It’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).
- Introducing the Dividend Growth Index
- Dividend Growth Index – 2011 Q4 Results
- Dividend Growth Index – 2012 Q1 Results
- Dividend Growth Index – 2012 Q2 Results
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
- 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 Name||Ticker||Starting Shares||Starting Price||2012 Q3 Shares||Market Price||Market Value||Sector||Market|
|Fortis||FTS.TO||188.68||$5.30||57.24||$33.67||$1,927.27||Oil & Gas||CDN|
|Philip Moris International||PM||16.03||$63.81||16.64||$93.35||$1,553.34||Consumer Products||US|
|Enter. Products Partner||EPD||24.91||$40.90||26.20||$54.80||$1,435.76||Oil & Gas||US|
|Energy Transfer Equity||ETE||28.75||$36.09||30.57||$45.58||$1,393.38||Oil & Gas||US|
|Chevron Corporation||CVX||10.8||$91.49||11.16||$117.62||$1,312.64||Oil & Gas||US|
|Canadian National Railway||CNR.TO||14.28||$67.34||14.54||$88.26||$1,283.30||Transportation||CDN|
|Husky Energy||HSE.TO||44.07||$22.26||46.24||$27.19||$1,257.27||Oil & Gas||CDN|
|Royal Bank||RY.TO||20.81||$46.09||21.71||$57.43||$1,246.81||Financial Services||CDN|
|ConocoPhillips||COP||15.79||$62.51||21.27||$57.62||$1,225.58||Oil & Gas||US|
|Procter & Gamble||PG||15.83||$61.25||16.36||$69.10||$1,130.48||Consumer Products||US|
|National Bank||NA.TO||14.31||$66.98||14.91||$74.62||$1,112.58||Financial Services||CDN|
|McDonald’s Corporation||MCD||11.39||$87.56||11.74||$91.54||$1,074.68||Consumer Products||US|
|Canadian National Resources||CNQ.TO||32.5||$30.23||32.92||$30.22||$994.84||Oil & Gas||CDN|
|Progressive Waste Solutions||BIN.TO||46.36||$21.68||47.62||$20.38||$970.50||Waste Management||CDN|
|Johnson & Johnson||JNJ||13.04||$68.91||13.04||$69.44||$905.50||Consumer Products||US|
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.
- Dividend Growth Investor
- Dividend Mantra
- Dividend Monk
- Dividend Ninja
- My Own Advisor
- SP Brunner
- The Dividend Guy Blog
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.