5 stocks I bought more of in 2021
Earlier this year, I shared 5 stocks I wanted to buy more of in 2021:
- Canadian National Railway (CNR)
- Algonquin Power (AQN)
- RioCan REIT (REI.UN)
- Alimentation Couche-Tard (ATD.B)
- BlackRock (BLK)
Today’s brief post recaps what I actually added to my portfolio in 2021, why, to reconcile what I really wanted to buy more of in 2021. Did I buy all of these stocks in 2021 as planned??
Reconciled: 5 stocks I bought more of in 2021
1. Canadian National Railway (CNR)
I’ve owned CNR for years inside my RRSP and I’ve been slowly building up my position in this company over time. With the pandemic raging on, supply chain issues concerning, I figured one of the best, low-cost ways to get goods moved around our continent remains via rail. So, in the summer of 2021/July 2021, I added another 30 shares of CNR to my portfolio. I now own just under 200 shares in total. I will continue to add more CNR shares to my portfolio when I feel the price might be right. CNR shares make up about 2% of our portfolio.
2. Algonquin Power (AQN)
I’ve been bullish on green energy for many years, so Algonquin Power works.
I bought most of my AQN around $6 and added more around $7 per share. I’ve been riding it up ever since.
I bought some AQN this year although it remains a small <1% of my portfolio value.
3. RioCan REIT (REI.UN)
Admittedly, REI.UN has not performed well over the last 5-years although it did see a meaningful recovery since spring 2020, when share prices tumbled to about $15. Because RioCan remains one of Canada’s largest real estate investment trusts, and they continue to add assets to their portfolio, I continue to hold some RioCan units in my portfolio – for the overall diversification benefits that owning real estate can offer. With other assets purchased over the years, including some low-cost, broad-market ex-Canada ETFs for growth diversification, while I did buy a few shares in 2021, I also kept adding via my DRIP.
I don’t own very much RioCan now. I need to see a bigger recovery!
4. Alimentation Couche-Tard (ATD)
I’ve owned Couche-Tard in my taxable account for a few years now but not many shares – until I purchased more shares in April 2021.
I own ATD for more growth oriented Canadian stocks in my taxable account because that’s a tax-efficient way to invest. On that note, I consider this company one of my “TULF” stocks.
A recap of Canadian TULF stocks to consider for your portfolio:
- “T” for telecommunication companies (think Bell, Telus and Rogers)
- “U” for utilities (think Fortis, Emera, 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).
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 makes up <1% of our overall portfolio at the time of this post.
5. BlackRock (BLK)
BlackRock remains a U.S. financial behemoth, and a big reason why we continue to own it. Year to date (at the time of this post) BLK is up 30% and we’re up about 100% since we bought this stock over 18 month ago – as the stock market began it’s recovery from March 2020 lows.
I had good intentions of buying more BLK if/when the price was right but now costing over $900 USD per share, it takes a bundle saved up to buy more meaningful BlackRock shares. I have no plans to sell this stock and will look to add where it makes sense.
5 stocks I bought more of in 2021 summary
The 2021 stock market year is almost over, and like you, I certainly didn’t see my portfolio being up almost 30% this year, in a pandemic no less, when January 2021 started.
I started the year intending to buy more of these 5 stocks. I managed to buy 4/5.
This year was another investing reminder that it pays well to remain invested – largely to sit on your hands after you make some investing decisions. By staying invested, sticking to a long-term game plan, and avoiding lots of transactions costs, it becomes clear that time in the market can deliver wonders.
As I work some new purchases in 2022, I will keep you posted.
A remimder I keep my Dividends page up to date here.
I keep this dedicated page about the best low-cost ETFs to own, and what I own here.
What do you make of my decisions in 2021? What are you buying in 2022?
Blackrock is always a smart invest! 🙂
Thanks Tobias! Own the company and the products!
Personally prefer PKI over ATD.
Pays a higher div, monthly payer and still good potential for growth..Had sold them, PKI, @ $31 before Covid and bought back in @ $25. Was wanting to sell @ >$40 but unfortunately didn’t get a round to it
Will have to see if I can buy some round to it’s in a store. LOL
Had sold AQN @ $21 but have been buying back in recently below $18.5
Fairly decent div at present but would sell for cap gain if it pops u to $22 again. Held in RIF and TFSA so “free” gains
2022 brings the usual RIF/LIF withdrawals. Will only withdraw enough right now for potential income tax in April, TFSA ($6K) and cash wedge which mainly goes in to non-registered portfolio stocks which in turns pays me a month stipend of hopefully $200 this year.
The remaining mandatory(above 4%) withdrawals I hope to do towards the end of the year so that I can accumulate cash in the RIF/LIF and re-invest. Obviously i could take out the mandatory amounts right now and invest them but then that entails more taxable dividends in my income. Will wait for the end of the year and therefor get less of a hit next year come tax time – hopefully.
Take care – Stay healthy
Div Yield (FWD)
Annual Payout (FWD)
5 Year Growth Rate
The payout ratio is troubling!
I assume you’re speaking about AQN? Yes, it bothers me as well. Far too high and needs to come down. Same with ENB!!
Thanks for your comments. I switched from XAW to VXC as another blogger mentioned VXC has quarterly dividends. Too, I liked it better.
I bought the US small caps in my RRSP. The blogger I mentioned had stats showing that over long term , well selected value funds will outperform growth. So I spilt some USD between VOO and VSUS.
Not sure what to buy in 22. Mike at DSR created a list of 22 stocks with suggestions.
I am similar to Mark in that my USD in RRSP in mostly in ETFs. Holding too many stocks was eating up day. My CAD holdings I hope to achieve a dividend stream to support us in 2 years when my disability benefits run out.
All the best for 22. Thanks again for all the intel you all share.
Happy to discuss Ian. Yes, VXC is a great fund and hard to argue against (don’t change a thing!!) although I recall the VXC has a higher-weight to U.S. vs. XAW which I already have some exposure to via VTI and QQQ. Either one (VXC or XAW) is a long-term ex-Canada winner. Both are up closer to 20% this year. Wild…
Yes, I recall Mike has a few top selections out for 2022. I will likely buy a bit of XAW in TFSA and potentially buy some WCN inside my taxable. Potentially more EMA and FTS there to increase my secure income stream as well.
Kudos on building the dividend stream Ian and stay well!
I bought more AQN this year.
Unfortunately I bought it at a peak and it dropped 20 percent after that and hasn’t moved up again.
Oh well, the complete amount still shows as a significant capital gain and it does pay a dividend.
I have done well on REITs over the past 18 months.
Happy New Year Mark!
Yes, it has dropped quite a bit but then again, I like getting some quality stocks on sale. It should move up eventually again. Up about 7% in the last month so seems to be moving back up to $20-level by early 2022? I see this company as very bond-like Barbara, you and I are paid 4-5% yield regardless with the annual dividend increase that should come in May 2022 by 5% increase or so.
There are certainly other companies for growth but I like the green energy angle to AQN so willing to hold for many years just to see if my hunch is right as I invest in other growth stories in my taxable account. CNR and WCN being two of them.
Happy New Year, Mark.
just wondering why you prefer Algonquin over Brookfield Renewables.
seems the AQN pays about 1.5% more but the performance of Brookfield over the last 5 yrs has been superior.
but of course past performance doesn’t guarantee future as we all know…so there’s that.
meant to edit but submitted too soon:
meant to say Algonquin pays 1.5% in dividend but overall performance over 5 yrs (capital growth) seems to be better with Brookfield (though they both lost this yr, with Brookfield’s stock declining more).
so is it purely the dividend that has you choosing Algonquin?
Brookfield is just part of such a large machine, too.
imo doesn’t look like one can go wrong with either choice long term.
All good Joe!
AQN yield approaches 5% the last time I checked but the price has suffered for sure in recent years. I suspect because of interest rate fears.
Happy to own Brookfield as well and DRIPping those BEPC shares often 🙂
I chose AQN since I thought it would rebound far more in 2021 than it did.
It is my hope greener energy accelerates much more not just for my portfolio health of course but for the planet’s health overall.
Happy New Year!!
I own most of these except ATD. Like you, I am bullish on green energy, but with the increase in EV’s I see a transition away from traditional gasoline retailers. In the not so distant future I see electric charging stations at malls and restaurants putting significant pressure on gasoline retailers like ATD and Parkland and this is keeping me away from them. Am I missing something
ATD is installing superchargers at their gas stations. People will buy snacks while they wait for the charge. $$
I’m aware of that but from what I’ve read supercharger take between 30 minutes to an hour to charge an EV. Is it realistic to expect people to hang around a convenience store for that amount of time waiting for their charge when they could do the same thing while shopping or having a meal? I honestly don’t know.
My thinking is that my next vehicle purchase will be an EV – probably in the 3-5 year time frame.
I want something which will give me approx 600K on a full charge. That way, hopefully, if you stop for a bite you can add to the charge. I don’t want to have to stop just to top up and “waste” time waiting for it, probably at least a half hour to make it worth while. You can reach your destination and charge there whether that be a hotel or a visit to a family/acquaintance.
Also would lean towards one of the major auto manufacturers for the simple reason that if service is needed then a garage would probably be much more local.
So all these chargers at convenience stores could be handy for local apartment dwellers but of little use to house owners or travellers. Again, IMO
Our cold northern weather will affect battery performance to the detriment of K per charge so having a high capacity battery is more of a necessity here than in Florida.
Ya, if our condo has the infrastructure it plans to have in a few years….it is our hope we own an EV as well.
Ideally, you can reach your destination on a charge and charge it three (e.g., hotel, family visit, conference hall, etc.).
As you have rightly pointed out, charging capacity is impacted greatly by our cold climate. Not ideal but if the charging capacity is increased I could certainly live with that.
Funny, I just had the same comment. Need to scroll when I reply 🙂
I recall ATD is putting in a number of electric charging stations. And people will buy some snacks when they charge.
Don’t get me wrong, I’m not going all-in on ATD or any other stock but I see some benefits/upside with my small portion of ATD stock. I could be wrong of course long-term – that’s the challenge with individual stocks including lower-yielders like ATD, you need to be able to predict the future for major success.
Happy 2022 to you!!
Thanks for the link. I’ve been interested in this company for a while but it’s low dividend combined with a hazy future and high valuation (from my perspective) has kept me away. In the article you linked they say part of their plans for the future include in home charging stations. That sounds very interesting. I will definitely take another look at this. Thanks for all your work on this site.
Certainly not a recommendation for purchase (ATD) but I figure they should also continue to grow via acquisitions over time. I hope they do anyhow 🙂
Happy New Year to you!
Good for you. Congrats.
I own all the stocks you mentioned except RioCan.
I’m interested to learn that you keep ATD in your taxable account as I have mine in my TFSA.
No tax vs tax efficient ? Wondering if you would clarify your rationale ? Thanks.
Also, an article by this guy you might find interesting
makes the case for VOO plus a US small cap ETF AVUV.
All the best for 2022
Thanks Ian. I guess I could have been more clear – Canadian dividend paying stocks in a taxable account, that are low-yielding, offer I believe a tax efficient way to invest since they are eligible for the Canadian dividend tax credit AND are likely more subject to capital gains vs. ongoing taxation. Capital gains is a very efficient way of investing long-term = you’re not paying tax until you realize the gain.
Historically, small cap U.S. stocks have been great for growth/gains. I probably should have owned some myself in fact.
VB ETF is a good one from Vanguard.
What is on your investing menu for 2022? I’m likely to buy some XAW inside my TFSA and some U.S. assets in my RRSP later in 2022 when I have contribution room available to me.
Happy New Year to you as well!
Mark, your list is a great one to own. Going forward, I still think there is good growth for the energy sector. One particular stock I like is Freehold Royalties (FRU) that is doing very well in addition to its great monthly dividend payout.
Wish you a great year for 2022 and may 2022 bring you more wealth.
Interesting about Freehold Ken. The stock price hasn’t moved much in the last 5-years (still underwater actually) but I can appreciate the monthly payout appeal. Thoughts?
Except RioCan in my list, most if not all the stocks I own (including beyond these 5 stocks) I want both increasing dividends and capital appreciation. That’s my goal. Of course, I’m waiting for the latter from REI.UN!!
A very Happy New Year to you as well and best wishes for 2022!
I only hold AQN from your list Mark about 1600 shares between my tfsa and rrsp no Reits till now waiting for the sale of our property in Feb then I will add a couple as for 2022 I’m thinking of adding National bank and Sunlife but I’m hoping there will be a small correction so the price will be more attractice although NA price came down a bit after their last quarter announcment .
Happy new year in advance Mark and to all !
1600 shares is a good bit of AQN. I like the steady income stream they offer and some growth upside as well Gus. NA and SLF are likely very good picks for higher rates in the coming years – they should benefit and NA in particular is growing their brokerage arm 🙂
Happy investing in 2022! Will decide soon for what is going into the TFSA 🙂