Friday, March 26, 2010
Fast forward to today where our portfolio is yielding 4.1% and has grown considerably from 2008. We've endured dividend cuts from Manulife Financial (MFC), General Electric (GE), Yellow Pages Income Fund (YLO.UN), Husky Energy (HSE), and Bank of America (BAC) all of which I still hold and expect great things from in the future. Aside from income trust conversions from Yellow Pages and Canadian Oil Sands I don't expect any more negative dividend action over the next year or two so I look forward to really starting to grow our dividend income through purchases and dividend hikes.
To reiterate my reasons for purchase:
- looking to increase exposure to resources in this portfolio
- good way to get paid on the fate of oil with large potential capital appreciation in the future
- distributions (interest income) will become dividends next year and they have large tax pools to offset some tax
- well positioned company in a politically sound country
- I believe oil prices will be strong for the next 20 years, China will be a good customer
- Potential buyers should crop up over the years
- Will add to position from time to time when it looks attractive for the long term
Saturday, March 20, 2010
So is buy & hold still dead? Lil' Wayne and I never thought so.
The S&P 500 is up 53% over the past year...
Dividends are being raised all over the place by firms like Coke (KO), Wal-Mart (WMT), Pepsico (PEP), Rogers (RCI.B), Abbott (ABT), and the most bullish of all..........HOME DEPOT (HD).
Why GE's Dividend Increase Matters (please note GE had not raised it's dividend yet)
The patience that all of us long term investors have exhibited over the past 2 years is really starting to pay off. Buying during the depths of the financial crisis is looking more and more like a wise decision.
Tuesday, March 16, 2010
List compiled with inspiration from young, (age 25 - 35), friends and relatives (ie they helped me compile this list without realizing they did so)
1. Buy a vehicle without looking at total cost of ownership (financing, gas, insurance,maintenance)
2. Buy a home for your maximum lender pre-approval amount.
3. Do not start an RRSP because you have debts to pay off.
4. Do not make proper (higher interest to lower interest) debt repayment a priority.
5. Maintain a short-term view of your finances.
6. Fail to coherently plan finances around life events.
7. Fail to work as a team with your partner when it comes to your household finances.
8. Fail to realize that how you spend and manage money matters more than how much money you make.
Monday, March 15, 2010
It's time to report my bimonthly net worth. I report my net worth on the moneygardener or around the 15th of May, July, September, November, January, and March.
Net worth results for the 2 Months Ended March 15, 2010:
- Debt/Asset ratio dropped to 0.44 from 0.46 (record low)
- Net Worth gained 6.7% (record high)
- Total Assets rose 3.2% (record high)
- Total Liabilities dropped by 0.9%
- House Value/Total Assets fell to 60.6% (record low)
- Non-Registered Portfolio grew 5.7% (record high)
Another strong gain in net worth and we are looking good in all categories. Records were set across the board with the exception of our liabilities where we still above early 2009 levels. We're curbing expenses lately as we deal with less employment income. We are also hoping to continue to save money this year and we're determined to find ways to get it done as we reduce fixed costs and consider more frugal options.