Welcome to November’s edition of money while you sleep. Wow did this month just fly by or what? Markets were doing really good up until Nov 26 and dropped wiping out almost 45 days of growth. That’s the way it goes sometimes. We made a few purchases this month but before we get into that here is what we have been up to.
- Got in another Oilers game vs. Nashville. Another win!
- We got all our Christmas stuff up.
- Kids are both still very busy with activities out of school.
- We made our Christmas list and took advantage of some Black Friday deals. This year it was a bit more expensive but that’s okay as it was planned for.
Blue chip/dividend names continue to do the heavy lifting for us. Growth names still underperforming the market in a bit way in 2021, could 2022 be the year they come back to life? Time will tell. I’ll get to the buys in the portfolio shortly. Here’s a breakdown of allocation, dividend stocks move another 5% month over month as we continued to add new names.
No quick trades in the month.
Please note: I only do this with companies I’m comfortable holding for a long period of time.
No sells this month
Opened a new position in QBR.B.TO by purchasing 150 shares at $30.30
Who is Quebecor Inc:
Quebecor Inc., together with its subsidiaries, operates in the telecommunications, media, and sports and entertainment businesses in Canada. Its Telecommunications segment offers television distribution, Internet access, business solutions, wireline and mobile telephony, and over-the-top video services; and engages in the rental of movies and televisual products through its video-on-demand service. The company’s Media segment operates an over-the-air television network and offers specialty television services; provides soundstage and equipment leasing, and post-production services for the film and television industries; prints, publishes, and distributes daily newspapers; operates news and entertainment digital platforms and a music streaming service; publishes and distributes magazines; produces and distributes audiovisual content; and operates an out-of-home advertising business. Its Sports and Entertainment segment engages in the show production, sporting, and cultural events management; publishing and distribution of books; distribution and production of music; and operation of two Quebec Major Junior Hockey League teams. Quebecor Inc. was incorporated in 1965 and is headquartered in Montreal, Canada.
When we talk about the communication business in Canada Quebecor is really not talked about and it should be! As I write this Quebecor has a PE of 10.93, and a forward PE of 10.85. One metric that really impresses me is Return on Equity of 46.49%, impressive. They have raised the dividend for 6 consecutive years, their 5 year average is a market beating 65.2%. They have a healthy payout ratio of only 43%. Although they are not as big as the big 3 they may be someone who you want to put on your watch list. This purchase adds $165 in annual dividends.
Opened a new position in LMT by purchasing 10 shares at $339.65
Who is Lockheed Martin Corporation:
Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The Aeronautics segment offers combat and air mobility aircraft, unmanned air vehicles, and related technologies. The Missiles and Fire Control segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support, and integration services; manned and unmanned ground vehicles; and energy management solutions. The Rotary and Mission Systems segment offers military and commercial helicopters; ship and submarine mission and combat systems; mission systems and sensors for rotary and fixed-wing aircraft; sea and land-based missile defense systems; radar systems; the Littoral combat ship; simulation and training services; and unmanned systems and technologies. It also supports government customers in cybersecurity; and delivers communications, and command and control capabilities through mission solutions for defense applications. The Space segment offers satellites; space transportation systems; strategic, advanced strike, and defensive missile systems; and classified systems and services in support of national security systems. This segment also provides network-enabled situational awareness and integrates space and ground-based systems to help its customers gather, analyze, and securely distribute critical intelligence data. Lockheed Martin Corporation was founded in 1912 and is headquartered in Bethesda, Maryland.
We are just starting to dip our feet into some US names. When it comes to aerospace Lockheed is a leader of the pack and its very difficult to find similar MOATS in the Canadian markets. Lockheed in the third quarter of this year dropped revenue guidance from 67.3-68.7 billion to 67 billion, EPS is still expected to be higher than expected at $27.17. The stock got hit due to forward guidance as the shortage supply is impacting them short term however it does not appear to be a long term issue. I’m seeing this as an opportunity. LMT PE ratio is 15.9, forward PE of 12.45 which is well below its 5 year average of 22.4. The dividend was last increased in September by 7.7% just shy of its 5 year average of 9.8%.The payout ratio is healthy at 47.9%. At current share price I believe this is heavily undervalued (25-30%) and while we wait for this to rebound we get to collect a 3.28% dividend yield. This purchase brings in an annual dividend of $112 to our portfolio.
Dividend increases and decreases
- Manulife (MFC) increases dividend by 18%. This is big news as this will bring our annual dividend from $416.64 to $491.04
- Power Corporation of Canada (POW) increases dividend 10.6% bringing our annual dividend from $263.13 to $291.06.
- Freehold Royalties (FRU) increase dividend by 20% from $0.60 to $0.72 on an annual basis.
- Canadian Natural Resources (CNQ) increased dividend 25% from $1.88 to $2.35 on an annual basis.
- Alimentation Couche-Tard (ATD) increases dividend 25.7% from $0.35 to $0.44 on an annual basis.
2016 – 2021 Dividends received
November dividends came it at $270.34 which is a YOY increase of 32.29%. If nothing changes we would beat our goal of $3,400 by 13.29%, 2.7% higher than last month numbers. Another 5 dividend increases alone this month are setting up 2022 nicely. Now its the banks turn ;).
|EXE.TO||$7.48||Yes, 1 share||TFSA 1|
|CSH.UN||$16.47||Yes, 1 share||TFSA 1|
|PLZ.UN||$10.55||Yes, 2 shares||TFSA 1|
|POW.TO||$65.78||Yes, 1 share||TFSA 1|
Current economy conditions
Canada unemployment rates % have now started to fall which seems obvious due to Canada starting to open for business. Unemployment rate now at 6%, very close to pre pandemic numbers.
Gold continues to hang around $1,700-$1,800 USD range. With the amount of inflation were starting to see and tapering of printed money it remains to be seen how this plays out. Gold prices almost always have been pretty strong in January so we will see where we end up.
Thanks to a great performance by the banks our sector weighting has risen above 27.7%, although I’m happy with the performance I will not be adding to this sector at this time.
Utilities have not performed all that well this year and with potential increase in interest rates they may be flat for a while but this also gives the opportunity to add as we all know they just pass on the costs to consumers. More than likely we will be adding in the new year.
Sectors I’m currently looking at
Current Dividend watch list (Already own 2 of the 5)
- Quebecor Inc.
- Brookfield Renewable Partners L.P.
Current Growth watch list (Already own 4 of the 5)
- Nuvei Corporation
- WELL Health
- Good Natured Products
- Bragg Gaming Group
- BRP Inc
Thanks for reading and feel free to leave a comment!
Invest in yourself
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. Please ensure you do your own research.