Sunday, December 2, 2012

Dividend Growth Portfolio, November 2012 Update

Holidays are comin'. Holiday are comin'
Holidays are comin'. Holiday are comin'
Holidays are comin'. Holiday are comin'
Tis the season
Watch out, look around, somethin's comin', comin' to town (coming to your town)
Doo doo doo doo doo, doo doo doo doo
Doo doo doo doo doo, Always Coca Cola (coming to your town)
Something magic, in the light, can you see it, shining bright (shining bright)
Fa la la la la, la la la, la la
Fa la la la la, la la la, la la (It's always Coca Cola)
Holidays refreshments is what we bring
Tis the season, its always the real thing.

It's only fitting that one of the most iconic brands in the history of mankind always is the creator of one of the Christmas time commercial classics.

The Coca Cola story is one of incredible brand value and awareness. This is the kind of stock long term investors love to own. These investments form the core of your portfolio, and you almost never sell them. They're also the investments you buy when shit hits the fan. They won't be the best values (riskier stocks will fall more) but they will be at valuations typically seen once in a generation (like Coca Cola at a split-adjusted $20-$22 back in 2009)

Anyway, onto business! Here's this month's Dividend Growth Portfolio update.

As communicated in a 2 blog post earlier this month,

1. I divested my Exelon Corp holdings due to the executive team bringing up the potential of a dividend cut should power prices not rebound, and

2. these dividend hikes were forseen well in advance. Emerson's was a little lower than I was hoping for, but not entirely surprising given their very cautious outlook. Becton fell right into the range I was expecting. Just 1 dividend adjustment remains now for this year, which is Boeing.

I still remain on target to meet the goals set.

New Purchases
Western Union - $87.50

Exelon Corp - $136.50

Intrinsic Dividend Changes

Scotiabank - $4.56 (DRIP reinvested shares)

Pason Systems - $8.00 (semi-annual dividend increase of 9% from 22 cents to 24 cents, will start paying dividend quarterly in 2013)
Becton Dickison - $9.90 (quarterly dividend increase 10% of from 45 cents to 49.5 cents)
Emerson Electric - $5.00 (quarterly dividend increase 2.5% from 40 cents to 41 cents)

October 2012 Annualized Dividend: $4258.74

+ $87.50 (from new purchases)
-  $136.50 (from sales)
+ $27.46 (from intrinsic changes)

November 2012 Annualized Dividend: $4237.20
End of 2012 Goal: $3800 to $4000
Whisper Goal: $4400


A small side note, unrelated to my DGP. 5 months after my car purchase, I've managed to return my savings to positive value. I had a negative balance of almost 7k in my theoretical savings account. Its since been completely negated and has returned to positive value finally in November. It was approximately +22k before I bought my car, which cost 29k (including 1st year insurance).

You can find details about this theoretical savings account here, in a previous blog I wrote

The next step in my plan is to pay back the amount I 'borrowed' out of my MCA. I've got an extra $6k to go for that. I haven't been in a rush, because as much as Mr. Flaherty and Mr. Carney have been warning Canadians about debt, I'd much rather have a balanced approach and continue to invest while slowly paying back the 'borrowed' amount.


  1. Haha, tis the season to be jolly! Coke is numero uno... dunno why I don't own some shares! Maybe I always think it's too high. Missed the boat there! Gonna have enough for upcoming $5500 TFSA limit? I just might buy $5500 worth of coke? good idea??

    1. if there is one stock i'm willing to buy at full value (no discount), say 20x PE, it would be Coca Cola. while your return wont be fantastic buying here, KO rarely goes on sale. perhaps buy half, and leave other half to wait and see :)

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