Saturday, February 14, 2015

My most performing stocks (part 2)

Like I said in the first part of "My most performing stocks" post,  I had the good fortune to buy a few good companies at the right moment.

It was the case for Kraft (KRFT) (thank you Warren Buffet for the idea), Royal Bank of Canada (RY) (thank you my bank for charging me fees I can pay with your dividends) and Canadian Pacific (CP (thank you Hunter Harrison for making this company great). 

These stocks have done extremely well. Not only did they provide me with some nice dividends over the years, their prices have gone up 25% and sometimes more.

Three other names come to mind when I think about my other superstars stocks.

Johnson and Johnson (JNJ)

If you come here often, you know by now JNJ is my favorite stock. It's got everything : diversification, excellent credit, half of its earnings come from outside the USA, a growing and steady increase of its dividend (more than 40 years in a row), an excellent reputation, fine products, etc. Am I missing something?

One of my first moves as an DIY investor was to buy shares of JNJ. It goes back to 2010. I bought its shares at around 60$. 

I will hold these stocks for as long I possibly can. 

JNJ represents more than 10% of my portfolio. It's a lot but I am confortable since it's such a great company. Imagine, I had 200 shares at some point. Now I own 130 and I don't want to sell more just to keep my % lower than 10. These shares are here to stay.

Of course, the exchange rate with the Canadian dollar has helped me quite a bit. 

Total return : 40%

Alimentation Couche-Tard (ATD.B)

This company does not fit my typical dividend investing profile. It's a small-mid-cap growth company. It pays out a meagre dividend. But the potential is there. 

Couche-Tard is a convenience store operator in the United States, Europe and Canada. It operates its convenience store and road transportation fuel retailing chain under several banners. Its network comprised 6,207 convenience stores throughout North America, including 4,698 stores with road transportation fuel dispensing. 

So I bought 30 shares at 29$, thinking I was probably buying it too high and that I would buy some more later at a lower price. Little did I know. The share quickly rocketed to a 50$ price. It has gone down recently to 44-45$. I bought 15 more shares. I now hold 45, which is not a lot. But I am happy still happy I got on. I think the future is promising for ATD.B.

The stock is now 47$, Total return: 26,39%

Power Corporation (POW) and Power Financial (PWF)


These two guys are twin brothers in some ways. POW is the all-around conglomerate. PWF is the financial Branch in some ways. 

You can buy both, depending on what your preferences are. If you want to own the whole Desmarais Family Empire, you go the easy way with POW. If you are only interested in Insurances and Financials, you pick PWF.

I own the two. The reason is simple : I had too many POW shares and wanted to lessen my exposure to their Communication Branch . 

They hold most of the newspapers in Quebec, as well as many other communication companies.

Check it out here

POW also holds and actively manages a portfolio of investments in China and Europe.

These two companies are huge :Great West, IGM Financials, Irish Life, Canada Life and so on, to name a few. 

Power Financial, through its wholly owned subsidiary, Power Financial Europe B.V., and the Frère family group of Belgium each hold a 50% interest in Parjointco, a Netherlands-based company. Parjointco’s principal holding is a 55.6% equity interest in Pargesa Holding SA, the Pargesa group’s parent company based in Geneva, Switzerland.The Pargesa group, through the holding company Groupe Bruxelles Lambert, holds significant positions in large companies based in Europe such as Lafarge, Total, GDF de Suez and Pernod Ricard.

It really beats me that I don't see more Canadian investors actually holding one of these stocks. I know they haven't raised their dividends in quite some time now (since 2008). But these are very careful run company. They don't get carried away easily. Besides, at roughly 4%, they actual dividend yield is very much acceptable.

Total return for POW : 21.71%
Total return for PWF: 21.64%

What do you think of my other top 3 stocks? Do you hold any of these stocks?







2 comments:

  1. POW is on my shortlist and I want to pull the trigger and buy it sometime soon. All fantastic companies...I own JNJ and have for the past two years. While the returns have been good, I want the stock price to come down a bit so that I can add more.

    R2R

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  2. It really surprises me that I don't see much people holding these stocks. Moneysens (the magazine) has elected twice in 3 years POW and PWF has the best Canadian stocks out there. I own POW since 2010 and I have been quite happy with the dividends rolling in. PWF pays a even greater dividend but the stock price is higher.

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Thanks a lot for your comment.