March 2016 Update

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WP March Pic

March was a busy month for travel – Phoenix, Regina, California

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March Results

Finally, a great month.  All markets were up between 5 1/2 % to 6 1/4% since my last report.  That brings the TSX to a positive 3.72% for the year to date, and the US markets are up 1.5% for the DJIA and almost 0.8% on the S&P on the year.

My portfolio grew by close to 5% in March,  stunted a bit by the stronger Canadian dollar, which gained nearly 4% against the US dollar.  My Canadian holdings grew by over 5 1/2 % in March and my US holdings were up well over 6%.  On  a year-to-date basis my portfolio is up almost 4% (nearly 5% on my Canadian and over 6% on my US, less the drop in the US currency).

This again shows that the market does not move up in a smooth regular fashion, but rather in short spurts.  As these spurts cannot be predicted, the only way to take advantage is to continually be in the market, not try to time the market.

My net worth has not yet returned to its high in February 2015 when markets were near their peak, however I am within a couple of percentage points and I am at about the same net worth level as the day I retired.   I have yet to dip into capital and hope not to have to do so.  I have been supporting my lifestyle by dividends only.

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Interesting Quote

Here is a quote from Rob Carrick’s (Globe and Mail financial reporter) regular update.

A Gen Y personal finance blogger has calculated that you’ll earn roughly $1.8-million in your lifetime if you have a bachelor’s degree. Subtract about $360,000 from that for taxes, and you’re down to something like $1.5-million to pay for everything from houses to kids, cars and food. Good luck with that. Without a plan to control spending and diligently save and invest, you may be doomed to financial futility.

In the introduction to my book “Simple and Successful Investing“, I note that I now have a net worth equal to the sum total of all of my gross earnings since I began working in 1971.  Although the above quote is quite disturbing, with a disciplined approach you can overcome the headwinds.  Following this blog and reading my book will give you the steps I followed to achieve my financial freedom.

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My Portfolio

Below are my holdings and their performance for the first three months of the year.  Keep in mind that several of my Canadian holdings exist as a result of my fired advisor and I am still working on disposing of these securities.  Don’t assume just because I own a security that I recommend buying it.  In addition to the below gains and losses, I also have dividends flowing in at an annual rate of almost 4%.

Canadian Stocks US Stocks
Name Symbol Overall Return Name Symbol Overall Return
Teck Resources Ltd TCK.B 84.46 Public Service Enterprise Group Inc. PEG 21.84
TransAlta Corporation TA 23.01 Verizon Communications Inc. VZ 17.01
Metaux Russel Inc RUS 19.21 AT&T Inc. T 13.83
Pembina Pipeline Corp PPL 16.45 Emerson Electric Co. EMR 13.69
Bank of Nova Scotia BNS 14.29 International Business Machines Corp. IBM 10.07
Husky Energy Inc. HSE 13.00 The Coca-Cola Co KO 7.96
TransCanada Corporation TRP 12.99 Chevron Corporation CVX 6.05
Encana Corporation ECA 12.66 Royal Dutch Shell plc (ADR) RDS.A 5.81
BCE Inc. BCE 10.72 Kimberly Clark Corp KMB 5.66
ATCO Ltd. ACO.X 10.03 Johnson & Johnson JNJ 5.33
Enbridge Inc ENB 9.91 Cisco Systems, Inc. CSCO 4.84
TELUS Corporation T 9.69 Unilever plc (ADR) UL 4.78
Fortis Inc FTS 8.39 Procter & Gamble Co PG 3.65
Canadian Imperial Bank of Commerce CM 7.60 PepsiCo, Inc. PEP 2.56
Shaw Communications Inc SJR.B 5.42 Lockheed Martin Corporation LMT 2.00
National Bank of Canada NA 5.41 Merck & Co., Inc. MRK 1.39
Brookfield Infrastructure Partners L.P. BIP.UN 4.41 Total SA (ADR) TOT 1.05
Great-West Lifeco Inc. GWO 3.67 Intel Corporation INTC -6.10
Power Financial Corp PWF 3.63 Pfizer Inc. PFE -8.18
Toronto-Dominion Bank TD 3.36
Royal Bank of Canada RY 2.02 Average 5.96
Suncor Energy Inc. SU 1.26 Weighted Average 6.05
Bank of Montreal BMO 1.01
BCE INC. PREFERRED SHARES SERIES AD BCE-D 1.00
Claymore 1-5 Yr Laddered Corporation Bond Exchange Traded Fund CBO -0.16
Sun Life Financial Inc SLF -2.90
Cenovus Energy Inc CVE -3.43
Potash Corporation of Saskatchewan Inc POT -6.71
Agrium Inc. AGU -7.28
Enbridge Inc (pref shares) ENB-B -11.18
Manulife Financial Corp. MFC -11.38
Simple Average 7.76
Weighted Average 4.87

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Suggested stocks (A++, 2% yield or more, 10 year dividend growth)

Note:  some stocks do not screen in on ValueLine for a variety of reasons.  If a stock you are interested in or own, is not on the list, let me know and I can forward you an evaluation of that company.

US

Company Ticker Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
3M Company MMM A++ 2.7 7.5 20.53
Abbott Labs. ABT A++ 2.55 1.5 19.22
AT&T Inc. T A++ 4.96 3.5 13.94
Automatic Data Proc. ADP A++ 2.59 13 26.26
Boeing BA A++ 3.39 12.5 16.6
Bristol-Myers Squibb BMY A++ 2.43 2.5 32.91
Cardinal Health CAH A++ 2.15 26 17.91
Chevron Corp. CVX A++ 4.51 10.5
Coca-Cola KO A++ 3.07 9.5 23.62
Colgate-Palmolive CL A++ 2.26 11 46.61
Deere & Co. DE A++ 2.99 15.5 18.88
Dover Corp. DOV A++ 2.6 9.5 17.42
Du Pont DD A++ 2.47 2.5 20.83
Emerson Electric EMR A++ 3.49 8 17.55
Exxon Mobil Corp. XOM A++ 3.49 9.5 31.45
Gen’l Dynamics GD A++ 2.36 13.5 13.9
Grainger (W.W.) GWW A++ 2.04 17.5 19.44
Home Depot HD A++ 2.12 19 21.67
Honeywell Int’l HON A++ 2.14 9.5 17.31
Illinois Tool Works ITW A++ 2.17 12 19.02
Int’l Business Mach. IBM A++ 3.65 20 11.89
Intel Corp. INTC A++ 3.26 23.5 13.01
Johnson & Johnson JNJ A++ 2.95 10.5 18.84
Kimberly-Clark KMB A++ 2.76 8 29.61
Lilly (Eli) LLY A++ 2.87 3.5 20.98
Lockheed Martin LMT A++ 3.1 20.5 18.86
McDonald’s Corp. MCD A++ 2.92 23 23.13
Medtronic plc MDT A++ 2.14 15 14.01
Merck & Co. MRK A++ 3.47 1.5 14.34
Microsoft Corp. MSFT A++ 2.66 19 19.29
Novartis AG ADR NVS A++ 3.63 14.5 18.6
PepsiCo, Inc. PEP A++ 2.85 12.5 20.93
Pfizer, Inc. PFE A++ 3.99 4.5 19.92
Procter & Gamble PG A++ 3.2 10 20.62
Public Serv. Enterprise PEG A++ 3.56 3 16.04
Qualcomm Inc. QCOM A++ 3.78 22.5 12.56
Raytheon Co. RTN A++ 2.38 11.5 17.44
Schlumberger Ltd. SLB A++ 2.76 13.5
Smucker (J.M.) SJM A++ 2.13 9.5 21.67
Texas Instruments TXN A++ 2.68 29.5 19.22
Total ADR TOT A++ 6.1 8 29.4
Travelers Cos. TRV A++ 2.12 6 11.48
Unilever PLC ADR UL A++ 3.09 6.5 22.54
Union Pacific UNP A++ 2.72 21 15.53
United Technologies UTX A++ 2.58 14 15.6
Verizon Communic. VZ A++ 4.22 3 13.42
Wal-Mart Stores WMT A++ 2.94 16.5 16.35

Canada (includes A++, A+, A, B++, B+)

Company Ticker Domicile Code Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Agrium, Inc. AGU CA A 4.02 39 11.41
Bank of Montreal BMO.TO CA B++ 4.41 7 11.23
Bank of Nova Scotia BNS.TO CA A 4.68 9 10.58
BCE Inc. BCE CA B++ 4.4 9.5 21.14
CAE Inc. CAE.TO CA B+ 2.01 6.5 16.25
Cameco Corp. CCO.TO CA B+ 2.38 15.5 12.03
Can. Imperial Bank CM.TO CA A+ 4.93 6.5 10.09
Can. Natural Res. CNQ.TO CA B++ 2.67 23.5
Enbridge Inc. ENB.TO CA B++ 4.28 11.5 20.65
Fortis Inc. FTS.TO CA B+ 3.76 9 19
Jean Coutu Group PJC/A.TO CA B++ 2.09 10.5 16.85
Magna Int’l ‘A’ MGA CA A 2.42 7.5 8.42
Manitoba Telecom Svcs. MBT.TO CA B+ 4.05 3.5 26.77
Manulife Fin’l MFC CA B++ 3.81 5.5 10.55
Methanex Corp. MEOH CA B+ 3.41 23 78.59
Nat’l Bank of Canada NA.TO CA B++ 5.39 10.5 9.04
Pembina Pipeline Corp. PPL.TO CA B++ 5.52 4.5 27.63
Potash Corp. POT CA B++ 5.86 34.5 15.96
Power Financial PWF.TO CA B+ 4.66 8.5 9.99
Rogers Communications RCIB.TO CA B+ 3.73 51.5 18.59
Royal Bank of Canada RY.TO CA A 4.52 10.5 10.78
Russel Metals RUS.TO CA B++ 7.89 16 20.06
Shaw Commun. ‘B’ SJRB.TO CA B+ 4.81 28.5 13.86
SNC-Lavalin Group SNC.TO CA B++ 2.26 20 18.52
Suncor Energy SU.TO CA A 3.24 24
TELUS Corporation T.TO CA B++ 4.42 15.5 17.07
Thomson Reuters TRI.TO CA B++ 2.61 6 22.67
Toronto-Dominion TD.TO CA B++ 3.98 10.5 12.32
TransCanada Corp. TRP CA B++ 5.98 5.5

Europe (includes A++, A+, A, B++, B+)

Company Ticker Domicile Code Financial Strength Dividend Yield Dividend Growth 10-Year Current PE Ratio
Novartis AG ADR NVS CH A++ 3.63 14.5 18.6
Daimler AG DDAIF DE B++ 6.09 6 8.42
Siemens AG (ADS) SIEGY DE A 3.84 13.5 11.09
Total ADR TOT FR A++ 6.1 8 29.4
AstraZeneca PLC (ADS) AZN GB B++ 5 13.5 20.14
Brit. Amer Tobac. ADR BTI GB B++ 4.01 14.5 16.55
BT Group ADR BT GB B++ 3.53 2.5 12.18
GlaxoSmithKline ADR GSK GB A+ 5.87 7 20.93
Rio Tinto plc RIO GB A 3.97 10.5 9.06
Vodafone Group ADR VOD GB B++ 5.59 14 35.98
WPP PLC ADR WPPGY GB A 3.12 17.5 15.85
Tenaris S.A. ADS TS LU B+ 3.75 16.5 53.29
Philips Electronics NV PHG NL B+ 3.45 10 25.27
Unilever PLC ADR UL NL A++ 3.09 6.5 22.54

 

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About borgford

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