Portfolio Update Q1

08
August 25
Published 12 years ago By Admin

 

 

I don’t know about your stock portfolio, but mine has been showing great results in 2013. I’m obviously not as good as my 2013 Best Dividend Stock Book as I don’t hold all of them, but I’m still pretty happy with my results so far. After the first quarter, it’s time to look at my positions and look forward to the future. You can check the details of my dividend portfolio here. Dividend yield are shown as at April 11th.

 

5N Plus – TSE: VPN 0% Div

 

What a mess… this is my last and only non-dividend stock in my portfolio and I definitely regret holding it right now. I was making a healthy profit a few months after my purchase. I should have sold my position while the stock was riding the wave. Since then, they have completed a big acquisition in … Europe! The company is highly dependent on the cost of resources which continues to drop due to the economic slowdown. Lately, the stock took another hit because the company had to reduce their stock value and goodwill creating a $200M loss for the last quarter.

 

I am keeping the stock right now as I’ve lost too much to quit on it. The company is not that bad considering they are under serious pressure from the market. I will continue to be patient in this case since I don’t have much left to lose. This is a good example of a stock I should have sold!

 

Apple – NASDAQ: AAPL 2.45% Div

 

So far, I’m not happy nor feeling bad about my newest acquisition. When I bought Apple, it was for 3 reasons:

 

#1 It now pays a dividend

#2 It has plenty of cash in its bank account

#3 Its P/E ratio had fallen under 10

 

For these three reasons I’m confident the stock will bounce back. At least, I don’t see the value going down any further and the dividend will ultimately be increased. Apple is definitely a keeper!

 

ScotiaBank – TSE :BNS 4.15% Div

 

Canadian banks are currently facing their first sign of a headwind. I recently discussed how the Cyprus situation may affect banks in general. Nonetheless, I like BNS because it’s the most international bank in Canada and their financial statements are strong. They recently beat the analysts with their most recent results and they showed an increase in profits. I’m expecting BNS to increase its dividend every year from now on.

 

Chevron – NYSE :CVX 2.98% Div

 

Chevron has been on a roll since the beginning of the year showing a double digit investment return since then. As long as the FED is pumping money into the market, there is confidence the economy will continue to rise. When the economy goes up, the price of oil follows sooner or later. CVX is part of my core portfolio and will be there for a while.

 

Coca-Cola – NYSE :KO  2.72% Div

 

Another great acquisition, I’m under the impression that I will keep KO for the rest of my life! The dividend will continue to increase over time and is already paying over 3% on my cost of purchase. Since I’m already up by 20% in my portfolio, I will keep KO and ride the market with it.

 

Husky Energy – TSE :HSE 4.08% Div

 

This is among my most volatile stock I hold. I decided to buy HSE even with shakier financial statements compared to other picks. I believe in the sector in the first place and think Husky will continue to pay its high dividend yield. Recently, they have increased their financial performance and the stock is now up these days. I’m ready to pay the price of volatility as long as I don’t see the dividend coming under pressure.

Intel – NASDAQ :INTC 4.16% Div

 

Another volatile stock! Intel is constantly under the pressure of technological improvements. I guess this is a key point when you consider buying such a company. Being a leader in the industry is not enough to guarantee growth. After a strong performance in the months following my purchase, the stock started to go up and down based on mitigated results and rumors from everywhere.

 

Then again, the level of cash in their bank account coupled with a low payout ratio makes me keep this high paying dividend stock. I don’t believe we will stop using the PC tomorrow morning even if tablets and smartphones are very useful.

 

Johnson & Johnson – NYSE :JNJ 2.96% Div

 

I consider JNJ as one of the “bonds” in my holdings. A company that is so diversified in terms of products and geography definitely makes it a keeper. It seems that they have solved their quality control problems as no major recalls were made so far this year. I expect JNJ to hold on during an eventual market correction and continue to increase its dividend over time. I do not plan on selling this company in 2013.

 

Seagate Technology – NASDAQ :STX 4.17% Div

 

STX pick is made for those who love rollercoasters! Since I bought the stock when it was in the $20 range, I don’t really mind seeing the stock going up to $37 before dropping down to $32 a few months later.

 

The company continues to post solid sales and profits. It may disappoint analysts from time to time but the stock is still hovering under a 5 P/E ratio! How could this be possible? People simply have lost interest in this techno stock and believe Seagate can’t evolve from their “classic” hard drive mentality. I can’t wait to see their next earnings report at the end of April! In the meantime, their high dividend yield and my paper profit make me ride the stock. It doesn’t mean it doesn’t hurt when I see the stock at $32 when I could have sold it at $37 ;-).

Telus – TSE :T 3.68% Div

 

Telus is probably one of the favorite pick in my portfolio. It is a strong and growing telecom in Canada. Surprisingly, in a “boring” market such as Canada, Telus finds the way for growth and this is why the stock keeps reaching new highs.

 

Telus is paying a dividend based on my cost of purchase over 4%. There is no way I’m letting this stock go.

 

National Bank – TSE :NA 4.43% Div

 

National Bank is facing the same problem as the other banks. Considering that it’s the smallest of the big 6, there is a possibility of seeing NA being hurt first. On the other hand, it is not really involved in the housing bubble in Toronto, Calgary or Vancouver. If there is a mortgage hit to be taken, TD will be the first to cry. I believe National Bank will continue to make money and pay a healthy dividend. After all, it was the first Canadian bank to raise its dividend since the 2008 crisis.

 

What Do You Think? Which Stock Would You Sell?

 

Tell me, if you were in my position, are there any stocks you would say goodbye?

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