Last updated by BM on June 20, 2022
“It’s true. So many of you were sold a bald-faced lie and unknowingly believed it. What was it? That you need to sell your assets to fund your retirement.
So many are trapped in fear, worry, and panic. They hopelessly cling to the coat sleeves of those who put them in that situation, hoping they can get them through it!
I have another idea, fire them.” Rida Morwa, Seeking Alpha Contributor
You rarely hear someone call things as they are these days, so a big shout out to Mr. Morwa. He is speaking about the volatility of the current market and the damage it is doing to retirement portfolios that are dependent on selling assets to pay the bills.
We learned this lesson ourselves after the 2008 financial crisis and started to do things differently. We sleep much better at night now by building a portfolio of quality dividend growth stocks and not having to sell into a down market to fund our retirement. In fact, we welcome down markets so that we can buy more income at lower prices.
Sometimes it takes markets like this one to drive home the concept that true wealth building has for generations come from passive and recurring income streams, not from buying and selling stocks.
Check out our MP Wealth-Building Model Portfolio Business Plan (CDN) and subscribe today to learn more.
Performance of ‘The List’
Last week, ‘The List’ was down with a minus -8.3% YTD price return (capital). Dividend growth of ‘The List’ remains at 10.2% YTD, demonstrating the rise in income over the last year.
The best performers last week on ‘The List’ were Enghouse Systems Limited (ENGH-T), up 6.16%; Dollarama (DOL-T), up 0.78%; and Canadian National Railway (CNR-T), up 0.31%.
Magna International (MGA-N) was the worst performer last week, down -10.53%.
Recent News
TELUS Agrees to Buy Canada HR Services Provider LifeWorks for $2.24 Billion (Source MT Newswires)
The overall take on the deal from what I have read is that the deal was expensive for Telus. On the positive side of the ledger, Telus is financing the deal with cash on hand and 37 million Telus shares. By all our metrics, Telus shares are expensive at today’s price, so if you want to pay up for a deal do it with your own expensive shares.
We would like to see Q2 earnings reported and a better margin of safety before digging deeper into fundamentals for this quality dividend grower.
U.S. Federal Reserve hikes interest rate by the largest amount since 1994 (Source: Globe & Mail)
You would have to live under a rock if you missed the U.S. Federal Reserve announcement of a .75% hike in interest rates last week. Stocks did what stocks do when interest rates rise quickly. They dropped. What’s happening is that many stocks are giving back gains they should never have had in the first place.
This was the first time in 2022 we saw Canadian stocks drop in tandem with their U.S. counterparts. The yield of ‘The List’ is now 3%. As prices drop, yield goes up. This is the highest it has been YTD.
We must remember, however, that central banks are just getting started with their interest rate hikes. More rate hikes and a poor Q2 earnings season, and things could still get a lot worse before they get better.
Dividend Increases
Last week, there were no dividend increases from companies on ‘The List.’
Earnings Releases
Last week, there were no earnings releases from companies on ‘The List.’
No companies on ‘The List’ are due to report earnings this week.
Below is a snapshot of ‘The List’ from last Friday’s close. For a sortable version of ‘The List’, please click on The List menu item.
‘The List’ is not meant to be a template for investors to copy exactly. Instead, its purpose is to provide investment ideas and a real-time illustration of dividend growth investing in action. It is not a ‘Buy List’ nor does it reflect the composition or returns of our Magic Pants Wealth-Builder (CDN) Portfolio. It is only a starting point for our analysis and discussion.
The List (2022)
Last updated by BM on June 17, 2022
*Note: The following graph is wide, you can scroll to the right on your device to see more of the data.
| SYMBOL | COMPANY | YLD | PRICE | YTD % | DIV | YTD % | STREAK |
|---|---|---|---|---|---|---|---|
| AQN-N | Algonquin Power & Utilities | 5.4% | $12.96 | -9.7% | $0.70 | 5.4% | 11 |
| ATD-T | Alimentation Couche-Tard Inc. | 0.8% | $53.04 | 1.8% | $0.44 | 18.1% | 12 |
| BCE-T | Bell Canada | 5.9% | $61.93 | -6.0% | $3.64 | 4.0% | 13 |
| BIP-N | Brookfield Infrastructure Partners | 3.8% | $37.66 | -7.5% | $1.44 | 5.9% | 14 |
| CCL-B-T | CCL Industries | 1.6% | $58.72 | -13.4% | $0.96 | 14.3% | 20 |
| CNR-T | Canadian National Railway | 2.1% | $140.89 | -9.0% | $2.93 | 19.1% | 26 |
| CTC-A-T | Canadian Tire | 3.6% | $162.51 | -11.3% | $5.85 | 24.5% | 11 |
| CU-T | Canadian Utilities Limited | 4.8% | $37.13 | 1.4% | $1.78 | 1.0% | 50 |
| DOL-T | Dollarama Inc. | 0.3% | $71.99 | 13.5% | $0.22 | 9.2% | 11 |
| EMA-T | Emera | 4.6% | $57.71 | -7.8% | $2.65 | 2.9% | 15 |
| ENB-T | Enbridge Inc. | 6.5% | $52.71 | 6.4% | $3.44 | 3.0% | 26 |
| ENGH-T | Enghouse Systems Limited | 2.7% | $26.37 | -42.5% | $0.72 | 16.3% | 15 |
| FNV-N | Franco Nevada | 0.9% | $139.00 | 2.1% | $1.28 | 10.3% | 14 |
| FTS-T | Fortis | 3.7% | $57.96 | -4.2% | $2.14 | 2.9% | 48 |
| IFC-T | Intact Financial | 2.3% | $176.47 | 7.8% | $4.00 | 17.6% | 17 |
| L-T | Loblaws | 1.4% | $109.74 | 6.8% | $1.54 | 12.4% | 10 |
| MGA-N | Magna | 3.3% | $54.87 | -32.7% | $1.80 | 4.7% | 12 |
| MRU-T | Metro | 1.6% | $67.30 | 0.4% | $1.10 | 12.2% | 27 |
| RY-T | Royal Bank of Canada | 4.0% | $124.53 | -9.0% | $4.96 | 14.8% | 11 |
| SJ-T | Stella-Jones Inc. | 2.5% | $32.35 | -20.5% | $0.80 | 11.1% | 17 |
| STN-T | Stantec Inc. | 1.3% | $54.75 | -22.0% | $0.71 | 6.8% | 10 |
| TD-T | TD Bank | 4.1% | $86.44 | -13.0% | $3.56 | 12.7% | 11 |
| TFII-N | TFI International | 1.5% | $72.99 | -34.1% | $1.08 | 12.5% | 11 |
| TIH-T | Toromont Industries | 1.6% | $97.67 | -14.1% | $1.52 | 15.2% | 32 |
| TRP-T | TC Energy Corp. | 5.5% | $65.32 | 9.4% | $3.57 | 4.4% | 21 |
| T-T | Telus | 4.6% | $28.69 | -3.6% | $1.33 | 6.2% | 18 |
| WCN-N | Waste Connections | 0.8% | $114.80 | -14.4% | $0.92 | 8.9% | 12 |
| Averages | 3.0% | -8.3% | 10.2% | 18 |
