FFJ Portfolio - July 2022 Report

This FFJ Portfolio - July 2022 Report discloses my investment activity.

Purchases

During the month, we had a window of opportunity to acquire reasonably valued shares. Altogether I deployed ~$52,500 USD and ~$943 CDN by adding to several positions.

  • July 4 - In conjunction with my Goldman Sachs’ Earnings Are Becoming More Resilient and Diversified post, I acquired Goldman Sachs (GS) shares at ~$296.26 in a 'Side' account in the FFJ Portfolio. Shares are now trading at $333.39.
  • July 5 - In conjunction with my Nike’s Valuation Is Compelling post, I acquired Nike (NKE) shares at ~$102.89 in an account for a young investor I am helping on their journey to financial freedom. Shares are now trading at $114.92.
  • July 8 - I added to my Chevron (CVX) exposure by acquiring shares in one 'Core' account in the FFJ Portfolio at ~$142.46 and again on July 12 in another 'Core' account at $139.90. Shares are now trading at $163.78.
  • July 8 - I added to my Exxon Mobil (XOM) exposure by acquiring shares in a retirement account at ~$85.77 and again on July 12 in a 'Core' account at $84.17. Shares are now trading at $96.93. My rationale for increasing my XOM exposure is found in my Exxon Mobil (XOM) Shareholders Are Finally Being Rewarded guest post at Dividend Power.
  • July 8 - I added to my Blackstone (BX) exposure by acquiring shares in a 'Core' account at ~$96.98 and again on July 21 in the same account at $94.83. Shares are now trading at $102.07. My rationale for increasing my BX exposure is found in my Blackstone Should Richly Reward Long Term Shareholders post. BX is also one of the 2 companies I contributed to Portfolio Insight's The 10 Best Dividend Stocks Now.
  • July 18 - I added to my Brookfield Asset Management (BAM-a.TO) exposure by acquiring shares in a 'Core' account at ~$58.34. Shares are now trading at $63.54. BAM-a.TO is the other company I contributed to Portfolio Insight's The 10 Best Dividend Stocks Now.
  • July 22 - I added to my Intuitive Surgical (ISRG) exposure by acquiring shares in a 'Core' account at ~$210.24. Shares are now trading at $230.17. My rationale for increasing my ISRG exposure is found in my Intuitive Surgical Remains Hyper Focused On Capital Allocation post.
  • July 22 - I added to my Moody's (MCO) exposure by acquiring shares in a 'Core' account at ~$286.14. Shares are now trading at $310.25. My rationale for increasing my MCO exposure is found in my Increasing My Exposure To Wide Moat Moody’s On Weakness post.
  • July 27 - I added to my CME Group (CME) exposure by acquiring shares in a 'Core' account at ~$195.32. Shares are now trading at $199.48. My rationale for increasing my CME exposure is found in my CME Group – The Risk Of Relying On Stock Screeners post.

At the other end of the spectrum, we have Automatic Data Processing (ADP). In my Wait For ADP’s Valuation to Improve post, I explain why I am in no rush to add to my exposure at the current valuation.

In addition to the outright purchases reflected above, I received additional shares in the following companies through automatic dividend reinvestment. I hold shares in the following companies either in the FFJ Portfolio and/or in accounts for which I do not disclose details.

  • Nike (NKE)
  • Genuine Parts (GPC)
  • Automatic Data Processing (ADP)
  • Coca-Cola (KO)
  • Broadridge (BR)
  • Merck (MRK)
  • Cisco Systems (CSCO)
  • FedEx (FDX)
  • BCE Inc. (BCE.to)
  • SMART Centres Real Estate Investment Trust (SRU-UN.to)
  • Canadian Pacific Railway (CP.to)
  • Telus (T.to)
  • The Bank of Nova Scotia (BNS.to)
  • Alimentation Couche-Tard (ATD.to)
  • The Canadian Imperial Bank of Commerce (CM.to)
  • The Bank of Nova Scotia (BNS.to)

I also received dividend income from the following companies. These dividends were not reinvested because the dividend income was insufficient to acquire additional shares. In the case of TotalEnergies SE (TTE), I received sufficient dividend income to acquire additional shares. However, automatic dividend reinvestment for this American Deposit Receipt (ADR) is unavailable through my discount broker. I have a similar issue with my Diageo plc (DEO) ADR for which I receive dividends in April and October.

  • Ecolab (ECL)
  • Danaher (DHR)
  • Heico (HEI-a)
  • Stryker (SYK)
  • TotalEnergies SE (TTE)

New Positions

I initiated no new positions in July.

Dividend Income

The income generated from the holdings within the FFJ Portfolio is accessible here.

During July, the holdings within the 'Core' portion of the FFJ Portfolio generated dividend income of ~$2,609 CDN and ~$1,256 USD. The holdings within the 'Side' portion generated ~$1,808 CDN and ~$1,071 USD.

The Toronto-Dominion Bank's most recent quarterly dividend is payable on Sunday, July 31; I will receive this income on the first business day in August. This is the same issue as on Saturday, April 30.

The holdings in the FFJ Portfolio generated the following dividend income in the first 7 months of 2002:

  • 'Core' accounts: ~$13,021 CDN and ~$19,612 USD
  • 'Side' accounts: ~$13,263 CDN and ~$11,250 USD
  • YTD total: ~$26,284 CDN and ~$30,862 USD

I envision dividend income generated in 2022 from the holdings within the FFJ Portfolio will be ~$44,500 CDN and ~$58,500 USD. This is because I continue to add to various positions and several companies are increasing their dividend.

Holdings

The month-end FFJ Portfolios are accessible here. The value of the holdings in the FFJ Portfolio as of the end of January - July 2022 are:

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

NOTE: The values reflected above exclude investments in several tax-efficient accounts for which I do not disclose details.

Final Thoughts

Identifying reasonably valued companies was challenging through the better part of 2021 and the first few months of 2022. In the last few months, however, we have been presented with a window of opportunity to acquire shares at reasonable valuations. We see from several examples presented at the beginning of this post that this window has started to close of late.

Some investors jump in and out of holdings in an attempt to anticipate where share prices are headed in the short term. I have no confidence in my ability to predict where share prices will end up in the short term. I much prefer to analyze a company's valuation and acquire shares when they are reasonably valued. Investing based on short-term price gyrations strikes me as a fool's game.

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 not to make any investment decisions without conducting your research and due diligence. You should also consult your financial advisor about your specific situation.

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.