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Dividend Growth Index – 2012 Q3 Results

Market GraphIt’s that time of the year where we review the Dividend Growth Index (DGI). A year ago, a group of blogger focused on dividend investing got together to create a dividend growth index. This quarter (Q3 2012) marks the first year of the index.

Here is a background on the Dividend Growth Index (DGI).

My Dividend Growth Picks

Canadian National Resources (CNQ) continues to drag down the index and its yield definitely doesn’t make up for its lackluster performance. I will point out that it is a Canadian Dividend Aristocrats (5 years of dividend increase) with a very low payout ratio and a pretty good valuation at the moment.

Aflac (AFL) is one of the stocks that has been doing amazing in the past year but I stayed away due to the insurance sector challenges to show profit and performance in our low interest environment.

2012 Q3 Growth

  • Canadian National Railway (CNR) is up 2.57%
  • Canadian National Resources (CNQ) is down -3.05%
  • Aflac (AFL) is up 14.17%

2012 Q2 Growth

  • Canadian National Railway (CNR) is up 10.36%
  • Canadian National Resources (CNQ) is down -17.05%
  • Aflac (AFL) is up 3.05%

2012 Q1 Growth

  • 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

  • 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

So far our index has a YTD of 5.7% compared with

  • XIU @ 5.39%
  • XDV @ 3.89%
  • SPY @ 16.43
  • VIG @ 10.92
Since inception, our index has retured 22.22% compared with
  • XIU @ 8.68%
  • XDV @ 7.07%
  • SPY @ 29.93%
  • VIG @ 25.08%

If you look at the table below, you’ll see that we are doing pretty good considering the limited number of stocks across both countries. Anything above $1,000 is a profit for the year and anything below is a lost. Having a 22% return over one year is actually pretty decent from a portfolio performance. What’s going to be important is how we do the following year and the year after. One year is just that but consistent performance is a lot harder.

Company NameTickerStarting SharesStarting Price2012 Q3 SharesMarket PriceMarket ValueSectorMarket
FortisFTS.TO188.68$5.3057.24$33.67$1,927.27Oil & GasCDN
Philip Moris InternationalPM16.03$63.8116.64$93.35$1,553.34Consumer ProductsUS
Wal-MartWMT19.27$50.8019.76$75.25$1,486.94RetailUS
Abbott LabsABT19.55$50.7620.23$71.32$1,442.80HealthcareUS
Enter. Products PartnerEPD24.91$40.9026.20$54.80$1,435.76Oil & GasUS
AflacAFL28.61$31.4629.45$48.67$1,433.33Financial ServicesUS
Energy Transfer EquityETE28.75$36.0930.57$45.58$1,393.38Oil & GasUS
Chevron CorporationCVX10.8$91.4911.16$117.62$1,312.64Oil & GasUS
Canadian National RailwayCNR.TO14.28$67.3414.54$88.26$1,283.30TransportationCDN
Husky EnergyHSE.TO44.07$22.2646.24$27.19$1,257.27Oil & GasCDN
Royal BankRY.TO20.81$46.0921.71$57.43$1,246.81Financial ServicesCDN
ConocoPhillipsCOP15.79$62.5121.27$57.62$1,225.58Oil & GasUS
NovartisNVS17.93$53.7319.26$62.90$1,211.45Consumer ProductsUS
PepsiCoPEP16.16$60.3416.67$71.19$1,186.74Consumer ProductsUS
Coca-ColaKO29.6$67.4230.45$38.58$1,174.76Consumer ProductsUS
Procter & GamblePG15.83$61.2516.36$69.10$1,130.48Consumer ProductsUS
National BankNA.TO14.31$66.9814.91$74.62$1,112.58Financial ServicesCDN
IntelINTC46.87$22.1648.41$22.51$1,089.71TechnologyUS
McDonald’s CorporationMCD11.39$87.5611.74$91.54$1,074.68Consumer ProductsUS
ScotiaBankBNS.TO18.97$50.7319.77$54.06$1,068.77Financial ServicesCDN
CML HealthcareCLC.TO106.38$9.20114.85$8.80$1,010.68HealthcareCDN
Canadian National ResourcesCNQ.TO32.5$30.2332.92$30.22$994.84Oil & GasCDN
Progressive Waste SolutionsBIN.TO46.36$21.6847.62$20.38$970.50Waste ManagementCDN
Johnson & JohnsonJNJ13.04$68.9113.04$69.44$905.50Consumer ProductsUS

Dividend Growth Index Participants

This quarter, Dividend Ninja dropped Staples in favor of Johnson & Johnson. I consider this a wise pick for our Dividend Growth Index. Below are the current participants.

Readers: What stocks would you drop or add?

Disclamer: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your decision at your own risk - see my full disclaimer for more details.

Image: FreeDigitalPhotos.net

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2 Responses to "Dividend Growth Index – 2012 Q3 Results"

  1. Gary says:

    The results for Fortis do not look correct with a starting price of just over $5, and the number of starting and current shares is puzzling as well.

    • The Passive Income Earner says:

      @Gary
      The initial stock was not Fortis. It’s a little hard to highlight the profit made from a different stock in this case.

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