Equity Holdings

Equity Holdings

I.  Financials

Royal Bank (RY)

DT Score:  490

I like Royal Bank – it is the largest bank in Canada and I am a long-time client.  They have a major presence in Canada and also a strong foothold within the United States.  They produce reasonable dividends which they tend to increase on an annual basis.

Bank of Montreal (BMO)

DT Score:  508

I added Bank of Montreal into my portfolio to take advantage of the higher divided yield, with the confidence that it is also a long standing major bank within the Canadian marketplace.

Scotiabank (BNS)

DT Score:  555

Scotiabank is a nice addition into my overall investment portfolio within the financial sector, as it has a strong presence within both Canada and Central America.  Dividends are typically increased annually and the company’s brand is well known.

II.  Real Estate

Riocan Real Estate Investment Trust (REI.UN)

DT Score:  377

Riocan is a dominant player within the Canadian REIT space, with ownership in many major retail centers throughout the country.  They also have significant assets within the United States.  Vacancy rates are traditionally very low, with long-term anchor clients providing a stable and inflation proof source of income.

Dundee Real Estate Investment Trust (D.UN)

DT Score:  354

Another nice addition into my overall REIT holdings.  Stable distributions, strong brand name in this market space with a high dividend yield to boot.

Allied Properties Real Estate Investment Trust (AP.UN)

DT Score:  346

Allied Properties adds the value of a niche market space into my overall portfolio.  Specializing in unique, historical buildings in the downtown cores of major cities in Canada for professional office space with strong market share and very low vacancy rates.

III.  Energy

Enbridge Pipelines (ENB)

DT Score:  503

Pipeline companies are money making machines, at least in the current market environment.  They earn revenue for every barrel of crude or every GJ of liquid natural gas they transport.  Enbridge is a major player in this market space, and the dividend increases and capital growth they have enjoyed over the last few years is remarkable.

TransCanada Corporation (TRP)

DT Score:  379

TransCanada is the other major market player within the pipeline industry, and they have significant assets in operation for the transportation of natural gas products, and are becoming more and more prominent in the crude pipeline space.  TransCanada has a strong dividend that tends to be increased annually, making this a strong holding within my portfolio.

Canadian Oil Sands (COS)

DT Score:  389

Canadian Oil Sands owns a significant portion of Syncrude, a company operating in the Fort McMurray, AB oil sands that specializes in the extraction of crude oil products.  Syncrude is a major player in this market space, and does well when the price of oil is high.  Dividends are not as stable as I would like, but are high enough that I decided it was worth adding into my portfolio.

IV.  Utilities

Canadian Utilities (CU)

DT Score:  495

Canadian Utilities is a strong performer within the utility sector in Canada with strong market presence in the natural gas and electricity transmission and distribution space.  They have a strong commitment to dividend growth and CU has a welcome home within my portfolio.

Innergex Renewable Energy (INE)

DT Score:  214

While this is a riskier investment given the low DT Score, philosophically I like the idea of investing in green technologies such as the generation and sale of renewable electricity, and when they offer a strong dividend like Innergex does it makes it an easy decision.  Innergex has interests in many wind farms and hydroelectric facilities in North America, and I believe will continue to benefit as the demand for electricity increases over time.

Fortis (FTS)

DT Score:  383

Fortis is another major player in the electricity and natural gas distribution space.  They are well known for their stable and growing dividends, and thus I consider this company to be a valuable holding within my portfolio.

V.  Industrials

Waste Management (WM)

DT Score:  453

Garbage never seems to stop, and the removal of garbage from our streets is about as recession proof of a service as you can get.  Waste Management is a huge player in this segment, and has a stable and growing dividend that attracts me to this holding.  I sometimes ask myself if this holding truly fits within the industrial sector, but I have a hard time classifying it anywhere else.

General Electric (GE)

DT Score:  573

General Electric is certainly a well known brand, producing small products like light bulbs, major appliances like refrigerators and everything in between.  The brand value is a given here, and with a nice growing dividend it has a space in my portfolio.  GE did experience difficulties during the last recession and cut their dividend; however, they have come back strong and has served my portfolio well.

Eaton (ETN)

DT Score:  542

Eaton is a major player within the industrial electrical marketplace and their dividend has had some nice increases since I first purchased this investment.  Capital gains have been very strong as well over the past few years and I am confident that demand for their products will remain strong as their clients seek to upgrade and improve efficiency of aging electrical infrastructure.

VI.  Mining and Materials

Southern Copper Corporation (SCCO)

DT Score:  441

My search to identify a company in the copper segment that offered a strong yield was difficult but I was pleased when I found Southern Copper Corporation.  Dividend yield is moderate, and unfortunately tends to vary significantly depending upon the market value of copper; however, I felt I was willing to accept this yield fluctuation in order to ensure I had exposure to the strength of the copper market.

DuPont (DD)

DT Score:  484

DuPont is major conglomerate with a strong presence in the materials segment.  Their moderate dividend is stable and growing, and I have benefited from strong capital gains since I first purchased this company’s stock.

Russel Metals (RUS)

DT Score:  463

Russel Metals is a leader in the tubular metal products segment (pipe) and has a strong dividend.  The dividend has fluctuated more than I would prefer, but I like having exposure to this asset class within my portfolio.

VII.  Telecommunications

Rogers Communications (RCI)

DT Score:  468

Rogers Communications offers a strong growing dividend and has strong brand recognition within the telecommunications segment in Canada.

Bell Canada Enterprises (BCE)

DT Score:  532

Bell Canada is another major player within the Canadian telecom space.  Named after the inventor of the telephone, the brand value is obvious.  Dividends are considerable, stable and growing.

AT&T (T)

DT Score:  552

To diversify into the United States telecom space I chose AT&T.  The market capitalization is huge, and the dividend performance has a solid track record of high, stable and growing distributions.

VIII.  Healthcare

Johnson & Johnson (JNJ)

DT Score:  607

Johnson & Johnson produces an huge array of products, with many tailored to the healthcare industry.  Brand recognition is strong, and so is the performance of the dividend that this company has offered.

Medical Facilities Corporation (DR)

DT Score:  309

I was very pleased when I found this company; they have ownership of several hospitals within the United States.  Some may consider this more of a real estate investment; however, given that all they own is hospitals I felt it was best represented in the Healthcare sector.  The dividend is huge and monthly, which I really appreciate having within my investment portfolio.

Pfizer (PFE)

DT Score:  519

Pfizer produces pharmaceutical products and has strong brand recognition.  It’s products are also well known, such as Lipitor and Viagra.  Dividend is stable and growing, and is a given holding within the Healthcare sector.

IX.  Consumer Staples

Coca-Cola (KO)

DT Score:  559

Talk about brand recognition, everyone knows what they offer.  They may not know the other products that Coca-Cola produces such as Vitamin Water, but overall this is a company that does well year after year.  Dividend is increased annually.

Kimberly Clark (KMB)

DT Score:  544

Another recession proof investment that produces popular household items such as Kleenex and feminine hygiene products.  Dividend is healthy and seems to be increased on an annual basis.

Proctor & Gamble (PG)

DT Score:  604

Look around your house and you will find something they produce.  A major conglomerate with a strong, stable and growing dividend.

X.  Consumer Discretionary

The Keg (KEG)

DT Score:  289

Like many others I like going out for steak and prime rib, and Keg excels at delivering just that to its customers.  Over 100 locations and growing, with a large dividend that is paid monthly.

Boston Pizza (BPF)

DT Score:  284

Another very strong restaurant brand within Canada, and one that also offers its investors a significant dividend that is paid monthly.

Cineplex (CGX)

DT Score:  450

Demand for viewing of first run films as soon as they are released will probably never go away, despite the fact that the home entertainment experience continues to get better and better.  Cineplex seems to have a knack for tapping into this market, and pretty much has a monopoly on this in Canada.  Good stable, growing dividend that is paid monthly.

XI.  Information Technology

Thomson Reuters (TRI)

DT Score:  507

Is this really information technology – well they use technology to produce information.  They also produce a nice dividend that is tough to find in the conventional information technology space.

Automatic Data Processing (ADP)

DT Score:  459

Again, one may question why I consider this information technology, but it seems more fitting here than in any other sector to me.  They have a nice, growing dividend that is so tough to find in this sector.

Intel Corporation (INTC)

DT Score:  594

What could be more IT than integrated circuits?  Intel has a major presence and strong brand name in this market space, and they also offer their investors a stable and growing dividend. The dividend has grown by large double digit margins in the past few years, which is outstanding.