The Dividend Growth Index started back in September 2011 as a project to see what our picks would over time. It’s not meant be a high trading account but rather a long term holdings that we can compare against an index. I provided the results for the last quarter of 2011 and I am now ready to share the results for 2012.
Over time, we are going to see high returns since markets usually go up. September 2011 was a good time to buy so it was expected that we would see some good results. Two of my picks are some of the lowest dividend payer in the divided growth index but it’s worth pointing out that they are Canadian Dividend Aristocrats (5 years of dividend increase). The dividend growth will work its compound growth magic over time. I currently do not own any of these stocks but they are on my watch list. In fact, in many of my technical screenings (Top 20 Stocks) , CNQ shows up high.
2012 Q1 Growth
Compared with the last quarter, we can see that confidence in CNQ is being shaken – that might make it a good entry point . Otherwise, it’s a pretty flat performance.
- Canadian National Railway (CNR) is down -0.03%
- Canadian National Resources (CNQ) is down -21.82%
- Aflac (AFL) is up 4.09%
2011 Q4 Growth
Q4 was a great quarter with investor confidence coming back in the markets.
- Canadian National Railway (CNR) is up 14.29%
- Canadian National Resources (CNQ) is up 29.87%
- Aflac (AFL) is up 29.37%
Dividend Growth Index – 2012 Q1 Results
Since inception, the index is now up 20.74%. A growth of 5.14% for the second quarter. As you can see, the index overall didn’t break any performance records for the first quarter of the year. Obviously, my picks pulled the index back a little but over time, I believe my pick will shine by providing dividend growth with the 10/10 rule.
We started with an investment capital of $24,000 ($1,000 per stock) and it is now worth $28,977.68. It’s a nice growth. Against Canadian indexes, we are doing better but against U.S. indexes we are slightly behind. It’s clear form the picks that the U.S. stocks have performed better. It leads me to really highlight the importance of U.S. diversification for Canadians. Our friends south of the border have a much larger economy and many more conglomerates and diversified companies to invest in. It’s the major reason why I switched to RBC Direct Investing away from ScotiaITrade so I can hold my U.S. investments in U.S. accounts. It’s only a matter of time until the U.S. dollar gains strength over the loonie.
My Own Advisor ABT 21.99% $61.29 19.900 $1,219.68 US
My Own Advisor BNS.TO 8.14% $55.88 19.354 $1,081.53 CN
My Own Advisor CLC.TO 17.03% $10.60 110.405 $1,170.29 CN
The Dividend Guy Blog INTC 33.97% $28.12 47.648 $1,339.62 US
The Dividend Guy Blog KO 11.13% $74.01 15.013 $1,111.13 US
The Dividend Guy Blog NA 15.82% $79.37 14.594 $1,158.35 CN
The Dividend Monk ETE 19.60% $40.30 29.674 $1,195.87 US
The Dividend Monk NVS 6.72% $55.41 19.259 $1,067.13 US
The Dividend Monk WMT 19.44% $61.20 19.519 $1,194.57 US
Dividend Ninja HSE.TO 14.58% $25.38 45.142 $1,145.71 CN
Dividend Ninja PEP 8.94% $66.35 16.423 $1,089.69 US
Dividend Ninja SPLS 23.41% $16.19 76.225 $1,234.09 US
Passive Income Earner CNR.TO 14.23% $79.27 14.411 $1,142.32 CN
Passive Income Earner CNQ.TO 8.05% $33.06 32.683 $1,080.51 CN
Passive Income Earner AFL 33.46% $45.99 29.018 $1,334.52 US
Wealthy Canadian RY.TO 22.86% $57.81 21.255 $1,228.75 CN
Wealthy Canadian FTS.TO 81.44% $32.27 56.226 $1,814.41 CN
Wealthy Canadian BIN.TO 1.76% $21.67 46.958 $1,017.57 CN
Dividend Mantra COP 22.32% $76.01 16.090 $1,223.00 US
Dividend Mantra PM 44.74% $88.61 16.333 $1,447.30 US
Dividend Mantra PG 8.09% $67.21 16.085 $1,081.06 US
Dividend Growth Investor CVX 17.62% $107.21 10.971 $1,176.15 US
Dividend Growth Investor MCD 13.33% $98.10 11.556 $1,133.63 US
Dividend Growth Investor EPD 29.06% $50.47 25.575 $1,290.78 US
Dividend Growth Index Participants
Here are the investors behind the index. See what they have to say about our Dividend Growth Index.
- Dividend Growth Investor
- Dividend Mantra
- Dividend Monk
- Dividend Ninja
- My Own Advisor
- The Dividend Guy Blog
Readers: What stocks would you drop or add?