Chatter Around the World – 103

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

LhMKPAa

According to data from Openfolio, regional bias manifests itself relative to your area in the U.S

Image Source: Openfolio

New Blog Posts

Let’s dive into the links that caught my attention this week.

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Outlook for July 2015

Outlook-Jul2015

Its the official start of summer and things are starting to shake up. Plenty of news in the business and finance world to roil the markets – from Greece about to default, Puerto Rico announcing that it may not be able to repay its debt, Chinese market seeing a drop, and the list goes on. Amid these global turmoils, comes increased volatility in both the stock and bond markets and the central banks remain in focus to watch out for the investors. Amid these concerns, the risk of interest raise in 2015 keeps slipping to a later date and the gravy train continues. On the Canadian front, the risk of recession still looms with the oil market seeing major cutbacks during the first half of the year. Economists still expect interest rate cuts from the Bank of Canada to prop up the economy – and I will be looking forward to it as a consumer and investor.

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Recent Buy – Johnson & Johnson

JNJ

Another purchase in my portfolio to close out this quarter. I added to my position in Johnson & Johnson (JNJ) with 15 shares @ $98.50. The stock yields 3.05% adding $45 to my annual dividend income.

Recent Buy Decision

  • Johnson & Johnson barely needs an introduction as it is one of the best known brand names in the world. The company is a well diversified healthcare giant with three major segments – pharmaceuticals, medical devices and consumer goods.
  • A global giant, sees revenue diversification breakdown of: 45% from US, 26% from EU, 18% from Asia-Pacific, and 10% from the rest of the world
  • JNJ came under a lot of pressure in 2014 with record recalls and lawsuits. As expected, JNJ has turned things around and the company now runs more efficiently with better QA in order to avoid similar mistakes.
  • One of only three companies having a AAA rating from S&P (the other two being Microsoft (MSFT) and Exxon-Mobil (XOM))
  • My healthcare diversification had shrunk – with only Amgen Inc (AMGN) making my other healthcare exposure. I decided to add here as the sector is recession-proof and is seeing robust inflation
  • JNJ expects to launch 10 new drugs by 2019, each with a $1B potential
  • A dividend champion, with 53 consecutive years of dividend raises, and 31 consecutive years of adjusted earnings increases

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Chatter Around the World – 102

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

world-acquifiers

New NASA data shows how the world is running out of water

Image Source: Wonkblog

New Blog Posts

Let’s dive into the links that caught my attention this week.

Continue reading

Recent Buy – Bank of Nova Scotia

Scotiabank

Another purchase in my portfolio to close out this quarter. I added to my position in Bank of Nova Scotia (BNS.TO) with 20 shares @ C$65.65. The stock yields 4.15% adding C$54.40 to my annual dividend income.

Recent Buy Decision

  • Bank of Nova Scotia is the third largest financial institution in Canada – one of the oldest and most prestigious banks, which has rewarded shareholders extremely well through the decades.
  • BNS has the second longest dividend payment streak in Canadian corporate history – without a single miss in dividends since 1832!
  • BNS is the most international of the Canadian banks – with exposure in 55 countries outside Canada. More recently, the bank shed some assets/jobs in South America and has been expanding in Mexico – buying operations from Citigroup, and also in talks to buy operations from HSBC.
  • The Canadian financial sector has been under pressure due to the energy market turmoils facing the economy. While this effected the oil, gas and rest of the commodity markets – which has a heavy weighting in the Canadian market, the financials also suffered. Bank of Nova Scotia (and other Canadian banks) have traded sideways through the year – and as I mentioned in this post from Feb 2015, the pressure through 2015 should provide decent investment opportunities and recommended investors to keep adding shares as the long term prospects of these banks are undeniably bright.
  • My full dividend stock analysis (from Oct 2014) can be found here. BNS is still one of the most undervalued companies in the Canadian banking sector.

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