• I’m taking a quick pause in my new investing series about how to build an investment strategy (read part 1 and part2) to publish my stock pick returns as at March 31st and the usual TSX60 dividend yield and ex-dividend date chart. After a full quarter, I’m already taking a step ahead of both US and CDN benchmarks. Lets check how I beat both benchmarks by more than 1%.

    PSST! If you are curious to know how I keep beating the market with dividend stocks for the past 3 years, check out my new website!


    Best 2014 Dividend Stock Pick Returns


    I started this “tradition” on my blog in 2012. The goal is to pick 20 US and 10 CDN dividend stocks that I think will outperform their peers. This is the reason why I use VIG and XDV as benchmarks. I keep track of my results for accountability purposes. I find that too many analysts and blogs just drop the ball on their picks when they are not so great. By posting monthly results, I have no other choice but to face my performance and explain it. You can look at my previous picks and returns:

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

    Best Dividend Stock Picks 2013 (+11.07% vs VIG, + 0.77% vs XDV)


    You can also buy my 2014 Best Dividend Stock Picks for Kindle ( on Amazon) to get the full analysis:


    2014 book cover


    2014 Best US Dividend Stocks: +2.76% vs -0.01% (VIG)

    top US dividend stocks

    13 stocks out of 20 beat my benchmark. This is a 65% ratio… not bad, but not incredible either. However, I have 4 stocks (ALF, APPL, XOM, WMT) that could easily come back to life with some good news. After a quarter, I’m adding almost 3% to the benchmark which is a pretty solid performance.  My portfolio dividend yield is also 1% higher than VIG.


    What I can see is that consumer (staple or discretionary) stocks like Clorox (CLX), Mattel (MAT), Philip Morris (PM) and Wal-Mart (WMT) have had a rough start this year. In fact, if I look closer at my portfolio, I can also add that PepsiCo (PEP), McDonald’s (MCD), Hasbro (HAS) are beating the benchmark, but lagging the overall stock market. They show a YTD performance of 0.68%, 1.03% and 1.11% respectively.


    Its only normal that dividend stocks lag a bull market. Last year, dividend stocks were almost entering bubble territory since the market was hungry for revenue. The year-end results weren’t as high as expected by the market and this is why dividend stocks were penalized more than other stocks. Nonetheless, the overall return including dividends is still pretty good, even compared to the global market.


    2014 Best CDN Dividend Stocks: +2.66% vs 1.23% (XDV)

    top canadian dividend stocks

    I’m offering another solid performance in the Canadian market by adding 1.43% in value to the benchmark. For this portfolio, only 50% of my stocks beat the benchmark. This is not exactly a good batting average as this could have resulted in lagging behind the index. I was *lucky* to pick Black Diamond Group (BDI) and Gluskin Sheff (GS) boosting my results through the roof with a +14.16% and +24.23% YTD performance.


    I was expecting a more solid performance from Chorus that is evolving in a profitable market and shows strong fundamentals. Banks (BNS and RY) are not rising quickly during the first quarter and ScotiaBank has been hit by bad results from its Latin American branch results. I made another bet on consumers again with Dorel (DII.B) and North West Company (NWC) but they are also lagging due to deceiving results. Lassonde (LAS.A) is saving the consumer group with a good performance so far… but the dividend yield is anemic.


    Still, I was able to beat both benchmarks after three months and looking forward to the next quarter with enthusiasm!


    TSX60 Ex-Dividend Date & Dividend Yield


    Dividend Yield
    Payout Ratio
    Ex-DVD Date
    CPGCrescent Point Energy Corp40.356.84746.544/28/2014
    PWTPenn West Petroleum Ltd9.246.06N/A6/25/2014
    COSCanadian Oil Sands Ltd23.196.0481.295/21/2014
    TATransAlta Corp12.845.61N/A5/28/2014
    BCEBCE Inc47.625.1991.526/13/2014
    ERFEnerplus Corp22.14.89452.0341674
    SJR/BShaw Communications Inc26.44.1761.5841947
    NANational Bank of Canada44.34.1538.366/24/2014
    CMCanadian Imperial Bank of Commerce/Canada95.254.1244.496/25/2014
    BMOBank of Montreal73.964.1146.864/29/2014
    FTSFortis Inc/Canada31.524.0678.385/14/2014
    BNSBank of Nova Scotia64.03446.0641736
    RCI/BRogers Communications Inc45.813.9953.6941949
    ARXARC Resources Ltd30.453.94155.384/28/2014
    RYRoyal Bank of Canada72.893.945.24/22/2014
    TRIThomson Reuters Corp37.793.88848.035/23/2014
    POTPotash Corp of Saskatchewan Inc39.993.8764.4241855
    POWPower Corp of Canada30.223.8464.1841796
    TRPTransCanada Corp50.253.8275.996/27/2014
    TCK/BTeck Resources Ltd23.863.77N/A41949
    SLFSun Life Financial Inc38.283.7650.865/26/2014
    TTELUS Corp39.633.6367.2641735
    TDToronto-Dominion Bank/The51.833.6346.7241643
    HSEHusky Energy Inc33.163.6264.965/20/2014
    CVECenovus Energy Inc31.973.33110.5741949
    AGUAgrium Inc107.733.0834.016/27/2014
    ENBEnbridge Inc50.212.79234.165/13/2014
    TLMTalisman Energy Inc11.022.69N/A41765
    GGoldcorp Inc26.972.47N/A4/15/2014
    BBD/BBombardier Inc4.112.4732.5241949
    MFCManulife Financial Corp21.322.4431.9641887
    SUSuncor Energy Inc38.612.3828.025/29/2014
    CNQCanadian Natural Resources Ltd42.372.1227.5841949
    THITim Hortons Inc61.142.0936.85/22/2014
    LLoblaw Cos Ltd46.92.0541.9441949
    WNGeorge Weston Ltd82.342.0236.2541949
    SNCSNC-Lavalin Group Inc48.341.99389.785/16/2014
    BAM/ABrookfield Asset Management Inc45.031.9818.384/29/2014
    SCShoppers Drug Mart Corp60.831.8728.66/25/2014
    MRUMetro Inc64.91.8512.945/14/2014
    YRIYamana Gold Inc9.681.71N/A6/25/2014
    CTC/ACanadian Tire Corp Ltd104.231.6821.384/28/2014
    SAPSaputo Inc55.691.6533.5441919
    CNRCanadian National Railway Co62.111.6127.7241735
    MGMagna International Inc106.281.5918.195/28/2014
    CCOCameco Corp25.311.5849.666/25/2014
    ECAEncana Corp23.611.32209.3241949
    SLWSilver Wheaton Corp25.081.2342.6141674
    ABXBarrick Gold Corp19.681.13N/A5/28/2014
    AEMAgnico Eagle Mines Ltd33.471.0656.185/28/2014
    IMOImperial Oil Ltd51.481.0114.675/28/2014
    FMFirst Quantum Minerals Ltd20.430.9121.1341916
    GILGildan Activewear Inc55.710.8513.665/13/2014
    CPCanadian Pacific Railway Ltd165.650.8528.116/25/2014
    ELDEldorado Gold Corp6.150.3333.8541981
    VRXValeant Pharmaceuticals International Inc145.4400N/A
    KKinross Gold Corp4.57009/17/2014
    BBBlackBerry Ltd8.9500N/A
    CCTCatamaran Corp49.4600N/A
    GIB/ACGI Group Inc34.1300N/A
    1 Comment   |   Read more >


    I’ve worked very hard this week to finish the Rock Solid Ranking. This will be a scoring system for dividend stocks. Checkout The Dividend Guy Blog next week as I’ll explain my dividend growth model.


    Here what is interesting to read this Weekend:


    Tax treatment on a non-qualified annuity @ Annuity Rates HQ – There is a huge advantage to buy a non-qualified annuity vs a qualified annuity tax wise.

    Top 100 Dividend Stocks @ Intelligent Speculator

    5 Attractive Dividend Growth Stocks @ Dividend Yield – I own CVX, JNJ, picked GPC and PG on my watch list!

    The Roots of a Wallet Engineer @ Passive Income Pursuit

    When to Buy Dividend Paying Stocks? @ Dividend Growth Investor – my answer is TODAY!

    Dividend Income Update @ Dividend Mantra – Man, this guy just made over $700 in a single month from his portfolio!

    6 Stocks Raising Their Dividend @ Dividend Growth Investing



    Dividend Stocks Analysis


    United Technologies (UTX) @ Dividend Growth Stocks

    2 Comments   |   Read more >


    Last week, I started a new investment series called “Build an Investment Strategy”. All my readers have made at least one trade in their broker account, but it doesn’t mean they have a solid investment strategy. It goes far beyond a simple set of ratios and metrics that you enter into a stock filter. An investment strategy is your philosophy; it describes the way you intend to manage your portfolio. The investment strategy is useful when you are about to make a tough decision: to buy or to sell.


    Last week, I covered the first step: why do you invest? Answering this simple question will tell you a lot about the strategy you will use to manage the account. Today, I’ll be writing about adapting to your tolerance for risk within the portfolio.


    I’ve already covered the whole “create your investor profile and invest accordingly” within my newsletter. This is step #2 in an exclusive investing series for my subscribers. Click here to subscribe to my mailing list.  Therefore, this article is NOT about your investor profile. If you buy stocks, we will assume you are already well aware that there are more risks with stocks than with GICs… risks of making money of course! Hahaha! I’ll talk more about how to manage this risk within your stock portfolio as all companies weren’t created equal.


    Manage Your Risk within Your Stock Portfolio


    When an investor is ready to invest in the stock market, he is also ready to lose money. Technically, you could lose 100% of your investment in a stock if you make the wrong decision. However, if you select sound dividend stocks, chances are you will not see a zero dollar value next to one of your stocks. Therefore, we are talking a little bit more about market fluctuations than risk of losing all your money.


    Still, you can decide to take on more risk with some stocks than others. You can build a “safe” portfolio including several consumer (defensive) stocks and well managed REITs. Retirees and those who are looking to generate immediate revenue from their portfolio are more likely to select these kinds of stocks. There are several “safe lists” in the dividend world. You can pick stocks that have been consistently increasing their dividend payments for the last 5, 10, 15 and even 25 years. The Dividend Achievers, Dividend Champions and Dividend Aristocrats are three lists that include companies that have been paying dividends for X number of years. This does not guarantee your investing success but it’s a great place to start if you are looking for safer stocks.


    On the other hand, you can decide to pick stocks with higher risk, but higher reward potential. For a dividend investor, this type of investment can be achieved through two different techniques: picking high yield dividend stocks or picking companies with higher growth potential.


    High Yield Dividend Stocks


    Adding high yield dividend stocks in your portfolio will generate higher revenues, but you may lose money in the stock value of your portfolio. There is always a reason why a company pays a 7-10% in dividend compared to another one paying 2-4%. Most of the time; it’s because the company doesn’t show strong fundamentals. Some companies have been paying a high dividend yield for years and investors are laughing at my investment strategy. But some others have tanked faster than a rock thrown in the lake. I’m not a big fan of this strategy and this is why you won’t find high yield dividend stocks in my dividend holdings.


    Higher Growth Potential


    I must admit, picking stocks with higher growth potential than high dividend yield is more my thing. I’ve successfully done it in the past with trades on Seagate Technology (STX) (sold), Apple (AAPL) (still in my portfolio), Walt Disney (DIS) (in my portfolio) and Gluskin & Sheff (GS.TO) (in my portfolio). These three stocks that are still in my portfolio don’t even pay 3% in dividends. However, I’m +30% (Apple), +25% (DIS) and +11% (GS.TO) without counting the dividends with less than a year owning them. I bought these three companies for the same reason: they show strong growth potential. The thing is that they are riskier as well. I took the bet that Apple will continue to dominate the cell phone industry, that Disney will continue to dominate with ESPN and will make tons of money with their movies and that Gluskin & Sheff will continue to outperform the wealth management industry (and hopefully will be bought out by a bigger firm).


    If I’m wrong, I’ll also pay the price. You don’t have this kind of dilemma with a “boring” stock like Kimberly-Clark (KMB), Coca-Cola (KO) or Procter & Gamble (PG).


    My Strategy to Manage Risk within My Portfolio


    I love dividend investing because it helps me save time when managing my portfolio. But pure dividend investing is often synonymous with buying and holding the same companies forever. This is kind of boring and I don’t want to follow this path exactly. This is why I have come up with a hybrid strategy that manages risk in my portfolio while offering me the opportunity to trade a few times per year.


    This is why I’ve separated my portfolio into two parts: The Growth portfolio and The Core portfolio. The goal with the core portfolio is to follow a dividend growth model and invest in stocks I intend to hold for several years, if not forever.


    The growth portfolio enables me to trade once in a while. These stocks are on my “close watch list” and I can buy or sell them at any time once I figure I’ve made the money it can produce. For example, this is how I dropped STX at $40 (put a stop sell). I could have rode it to $60,  but you never know what it going to happen! So I’m closely watching the following four stocks and could trade them out of my portfolio at any moment. The core portfolio should remain stable for several years.



    I like having two sides to my portfolio as there is nothing more exciting than buying a new stock or selling one for a good profit! It happens too rarely with my core portfolio so I had to find something fun to keep my interest towards stocks.


    Now that we have covered the “blah blah” around the strategy, the next post will be about writing down your investment strategy with numbers and a clear method. In the meantime, I’ll publish the Ex-dividend dates and 2014 Best Dividend Stocks result. So stay tuned!

    2 Comments   |   Read more >
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