In June, I came across some DGI blogs and decided that I would start investigating which stocks I would like to have in my own portfolio. My initial short lists did not take sector allocation into consideration and were heavily skewed towards US stocks.
After doing more research I decided to make my own Canadian and Global Dividend Stock Foundation Watchlist. As my portfolio is just starting out, it is very important to have a good structure in terms of sectors and geographic allocation.
As mentioned in earlier posts, the CAD/USD rate is about where it was during the 2009 economic crisis at 77 cents per CAD. This makes it quite expensive to buy USD denominated stocks. Since I started my portfolio, I spent more time researching some quality options for CAD picks. With this foundation watchlist, I should have a lot less difficulty screening for a quality addition in either currency.
I will focus my next few buys on CAD stocks until the currency situation improves, even if it means passing up on a great opportunity to buy a USD foundation pick. Each month, these foundation stocks will be screened against sector competitors. The top sectors targeted are: Financials, Energy, Consumer Staples, Industrials and Health Care.
Here is my Canadian and Global Dividend Stock Foundation Watchlist!
Canadian Dividend Foundation Stocks
|Royal Bank of Canada||RY||Financial|
|Bank of Nova Scotia||BNS||Financial|
|Alimentation Couche Tard||ATD.B||Consumer Staples|
|Loblaw Companies Limited||L||Consumer Staples|
|Canadian National Railway||CNR||Industrials|
|Canadian Pacific Railway||CP||Industrials|
You’ll see that there are no Canadian picks included for the Health Care sector. There are many excellent choices in the Financial and Energy sectors so these will get more attention for the CAD geographic allocation.
Global Dividend Foundation Stocks
|Exxon Mobil Corporation||XOM||Energy|
|Royal Dutch Shell||RDS.B||Energy|
|Wells Fargo & Co||WFC||Financial|
|HSBC Holdings plc||HSBC||Financial|
|The Coca-Cola Co||KO||Consumer Staples|
|Procter & Gamble Co||PG||Consumer Staples|
|Nestle SA||NSRGY||Consumer Staples|
|Johnson & Johnson||JNJ||Health Care|
|Novartis AG||NVS||Health Care|
It was very difficult to narrow down the watchlist choices for the Global Foundation Stocks. There are way too many great choices for each sector. In future months, these foundation picks will be screened against sector stocks competitors to see if any foundation stocks represent a good buying opportunity based on my selection criteria.
What do you think about these foundation stocks? Do you currently have some of these names on your watchlists or in your portfolios?
6 thoughts on “Canadian and Global Foundation Watchlist”
Great list Dividend Niche. Any of those stocks would be amazing additions to a portfolio. I wish I had $50,000 lying around so I could invest in each one of the companies listed. Building lists like these are a huge benefit for you and your fellow readers as it allows your to find stocks that you will always go to when you aren’t sure where to invest your capital. If you can’t find a good value but have an itch to invest, then open up this article and fire away haha
Thank you Bert! I hope others find this list useful. I realize that it will several months until I have initiated positions in each of my top stock picks. It will be helpful to have this list handy when I’m unsure where to deploy capital. Keep up the great work at Dividend Diplomats. Cheers
Have to agree with Bert. Something to consider: Tax implications. Both in the type of account and country (swiss stocks in particular). I just bought CMSQY (CPU.AU) – one worth considering since it appears the A$ is close to parity with the C$.
Indeed it is very important to understand the tax implications and the benefits of the different account types. I must admit I have not yet looked into Australian equities, but I will certainly take a closer look!