July 2015 Investment Update

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In Regina awaiting Rochelle’s first grandchild (born July 21), while spending time with four others.

Grandkids

Now into our second year of retirement, family continues to be the prime focus. Here is a road trip to bring some of the grandchildren together.

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July Results

The Canadian economy continues to slump with its heavy reliance on resources.  The Bank of Canada cut interest rates again, while the US Fed contemplates when it should start raising rates.  As a result the Canadian dollar continued its free fall.  In the short term this works to my advantage due to my heavy weighting of US stocks.

If it weren’t for the last two days of the month, this might have been a disastrous month, but it ended up being at least acceptable.  The Canadian market dropped by 1/2 percent for the month with a YTD decline of just over 1%.  The US market gained between 1/2 percent and almost 2% depending on which measure you use.  My results were slightly ahead of market with just about 1% gain on both my Canadian stocks and my US portfolio.  When you factor in the exchange rate, my monthly gain was 4% with almost an 8% gain YTD in Canadian dollars – keep in mind these type of gains are reversed when the exchange rate shifts back.

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Stock Analysis (Excel Spreadsheet)

Here is my most recent analysis of the top Canadian and US companies.  These are only the companies that have a 3% or greater dividend yield and a 10 year history of dividend growth.  I have ranked them in order of which I think are the best buys right now, with the lowest score being the best.  Click the link to open it.

Stock analysis July 17 2015

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Suggested Stocks: A++, 2% yield, 10 year dividend growth

Company Ticker Dividend Yield Dividend Growth 10-Year
3M Company MMM 2.74 7.5
AT&T Inc. T 5.6 4
Automatic Data Proc. ADP 2.6 13.5
Baxter Int’l Inc. BAX 5.48 12
Boeing BA 2.61 11.5
Bristol-Myers Squibb BMY 2.17 2.5
Chevron Corp. CVX 4.61 10.5
Coca-Cola KO 3.33 9.5
Colgate-Palmolive CL 2.31 12
Deere & Co. DE 2.57 15.5
Dover Corp. DOV 2.48 9.5
Du Pont DD 3.39 2.5
Emerson Electric EMR 3.65 7.5
Exxon Mobil Corp. XOM 3.6 9.5
Grainger (W.W.) GWW 2.07 17
Home Depot HD 2.11 19
Illinois Tool Works ITW 2.17 12
Infosys Ltd. ADR INFY 2.02 31.5
Int’l Business Mach. IBM 3.22 19.5
Intel Corp. INTC 3.36 23.5
Johnson & Johnson JNJ 2.99 10.5
Kimberly-Clark KMB 3.15 8.5
Lockheed Martin LMT 3.01 22.5
McDonald’s Corp. MCD 3.5 23
Merck & Co. MRK 3.1 1.5
Microsoft Corp. MSFT 2.69 28
Novartis AG ADR NVS 2.58 14.5
Occidental Petroleum OXY 4.39 17
PepsiCo, Inc. PEP 2.92 12.5
Pfizer, Inc. PFE 3.22 5
Procter & Gamble PG 3.28 10.5
Public Serv. Enterprise PEG 3.97 3
Qualcomm Inc. QCOM 3.11 29.5
Raytheon Co. RTN 2.6 10.5
Royal Dutch Shell ‘B’ RDSB 6.72 6.5
Schlumberger Ltd. SLB 2.33 13.5
Smucker (J.M.) SJM 2.51 9.5
Texas Instruments TXN 2.69 28
Total ADR TOT 5.74 8
Travelers Cos. TRV 2.32 6
Unilever PLC ADR UL 2.85 8
Union Pacific UNP 2.39 20.5
United Technologies UTX 2.53 14
Verizon Communic. VZ 4.75 3
Wal-Mart Stores WMT 2.7 16.5

 

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 Happy Investing!!

 

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About borgford

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