A couple of items to note from the chart below are: only stocks are included (all funds from my holdings have been left out), and one stock – IAMGold (IMG.TO) is missing, as it recently cut their dividends to 0.
- I want the equities either high on the y-axis or far to the right (within reason…as being too far to the right can be a red flag).
- The numbers presented here are the current yields. I have held some of these stocks for years and the yield-on-cost is higher.
- As the dividends rise, year after year, those equities will start moving to the right (when considering yield-on-cost)
- BCE Inc’s (BCE.TO) dividend growth rate is unsustainable at 25%, especially with its current payout ratio at 85% of earnings. I expect BCE to come down lower on the graph to a more normal level.
- CHS Inc (CHSCP) has no dividend growth and although it has a good yield, I will be considering selling this position.
- Only two equities are below the 2% yield line (far to the left) – The Jean Coutu Group Inc (PJC.A.TO) and Qualcomm Inc (QCOM). However, they both have high dividend growth rate (15.3% and 13.66% respectively), so I am not too concerned about the current low yield.
- Wells Fargo & Co (WFC) saw a dividend cut during the financial crisis which made it drop below the 0% DGR line. However, WFC has started raising its dividends again, so I expect that to start moving up.
Overall, I am happy with the layout of the stocks I hold. In addition, I hold funds which are high yielders providing me with more income currently which I use to reinvest into my stock holdings.