Thursday, December 31, 2009

climbing the ladder

Canada's, The Globe and Mail published an article recently called Financial Tips As You Climb The Financial Ladder. It was written by Larry MacDonald and it offers some financial advice for those in their 30's and 40's.

Many of my favourite financial blogs are actually mentioned in the article including Triaging My Way To Financial Success, The Dividend Guy, Michael James on Money, and Thicken My Wallet.

the moneygardener was also called out in #7 for the dividend hound that I am...

You are in your thirties or forties, moving up to higher levels of income in your career. Your children are growing up and you are making good progress paying down liabilities such as the mortgage. Overall, it's becoming easier to put money aside and invest for future needs, particularly retirement. Here are 10 financial tips to consider for this stage of life.

Wednesday, December 30, 2009

top 6 consumer goods stocks for 2010

I don't normally do this but I can't help linking to this article by TheStreet.com. The Street is touting 6 names as the Top 6 Consumer Goods Stocks for 2010, and by George I own 4 of them.

Scotts Miracle Gro (SMG)
Clorox (CLX)
Procter & Gamble (PG)
Phillip Morris (PM)
Johnson & Johnson (JNJ)
Pepsico (PEP)

The article does provide some good insight into the expected fortunes of these six firms as they move into 2010. With the exception of SMG they are all great dividend raisers as well. I agree that these are 6 very good companies to own shares in for the long term, especially if they can be acquired at reasonable value.

Saturday, December 26, 2009

got Husky-er

No, I didn't eat too much fruitcake and apple pie this holiday season, I just bought myself a gift on Christmas Eve in the form of 52 more shares of Canadian oil and gas firm Husky Energy (HSE) at $29.63/share. I've been looking to boost my portfolio exposure to oil and gas and after looking at a few option,s I came back to Husky for reasons not limited to the following:
  • After Husky shares had fallen from a high of around $52 in 2008 and the company's cut their dividend, they haven't bounced back as much as I expected given the rebound in oil prices. I now don't see a lot of downside for the shares as they price of oil feels firm now that the economy is out of the hole it was in.
  • The stock has also underperformed many other oil and gas stocks and the valuation seems reasonable at just $4 above it's multi-year low
  • I think Husky will be quick to raise their dividend back up once their earnings catch up to the price of oil. Husky is now paying $1.20/share in dividends, while their EPS in strong-oil years past has been in the $4-$5.50 range. I think we have some high-oil price years ahead of us...
  • The current yield of 4% offers some in pocket return with little risk of downside to the share price as the great recession moves further into history

Husky now makes up 7.4% of our non-registered portfolio.

Wednesday, December 23, 2009

Happy Holidays!

Wishing you the best of the season from the moneygardener, and a successful 2010!

2009 Was A Great Year to Be A Stock Market Investor!
  • While cowards fell by the wayside, the S&P 500 index has risen 24% for the year and has nearly doubled since the March low
  • Some of the equities that we own are trading at or near their all time highs
  • Leveraged investments into the heart of the late 2008 / early 2009 plunges have been paying mostly stable dividends and interest rates have remained low
  • All signs are pointing to an improvement in dividend growth in line with general economic activity
  • Our net worth has exploded over 30% while we've been doing a poor job of saving money
  • All financial media outlets are preaching caution with your money, your mortgage, and your life.......the most bullish sign yet!

Australian Red Wine Roundup (moneygardener recommends)

  • Wolfblass Red Label Cabernet Merlot 2008
  • Rosemount Shiraz Cabernet 2008