August 2015 update

Walking in his footsteps

I had the good fortune to trace the path my grandfather walked, rode horses, and fished in the sea, as a child in Iceland in the 1870s.

Walking in his footsteps

At the birthplace of my grandfather in Iceland. The house behind me to my right (your left) is where the old shack stood where my grandfather was born.

***

August Results

This is the kind of month that really tests your resolve to be in the stock market.  However, this too shall pass and the dividends keep rolling in as planned. As a matter of fact, because the dividends per share still grow while the stock price falls, the dividend yield looks even better.

The US markets dropped by over 6% while the Canadian market dropped over 4%.  My Canadian stocks dropped by around 3% and my US dropped by under 5%, again proving that this strategy offers some protection on the downside.  On a year-to-date basis the US market is down 4 to 5% and the Canadian market is down over 5%.

Again due to the weakening Canadian dollar, my portfolio, expressed in Canadian dollars, dropped by only 3% and is actually up 4% on the year.

I made some small additions to some of my existing stocks but I still am sitting on some cash to make purchases once we see a bottom.  There may still be some volatility over the next month or two.

***

Housing articles:

HERE is a great article on housing.  Shows how some home owners are too quick to congratulate themselves on a super housing deal.

http://www.gocurrycracker.com/how-i-made-102k-in-real-estate/?utm_medium=Newsletter&utm_source=Personal%20Finance%20Reader&utm_type=text&utm_content=PersonalFinanceReader&utm_campaign=128877625

HERE is a calculator (Thanks to David in Thailand for this) to help you assess the financial wisdom of a home purchase.  This calculator is based on US residency, which allows tax deductions for interest on purchasing a home.  If you are not in the US, then use a marginal tax rate of zero.

***

This month selections:

US – 2% dividend, 10 year dividend growth, A++

Company Ticker Dividend Yield Dividend Growth 10-Year Current PE Ratio
3M Company MMM 2.75 7.5 18.89
AT&T Inc. T 5.55 4 13.7
Automatic Data Proc. ADP 2.63 13.5 25.99
Boeing BA 2.66 11.5 18.44
Bristol-Myers Squibb BMY 2.33 2.5 36.31
Chevron Corp. CVX 5.02 10.5 18.52
Coca-Cola KO 3.24 9.5 20.45
Colgate-Palmolive CL 2.26 12 24.96
Deere & Co. DE 2.51 15.5 18.46
Dover Corp. DOV 2.5 9.5 15.26
Du Pont DD 2.79 2.5 13.62
Emerson Electric EMR 3.78 7.5 14.21
Exxon Mobil Corp. XOM 3.74 9.5 17.75
Grainger (W.W.) GWW 2.07 17 17.94
Home Depot HD 2.08 19 22.33
Illinois Tool Works ITW 2.17 12 17.32
Infosys Ltd. ADR INFY 2.31 27.5 18.42
Int’l Business Mach. IBM 3.33 19.5 10.89
Intel Corp. INTC 3.31 23.5 13.49
Johnson & Johnson JNJ 3.03 10.5 16.24
Kimberly-Clark KMB 3.02 8.5 22.44
Lockheed Martin LMT 2.92 22.5 18.6
McDonald’s Corp. MCD 3.42 23 21.14
Merck & Co. MRK 3.08 1.5 16.94
Microsoft Corp. MSFT 2.83 28 18.35
Novartis AG ADR NVS 2.6 14.5 23.8
Occidental Petroleum OXY 4.41 17 63.11
PepsiCo, Inc. PEP 2.85 12.5 21.79
Pfizer, Inc. PFE 3.19 5 24.26
Procter & Gamble PG 3.5 10.5 18.7
Public Serv. Enterprise PEG 3.8 3 14.6
Qualcomm Inc. QCOM 3.06 29.5 12.93
Raytheon Co. RTN 2.45 10.5 15.97
Royal Dutch Shell ‘B’ RDSB 6.39 6.5 12.66
Schlumberger Ltd. SLB 2.39 13.5 26.12
Smucker (J.M.) SJM 2.4 9.5 20.32
Texas Instruments TXN 2.71 28 17.33
Total ADR TOT 5.64 8 11.41
Travelers Cos. TRV 2.31 6 10.82
Unilever PLC ADR UL 2.79 8 22.41
Union Pacific UNP 2.35 20.5 15.5
United Technologies UTX 2.59 14 14.14
Verizon Communic. VZ 4.72 3 12.11
Wal-Mart Stores WMT 2.69 16.5 15.17

Canada – 2% dividend, 10 year dividend growth, B or better

Company Ticker Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Agrium, Inc. AGU A 3.51 35 13.68
Bank of Montreal BMO.TO B++ 4.61 8 11.92
Bank of Nova Scotia BNS.TO A 4.47 10.5 10.8
Barrick Gold ABX B 2.91 8 17.2
BCE Inc. BCE B++ 5.03 9.5 14.27
Cameco Corp. CCO.TO B+ 2.15 15.5 16.21
Can. Imperial Bank CM.TO A+ 4.83 7.5 10.17
Can. Natural Res. CNQ.TO A 2.87 23.5 93.74
Enbridge Inc. ENB.TO B++ 3.29 11.5 25.7
Encana Corp. ECA B+ 3.92 14
Fortis Inc. FTS.TO B+ 3.62 9 18.81
Husky Energy HSE.TO A 5.04 19.5 59.53
Jean Coutu Group PJC/A.TO B++ 2.1 10.5 17.18
Manitoba Telecom Svcs. MBT.TO B+ 4.44 3.5 24.38
Manulife Fin’l MFC B++ 3.14 5.5 9.89
Methanex Corp. MEOH B+ 2.37 23 15.45
Nat’l Bank of Canada NA.TO B++ 4.76 11.5 9.83
Northland Power NPI.TO B 6.92 1 52.03
Pembina Pipeline Corp. PPL.TO B++ 4.8 4.5 32.58
Potash Corp. POT A+ 5.63 34.5 14.22
Royal Bank of Canada RY.TO A 4.22 11.5 11.66
Russel Metals RUS.TO B++ 7.66 16 14.17
Shaw Commun. ‘B’ SJRB.TO B+ 4.41 41.5 15.22
SNC-Lavalin Group SNC.TO B++ 2.55 20 22.25
Suncor Energy SU.TO A 3.09 22.5 37.51
Teck Resources Ltd. ‘B’ TCKB.TO B 3.1 22 10.76
TELUS Corporation T.TO B++ 3.93 15.5 17.57
Thomson Reuters TRI.TO B++ 2.5 6 26.13
Toronto-Dominion TD.TO B++ 4.03 10.5 12.06
TransCanada Corp. TRP A 5.53 8 18.35

***

Happy Investing

***

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About borgford

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