Here is my most updated portfolio as of May 20, 2020. I have changed out 1 stock which I felt suited my investing style a little better. I decided to sell Citigroup(C) and go with Wells Fargo(WFC) instead. In doing so, I was able to acquire a few more shares and increase the amount I receive from dividends with Wells Fargo(WFC). I also felt that with the big pull back of all these stocks that Wells Fargo(WFC) pulled back more than most other American bank stocks therefore I can benefit from them when they go back up.
- Bell Canada(BCE)-$50.1 Billion Market Cap, 3.3 EPS, 16.87 P/E, Dividend Yield 6.01% and Dividend Payout Ratio 94.7%.
- Financial 15 Split Corp(FTN)-$178.6 Million Market Cap, 1.35 EPS, P/E N/A, Dividend Yield(currently suspended)
- Hewlett Packard Enterprise Co(HPE)-$13.03 Billion Market Cap, 0.97 EPS, 10.38 P/E, Dividend Yield 4.75% and Dividend Payout Ratio 27.1%.
- H&R Reit(HR.UN)-$2.62 Billion Market Cap, 1.19 EPS, 7.67 P/E, Dividend Yield 7.57% and Dividend Payout Ratio 116%.
- North West Company Inc(NWC)-$1.26 Billion Market Cap, 1.67 EPS, 15.47 P/E, Dividend Yield 5.10% and Dividend Payout Ratio 78.6%.
- Transalta Renewables(RNW)-$3.63 Billion Market Cap, 0.40 EPS, 34.06 P/E, Dividend Yield 6.88% and Dividend Payout Ratio 138.6%.
- Vermilion Energy(VET)-$1.16 Billion Market Cap, -8.47 EPS, P/E N/A, Dividend Yield(currently suspended)
- Wells Fargo & Co(WFC)-$100.6 Billion(USD) Market Cap, 2.83 EPS, 8.67 P/E, Dividend Yield 8.31% and Dividend Payout Ratio 81%.
I just want to give a little breakdown of that companies I own and why I hold positions in them. I am a very long term investor and I also like to hold positions that pay out a dividend and I also like to diversify my stock options. I don’t personally hold any bonds, preferred shares or warrants. Before Covid-19 happened all of my holdings payed out a dividend. As you can tell, some of those dividends have been suspended. I am more than fine with this because it means the company is being responsible with their money and using it to keep operations running and keep people employed.
I have picked Bell Canada(BCE) because they are the biggest telecom in Canada. They have the biggest market cap as well as pay out the biggest dividend. I was considering Telus because their share price was better but they recently did a 2 for 1 split and they haven’t exactly recovered since. I feel that Bell Canada has actually operated very well during this pandemic and if anything they have been busier which is a real positive sign for them. I will be adding to my position to Bell Canada in the future.
My reason for holding Financial 15 Split Corp(FTN) is mainly because of their dividend. It trades like a stock on the exchanges but its actually a mutual fund that is comprised of the 15 biggest financial institutions in North America. It is a fairly good way to invest in banks in Canada and the US without having to buy any of the stocks. I mainly bought them because before their dividend was suspended they paid out 23% and it really did not go up or down very much. It has taken a hit just like the financial institutions so right now i’m just sitting tight.
I wanted to get into tech and I feel that it is hard to do in Canada because we do not have a very big tech sector so that is why I decided to get into Hewlett Packard Enterprise Co(HPE). HP actually split up into 2 different companies a little while ago and HPE is the software, financial services and corporate investment side of it. I feel that being split off and separated they have a good chance to break through in the software game and be a big contender. I plan to add more to my portfolio in the future.
I needed to add a reit to my portfolio because I like to diversify my stocks and have exposure to real estate. I decided to go with H&R reit(HR.UN) because they had really positive numbers and their charts had really good growth. Since Covid-19 has taken over they have been hit really hard but so has every other reit. I have added a few to my position trying to average down a little but they are not moving up at all. They also cut their dividend by 50% which is no big deal because its still a nice payout and it could go back up in the future.
The only real safe investment right feels like it should be grocery stores. That is why I bought into North West Company inc(NWC). They are a much smaller grocery store chain compared to Loblaws but I wanted to go for someone a little smaller. They have fantastic numbers and continue to grow even in this pandemic. They did take a bit of a tumble when everyone else did but they recovered nicely and are even up now. They have even continued to pay out their dividend which makes me very optimistic. I will for sure be adding to my position with NWC in the future.
I wanted to get into a renewable company and tried to find one that had alot of upside. Transalta Renewables(RNW) was created from Transalta Gas just a few years ago and has had some ups and some downs for them. I feel like its a great transition for Transalta and it is going to be a big part of the company. I like everything about this company, they have projects on the go, they have a very nice dividend but they payout ratio is a little high for my liking. I hope that in the future Transalta Renewables and Transalta gas can just become 1 entity.
Well, because I wanted a renewable company in my portfolio I also had to go the other way and have an Oil and Gas company. For that I picked Vermilion Energy(VET). I had actually held off on any Oil and Gas exposure for quite a while because it always seemed so volatile, boy was I right. I finally decided to get into it just before this whole pandemic started. I didn’t get in at the peak but I was still up there. The main reason I got in was their earnings and their dividend. The numbers seemed really good until everything fell out. I have averaged down a fair amount and they have been bouncing back this last month. I just hope they can keep up the momentum and get back to their dividend glory days.
Last but not least I would like to talk about Wells Fargo & Co(WFC). I wanted to gain some sort of US financial exposure and I was not happy with Citigroup and how they were doing business. I started to look for another financial institution that was under valued and had been down a little more than the others. I looked into WFC and found their numbers very appealing and decided to jump in. I feel that I got them close to the bottom as they have gone down minimally and gone back up to almost where I got them at. I hope that they can continue to rebound and go back up for me. I plan to keep an eye on them to possibly add to my position in the future.
That is all I currently hold in my portfolio. I continue to look for new opportunities and plan to get some exposure into Canadian financial institutions in the future. As per my last blog I am going to have a tough choice as to who I am going to invest in. I try to keep my portfolio as diversified as possible because you need to be able to take advantage of a down market and look for opportunities when things are good.
That is all for today and remember everyone, invest in yourself first.
Outsider Trading 