Here is my most updated portfolio as of August 24, 2020. I actually made quite a few changes in my portfolio as well as added an RRSP account as well. That account is diverse with the same type of companies in Canada and the US. In my TFSA I dropped FTN and H&R Reit. I picked up some Electrameccanica Vehicles Corp, Telus and Wajax Corp. I know that Telus isn’t much in terms of diversification because I already own Bell inc, but they have been depressed since their split and why not own the 2 biggest telecom companies in Canada right?
- Bell Canada(BCE)-$59.41/Share Cost Basis, $52.2 Billion Market Cap, 2.7 EPS, 19.3 P/E, Dividend Yield 5.77%, Dividend Payout Ratio 120%
- Electrameccanica Vehicles(SOLO)-$3.02/Share Cost Basis, $181.5 Million Market Cap, -0.51 EPS, N/A P/E, Dividend Yield N/A.
- Hewlett Packard Enterprise Co(HPE)-$13.98/Share Cost Basis, $13.03 Billion Market Cap, 0.97 EPS, 10.38 P/E, Dividend Yield 4.75% and Dividend Payout Ratio 27.1%.
- Telus(T)-$23.74/Share Cost Basis, $31.2 Billion Market Cap, 1.17 EPS, 20.8 P/E, Dividend Yield 4.77%, Dividend Payout Ratio 99%.
- North West Company Inc(NWC)-$25.23/Share Cost Basis, $1.26 Billion Market Cap, 1.67 EPS, 15.47 P/E, Dividend Yield 5.10% and Dividend Payout Ratio 78.6%.
- Transalta Renewables(RNW)-$15.74/Share Cost Basis, $3.63 Billion Market Cap, 0.40 EPS, 34.06 P/E, Dividend Yield 6.88% and Dividend Payout Ratio 138.6%.
- Vermilion Energy(VET)-$14.31/Share Cost Basis, $1.16 Billion Market Cap, -8.47 EPS, P/E N/A, Dividend Yield(currently suspended)
- Wells Fargo & Co(WFC)-$27.20/Share Cost Basis, $100.6 Billion(USD) Market Cap, 2.83 EPS, 8.67 P/E, Dividend Yield 8.31% and Dividend Payout Ratio 81%.
- Wajax Corp(WJX)-$9.90/Share Cost Basis, $240 Million Market Cap, 1.66 EPS, 8.6 P/E, Dividend Yield 8.35%, Dividend Payout Ratio 60%
- Universal Corp(UVV)-$43.50/Share Cost Basis, $1.11 Billion Market Cap, 3.07 EPS, 20.5 P/E, Dividend Yield 6.78%, Dividend Payout Ratio 59%
- Prudential Financial(PRU)-$62.90/Share Cost Basis, $27.3 Billion Market Cap, -0.62 EPS, 7.3 P/E, Dividend Yield 6.37%, Dividend Payout Ratio 38%
- Bank of Nova Scotia(BNS)-$56.49/Share Cost Basis, $68.4 Billion Market Cap, 6.09 EPS, 11.22 P/E, Dividend Yield 6.37%, Dividend Payout Ratio 59%
- International Business Machines(IBM)-$121.33/Share Cost Basis, $111.9 Billion Market Cap, 8.97 EPS, 11.4 P/E, Dividend Yield 5.19%, Dividend Payout Ratio 51%
- AT&T(T)-$30.44/Share Cost Basis, $213.9 Billion Market Cap, 1.64 EPS, 9.4 P/E, Dividend Yield 6.93%, Dividend Payout Ratio 58%
- Enbridge Inc(ENB)-$42.06/Share Cost Basis, $87.8 Billion Market Cap, 0.91 EPS, 17.4 P/E, Dividend Yield 7.47%, Dividend Payout Ratio 330%
- Great West Life(GWO)-$24.08/Share Cost Basis, $24.9 Billion Market Cap, 2.64 EPS, 9.88 P/E, Dividend Yield 6.53%, Dividend Payout Ratio 65%
- BCE Inc(BCE)-$57.00/Share Cost Basis, $52.2 Billion Market Cap, 2.7 EPS, 19.3 P/E, Dividend Yield 5.77%, Dividend Payout Ratio 120%
I just want to give a little breakdown of that companies I own and why I hold positions in them. I am a very long term investor and I also like to hold positions that pay out a dividend and I also like to diversify my stock options. I don’t personally hold any bonds, preferred shares or warrants. Before Covid-19 happened all of my holdings payed out a dividend. As you can tell, some of those dividends have been suspended. I am more than fine with this because it means the company is being responsible with their money and using it to keep operations running and keep people employed.
I have picked Bell Canada(BCE) because they are the biggest telecom in Canada. They have the biggest market cap as well as pay out the biggest dividend. I was considering Telus because their share price was better but they recently did a 2 for 1 split and they haven’t exactly recovered since. I feel that Bell Canada has actually operated very well during this pandemic and if anything they have been busier which is a real positive sign for them. I will be adding to my position to Bell Canada in the future.
I wanted to buy Telus(T) because they haven’t recovered yet from their 2 for 1 split earlier this year. I feel that they are right now somewhat undervalued since they are the second biggest telecom in Canada and they are trading at under $25/Share. They pay a decent dividend and have great growth potential along with crazy high revenue due to the monopoly that the big telecoms have in Canada.
I wanted to get into tech and I feel that it is hard to do in Canada because we do not have a very big tech sector so that is why I decided to get into Hewlett Packard Enterprise Co(HPE). HP actually split up into 2 different companies a little while ago and HPE is the software, financial services and corporate investment side of it. I feel that being split off and separated they have a good chance to break through in the software game and be a big contender. I plan to add more to my portfolio in the future.
When I added Electrameccanica Vehicles Corp(SOLO) to my portfolio I had actually already been watching them for a while. Their numbers aren’t great, they don’t pay a dividend and they are a very niche EV, even for the EV market haha. They are starting to really open up manufacturing facilities and expand their product. Also the face that they are a Canadian company peaked my interest haha.
The only real safe investment right feels like it should be grocery stores. That is why I bought into North West Company inc(NWC). They are a much smaller grocery store chain compared to Loblaws but I wanted to go for someone a little smaller. They have fantastic numbers and continue to grow even in this pandemic. They did take a bit of a tumble when everyone else did but they recovered nicely and are even up now. They have even continued to pay out their dividend which makes me very optimistic. I will for sure be adding to my position with NWC in the future.
I wanted to get into a renewable company and tried to find one that had alot of upside. Transalta Renewables(RNW) was created from Transalta Gas just a few years ago and has had some ups and some downs for them. I feel like its a great transition for Transalta and it is going to be a big part of the company. I like everything about this company, they have projects on the go, they have a very nice dividend but they payout ratio is a little high for my liking. I hope that in the future Transalta Renewables and Transalta gas can just become 1 entity.
Well, because I wanted a renewable company in my portfolio I also had to go the other way and have an Oil and Gas company. For that I picked Vermilion Energy(VET). I had actually held off on any Oil and Gas exposure for quite a while because it always seemed so volatile, boy was I right. I finally decided to get into it just before this whole pandemic started. I didn’t get in at the peak but I was still up there. The main reason I got in was their earnings and their dividend. The numbers seemed really good until everything fell out. I have averaged down a fair amount and they have been bouncing back this last month. I just hope they can keep up the momentum and get back to their dividend glory days.
Last but not least I would like to talk about Wells Fargo & Co(WFC). I wanted to gain some sort of US financial exposure and I was not happy with Citigroup and how they were doing business. I started to look for another financial institution that was under valued and had been down a little more than the others. I looked into WFC and found their numbers very appealing and decided to jump in. I feel that I got them close to the bottom as they have gone down minimally and gone back up to almost where I got them at. I hope that they can continue to rebound and go back up for me. I plan to keep an eye on them to possibly add to my position in the future.
Wajac Corp(WJX) was a different take for me personally. They are into the equipment rental business and do a big part of their work with the oil and gas industry. But the thing that got me into them is their warehouse side of business. Right now with Amazon, Alibaba and Shopify growing at break neck speeds I feel that the warehouse sector is booming and these guys have the equipment side of that locked down. Seems like those rentals are starting to pay off.
That is all I currently hold in my portfolio. I continue to look for new opportunities and plan to get some exposure into Canadian financial institutions in the future. As per my last blog I am going to have a tough choice as to who I am going to invest in. I try to keep my portfolio as diversified as possible because you need to be able to take advantage of a down market and look for opportunities when things are good.
That is all for today and remember everyone, invest in yourself first.