September 2015 update

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Exploring My Genealogy

Genealolgy

While in Iceland I received a full book on my genealogy. I have a detailed history dating to the year 1620 and links to significant people in history to the 9th century.

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September Results

Another terrible month – hold your breath and count to ten.  This too shall pass – but when?  Remember you are in this for the long run – which I will continue to repeat.

The TSX is down 8.57% from its peak, the DJIA down 8.87% and the S&P 8.99%.  An official correction is a 10% drop from peak numbers and until the last two days of the month, which showed a nice jump, we were well into that correction territory.

For the month of September the Canadian market is down another 4% while the US markets are down between 1.5 and 2.5 %.

My portfolio was down 0.67% for the month and is up 3.52% for the year.   Again this is due in large part to my heavy exposure to US stocks and the US dollar is strong relative to the Canadian dollar.  On an absolute basis, not counting the effect of exchange rates, my portfolio is down for the month by 2.45%.

Dividend Yield

With the lower market value and constant or increasing dividends per share, my dividend yield has grown considerably.  The dividend yield on my Canadian stocks is now 4.64% and just over 4% on my US stocks.  Although the market value of my portfolio has dropped, my income, by way of dividends, continues to grow.  I don’t have to sell stocks at a loss in order to live.

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Seeking Alpha

The following timely article appeared on the September 30 Seeking Alpha website.  It summarizes what a terrible quarter it has been:

Global equities were higher at the time of writing, and were set to end what’s been a brutal three months on a positive note. Many major markets have suffered their worst quarter for a number of years amid fears about China’s economy and the endless speculation about when the Fed will finally raise interest rates, and almost $11T has been wiped off the value of global shares. Emerging market currencies have been hit particularly hard.

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Stand Pat

As THIS ARTICLE points out, in a volatile down market like the one we are in, the best strategy is to stay put and ride it out.  You are in it for the long run (repeat) and what we are experiencing now, is short run volatility – perhaps even the inevitable correction.

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Guest commentary

David in Thailand sent out this email and has graciously consented to allow me to include it in this month’s report:

I saw this PBS show just now (aired in 2013) entitled, “The Retirement Gamble” which sheds a light on the investment industry for retirement.
It traces the collapse of the company pension in the early 80s (Reaganomics at work here…) for the 401(K) products very popular in the US.
It shows you what a mutual fund is, how it is managed, and why the hell you should avoid brokers or fund managers like the plague.
If you are saving money and thinking of retiring (that means everyone), this is an interesting program that goes through some of the claims and promises of what retirement funds are and how they are ripping the individual (YOU!) off.
Well worth a look:

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Advisor Fees

On a related topic, if you are using an investment advisor (which I normally discourage), they will be getting an income somehow, off of your investments.  Click HERE for a tool to help analyse your fees.

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This month’s stock selection list:

US

Company Ticker Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
3M Company MMM A++ 2.98 7.5 16.99
Abbott Labs. ABT A++ 2.29 1.5 19.24
AT&T Inc. T A++ 5.95 4 11.98
Automatic Data Proc. ADP A++ 2.65 13.5 24.87
Boeing BA A++ 2.94 11.5 15.77
Bristol-Myers Squibb BMY A++ 2.4 2.5 54.21
Chevron Corp. CVX A++ 5.57 10.5 18.62
Coca-Cola KO A++ 3.47 9.5 18.91
Colgate-Palmolive CL A++ 2.54 12 22.15
Deere & Co. DE A++ 3.17 15.5 15.06
Dover Corp. DOV A++ 2.9 9.5 14.78
Du Pont DD A++ 3.17 2.5 11.89
Emerson Electric EMR A++ 4.31 7.5 13.43
Exxon Mobil Corp. XOM A++ 4.02 9.5 18.27
Grainger (W.W.) GWW A++ 2.19 17 17.07
Home Depot HD A++ 2.11 19 21.51
Honeywell Int’l HON A++ 2.21 8.5 14.98
Illinois Tool Works ITW A++ 2.65 12 15.97
Infosys Ltd. ADR INFY A++ 2.26 27.5 18.04
Int’l Business Mach. IBM A++ 3.6 19.5 10.26
Intel Corp. INTC A++ 3.37 23.5 12.95
Johnson & Johnson JNJ A++ 3.24 10.5 14.99
Kimberly-Clark KMB A++ 3.25 8.5 34.56
Lockheed Martin LMT A++ 3.15 22.5 17.41
McDonald’s Corp. MCD A++ 3.65 23 20.1
Medtronic plc MDT A++ 2.25 15 14.4
Merck & Co. MRK A++ 3.56 1.5 14.21
Microsoft Corp. MSFT A++ 3.28 19 16.95
Novartis AG ADR NVS A++ 2.9 14.5 22.78
Occidental Petroleum OXY A++ 4.7 17 36.36
PepsiCo, Inc. PEP A++ 3.06 12.5 20.02
Pfizer, Inc. PFE A++ 3.43 5 22.55
Procter & Gamble PG A++ 3.71 10 18.07
Public Serv. Enterprise PEG A++ 3.99 3 13.61
Qualcomm Inc. QCOM A++ 3.6 29.5 12.96
Raytheon Co. RTN A++ 2.52 10.5 15.83
Royal Dutch Shell ‘B’ RDSB A++ 7.94 6.5 10.97
Schlumberger Ltd. SLB A++ 2.75 13.5 21.76
Smucker (J.M.) SJM A++ 2.36 9.5 19.73
Texas Instruments TXN A++ 3.25 28 15.64
Total ADR TOT A++ 6.11 8 10.18
Travelers Cos. TRV A++ 2.47 6 10.41
Unilever PLC ADR UL A++ 3.35 8 19.44
Union Pacific UNP A++ 2.59 20.5 14.75
United Technologies UTX A++ 2.95 14 12.16
Verizon Communic. VZ A++ 5.13 3 11.05
Wal-Mart Stores WMT A++ 3.07 16.5 13.19

 

Canadian

Company Ticker Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Agrium, Inc. AGU A 3.79 35 12.03
Bank of Montreal BMO.TO B++ 4.83 8 11.15
Bank of Nova Scotia BNS.TO A 4.89 10.5 9.77
BCE Inc. BCE B++ 4.87 9.5 14.29
CAE Inc. CAE.TO B+ 2.19 6.5 16.12
Cameco Corp. CCO.TO B+ 2.44 15.5 15.36
Can. Imperial Bank CM.TO A+ 4.84 7.5 10.11
Can. Natural Res. CNQ.TO A 3.62 23.5 35.53
Enbridge Inc. ENB.TO B++ 3.65 11.5 21.42
Encana Corp. ECA B+ 4.17 14
Fortis Inc. FTS.TO B+ 3.78 9 18.45
Husky Energy HSE.TO B+ 5.61 19.5 44.58
Jean Coutu Group PJC/A.TO B++ 2.2 10.5 15.98
Manitoba Telecom Svcs. MBT.TO B+ 4.58 3.5 26.06
Manulife Fin’l MFC B++ 3.65 5.5 8.25
Methanex Corp. MEOH B+ 3.15 23 9.51
Nat’l Bank of Canada NA.TO B++ 5.24 11.5 8.8
Pembina Pipeline Corp. PPL.TO B++ 5.55 4.5 35.47
Potash Corp. POT A+ 7.24 34.5 11.24
Royal Bank of Canada RY.TO A 4.56 11.5 10.81
Russel Metals RUS.TO B++ 7.13 16 16.41
Shaw Commun. ‘B’ SJRB.TO B+ 4.69 41.5 14.89
SNC-Lavalin Group SNC.TO B++ 2.72 20 20.24
Suncor Energy SU.TO A 3.36 22.5 19.82
TELUS Corporation T.TO B++ 4.24 15.5 17.12
Thomson Reuters TRI.TO B++ 2.52 6 25.17
Toronto-Dominion TD.TO B++ 4.18 10.5 11.16
TransCanada Corp. TRP A 6.35 8 15.25

 

And for those of you looking for European stocks:

Company Ticker Domicile Code Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Teekay Corp. TK BS B 6.28 10.5 22.9
Novartis AG ADR NVS CH A++ 2.72 14.5 24.31
STMicroelectronics STM CH B 5.56 17.5 22.47
Siemens AG (ADS) SIEGY DE A 4.09 13.5 10.45
Daimler AG DDAIF DE B++ 3.1 5 9.22
Telefonica SA ADR TEF ES B 6.02 13.5 14.13
Total ADR TOT FR A++ 5.65 8 11
Rio Tinto plc RIO GB A 5.93 10.5 10.5
WPP PLC ADR WPPGY GB A 3.02 17.5 21.21
GlaxoSmithKline ADR GSK GB A+ 5.79 7 23.77
BP PLC ADR BP GB B+ 7.47 3
AstraZeneca PLC (ADS) AZN GB B++ 4.14 13.5 22.54
Brit. Amer Tobac. ADR BTI GB B++ 4.51 14.5 15.2
BT Group ADR BT GB B++ 3.03 2.5 13.36
Vodafone Group ADR VOD GB B++ 5.2 14 35.63
Willis Group Hldgs. PLC WSH GB B++ 2.91 10 15.63
Teva Pharmac. ADR TEVA IL A+ 2.24 23 12.24
Tenaris S.A. ADS TS LU B+ 3.42 16.5 30.23
America Movil AMX MX A 2.04 33 14.06
Unilever PLC ADR UL NL A++ 3.19 8 20.41
Philips Electronics NV PHG NL B+ 3.78 10 29.94

 

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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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