DRIP/SPP
DRIP/SPP
hope you are doing well, DTB and had a good trip, up here the golf coarses should be good to go in another 3 weeks. still some snow...LOL
DRIP/SPP Portfolio
most of the stocks were bought in 1998/1999.
sometimes make a small contribution to these stocks. all trade on Toronto, the cnd. banks, enb, SU, bce, fap (maybe) also in the US.
Riocan REI.un average cost $8.50 start 1998
price $18.10
they are the largest collection of shopping malls (mainly big box) in cdn.
distributons increased .69 in 1998 to $1.353 2004
since 1995 returned 26% (per year/average) to shareholders.
great management and when dividends re-invested in the plan get a 3.1% discount on the shares.
yield over 7%.
expect it to make 7%+ a year going forward. not bad for a reit.
Enbridge average cost $42.50 1998 price $63
just a well run pipeline that yields over 3%, never cut their divdend which is what I like to see, note TRP.
100 invested in ENB in 1999 is worth $248 in 2004 compared to $119 in the SP/TSX index.
expect the company to produce 10% returns going forward, will wait and add to the position if it goes down as interest rates rise in US/Canada.
Asia Pacific Income (FAP) $9.20 1998
price $9.16 (trades on Canada and US)
basically this company use to invest 75% Australia and 25% Asia. A few years ago they changed the fund so it can hold up to 75% Asia bonds.
Returned 7.5% (year end Jan 2005) and 7.8% since inception
for me this is my International bond fund, and expect returns around 5-8% going forward. it gives me diversification out of the cdn. dollar and in other int. economies besides Cdn./US.
for US investors they hold many bonds that pay in US $ so you will get country but may not get currency diversification.
last year 34.3% of the bonds were in US dollars.
72.9% of the fund is in A bonds if not better
Management expense ratio was 1.04%.
my holding in the fund is small but will probably increase it over time. own 1500 shares.
CIBC CM 1998 avg. price $38.50
price $73.01 yield 3%+
one of major cdn. banks own in the DRIP/SPP, the other two are BNS, BMO. all have done well
CIBC has a good retail operation and a good securities business.
Tried to copy the success of President Choice Financial (co owed with Loblaws) by going into the US and offering banking services in Grocery stores.
never worked and they lost millions, however management has killed the plan and now focussing on Canada. buying back shares and increase divs.
Since Oct. 1999 CIBC returned (including div) 172.9 % over the last five years.
Going forward should be able to increase dividends; also grow earnings at 10-15% a year. not a bad investment.
same thing with Enb, with rising rates may move back 5% but will buy more on any weakness, trade at a PE 2005 of 12.5, not that expensive.
cdn. banks trade 9-17PE, always try to buy them closer to the lower end 10-12PE.
more stocks later
thanks
selkirk
