June 2015 Investment Report

Still on the road:

Regina and Penticton

Travel in Canada – in addition to a trip to Medicine Hat for the grandson’s lacrosse tournament, we got out to Penticton and Regina. No more international travel until August when we go to Iceland.

***

June Results

This was one of the worst months in the past year for the markets and associated portfolios.  The biggest influence was the negative news coming out of Greece, but for Canada there is still the low oil prices and the shrinking economy.

The US markets dropped by over 2 percent, wiping out most the the year’s gains.  the Canadian market dropped a whopping 3 percent bringing the YTD number to negative 1/2 percent.

My portfolio dropped over 2 percent bringing my YTD to just over 3 1/2 percent gain.

In spite of the losses, my dividends keep coming in the form of cash.

***

My June Transactions

With the excess cash I generated with my May sales, I wanted to get my money back to producing dividends so I did a fair amount of buying.  I continue to try to rebalance my portfolio so it more accurately represents the stocks in my monthly stock screening process.

On the Canadian side, I sold some of my ENB because its weighting was too high due to its gains over the past few years.  I purchased POT, AGU and some more BNS.  I will add some cash to my Canadian portfolio to round out the 2015 TFSA (Canadian tax exemption tool) and will add to one of my Canadian stock positions.

In my US portfolio, I sold my position in COP because ValueLine dropped its rating to A+ from A++ and replaced it with CVX so I would still have  US oil company.

I purchased more MRK and PEG and added EMR and IBM.

I still have some US cash left over and will continue to look for buying opportunities over the summer.

***

Stock Selection for June

A++; 2% dividend; 10 year dividend growth – US Stocks

Company Ticker Dividend Yield Dividend Growth 10-Year Current PE Ratio
3M Company MMM 2.57 6.5 19.78
AT&T Inc. T 5.43 4 14.01
Automatic Data Proc. ADP 2.48 13.5 21.25
Baxter Int’l Inc. BAX 3 12 16.69
Boeing BA 2.63 11.5 17.73
Bristol-Myers Squibb BMY 2.22 2.5 39.19
Chevron Corp. CVX 4.27 10.5 21.79
Chubb Corp. CB 2.29 9 13.43
Coca-Cola KO 3.25 9.5 19.83
Colgate-Palmolive CL 2.31 12 24.43
Deere & Co. DE 2.59 15.5 17.88
Dover Corp. DOV 2.18 9.5 17.82
Du Pont DD 2.79 2.5 17.36
Emerson Electric EMR 3.2 7.5 14.87
Exxon Mobil Corp. XOM 3.42 9.5 19.43
Home Depot HD 2.16 19 21.43
Illinois Tool Works ITW 2.07 12 18.16
Infosys Ltd. ADR INFY 2.18 31.5 16.93
Int’l Business Mach. IBM 3.09 19.5 11.6
Intel Corp. INTC 2.97 23.5 15.06
Johnson & Johnson JNJ 2.99 11.5 16.45
Kimberly-Clark KMB 3.22 8.5 21
Lockheed Martin LMT 3.17 22.5 17.13
McDonald’s Corp. MCD 3.54 23 20.46
Merck & Co. MRK 3.07 1.5 16.74
Microsoft Corp. MSFT 2.65 28 17.9
Novartis AG ADR NVS 2.78 15.5 22.37
Occidental Petroleum OXY 3.87 17 71.91
PepsiCo, Inc. PEP 2.95 12.5 20.75
Pfizer, Inc. PFE 3.26 5 23.22
Procter & Gamble PG 3.28 10.5 19.96
Public Serv. Enterprise PEG 3.84 3 14.45
Qualcomm Inc. QCOM 2.85 29.5 13.86
Raytheon Co. RTN 2.65 10.5 14.78
Royal Dutch Shell ‘B’ RDSB 6.32 6.5 12.8
Schlumberger Ltd. SLB 2.26 13.5 22.73
Smucker (J.M.) SJM 2.26 10 20.35
Texas Instruments TXN 2.51 28 18.13
Total ADR TOT 5.58 8 11.53
Travelers Cos. TRV 2.41 6 10.85
Unilever PLC ADR UL 3.25 8 22.02
Union Pacific UNP 2.15 20.5 16.37
United Technologies UTX 2.21 14 16.56
Verizon Communic. VZ 4.61 3 12.41
Wal-Mart Stores WMT 2.69 18 15.05

***

Canadian Stocks

B+ or greater; 2% dividend; 10 year dividend growth

Company Ticker Financial Strength Dividend Yield Dividend Growth 10-Year
Agrium, Inc. AGU A 3.36 35
Bank of Montreal BMO.TO B++ 4.49 8
Bank of Nova Scotia BNS.TO A 4.21 10.5
BCE Inc. BCE B++ 4.8 9.5
Can. Imperial Bank CM.TO A+ 4.64 7.5
Enbridge Inc. ENB.TO B++ 3.35 11.5
Fortis Inc. FTS.TO B+ 3.8 9
Goldcorp Inc. GG B++ 3.54 14.5
Husky Energy HSE.TO A 5.06 19.5
Manitoba Telecom Svcs. MBT.TO B+ 4.67 3.5
Nat’l Bank of Canada NA.TO B++ 4.49 11.5
Pembina Pipeline Corp. PPL.TO B++ 4.41 4.5
Potash Corp. POT A+ 4.92 34.5
Royal Bank of Canada RY.TO A 4.11 11.5
Russel Metals RUS.TO B++ 6.54 16
Shaw Commun. ‘B’ SJRB.TO B+ 4.43 41.5
Suncor Energy SU.TO A 3.29 22.5
TELUS Corporation T.TO B++ 4.27 15.5
Toronto-Dominion TD.TO B++ 3.92 10.5
TransCanada Corp. TRP A 4.9 8

***

Happy investing

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About borgford

Feel free to contact me with questions: brianborgford@hotmail.com
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