November 2015 Update

Costa Rica

Costa Rica

Christmas Vacation

In a couple of weeks we will escape the winter and spend Christmas in the sun.

 

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November results

The markets were pretty flat for the month, with the Canadian market down almost half a percent and the US markets up slightly.  For the US market, that is the story of the year with the markets either up a percent or down a half a percent, depending on which index you use.

 

My portfolio tracked the market pretty close with a 0.4% gain for the month but a gain of close to 9% for the year, again due to exchange rates that favour my portfolio.

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YTD graphs

Here is a quick look at my portfolios as compared to the markets stripping out the effect of exchange rates. Remember, my strategy does not call for meeting or exceeding the market, but rather to produce dividend income for retirement.  However the portfolio still does pretty well comparted to the markets.

US Stocks  – My US portfolio tracks right in between the S&P and the DJIA

Nov 2015 graph US

Canadian Stocks – My Canadian portfolio, although down for the year, is ahead of the Canadian market.

Nov 2015 graph CDN

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Investing Book

Some readers, especially in the Middle East, have had trouble getting my book from Amazon due to local restrictions. If anyone is having those problems and would like a copy, send me your email address and I will provide you with a proof copy of the book.

Simple and Successful Investing

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Question from reader

Peter in Doha asked the following question:

I’ve read a few interesting articles on Kinder Morgan Inc (KMI) on some other sites lately.  The general feeling I get is that KMI’s share price has taken a nose dive lately as part of a larger exodus from the oil and gas industry.  And issues regarding the proposed Keystone Pipeline are also hurting KMI’s share price.  However, they’ve given regular and increasing dividends since a their merger and creation a few years back.  KMI is currently yielding 7+% with management indicating a five-year plan to continue and increase dividends consistently into the future.

I’m guessing KMI would not pass your litmus test for several reasons, nonetheless of which is their relatively short history.  In spite of that, I’m thinking of buying into them with the thought they might be a future dividend champion in the making.  What are your thoughts?

My response:

 KMI would not be one of my picks.  It may in fact do very well but it is a speculative play rather than a retirement stock.  As you can see from the attached report there are many holes in the numbers, including an excessive PE ratio.  Click on KMI for Valueline report.  It only rates B++, has a short dividend history, and many indicators Valueline uses have been suspended.

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HERE is an article by someone who follows a similar strategy to the one used here.

http://www.myownadvisor.ca/etfs-and-dividend-stocks-built-to-last-for-your-portfolio/?utm_medium=Newsletter&utm_source=Personal%20Finance%20Reader&utm_type=text&utm_content=PersonalFinanceReader&utm_campaign=131401239

 

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Suggested Stocks

US

Company Ticker Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
3M Company MMM A++ 2.6 7.5 19.58
Abbott Labs. ABT A++ 2.11 1.5 20.09
AT&T Inc. T A++ 5.71 4 12.12
Automatic Data Proc. ADP A++ 2.5 13 26.35
Boeing BA A++ 2.59 11.5 16.01
Bristol-Myers Squibb BMY A++ 2.17 2.5 39.58
Chevron Corp. CVX A++ 4.71 10.5 16.14
Coca-Cola KO A++ 3.23 9.5 21.05
Colgate-Palmolive CL A++ 2.38 12 23.15
Deere & Co. DE A++ 3 15.5 18.31
Dover Corp. DOV A++ 2.58 9.5 15.73
Du Pont DD A++ 2.32 2.5 24.64
Emerson Electric EMR A++ 3.78 7.5 15.18
Exxon Mobil Corp. XOM A++ 3.59 9.5 21.21
Grainger (W.W.) GWW A++ 2.36 17 15.69
Honeywell Int’l HON A++ 2.3 8.5 16.19
Illinois Tool Works ITW A++ 2.36 12 17.69
Infosys Ltd. ADR INFY A++ 2.23 27.5 17.58
Int’l Business Mach. IBM A++ 3.77 19.5 10.88
Intel Corp. INTC A++ 2.79 23.5 15.18
Johnson & Johnson JNJ A++ 3.09 10.5 16.03
Kimberly-Clark KMB A++ 2.92 8.5 24.79
Lockheed Martin LMT A++ 2.92 22.5 18.91
McDonald’s Corp. MCD A++ 3.11 23 22.43
Medtronic plc MDT A++ 2.09 15 15.19
Merck & Co. MRK A++ 3.43 1.5 14.72
Microsoft Corp. MSFT A++ 2.68 19 19.31
Novartis AG ADR NVS A++ 3.1 14.5 21.54
PepsiCo, Inc. PEP A++ 2.88 12.5 21.25
Pfizer, Inc. PFE A++ 3.41 5 24.35
Procter & Gamble PG A++ 3.49 10 19.71
Public Serv. Enterprise PEG A++ 4.16 3 13.04
Qualcomm Inc. QCOM A++ 3.91 29.5 11.24
Raytheon Co. RTN A++ 2.13 10.5 18.71
Schlumberger Ltd. SLB A++ 2.58 13.5 25.76
Smucker (J.M.) SJM A++ 2.2 9.5 21.2
Texas Instruments TXN A++ 2.65 28 19.09
Total ADR TOT A++ 5.52 8 16.87
Travelers Cos. TRV A++ 2.13 6 10.78
Unilever PLC ADR UL A++ 3 8 20.9
Union Pacific UNP A++ 2.6 20.5 14.34
United Technologies UTX A++ 2.63 14 14.94
Verizon Communic. VZ A++ 5.03 3 11.26
Wal-Mart Stores WMT A++ 3.25 16.5 14.04

Canadian

Company Ticker Domicile Code Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Agrium, Inc. AGU CA A 3.69 35 12.48
Bank of Montreal BMO.TO CA B++ 4.42 8 11.55
Bank of Nova Scotia BNS.TO CA A 4.72 10.5 10.14
BCE Inc. BCE CA B++ 4.6 9.5 14.77
Cameco Corp. CCO.TO CA B+ 2.49 15.5 12.35
Can. Imperial Bank CM.TO CA A+ 4.63 7.5 11.04
Can. Natural Res. CNQ.TO CA B++ 2.9 23.5
Enbridge Inc. ENB.TO CA B++ 3.87 11.5 20.21
Encana Corp. ECA CA B+ 3.31 14
Fortis Inc. FTS.TO CA B+ 4.09 9 18.15
Goldcorp Inc. GG CA B++ 2.04 14.5 73.44
Jean Coutu Group PJC/A.TO CA B++ 2.14 10.5 16.03
Manitoba Telecom Svcs. MBT.TO CA B+ 4.31 3.5 23.97
Manulife Fin’l MFC CA B++ 3.17 5.5 9.01
Methanex Corp. MEOH CA B+ 2.79 23 18.29
Nat’l Bank of Canada NA.TO CA B++ 5.15 11.5 9.19
Pembina Pipeline Corp. PPL.TO CA B++ 5.84 4.5 27.01
Potash Corp. POT CA A+ 7.66 34.5 12.03
Royal Bank of Canada RY.TO CA A 4.36 11.5 11.13
Russel Metals RUS.TO CA B++ 8.2 16 12.96
Shaw Commun. ‘B’ SJRB.TO CA B+ 4.41 41.5 13.48
SNC-Lavalin Group SNC.TO CA B++ 2.46 20 18.22
Suncor Energy SU.TO CA A 3.17 22.5 43.57
TELUS Corporation T.TO CA B++ 4.34 15.5 16.01
Thomson Reuters TRI.TO CA B++ 2.52 6 24.29
Toronto-Dominion TD.TO CA B++ 3.98 10.5 11.68
TransCanada Corp. TRP CA A 6.45 8 16.13

Europe

Company Ticker Domicile Code Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Novartis AG ADR NVS CH A++ 3.1 14.5 21.54
Daimler AG DDAIF DE B++ 3.16 6 8.7
Siemens AG (ADS) SIEGY DE A 3.89 13.5 9.95
Total ADR TOT FR A++ 5.52 8 16.87
AstraZeneca PLC (ADS) AZN GB B++ 4.1 13.5 26.24
Brit. Amer Tobac. ADR BTI GB B++ 3.89 14.5 17.06
BT Group ADR BT GB B++ 2.68 2.5 15.02
GlaxoSmithKline ADR GSK GB A+ 5.8 7 22.12
Rio Tinto plc RIO GB A 6.68 10.5 10.02
Vodafone Group ADR VOD GB B++ 5.22 14 35.46
Willis Group Hldgs. PLC WSH GB B++ 2.69 10 16.07
WPP PLC ADR WPPGY GB A 3.07 17.5 15.8
Tenaris S.A. ADS TS LU B+ 3.57 16.5 21.74
Philips Electronics NV PHG NL B+ 3.53 10 25.36
Unilever PLC ADR UL NL A++ 3 8 20.9

 

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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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