Several bloggers focusing on dividends got together to create a virtual portfolio of dividend picks. Eight bloggers each selected three companies that pay dividends to be included in the index. Information about it can be found here, and the list is below:
|CML Healthcare (CLC-T)|
|Coca Cola (KO-US)|
|National Bank of Canada (NA-T)|
|Energy Transfer Equity (ETE-US)|
|Husky Energy (HSE-T)|
|Canadian National Railway (CNR-T)|
|Canadian National Resources (CNQ-T)|
|Royal Bank of Canada (RY-T)|
|Daylight Energy (DAY-T)|
|Progressive Waste Solutions (BIN-T)|
|Phillip Morris (PM-US)|
|Procter & Gamble (PG-US)|
|Enterprise Products Partners (EPD-US)|
The purpose is to be a group project rather than a contest on stock picking. Putting forth only three choices can make for some serious swings (for instance, if this was started last year, and I had included BIP, then my three picks would have probably greatly outperformed the market, but if I had included HCBK, my three picks would have greatly underperformed the market. I analyzed and own both.) And most investors on this list are long-term investors anyway, which means the end goal is not annual increases, but a good rate of return over a longer period.
That said, the index of 24 companies is more diversified in aggregate than any of the seven individual sets of three picks, so it’s an interesting actively-selected index with low turnover to follow. A lot of the bloggers in the group are Canadian, so the index has a big Canadian segment as well as a big US segment. (I don’t know what it is about my neighbor up north, but Canada seems to output a disproportionately large number of quality dividend blogs!)
The rules are pretty simple- each of us picked three companies, and annually, virtual dividends will be collected and invested in one of the picks. In a week, I will publish my overview of why I selected the three companies that I did- Walmart, Novartis, and Energy Transfer Equity.
The following is a list of the publishers involved, and their picks, as well as my brief comments on their picks.
The Dividend Guy has quite a bit of investing experience, and focuses on investing in companies that pay dividends that increase annually. He offers a free e-book on dividend investing. His three selections are:
National Bank of Canada
I view Intel as a strong value play, and it’s on my real-life watchlist for possible purchase. Coca Cola is a nearly bulletproof pick; perhaps not at a great price, but unlikely to perform poorly. I’m not too knowledgeable about specific banks, but Canada’s banks in general are top notch.
Dividend Mantra started investing in early 2010, but is already on a roll. His monthly income/expense reports show disciplined frugality as he amasses wealth and passive income on an everyday income. His three selections are:
Phillip Morris Intl.
Procter & Gamble
All three are good picks, in my view. ConocoPhillips offers a large dividend, and the company split promises to increase it even more. Phillip Morris has a lot of debt, but sells cigarettes to people outside of the US and this business isn’t going away any time soon. Procter and Gamble is among the most well-known blue-chip companies, with decades and decades of consecutive dividend growth.
My Own Advisor is a Canadian DIY investor that focuses on indexes, DRIPs, and dividends. His selections are:
Bank of Nova Scotia
Canadian banks are strong, Abbott is a premier health care and dividend pick, and CML Healthcare is an interesting smaller Canadian medical company that focuses on diagnostics.
The Passive Income Earner is a married Canadian man who, according to his blog, spends at least an hour per day on average researching investments. His three selections are:
Canadian National Railway
Canadian National Resources
I’m not too familiar with Canadian National Resources. Last year, I analyzed Canadian National Railway, and am bullish towards it. Railroads have wide economic moats around their business. Aflac is his American pick, and I recently analyzed the company. It’s a fairly risky, deep value pick, but the long-term fundamental business operations of the company are solid, and I think it’s a wise pick.
Dividend Ninja switched from Mutual Funds to self-directed long-term investing with a discount brokerage. He focuses on passive indexes and blue-chip dividend payers in order to keep costs low and returns high. His three selections are:
I consider Pepsico to be a solid choice, and while I’ve never directly investigated Staples or Husky- Stables appears to be an interesting value pick, and looking at Husky from a macro perspective as a Canadian energy producer, I’m bullish.
The Wealthy Canadian invested his money starting at an early age, and in his mid-30′s, he’s semi-retired, and can leave the workforce at any time he sees fit. His three selections are:
Royal Bank of Canada
Progressive Waste Solutions
Being Canadian companies, I’m not too familiar on the details, but going with a Canadian bank, an energy producer, and a trash remover, looks like a solid set of choices to me.
As an edit to this article, Dividend Growth Investor has joined as the eighth member in the project. So now there are 24 rather than 21 companies in the index, and his picks have been added to the above list. His selections are:
Enterprise Products Partners
I think Dividend Growth Investor’s picks are great. EPD is a partnership, similar to my own pick of ETE, and McDonalds and Chevron are both companies that I think are excellent long-term picks.
The Dividend Monk that isn’t even really a monk. I’m an engineer by trade, and have been an avid investor for about six years now. My selections are:
Energy Transfer Equity
My picks span retail, health care, and energy, with a solid average dividend yield. My post explaining my picks is here.
Full Disclosure: At the time of this writing, I own shares of KO, ETE, NVS, ABT, CVX, and PG. In addition, WMT and INTC are on my watch list for possible purchase.
You can see my portfolio here.
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