I started this “tradition” on my blog in 2012. The goal is to pick 20 US and 10 CDN dividend stocks that I think will outperform their peers. This is the reason why I use VIG and XDV as my benchmarks. I keep track of my results for accountability purposes as I find that too many analysts and blogs just drop the ball on their picks when they are not that great. By posting monthly results, I have no other choice but to face my performance and explain it. You can look at my previous picks and returns:
Best Dividend Stock Picks 2012 (-1.47% vs VIG (US dividend ETF), + 8.32% vs XDV (CDN dividend ETF)
Best Dividend Stock Picks 2013 (+11.07% vs VIG, + 0.77% vs XDV)
My 2014 Best Dividend Stock Pick is for sale on Amazon.
Top US Dividend Picks 4.46% (vs VIG at 3.93%)
The recent financial results hurt the US market in July & August and my portfolio was no exception. While I’m still beating my benchmark by 0.53% and its dividend yield by 1.12%, it’s not much compared to the S&P 500 with a ytd return of 8.08%. This is why you have to pick dividend investing for the long run and not for the short term.
Poor results from Aflac (AFL), McDonald’s (MCD), Exxon Mobil (XOM) and Mattel (MAT) pushed these stocks lower. I can understand the impatience aimed at MCD as it has struggled to post growth for about two years now. Exxon Mobil ran into expenses and Mattel seems to have lost its touch for great toys. Aflac is still struggling with a strong US dollar as most of their business is coming from Japan.
On the other hand, PepsiCo (PEP), Lockheed Martin (LMT) and Apple (AAPL) are driving my portfolio higher with better than expected earnings. Of these three companies, I own positions in two personally (LMT and AAPL), you can tell I’m smiling right now. Apple is probably is a good buy right now since it has dropped by over 3% last week due to all those celebs pics stolen from iCloud. Between you and me, do you think your Google Drive is safer than your iCloud?
Top Canadian Dividend Stocks + 5.28% (vs XDV at 8.88%)
Right now, I’m seriously lagging behind my benchmark and the reason why is obvious; I hold too many losers in my portfolio. Black Diamond (BDI) which was one of my top performers recently dropped 13.24% in July. Results were only going to be live on August 12th after the market, why has the stock plummeted in July? Call it bipolarity! This should make a good entry point for this company now paying a 3.25% dividend yield (monthly!). The stock didn’t move much after record second quarter and a dividend increase. The P/E ratio is now back to a more “normal” situation under 24. This is definitely a good buy occasion.
Telecoms were hit by the obvious; the Gov’t doesn’t want them to play alone in the mobile industry. This is why Telus (T) dropped by almost 2% in July and Rogers (RCI.B) kept dragging by another 3%.
Finally, Lassonde (LAS.A) took BDI’s place in the big portfolio winners with the recent purchase of the American Apple & Eve. The stock surged by 24% in July, helping my stocks to be close to the benchmark. A 2% difference with ten stocks can easily be caught back up with a good third quarter.
The other problem I see with my benchmark is that 54% of their holdings are in Bank. Since they did well so far and I hold only 20% among my 10 picks, it is very hard to compete this year. Still, I hold too many losers and this is the main reason I’m lagging behind…
S&P TSX 60 DIVIDEND YIELD AND EX DIVIDEND DATE
|PWT||Penn West Petroleum Ltd||8.3||6.75||N/A||9/24/2014|
|CPG||Crescent Point Energy Corp||44.55||6.2||746.54||9/26/2014|
|COS||Canadian Oil Sands Ltd||22.8||6.14||81.29||11/21/2014|
|RCI/B||Rogers Communications Inc||44.37||4.12||53.69||09/10/2014|
|SJR/B||Shaw Communications Inc||27.58||3.99||61.58||09/11/2014|
|POT||Potash Corp of Saskatchewan Inc||38.2||3.9||64.42||10/14/2014|
|ARX||ARC Resources Ltd||30.73||3.9||155.38||9/26/2014|
|CM||Canadian Imperial Bank of Commerce/Canada||104.77||3.82||44.49||9/25/2014|
|RY||Royal Bank of Canada||81.14||3.7||45.2||10/23/2014|
|BMO||Bank of Montreal||84.62||3.69||46.86||10/30/2014|
|TCK/B||Teck Resources Ltd||24.46||3.68||53.9||12/10/2014|
|HSE||Husky Energy Inc||32.83||3.66||64.96||11/25/2014|
|NA||National Bank of Canada||52.53||3.66||38.36||9/23/2014|
|BNS||Bank of Nova Scotia/The||72.27||3.65||46.06||10/03/2014|
|POW||Power Corp of Canada||32||3.63||54.63||09/05/2014|
|SLF||Sun Life Financial Inc||40.89||3.52||50.86||11/24/2014|
|TRI||Thomson Reuters Corp||41.44||3.49||848.03||11/21/2014|
|PPL||Pembina Pipeline Corp||51.46||3.38||147.35||9/24/2014|
|CVE||Cenovus Energy Inc||34.08||3.12||110.57||09/11/2014|
|MFC||Manulife Financial Corp||22.17||2.8||31.96||11/14/2014|
|TLM||Talisman Energy Inc||10.86||2.71||N/A||09/11/2014|
|SU||Suncor Energy Inc||43.67||2.56||28.02||11/27/2014|
|CNQ||Canadian Natural Resources Ltd||46.17||1.95||27.58||09/10/2014|
|WN||George Weston Ltd||86.47||1.94||36.25||09/11/2014|
|YRI||Yamana Gold Inc||9||1.82||N/A||9/26/2014|
|L||Loblaw Cos Ltd||54.5||1.8||41.94||09/11/2014|
|CTC/A||Canadian Tire Corp Ltd||112.74||1.77||21.38||10/29/2014|
|SNC||SNC-Lavalin Group Inc||55.89||1.72||389.78||11/14/2014|
|THI||Tim Hortons Inc||89.22||1.43||36.8||11/28/2014|
|MG||Magna International Inc||123.36||1.34||18.19||11/26/2014|
|BAM/A||Brookfield Asset Management Inc||52.25||1.33||18.41||11/26/2014|
|CNR||Canadian National Railway Co||79.1||1.26||27.72||09/05/2014|
|ABX||Barrick Gold Corp||19.52||1.12||N/A||11/26/2014|
|SLW||Silver Wheaton Corp||26.65||0.99||42.61||11/19/2014|
|IMO||Imperial Oil Ltd||56.78||0.92||14.67||11/26/2014|
|AEM||Agnico Eagle Mines Ltd||40.3||0.86||N/A||11/28/2014|
|GIL||Gildan Activewear Inc||61.7||0.77||13.66||12/09/2014|
|CP||Canadian Pacific Railway Ltd||222.88||0.63||28.11||9/24/2014|
|FM||First Quantum Minerals Ltd||24.04||0.42||21.13||4/15/2015|
|ELD||Eldorado Gold Corp||8.63||0.23||N/A||02/04/2015|
|VRX||Valeant Pharmaceuticals International Inc||131.2||0||0||N/A|
|K||Kinross Gold Corp||4.22||0||0||9/17/2014|
|GIB/A||CGI Group Inc||39.22||0||0||N/A|