Contents
This brief FFJ Portfolio - April 2023 Report is an overview of recent activity.
Purchases
Danaher
I last reviewed Danaher (DHR) in this January 6 post at which time I disclosed the purchase of an additional 50 shares @ ~$246.18 in the FFJ Portfolio thus bringing my total exposure to 335 shares. On April 25, I acquired another 60 shares @ ~$240.62.
DHR's Q1 2023 results were weak in relation to a tough Q1 2022 when the omicron variant was surging. Despite a modest reduction in the company's 2023 outlook, however, DHR's long-term prospects are attractive.
In prior posts, I have touched upon the Danaher Business System (DBS). Using its DBS, DHR aims to continuously improve its scientific technology portfolio. It seeks out attractive markets and then makes acquisitions to enter or expand within those fields.
In addition, DHR also divests assets no longer deemed core. In September 2022, DHR announced its intention to separate its Environmental & Applied Solutions segment to create an independent, publicly traded company. On February 8, DHR announced that Veralto Corporation would be the name of this new separate public company that is expected to be created in Q4 2023.
Within one of the 'Side" accounts in the FFJ Portfolio, there are 300 Fortive (FTV) shares; FTV was spun off from DHR on July 5, 2016. FTV subsequently spun off Vontier (VNT) on October 2020. While I briefly held VNT shares, I exited my exposure so I could invest in more attractive investment opportunities.
Blackrock
In my March 9 post, I disclose a new position in Blackrock (BLK). Following that purchase, BLK's share price rose steadily to ~$700 on April 17. The share price subsequently pulled back and I acquired an additional 40 shares on April 26 @ ~$652.07. My BLK exposure now sits at 100 shares.
Sale
Regrettably, I had to sell 135 McDonald's Corporation (MCD) shares @ $285.32 on April 11 from one of the 'Side' accounts for tax planning purposes.
I still hold MCD shares in a retirement account and await a better valuation before considering the purchase of additional MCD shares.
Dividend Income
I base my investment decisions on risk, valuation, and long-term total potential return with dividend metrics being of minimal importance. Nevertheless, I do track dividend income.
The income from the holdings within the FFJ Portfolio is accessible here.
During April, the holdings within the FFJ Portfolio generated:
- 'Core' accounts: ~$2,508 CDN and ~$1,229 USD
- 'Side' accounts: ~$1,973 CDN and ~$1,218 USD
April 30 is the most recent distribution date for dividends from The Toronto-Dominion Bank. Since this is a Sunday, shareholders will receive the dividends on Monday, May 1. This explains why the total dividend income generated in April from the holdings in the Canadian 'Side' accounts is well below that reported in January.
YTD dividend income amounts to:
- Core' accounts: ~$8,006 CDN and ~$11,899 USD
- 'Side' accounts: ~$8,257 CDN and ~$8,062 USD
I received dividend income from the following companies in accounts included in the FFJ Portfolio and in retirement accounts for which I do not disclose details.
- Automatic Data Processing (ADP)
- Broadridge (BR)
- Danaher (DHR)
- Diageo (DEO)
- Ecolab (ECL)
- FedEx (FDX)
- Genuine Parts (GPC)
- Merck (MRK)
- Nike (NKE)
- The Coca-Cola Company (KO)
- Total Energies (TTE)
- Walmart (WMT)
- Alimentation Couche-Tard (ATD.to)
- BCE Inc. (BCE)
- Canadian Pacific Kansas City Limited (CP.to)
- SMART Centres Real Estate Investment Trust (SRU-UN.to)
- The Bank of Nova Scotia (BNS.to)
- The Canadian Imperial Bank of Commerce (CM.to)
Holdings
The monthly FFJ Portfolio holdings dating back to December 2018 are accessible here.
The following are the monthly values of the FFJ Portfolio over the past several months.
January 2022
Core Accounts: ~$773,000 CDN and ~$1,858,000 USD
Side Accounts: ~$666,000 CDN and ~$1,475,000 USD
Total: ~$1,439,000 CDN and ~$3,333,000 USD
February 2022
Core Accounts: ~$778,000 CDN and ~$2,014,000 USD
Side Accounts: ~$672,000 CDN and ~$1,465,000 USD
Total: ~$1,450,000 CDN and ~$3,479,000 USD
March 2022
Core Accounts: ~$810,000 CDN and ~$2,118,000 USD
Side Accounts: ~$696,000 CDN and ~$1,554,000 USD
Total: ~$1,506,000 CDN and ~$3,672,000 USD
April 2022
Core Accounts: ~$770,332 CDN and ~$2,026,487 USD
Side Accounts: ~$658,363 CDN and ~$1,514,137 USD
Total: ~$1,428,695 CDN and ~$3,540,624 USD
May 2022
Core Accounts: ~$784,833 CDN and ~$2,133,728 USD
Side Accounts: ~$661,080 CDN and ~$1,499,998 USD
Total: ~$1,445,913 CDN and ~$3,633,726 USD
June 2022
Core Accounts: ~$742,473 CDN and ~$2,006,645 USD
Side Accounts: ~$595,911 CDN and ~$1,401,823 USD
Total: ~$1,338,384 CDN and ~$3,408,468 USD
July 2022
Core Accounts: ~$794,405 CDN and ~$2,230,466 USD
Side Accounts: ~$644,255 CDN and ~$1,539,292 USD
Total: ~$1,438,660 CDN and ~$3,769,758 USD
August 2022
Core Accounts: ~$740,560 CDN and ~$2,064,323 USD
Side Accounts: ~$637,547 CDN and ~$1,478,073 USD
Total: ~$1,378,107 CDN and ~$3,542,396 USD
September 2022
Core Accounts: ~$707,781 CDN and ~$1,894,989 USD
Side Accounts: ~$612,394 CDN and ~$1,311,542 USD
Total: ~$1,320,175 CDN and ~$3,206,531 USD
October 2022
Core Accounts: ~$740,555 CDN and ~$2,160,153 USD
Side Accounts: ~$624,677 CDN and ~$1,441,483 USD
Total: ~$1,365,232 CDN and ~$3,601,636 USD
November 2022
Core Accounts: ~$785,647 CDN and ~$2,311,806 USD
Side Accounts: ~$653,367 CDN and ~$1,516,013 USD
Total: ~$1,439,014 CDN and ~$3,827,819 USD
December 2022
Core Accounts: ~$737,157 CDN and ~$2,271,705 USD
Side Accounts: ~$602,514 CDN and ~$1,438,680 USD
Total: ~$1,339,671 CDN and ~$3,710,385 USD
January 2023
Core Accounts: ~$775,787 CDN and ~$2,387,269 USD
Side Accounts: ~$642,451 CDN and ~$1,520,472 USD
Total: ~$1,418,238 CDN and ~$3,907,741 USD
February 2023
Core Accounts: ~$757,627 CDN and ~$2,283,481 USD
Side Accounts: ~$634,210 CDN and ~$1,474,168 USD
Total: ~$1,391,837 CDN and ~$3,757,649 USD
March 2023
Core Accounts: ~$747,355 CDN and ~$2,385,759 USD
Side Accounts: ~$628,335 CDN and ~$1,532,785 USD
Total: ~$1,375,690 CDN and ~$3,918,544 USD
April 2023
Core Accounts: ~$768,494 CDN and ~$2,506,613 USD
Side Accounts: ~$638,604 CDN and ~$1,527,968 USD
Total: ~$1,407,098 CDN and ~$4,034,581 USD
NOTE: The above values exclude investments in several tax-efficient accounts for which I do not disclose details.
Final Thoughts
It would appear that some retail investors have not learned that speculating can be a recipe for disaster.
Most recently, speculators have 'taken a shine' to TOP Financial Group Limited (TOP); the company is based in Hong Kong. This 'garbage' typically traded below $5 but on April 28, the share price jumped briefly to ~$200 before pulling back to close at ~$108.
For interest sake, I decided to screen for companies which reported the largest percentage gain on April 28. Interestingly, the top 20 US-listed companies are either headquartered in Hong Kong or China. Only one, Visionary Education Technology Holdings Group Inc. (VEDU) is headquartered outside China or Hong Kong; it is headquartered in Canada. It might be a legitimate business but looking at its most recent financial statements (start at page 103 of 144), I would never remotely consider investing in this company.
The Chinese economy is experiencing very challenging times as many foreign corporations are relocating their operations in China to other countries in the region (ie. Vietnam, India, etc). Unemployment and loan defaults are dramatically increasing in China. However, some people in China and Hong Kong are poised to make a lot of money at the expense of 'naive investors'. BE EXTREMELY CAUTIOUS! Don't get sucked in.
I wish you much success on your journey to financial freedom.
Note: Please send any feedback, corrections, or questions to [email protected].
Disclaimer: I do not know your circumstances and am not providing individualized advice or recommendations. I encourage you to make all investment decisions through research and due diligence. You should also consult your financial advisor where appropriate.
I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it and have no business relationship with any company whose stock is mentioned in this article.
