Stock & ETF Analysis
I decided it would be a fun exercise to go through my portfolio, and look at some of the stocks & funds I currently own. The goal is to give a quick analysis on how it’s performed so far, take a look at how it is positioned for the future, and determine if I should continue to hold, add to my position or get rid of it.
Let’s start with a couple of funds I own, and then dig into a few individual stocks.
What it is: A low cost(0.22% MER), diversified (over 8000 companies) equity ETF that owns stocks from all around the world EXCEPT Canada.
Why I bought it: I owned a lot of Canadian funds/stocks. I was looking for an easy way to diversify. I don’t have the time to analyse thousands of US & Global stocks, so I wanted an easy to manage solution.
|Average Purchase Price||$25.07|
|% Gain or (Loss)||2.68%|
|# of shares originally purchased||2438|
|Total Shares Dripped||54|
|2018 Dividends/Distribution Received||$1,329.88|
|Buy, Sell, Hold?||Hold|
Final Thoughts: I’ve only owned this for about a year. The funds were originally invested in a high cost global mutual fund with mediocre returns. I was impressed with the low MER, and past performance of XAW so I transferred the funds over. So far I’ve been pretty happy with the move. I am not currently adding any cash to this as it is in my RRSP, and I am currently in the process of reducing my RRSP contributions.
I will continue to hold & DRIP shares of this – most likely until retirement barring any major changes. In 2018, XAW distributed $1329.88 to me which resulted in 54 new shares.
I’ve recommended this fund to a few friends and coworkers, who were sick of paying high fees, in different funds their banks had recommended. Just remember, there is no Canadian exposure – so if you don’t already have Canadian Equity exposure, this may not be for you.
2. RBC CANADIAN EQUITY INCOME FUND
What it is: This is your every day mutual fund. It holds Canadian stocks, and pays a monthly distribution. I own the “D” series of this stock, meaning I purchased it myself directly, so the management fee is slightly lower. The current Series D MER on this fund is 1.04%. Typically I wouldn’t be happy paying a fee this high, however I love this fund, even after the 1.04% fee, it has returned great results. I’ve owned this fund for close to 10 years, however the results below will only show the last year (since I moved it to my direct investing). The funds to year return (after fees) is 15.12%!
Why I bought it: If I am being honest, I don’t remember exactly why I chose this fund. I was in my early 20’s, but I started contributing to it when I was young, and continued for the last 9 years. I’ve since stopped adding to my position, however I still DRIP quite a few shares each month.
|FUND/STOCK||RBC CA EQUITY|
|Average Purchase Price||$28.61|
|% Gain or (Loss)||3.21%*|
|# of shares originally purchased||2141|
|Total Shares Dripped||114|
|2018 Dividends/Distribution Received||$3236.96|
|Buy, Sell, Hold?||Hold/Buy|
*My returns are actually closer to 13%. About a year ago, I switched it from the Series A (higher fee) fund to the direct investing option, so my returns below will only show the last 14 months after I transferred my shares.
Final Thoughts: I can’t say enough good things about this fund. I’ve owned it for a decade, and even though I’ve paid a lot in fees to own it – the returns have been spectacular. I’ve yet to find a similar Canadian fund with better returns over a large enough sample size. Although I am not contributing any new money to this currently, I am adding over 100 shares each year via DRIP. This fund provides a nice monthly payout and has continually provided capital appreciation as well.
3. ALGONQUIN POWER & UTILITIES
What it is: Algonquin Power & Utilities Corp. is a renewable energy and utility conglomerate with assets across North America. Algonquin actively invests in hydroelectric, wind and solar power facilities, and utility businesses.
Why I bought it: I had heard a lot of people discussing this stock a few years ago, so I checked it out. At the time it was trading around $9.00. I had recently sold off all my oil stocks, and wanted to get into a “cleaner” energy stock. Algonquin had (and still has) a history of raising their dividend, and growing their revenues via acquisitions. The dividend is paid in $USD which is nice too! I actually purchased this on 2 separate occasions. My first purchase was around $9.95, and my most recent was around $12.00.
|Average Purchase Price||$11.87|
|% Gain or (Loss)||26.01%|
|# of shares originally purchased||858|
|# of shares DRIPPED||53|
|2018 Dividends/Distribution Received||$531.30|
|Buy, Sell, Hold?||Hold/Buy|
Final Thoughts: I’ve done really well on this stock. I don’t have any plans to add to it right now, as it is currently trading near it’s 52 week high. I am however continuing to DRIP shares of this each quarter, and should be over 1000 shares in no time. I expect another dividend raise this year as well. Although the price is not as attractive as it once was, I expect the P/E to come down significantly as they continue to add revenue/customers via acquisition. If I didn’t already own a decent chunk of this one, I’d rate it a buy.
4. POWER CORPORATION OF CANADA
What it is: Power Corporation of Canada is a Canadian multinational diversified management and holding company. Power Corp is the holding company of: Power Financial, Great West Life, London Life, and much more. Although POWER CORP owns a lot of wealth management/investment companies, and Insurance – they also recently invested in the robo-advisor WealthSimple which I think is a great long term move.
Why I bought it: I had flipped some penny/weed stocks into some real earnings, and decided I wanted to get out of the day trading/speculating and into owning some real blue chip, dividend payers. When you think of blue chip Canadian Stocks, POWER CORP is right up there with the banks and telcos. Power Corp has raised their dividend every year for the last 5 years, and has a payout ratio of around 50%. I’ve already received a dividend raise since I originally purchased this stock, and I expect another one this year.
|Average Purchase Price||$31.61|
|% Gain or (Loss)||-5.81%|
|# of shares originally purchased||200|
|# of Shares DRIPPED||9|
|2018 Dividends/Distribution Received||$305.48|
|Buy, Sell, Hold?||Hold/Buy|
Final Thoughts: While the stock itself hasn’t done much over the last few years, the company boasts an impressive balance sheet, growing revenue, a very sustainable payout ratio and a growing dividend. If you are looking for massive capital growth – this probably isn’t for you. If you want a safe, growing dividend – I’d definitely recommend it. Power Corp recently also just announced a MASSIVE share buyback program of 1.5 BILLION dollars. Yes you read that right. Clearly they believe the shares are under valued as well. I treat this stock more like a bond – I don’t expect much capital growth, but it pays a juicy (5.16%) & safe (and growing) dividend, so I’m okay with that.
5. Artis Reit
What it is: A REIT that owns Office, Retail & Industrial buildings all across North America. The head office is located in my home town of Winnipeg.
Why I bought it: One of the first stocks I ever bought, I was attracted to the yield, as well as the fact it is a local company. In fact, I can see their head office from my office window. I like the fact they have diversified their portfolio away from Alberta, and have grown their presence in the U.S.A.
|Average Purchase Price||$12.85|
|% Gain or (Loss)||-14.75%|
|# of shares originally purchased||500|
|# of Shares DRIPPED||98|
|2018 Dividends/Distribution Received||$590.49|
|Buy, Sell, Hold?||Buy|
Final Thoughts: I am torn on this one. It hasn’t worked out great for me so far – however I believe they are on the right track to turning things around. At the end of 2018 Artis slashed the dividend in half. This resulted in a big drop in share price. When they slashed the dividend, they announced plans to sell a few non core assets, and start buying back a huge amount of shares. In the last 3 months, they’ve already cancelled around 8 million shares. The payout ratio is now sitting at a very reasonable 45% and they continue to buy back/cancel shares almost every day. The NAV (Net Asset Value) is currently around $15.00, and it still pays a respectable 4.93% dividend. The most important thing about the dividend, is that it is now extremely safe. I will continue to hold, and if it drops below 10.00 again I may add to it.
6. Interrent Reit
What it is: A residential REIT that owns buildings in Ontario & Quebec.
Why I bought it: At the time I purchased this, I already owned REIT’s in the Office, Industrial and Commercial spaces. I was looking for a residential REIT to add to my portfolio, so I did some research on a few, ran a few stock screens, and this one came out on top.
|Average Purchase Price||$9.77|
|% Gain or (Loss)||42.28%|
|# of shares originally purchased||103|
|# of Shares DRIPPED||0|
|2018 Dividends/Distribution Received||$21.05|
|Buy, Sell, Hold?||Buy|
Final Thoughts: This stock has been absolutely wonderful so far. I’m up over 40%, and they’ve already raised their dividend. I expect multiple dividend raises over the coming years, as they continue to have a conservative payout ratio compared to other REIT’s, and they have grown their funds from operations (FFO) per unit on average by over 27% per year since 2010! My only regret was not having more cash at the time to buy more. I keep waiting for a dip in price to add some more – but until then I will hold. According to their most recent report, 12 of the 13 analysts covering IIP, currently rate it a BUY and/or OUTPERFORM.
That’s all for today kids! Next time I will dig into a few other holdings: Transcontinental, Chorus Aviation, Intertape Polymer and Plaza Reit.