Tuesday, December 2, 2008

portfolio weighting breakdown

For those of you who don't know, I keep a regularly updated section down the right side panel which outlines my current stock holdings within my non-registered portfolio. The company name, ticker symbol, and my percentage allocation are represented there. Currently my largest holding is conglomerate, General Electric followed by Toronto Dominion Bank. Among other holdings I am invested in vodka, milk, and soil...

I don't really have a target allocation for any of these stocks or sectors yet. I have a rough idea in my head about the type of industry diversification I want to maintain, but I generally buy stocks when I find them attractive no matter how much it sways my allocations. Since I am currently in a major accumulation stage with this portfolio, my industry and stock asset allocation might vary wildly from month to month. I expect to have an opportunity in the future to strategically add to bring up sector or stock weightings if need be. This is what my portfolio looks like currently:

General Electric (GE) 8%
Toronto Dominion Bank (TD) 8%
Yellow Pages Inc. Fund (YLO.UN) 8%
IGM Financial (IGM) 7%
Inter Pipeline Fund (IPL.UN) 7%
Sun Life Financial (SLF) 7%
Bank of Nova Scotia (BNS) 6%
Walgreen Co. (WAG) 6%
Procter & Gamble (PG) 5%
Reitmans (RET.A) 4%
Johnson & Johnson (JNJ) 4% *
Husky Energy (HSE) 4%
Royal Bank of Canada (RY) 4%*
Clorox Company (CLX) 4%
Telus (T.A) 3% *
Fortis Inc. (FTS) 3%
Saputo (SAP) 3%
Canadian Pacific Rail (CP) 3%
Diageo PLC (DEO) 3%
Manulife Financial (MFC) 2%*
Scotts Miracle Gro (SMG) 2%
Bank of America (BAC) 1%
Cash 0%

*holding is in a dividend reinvestment plan where dividends paid automatically get reinvested in shares of the firm.


Anonymous said...

GE is going to make about 15B this year and paying out 13B in dividend. Next year the forecast is around 14B in earning, I think there will be a dividend cut eventually even though they repeatedly said no to dividend cut, just like BOA did earlier this year.

Sarlock said...

They won't have a choice... but 4% or 5% will be a nice yield while we get through the rough times. Then hopefully up from there.
We'll probably see a lot of hefty dividend cuts in the next 12 months.

MG (moneygardener) said...

GE is expecting to earn more than 18B for 2009 after charges. The dividend costs them 13B. I don't see a 2009 earnings forecast. Can anyone provide a reference? I would be surprised to see their full year earnings fall 28%, which would be required to not cover the dividend.

sampson said...

I too believe GE can maintain its dividend, they don't have much debt, had to make significant write-downs from their financial group and international revenues continue to grow.

Even if they do cut their dividend temporarily, it won't change my opinion of the company. In this environment, I feel most everyone gets a free pass to not raise dividends, or cut marginally if needed. These are weird times.

venter said...

Well I own 11 of the stocks on your list (12 if you count POW as it owns a chunk of IGM).

Anonymous said...

here is the link


MG (moneygardener) said...

Thanks for that article.

I guess you (and the article) were talking about cash flow and I was pointing to earnings. Technically a dividend could come out of earnings but realistically it should come out of cash flow. The dividend is at very least 'at risk'. Who really knows whether forecasts will pan out and what might happen between now and the end of 2009 though. I'll likely hold onto GE even if they cut because I like some of the businesses very much that GE is the leader in. I think this company will continue to be a global leader long term and will excel as the world turns to green infrastructure projects, and alternative energy globally.

Anonymous said...

This portfolio flat-out stinks. And GE is going to $0.