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?