5 stocks I’m still buying in 2022
“We do it because cash is the oxygen of independence, and – more importantly – we never want to be forced to sell the stocks we own.” – Morgan Housel, The Psychology of Money.
Keeping cash is great for times of market volatility (and taking advantage of lower prices).
On that note, here are 5 stocks I’m buying (or have bought) in 2022 since January.
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.
You can find more details about EQB in this post – why I wanted to buy it – so I purchased some EQB in my taxable account recently when the stock price corrected. I hope to buy more later this year when I have more money to do so!
2. Waste Connections (WCN)
I love recession-proof companies – WCN is one of those as well. As you well know, while past performance is never indicative of future results, it’s hard to imagine a world without appropriate waste management.
In my check a few months ago, the company manages some $14 billion in assets that include its vehicles, dump sites, and waste processing/recycling facilities.
In the last 10 years, the stock has grown well over 400% but unfortunately I didn’t own it 10 years ago!
The stock has however weathered the recent market correction well and I bought more of this one in March (as much as I could afford!) for current defensive diversification, a value play, but also long-term capital gains.
Waste Connections has raised its dividend by an average of 13% annually over the last three years and has raised its dividend annually for the last 11 consecutive years.
You probably know already that 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.
3. Algonquin Power (AQN)
No doubt some investors may not like AQN as much as I do but I like a healthy proportion of utilities including AQN in my portfolio for bond-like income and growing dividend income.
I’ve been a shareholder of this company for over a decade now and I I see no reason why not to add more.
My thesis on AQN remains simple – I am happy to support a green utility company. AQN acquires and operates green and clean energy assets including hydroelectric, wind, thermal, and solar power facilities, as well as sustainable utility distribution businesses (water, electricity and natural gas).
With AQN amounting to just under 2% of my overall portfolio value, I’m happy to add more at these prices (and I did).
After I maxed out our TFSAs in January (and bought more a few hundred more units of low-cost ETF XAW (probably not the best timing but ah well?)) I also purchased a small bit of AQN this spring.
AQN recently increased their dividend by almost 6% which was inline with most shareholder expectations.
4. Alimentation Couche-Tard (ATD)
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’ve now owned Couche-Tard in my taxable account for the better part of three years since spring 2019. I own ATD for a more growth-oriented value 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, 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).
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.
5. Manulife Financial (MFC)
I’ve owned MFC for well over a decade and will continue to do so. The market correction very recently encouraged me to add a very small bit of Manulife to my portfolio around $22, my smallest purchase this spring, smaller than WCN, ATD and EQB in that order.
I think higher rates bodes well for financial stocks in general.
Other stocks on my watchlist:
In no particular order, for those paying close attention to my portfolio and posts, here are other stocks I would like to own more of:
BlackRock remains a U.S. financial behemoth, and a big reason why we continue to own it. BLK has certainly been beaten up in recent months and if I had thousands of U.S. dollars to invest (which I don’t), I would be happy to acquire more. For now, I’ll keep saving to see if I can get that money saved up to add more BLK to my portfolio at some point…given YTD BLK is down a very attractive 30% in price.
I haven’t bought any BLK yet this year although I would have loved to do so!!
Canadian Natural Resources (CNQ)
With rising oil prices becoming a crisis, there might still be time to invest in oil and gas for big returns in 2022 and for 2023. I’ve owned some CNQ for many years (along with Suncor (SU)) as oil and gas proxies in my portfolio. Beyond CNQ and SU, I tend to invest in pipelines like Enbridge and TC Energy though for energy exposure.
I haven’t bought any CNQ for my portfolio yet this year but might very soon!
TD Bank (TD)
TD is one of our biggest banks and one of the best brands around. As interest rates rise in 2022, slowly, banks like TD (and EQ Bank) above should benefit a bit. Given where TD Bank price has fallen in recent months, I wouldn’t be surprised to see a mix of share buybacks AND another dividend increase likely in the 5-8% range by the end of 2022. Those are just two ways (share buybacks and via dividend increases) whereby shareholder value can be generated.
I haven’t bought any TD for my portfolio yet this year and we’ll see if I can afford some!
5 stocks I’m still buying in 2022 summary
These stocks above have caught my eye over the last few years to further diversify my portfolio AND be a bit strategic when it comes to market forces.
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 are some other quick reminders about my portfolio construction:
- I’m working on developing a 50/50 mix of Canadian and U.S./International assets over time before starting semi-retirement in the coming 2-3 years (hopefully).
- 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 my portfolio. When and where I see value, I’ll keep you posted as I buy more, add more, and build my income stream higher for any financial independence dreams.
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