Performance Review
Below is the 1-year performance of the Canadian dividend stocks from our August 16, 2013 list.
| symbol |
name |
2013 |
2014 |
% change |
| CUF-UN.TO |
Cominar REIT |
19.3 |
19.51 |
1.09% |
| BEI-UN.TO |
Boardwalk REIT |
55.6 |
68.2 |
22.66% |
| CAR-UN.TO |
Canadian Apt Properties REIT |
20.4 |
23.84 |
16.86% |
| EMA.TO |
Emera Inc. |
31.3 |
34.61 |
10.58% |
| AX-UN.TO |
Artis REIT |
13.8 |
15.88 |
15.07% |
| D-UN.TO |
Dundee REIT |
29.6 |
28.95 |
-2.20% |
| CWT-UN.TO |
Calloway REIT |
24.9 |
26.25 |
5.42% |
| REI-UN.TO |
Riocan REIT |
23.8 |
26.75 |
12.39% |
| FTS.TO |
Fortis Inc. |
31.2 |
33.55 |
7.53% |
| FCR.TO |
First Capital Realty Inc. |
17.2 |
18.95 |
10.17% |
| FTT.TO |
Finning International Inc. |
22 |
32.83 |
49.23% |
| REF-UN.TO |
Canadian REIT |
40.9 |
48.47 |
18.51% |
| BDT.TO |
BIRD CONSTR INC |
11.9 |
15.15 |
27.31% |
| LB.TO |
Laurentian Bank of Canada |
45.1 |
50.86 |
12.77% |
| TLM.TO |
Talisman Energy Inc. |
11.3 |
11.32 |
0.18% |
| CM.TO |
CIBC |
78.8 |
101.32 |
28.58% |
| JE.TO |
JUST ENERGY GROUP INC |
6.34 |
6.37 |
0.47% |
| TRP.TO |
TransCanada Corp. |
46.5 |
55.59 |
19.55% |
| NA.TO |
National Bank Canadian |
39.15 |
48.84 |
24.75% |
| RBA.TO |
Ritchie Bros. Auctioneers |
19.6 |
26.1 |
33.16% |
The entire list gained +15.70% as compared to the Toronto Stock Exchange Composite Index gain of +20.16%. The stock with the biggest gains in the last year was Finning International (FTT.TO) with a gain of +49.23%. The stock with the largest decline was Dundee (D-UN.TO), now known as Dream Office Real Estate Investment Trust, with a decline of –2.20%. At the time, we didn’t think much of the REIT sector and said so with the following commentary:
“…we are worried that the REIT sector may spiral downward as was the case in the rising interest rate environment of the early 1970’s.”
We were completely wrong in our assessment of the REIT sector as rising interest rates either never materialized or did not have the anticipated negative impact. The gains that were achieved by the REIT sector were exceptional in our view. As an example, Boardwalk REIT gained +22.66% in the last year for a total return of +26.22%.
Two stocks of interest to us were Just Energy (JE.TO) and Ritchie Brothers Auctioneers (RBA.TO). We said the following of Just Energy:
“Because JE.TO is trending lower, we recommend reassessing the stock when and if it declines to the $6.15 level. The dividend for JE.TO should not be a consideration for this stock as there are continued risks to the dividend going forward.”
After our August 16, 2013 posting, Just Energy’s stock price declined to $6.16 on August 19, 2013. Soon afterwards, Just Energy increased as high as $9.03 by March 19, 2014, a gain of +46.59%. so far, we’ve had tremendous luck with JE.TO rising and falling as anticipated (February 15, 2013 & July 31, 2013). We can’t be certain of the prospects going forward for Just Energy, however, those interested in the stock cannot rely on the dividend and should invest accordingly.
Regarding Ritchie Brothers Auctioneers (RBA.TO), we said the following:
“Another stock of interest on our watch list is Ritchie Brothers (RBA.TO). Although we’d like to provide original analysis each time we write our postings, we find that sometimes such a pursuit is completely unnecessary. RBA.TO completely fits the billing on this matter. On August 17, 2012 (found here), we said that RBA.TO had the pattern of falling to $18/$19 and then recovering to higher ground.”
As we had observed, RBA.TO fell to $18.90 and has since risen as much of +33.16%. At this point, selling the principal position in RBA.TO would be acceptable for the purpose of raising cash or acquiring alternative investments.
Our August 2014 Canadian Dividend Watch List can be found here.
