Nestea?January 4th, 2012 at 12:21 pm -
Mike said:
hum… let me get back to you on this… maybe Excel did some tricky bug…or the guy behind the computer
@Retirebyforty;
They are worldwide but the level of consumption is still increasing in emerging market so they will sell more products January 4th, 2012 at 2:31 pm -
Mike said:
@Anonymus,
the original post was showing shares with price as of September 23th. This post is showing shares with price as of September 30th… I’ll have everything cleared in a few days (as of to when to we start!)
sorry for the confusion!
January 6th, 2012 at 3:50 am
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