I often refer to investing for the long term. Whenever I make purchases and they go down right away, I have to keep reminding myself that I’m in it for the long haul, not for short term gains.
I thought I would share some data on my long term holds, just to remind people of the value of holding a good stock for a long time.
TD – Toronto Dominion Bank
TD is my oldest stock, purchased in the fall of 2004 for $46.58. It is now trading at $81.10 or a gain of 74% for an annual return of just over 9%. In addition, it currently has a dividend yield of nearly 4% which represents a yield of almost 7% on the original investment. I have gotten a compound annual growth rate of 12% on this stock.
KO – Coca Cola
My second oldest holding cost me $20.14 in late 2004 and now trades at $37.71 for a gain of 87% or 10.6% per year. It has a current dividend yield of 2.7% or over 5% on cost. Annual total returns of almost 13%.
PEP – Pepsi
Far less stellar than KO, it has still produced almost 5% annual gains plus over a 3% dividend yield for annual returns of 8%.
ENB – Enbridge
This Canadian stock has amost doubled since I purchased in late 2004 for an annual gain of almost 12% and a currrent dividend yield of 2.7% for an annual return of over 14%, with a yield on cost of over 5%.
MMM – 3M Company
Purchased in the middle of 2005 has grown by only 29% or just under 4% per year with a dividend of 2.6% for a total annual return of 6.5%.
I have comparable results for my purchases up to 2008 (MO, PM, MCD, JNJ) and my 2010 purchases are showing a similar trend.
So next time when you purchase a stock and it drops by a couple points, keep the long term in mind.
Below is my current holdings and the latest suggested list of stocks which have an annual dividend yield of just over 4%.
|My Portfolio – December 2012|