Over the last few months, I’ve been shifting my view of my entire portfolio from being a collection of “stocks” to a collection of “businesses”. This is also a point that fellow blogger Dividend Mantra pointed out, in his recent post, Warren Buffett’s Wise Words. Mantra’s recent post really hit home for me and I’m sure for many other dividend investors as well. A recent post on the Dividend Ninja by Dan Mac, Find Investment Success with a Business Point of View, also hit home along the same line of thought. Last week, with this in mind, I made a couple of changes to my portfolio. I sold positions in one company and some of my bond holdings, in order to purchase “businesses” I wanted to own. I purchased 50 shares of McDonalds (MCD) and added 30 shares of Coca-Cola (KO).  What did I sell? You’ll have to wait until next week of course to find out, but here is why I bought MCD and KO. McDonalds (MCD) Back in March 2011, I purchased 20 shares of MCD at $75.00 per share ...

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Written by Hank Coleman There is a lot of talk about great dividend stocks to purchase for the long-term. But, how do you weed out the great dividend paying stocks from the hundreds of good or mediocre ones? There are a few key metrics that dividend investors need to consider before purchasing their first share. Here are a few of the biggest metrics to consider. Dividend Yield Dividend yield is simply the annual amount of dividends per year per share dividend by the price per share of the company’s stock. For example, Apple recently announced that it was issuing a quarterly dividend of $2.65 per share or $10.60 per share annually. With Apple’s share price currently hovering around $600 per share, its dividend yield is 1.76%. A company’s dividend yield provides investors with a way to visually see how much of their investment is being returned to them each year in the form of dividends issued by the company. Dividend Growth Rate Another key dividend metric that investors should consider ...

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I can’t think of a stronger and more robust business model than McDonalds (MCD), and who can argue otherwise? This global fast-food giant dominates in almost every country around the world, and is currently expanding voraciously through much of Asia. Travel anywhere around the world, and you will find a McDonalds for a safe and cheap place to eat. McDonald’s has also been a stellar stock to own since January 2003, when it was trading at only $14 per share. Unlike the food it produces, McDonald’s stock is no longer a cheap deal. McDonalds was one of my Stock Picks for 2011 in December 2010. I also recommended MCD in Three US Stocks For Your RRSP back in October 2010, when MCD was trading at $74.51 per share. The future prospects for McDonalds look excellent and the company looks poised for solid growth in 2012. The Dividend Monk also invested in MCD recently. He’s cautious, but long-term bullish.  I really like McDonalds. I like the business model and I even like the new Angus ...

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U.S. Blue Chips on a Tear! Unless you had your head buried in the sand the last two weeks, you probably noticed the big U.S. blue chips such as JNJ, HD, and MCD having been going through the roof!  If you are holding any of these stocks you are certainly seeing some nice capital appreciation. I always felt U.S. stocks were undervalued compared to our Canadian counterparts. JNJ for example, is trading at $65.01 an increase of 12.7% from its recent low of $57.66 on March 16th. McDonald’s (MCD) is now trading at $78.60 an increase of 7.6% of from its recent low of $72.99, and the list goes on… Flight to safety? These stocks are the Dow Jones Industrial Average (DJIA) companies. Another way to take advantage of that growth, if you don’t want to contribute to your RRSP or buy stocks directly, is through an index-fund that tracks the DJIA. Two low cost alternatives that come to mind are in the TD e-series funds: TD Dow Jones Industrial Average Index, and TD Dow Jones Industrial ...

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A lot of interesting developments occurred last week on some stocks I have been watching and/or holding.  I have noticed a significant increase in my holdings: Encana, Rogers, Royal Bank, and Shaw Communications etc. are all advancing.  I was hoping to have published this post over the weekend, since it was last week’s news. So here goes better late than never! Bank of Montreal (BMO) BMO is on the move! Back on December 20th BMO share prices had slumped down from approx $59 to $56.60 per share following missed earnings expectations and Moody’s Downgrade after BMO purchased Marshall & Ilsley Corp. BMO is currently trading back up at $59 per share, in large part because of its high yield of 4.8% which is a favourite amongst dividend investors. For more in depth info on BMO I refer you to the Passive Income Earner. One thing that concerns me with BMO however is the negative cash flow of 11 Billion. Although BMO has 411 Billion in assets, until I can understand why there is a negative ...

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