Last updated by BM on May 23, 2022
“Measuring performance without simultaneously measuring valuation is a job half done.” Chuck Carnevale
As an income investor we do not look to sell in a market panic. We are focused on only one metric; how much did my income rise over the last year. If you use ‘The List’ we publish on the blog as an example of a dividend growth portfolio, your answer today would be that you are up 10.1% YTD.
Falling prices provide us with opportunities. An opportunity to grow our income and the opportunity to grow our long term capital returns.
The US markets are down a lot more than the Canadian markets so we haven’t had as many good opportunities to add to our CDN portfolios. With more interest rate hikes signalled by central banks on both sides of the border, higher wages and other input costs putting pressure on margins and lockdowns in Asia continuing to affect the supply chains, we feel our patience will be rewarded soon.
Performance of ‘The List’
Last week, ‘The List’ was flat with a minus -2.6% YTD price return (capital). Dividend growth of ‘The List’ remains at 10.1% YTD, demonstrating the rise in income over the last year.
The best performers last week on ‘The List’ were Stantec Inc. (STN-T), up 4.6%; Enghouse Systems Limited (ENGH-T), up 4.1%; and Emera (EMA-T), up 4.1%.
Canadian Tire (CTC-A-T) was the worst performer last week, down -7.9%.
Recent News
It’s an ideal time for adopting the Number One defensive investing strategy for retirees
“The best way to protect your retirement savings from a market crash is to safely park enough money to cover your income needs for two to three years.”
As dividend growth investors, our defence is provided from the growing dividend income we receive each and every year. We are never caught having to sell our quality companies for income or keep large amounts of cash on the sidelines in case the market corrects.
Based on earnings, stocks could have even further to fall
“Up until now, the crash has been largely predictable – a simple but painful demonstration of what happens when inflated stock prices run into the buzz saw of rising interest rates.”
The article goes on to say that over the next few quarters, earnings releases will dictate if we are at the bottom or is there more room to fall.
We have yet to see the kind of carnage of the US stock markets here in Canada. Since peaking, $8,000,000,000,000 has been wiped out from the S&P 500’s market cap. Up in smoke. The NASDAQ is down over -24%. Bitcoin is down over -55%.
There are two companies on ‘The List’ due to report earnings this week.
Toronto Dominion Bank (TD-T) will release its second-quarter 2022 results on Thursday, May 26, 2022, before markets open.
Royal Bank (RY-T) will release its second-quarter 2022 results on Thursday, May 26, 2022, before markets open.
Dividend Increases
There were no companies on ‘The List’ that announced a dividend increase last week.
Earnings Releases
There were no earnings releases last 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. Rather, 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) Portfolios. It is only a starting point for our analysis and discussion.
The List (2022)
Last updated by BM on May 20, 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 | 4.9% | $14.42 | 0.5% | $0.70 | 5.4% | 11 |
| ATD-T | Alimentation Couche-Tard Inc. | 0.8% | $55.61 | 6.7% | $0.44 | 18.1% | 12 |
| BCE-T | Bell Canada | 5.4% | $67.53 | 2.5% | $3.64 | 4.0% | 13 |
| BIP-N | Brookfield Infrastructure Partners | 3.5% | $61.20 | 0.2% | $2.16 | 5.9% | 14 |
| CCL-B-T | CCL Industries | 1.6% | $60.80 | -10.3% | $0.96 | 14.3% | 20 |
| CNR-T | Canadian National Railway | 2.0% | $143.24 | -7.5% | $2.93 | 19.1% | 26 |
| CTC-A-T | Canadian Tire | 3.6% | $161.80 | -11.7% | $5.85 | 24.5% | 11 |
| CU-T | Canadian Utilities Limited | 4.4% | $40.29 | 10.1% | $1.78 | 1.0% | 50 |
| DOL-T | Dollarama Inc. | 0.3% | $68.30 | 7.7% | $0.22 | 9.2% | 11 |
| EMA-T | Emera | 4.1% | $64.20 | 2.6% | $2.65 | 2.9% | 15 |
| ENB-T | Enbridge Inc. | 6.0% | $57.17 | 15.4% | $3.44 | 3.0% | 26 |
| ENGH-T | Enghouse Systems Limited | 2.1% | $33.92 | -26.0% | $0.72 | 16.3% | 15 |
| FNV-N | Franco Nevada | 0.9% | $139.02 | 2.1% | $1.28 | 10.3% | 14 |
| FTS-T | Fortis | 3.3% | $64.28 | 6.3% | $2.14 | 2.9% | 48 |
| IFC-T | Intact Financial | 2.3% | $176.81 | 8.0% | $4.00 | 17.6% | 17 |
| L-T | Loblaws | 1.4% | $111.18 | 8.2% | $1.54 | 12.4% | 10 |
| MGA-N | Magna | 2.9% | $61.47 | -24.7% | $1.80 | 4.7% | 12 |
| MRU-T | Metro | 1.6% | $66.98 | -0.1% | $1.10 | 12.2% | 27 |
| RY-T | Royal Bank of Canada | 3.8% | $127.25 | -7.0% | $4.80 | 11.1% | 11 |
| SJ-T | Stella-Jones Inc. | 2.3% | $35.00 | -14.0% | $0.80 | 11.1% | 17 |
| STN-T | Stantec Inc. | 1.2% | $56.99 | -18.8% | $0.71 | 6.8% | 10 |
| TD-T | TD Bank | 3.9% | $92.10 | -7.3% | $3.56 | 12.7% | 11 |
| TFII-N | TFI International | 1.4% | $79.33 | -28.4% | $1.08 | 12.5% | 11 |
| TIH-T | Toromont Industries | 1.4% | $108.61 | -4.5% | $1.52 | 15.2% | 32 |
| TRP-T | TC Energy Corp. | 4.9% | $73.36 | 22.8% | $3.57 | 4.4% | 21 |
| T-T | Telus | 4.3% | $31.10 | 4.5% | $1.33 | 6.2% | 18 |
| WCN-N | Waste Connections | 0.7% | $124.58 | -7.1% | $0.92 | 8.9% | 12 |
| Averages | 2.8% | -2.6% | 10.1% | 18 |
