Monday, March 24, 2014

Dividend Growth Portfolio, March 2014 Update

2014 has certainly been an interesting year so far. Thus far, as Q1 is coming to an end, TSX has been outperforming the S&P 500 to the tune of 5%. But wait, all performance is not the same. Since January 1, CAD has depreciated some 6% against the USD. Each Canadian Dollar only buys 0.893 US Dollar now. What does this mean for Canadian investors?
  • higher cost of imported retail goods
  • higher cost of fuel
  • higher cost to invest in US equities & other US dollar denominated assets
  • higher cost of cross-border shopping
  • paper gains on US dollar assets
Perhaps this is a good time to convert some USD back to our monopoly money (trust me you'll miss having color coded money if you live in the US long enough!) 

Saturday, February 15, 2014

McDonalds Analysis

The McDonald's name and brand needs no introduction. The "golden arches" company is the world's biggest quick serve restaurant operator. In many parts of the world, McDonald's is a symbol of an American way of life. In poorer areas of the world, McDonald's is also a safe bet for a clean washroom and cheap meal.

  • The world's largest quick serve restaurant
  • Over half the countries (119) in the world have a McDonald's restaurant
  • 35,000 locations world wide, serving 68 million customers each day
  • a leader in increasing the standard of service in emerging markets

Unlike Johnson & Johnson which has a myriad of subsidiaries & products, McDonald's concentrates on its core competency, serving delicious food quickly for a reasonable price! McDonald's strength is not just the corporation itself, but owner/operator franchisees. Many of its now famous products were invented by owner/operators, such as Big Mac (1968), Quarter Pounder (1971), Egg McMuffin (1975), and Canadian developed McFlurry (1997).

Saturday, January 18, 2014

Johnson & Johnson Analysis

Johnson & Johnson is the world's biggest diversified health care company. Its roots can be traced back to a surgical dressing company founded in 1886 by brothers Robert, James, and Edward Johnson. Nearly 130 years later, the Johnson & Johnson (JNJ) family of companies includes:

  • The world's 6th largest consumer health company
  • The world's largest medical devices & diagnostics company
  • The world's 5th largest biologics company
  • The world's 8th largest pharmaceuticals company

The company is organized into 3 segments: Consumer, Pharmaceutical, and Medical Devices & Diagnostics, representing 20%, 40%, and 40% of total revenues. JNJ is a S&P500 dividend aristocrat, has paid an uninterrupted dividend since 1944, and has increased it for 51 consecutive years. Only 15 companies in the entire world have managed to raise dividends for more than 50 years each. JNJ is truly among the elite companies of the world.

Wednesday, January 15, 2014

Dividend Growth Portfolio, December 2013, Annual Summary

Its been a while since I posted anything on here. I feel I've been neglecting to update the status of my portfolio. 2013 has been a whirlwind year! I bet not many people predicted S&P 500 would be up over 30% with dividends reinvested. Its definitely been a good year if you were invested in the stock market. The sad part is, many people missed out, either by being too heavy in the Canadian market, or staying on the sidelines.

You know that saying, that your relative performance takes a heavy beating if you miss just the best 10 days of the last 10 years? Well.. imagine what happens if you miss the best year in the past 10 years... (best year since 1997 to be exact)

But all is not lost! After all, its a new year, and a new year means everyone starts fresh! Equities are not expensive. They are not cheap either, but there can still be value to be had, if you know where to look.