Top 10 Stocks to Retire On

Investors often look for anchors and validation. In the stock market, it’s no different but investors have to be careful about their bias as we tend to look for validation around our own ideas.

       
 CompanyTickerQuoteDividendYieldMarket Cap (B$)
 Discretionary     
 Canadian National RailwayTSX:CNR$64.67$0.251.56%30.10
 Johnson & JohnsonNYSE:JNJ$58.72$0.543.68%161.95
 Coca-ColaNYSE:KO$56.41$0.443.12%130.14
 Communications     
 BCETSX:BCE$31.45$0.445.53%24.00
 Financials     
 Scotia BankTSX:BNS$51.59$0.493.80%53.35
 TD BankTSX:TD$73.16$0.613.34%63.86
 Bank of MontrealTSX:BMO$62.87$0.704.45%35.22
 Energy     
 EnbridgeTSX:ENB$50.04$0.433.40%19.02
 TransCanada PipelinesTSX:TRP$36.33$0.404.40%24.96
 TransAltaTSX:TA$20.84$0.295.57%4.56

I currently have a position in the bold companies in the table above. If I compare those picks with the Canadian Business picks, we have 5 matches in total – the bold items are shared between my list and Canadian Business.

I am a little heavier on the financial as I believe they are true dividend aristocrats with a strong history of paying dividends and increasing them regularly. I like the telecom industry but competition will be fierce and they may need more cash to compete which may result in less dividend growth than what we have had in the past.
 
I have also included some US holdings as I believe they are worthwhile holdings to have in a core portfolio. It does require the need to monitor US/CAN currencies though.

I had Sun Life until I had to trim 2 more stocks to make it 10. No life insurance made it in but it was very close. Power Corp may actually be good to blend financial and life insurance though. 10 stocks is a tough limit… I don’t think I could limit myself to 10 stocks but it’s an interesting exercice to filter down to 10.

One of my requirements was to hold large cap companies (with respect to Canadian companies that is). TransAlta is my smallest company in market capitalization with nearly 5B$.

DISCLOSURE: Please note that I may have a position in one or many of the holdings listed. For a complete list of my holdings, please see my Dividend Portfolio.

DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.
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