Below is an overview of our dividend stock portion of our wealth portfolio. It has been a good month for dividends (i.e. another increase), but there are also some concerns with the portfolio regarding certain stocks (albeit not completely unexpected, it still is worrisome).
Below you can find a quick overview of this month’s total dividend payout:
Here is an overview of our dividend stocks:
If you group the above dividend stocks by sector, the distribution of our portfolio is as follows (based on market value at close of markets on November 30, 2015):
As you can see in the dividend overview there are several stocks that have not done so well since purchase (understatement…). One is of them is NewAlta Corporation, an engineering and environmental firm working in the oil and gas industries, another example is Liquor Stores N.A. Ltd.
When we bought the shares, they were off their peaks by about 50-70%, so a few months back we thought that this was a good time to buy (and they seemed a nice addition to a balanced portfolio). Turns out we were too fast in purchasing these stocks at they have now plummeted even further, primarily as a result to the continuing drop in oil prices and negative sentiment in their main market area (read Canada’s oil province Alberta).
These stocks were fairly high dividend payers to begin with, but are now either reducing their dividend or considering it (still good yields though!). As oil prices are cyclical, and assuming the companies are strong enough to survive low oil prices for a while (both have been around for 20-25 years), the stock price and dividends should rebound in the future.
We try to keep a long term outlook here, selling now would just be a kneejerk reaction and would most likely do more harm than good. But as you can imagine, it does not feel good and scares the hell out of us.
Too bad this article came too late….. (still, we should have known better)