5 stocks I bought in 2022
With 2022 highlighting my 15-year tenure as a DIY investor, My Own Advisor no less (!), we inch closer to our semi-retirement dreams.
On that journey, earlier this year, I shared 5 stocks I want to buy more of in 2022.
All stocks were existing holdings at the time, and offered a blend of growth and income opportunities for my portfolio. This desire to hold both growth and income-oriented assets across our accounts remains part of what I’ve coined our hybrid approach to investing.
- Approach #1 – we own a number of Canadian dividend paying stocks for income and growth. We own nearly 30 different Canadian stocks within our non-registered account and across our Tax Free Savings Accounts (TFSAs). We own these stocks because we believe buying and holding our DIY bundle of Canadian dividend-paying stocks will, over time, provide some steady monthly income for future wants and needs in retirement.
- Approach #2 – we’re owning more units of low-cost U.S. Exchange Traded Funds (ETFs) inside our RRSPs over time. While dividend paying stocks are great, and while we still own a few U.S. stocks individually (including Procter & Gamble, BlackRock, and Johnson & Johnson to name a few) we’re buying more (and holding more) ETF assets every year. This way, via ETFs, we can largely set and forget part of our investment approach.
5 stocks I bought in 2022
With a bias to getting paid via dividends and being rewarded to be a long-term shareholder via capital gains, I selected a few stocks in particular to bolster my portfolio in 2022.
With my early 2022 shopping mandate in mind, here are the 5 stocks I bought more of since January 2022 along with a few other portfolio changes and additions!
1. Equitable Group (EQB)
Equitable Group (EQB) is a growing Canadian financial services business that operates through the company’s wholly owned subsidiary, Equitable Bank. Equitable Bank provides a range of personal and commercial banking accounts and services, including a range of smart banking solutions for Canadians: fast international money transfers, easy U.S. dollar accounts and more. It operates several business lines, including single-family lending services, commercial lending services, commercial mortgage, and deposit services.
Since January 2022, I have purchased a few more shares of EQB in my taxable account.
Some might argue the EQB dividend yield is a little bit low, but the sustainability of any dividend payment is important.
EQB has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. In fact, since November 2021, EQB has increased their *dividend 4 times. I read EQB earnings per share is likely to rise by some 40% over the next few years which makes the future bright for this dividend stock.
2. Waste Connections (WCN)
I love recession-proof companies like WCN.
Waste Connections provides non-hazardous waste collection, transfer, disposal, and recycling services in the U.S. and Canada. So, with its “moaty stock status” it would be very difficult for any company to match WCN scale in the coming years let alone decades to compete with them.
Like EQB, I like to own some lower-yielding, higher growth stocks in my portfolio.
Those are the “L” stocks in “TULF” stocks to consider owning:
- “T” for telecommunication companies (think Bell, Telus and Rogers).
- “U” for utilities (think Fortis, Emera, Capital Power, Algonquin Power, Brookfield Renewable Partners, and others)
- “L” for low-yielding dividend growth stocks with growth potential (think Canadian National Railway, Waste Connections, Nutrien, Metro, Alimentation Couche-Tard, Brookfield Asset Management, and others), and last but not least everyone’s sector favourite in Canada for dividends,
- “F” for financials (you know the names; all six big-banks and more including life insurance companies).
Year to date, while our S&P TSX index is down a bunch WCN is up for the year, about 6% at the time of this post.
In terms of buying more WCN shares in 2022, I purchased more of what I could afford this spring around $160 per share as a growing defensive position.
WCN recently increased their dividend by almost 11% and I predict another dividend increase this time next year in the range of 5-10%.
3. Algonquin Power (AQN)
Yes, AQN but also, yikes….
No doubt some investors may not like AQN as much as I do – especially now.
Recently, the AQN share price plunged (about 20%) based on the news of a quarterly profit miss and lower overall forecast – analyst target prices are also much lower going forward for the coming year. Prices are likely to go lower near term too potentially under $10 per share.
The reason for the massive correction is AQN warned that it expects various current macro-economic challenges to persist into 2023, impacting its business. That bad news now public, AQN should recover, eventually, even if there is a dividend cut in 2023 – which might be a responsible decision for management to decide upon. I predict that dividend cut will happen in early 2023. The stock should bounce back accordingly.
I’ve owned AQN for well over a decade now. I started writing about it here.
Back in January 2022, with AQN amounting to just over 1% of my overall portfolio value, I was happy to add more AQN – I put some of this stock into my TFSA after buying a few hundred units of low-cost ETF XAW in our TFSAs in early January.
Looking back, the timing wasn’t great for my AQN buy but history is history and I can’t go back! Such is the challenge with individual stock selection.
Some readers have recently asked what will I do with my AQN shares? Buy more, hold or sell some?
For now: hold.
4. Alimentation Couche-Tard (ATD)
Couche-Tard is a multinational convenience store owner-operator with tens of thousands of stores across Canada, the U.S., Mexico, Ireland, Norway, Sweden and more international countries. I believe they will continue to grow this company more via acquisitions over time.
ATD was on my buy list for the better part of 2021 but I actually scooped up some shares when their price dipped under $50 in March 2022 – it just seemed to too cheap not to add more in my taxable account.
(I reminder I only contribute to our taxable accounts when TFSAs and RRSPs are full of contribution room.)
I’ve now owned Couche-Tard in my taxable account approaching 4 years.
Like WCN, I like owning ATD for capital gains.
Year to date, Couche-Tard is up about 20% at the time of this post.
5. Manulife Financial (MFC)
Manulife is a multi-billion dollar, leading financial services group that provides financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and businesses.
I’ve owned MFC for well over a decade now and will continue to do so – even though the capital gains have been non-existent which is not great of course. MFC is very bond-like for income, not growth and for that reason it only makes up <0.50% of my total portfolio value while it does provide a few hundred dollars in dividends per year.
After our TFSAs were maxed out with mostly XAW, we did add some MFC to my account around $22 in hopes the price would climb (finally?) in 2022. Year to date, MFC is down about 6% at the time of this post.
5 stocks updates and other changes!
Quite the year – and it ain’t over yet!
Stocks can go up and down and/or stay flat – this investing year is another lesson of that to all…
You might recall from my initial 2022 purchase list, I also included TD Bank and Summit REIT on my potential buy list beyond EQB, WCN and AQN.
Well, some updates!
TD Bank (TD)
TD is one of our biggest banks and one of the best Canadian brands around. As interest rates rose in 2022, I figured our banks might benefit. I only had so much money to go around in 2022, so I decided to buy more EQB vs. TD but I still purchased a small amount of TD stock for my wife’s taxable account.
Give or take, TD makes up about about 3-4% of my entire portfolio value over the last 15 years. I reinvest many TD shares every quarter.
Summit REIT (SMU.UN)
While many REITs are usually in a portfolio for distributions and yield, I have a slightly different bias in my asset accumulation years: I don’t shy away from growth potential.
Again, you’ve read this above with EQB, WCN and ATD as examples in our portfolio from my taxable account.
I started to own Summit a few years ago.
Upon further reflection, I have enough Canadian stocks and REITs.
I sold my small position in Summit this spring and bought more CAR.UN (Canadian Apartment Properties REIT) this year with CAR.UN tanking in price. Without any Summit now, CAR.UN is down heavily in 2022: down about 25% year to date at the time of post which is actually very good for my dividend reinvestment plan whereby I buy more shares of CAR.UN commission-free every month.
Will this decision turn out for the best long-term? Selling SMU.UN for CAR.UN?
I wish I knew!
I do believe CAR.UN will thrive over time otherwise I wouldn’t have made this decision. Over the last few decades, Canadian Apartment Properties REIT has grown from owning interests in 2,900 residential suites to interests in over 67,000 suites, townhomes and land leased community sites with a total asset value exceeding $17 billion. They expanded into key growth markets across Canada, as well as internationally.
CAR.UN stock now makes us about 1% of my overall portfolio.
5 stocks I bought in 2022 summary
Even beyond this year, there are other stocks on my watchlist and some changes to note in my portfolio to share:
BlackRock remains a U.S. financial behemoth, and a big reason why we continue to own it. I will continue to own and watch BLK for more chances to buy more shares over time. BLK stock makes up about 3% of my overall portfolio value.
Canadian Natural Resources (CNQ) and Whitecap Resources (WCP)
With rising oil prices threatening to become a crisis earlier this year, I believed it was time to buy more oil and gas stocks – and did. While I’ve owned some CNQ for many years (along with Suncor (SU)) as oil and gas proxies in my portfolio, I added more CNQ in June 2022 and entered into a position in WCP this summer too.
I continue to invest in energy pipelines like Enbridge and TC Energy for additional energy exposure.
Energy stocks fluctuate between 10-15% of our overall portfolio value.
On my Dividends page, I highlight some other stocks I own. I’ve held many of these companies for over 10 years:
- Canadian banks (examples: Royal Bank (RY), TD Bank (TD)).
- Canadian insurance companies (example: SunLife (SLF)).
- Canadian telecommunications companies (examples: BCE, Telus).
- Canadian utilities (examples: Fortis (FTS), Emera (EMA)).
And here is a quick reminder about my portfolio construction:
Generally speaking, I try and keep any individual stock to <5% of overall portfolio value. I call that my “5% investing rule”. That said, I’m more than fine if just a few stocks exceed that value (say 6% or 7%) from time-to-time since I tend to let winners run… I would be concerned if a few stocks dominated my portfolio over 10% though. (You can more personal investing rules and FAQs on this page here.)
As I buy more individual stocks in my portfolio over time, I intend to offset any individual stock risks by owning low-cost diversified ETFs such as XAW in our TFSAs.
In the coming weeks, I won’t be buying much, if anything.
January 2023 TFSA contribution room opens up soon – we need to continue saving for that room for investing and those timelines are coming up fast. I will let you know what I decide to purchase beyond any XAW for my/our TFSAs in the coming weeks and months. 🙂
Thanks for your readership and keep your comments and emails coming my way.
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