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30. <item>
31. <title>Economic Moats: Switching Costs and the Network Effect</title>
32. <link>https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/</link>
33. <comments>https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/#respond</comments>
35. <dc:creator><![CDATA[The Dividend Guy]]></dc:creator>
36. <pubDate>Thu, 02 May 2024 11:00:50 +0000</pubDate>
37. <category><![CDATA[Blog]]></category>
38. <category><![CDATA[Stock Analysis]]></category>
39. <category><![CDATA[competitive advantages: network effect]]></category>
40. <category><![CDATA[competitive advantages: switching costs]]></category>
41. <category><![CDATA[economic moats: switching costs and network effect]]></category>
42. <category><![CDATA[sticky business models have high switching costs]]></category>
43. <category><![CDATA[switching costs and sticky business models]]></category>
44. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11935</guid>
45.  
46. <description><![CDATA[<p>Following last week’s article describing the concept of economic moat, we now look at switching costs and the network effect. Both are competitive advantages that protect a company, in other words, that contribute to that company’s economic moat. Switching cost High switching costs make it difficult, costly, or both for customers to switch from one [&#8230;]</p>
47. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/">Economic Moats: Switching Costs and the Network Effect</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
48. ]]></description>
49. <content:encoded><![CDATA[<p>Following <a href="https://www.thedividendguyblog.com/?p=11935&amp;preview=true" target="_blank" rel="noopener">last week’s article</a> describing the concept of economic moat, we now look at switching costs and the network effect. Both are competitive advantages that protect a company, in other words, that contribute to that company’s economic moat.</p>
50. <h2 style="text-align: center;"><span style="color: #009430;">Switching cost</span></h2>
51. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499.jpg" rel="lightbox[11935]"><img fetchpriority="high" decoding="async" class="alignright wp-image-11938 size-medium" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499-300x256.jpg" alt="honey-dipped spoon resting on a plate; high switching costs lead to sticky business models" width="300" height="256" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499-300x256.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499-70x60.jpg 70w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>High switching costs make it difficult, costly, or both for customers to switch from one supplier to another. A company enjoying this type of protection is said to have a sticky business model because the switching costs make its customers stick with it as its supplier.</p>
52. <p>For example, half of my home is connected to an Apple product (air pod, iPhone, MacBook, Apple TV, etc.). It would be difficult to change my smartphone to an Android model. I love the convenience and connectivity of Apple’s product ecosystem. But that creates a product prison that I can’t escape without going through a steep learning curve and lots of costs.</p>
53. <h3>Some industries that enjoy high switching costs</h3>
54. <p>Microsoft&#8217;s product suite, including Windows and Office software, is deeply embedded in both individual and corporate workflows, creating high switching costs. A company moving away from Microsoft products would have to deal with downtime for employees during the migration and software installation, training costs, etc…</p>
55. <p>Many software and service-related companies benefit from high switching costs; Automatic Data Processing is enmeshed in companies’ payroll systems, and Thompson Reuters offers subscription services to legal and accounting departments.</p>
56. <p>Other industries also benefit; automakers who get their custom parts, made to their specifications, from Magna International would incur a lot of set-up costs to switch to another vendor, and the initial adjustment period with the new vendor could affect productivity.</p>
57. <p><em>Learn to invest with confidence. Download our recession-proof portfolio workbook. <script async data-uid="1af9c5dfc6" src="https://m72.ck.page/1af9c5dfc6/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
58. <h3>Switching cost types</h3>
59. <p>There are three types of switching costs:</p>
60. <ul>
61. <li><strong>Financial switching costs: </strong>Pipelines like Enbridge and TC Energy benefit from long-term contracts that ensure they get paid regardless of the economic environment. Financial switching costs are usually enforced by contracts or fees.</li>
62. <li><strong>Procedural switching costs</strong>: The time, set-up cost, and learning curve I described in the Apple, Microsoft, and Magna examples.</li>
63. <li><strong>Relational switching costs:</strong> Losses due to ending long-term business relationships can be quite high. Think of how much companies using Fastenal’s on-site vending machines or on-site hydrogen connections to Air Products &amp; Chemicals would have to pay to change suppliers. Relational switching costs also include losses in loyalty perks, specialization (Magna), product compatibility (Apple again), and data migration (such as the convenience of Equinix offering co-location services to clients that do business together).</li>
64. </ul>
65. <p>Some industries don’t benefit from high switching costs or a high degree of customer loyalty. This includes industries with many competitors and those whose products are commodities that don’t differ much from one company to another. For example, I have a loyalty card for IGA, a grocery store owned by Empire, but it doesn’t stop me from shopping at my local butcher shop, Metro, or Loblaws.</p>
66. <p>Adding a loyalty program is a good attempt at increasing switching costs, but it’s a small ditch, not a wide moat protecting the castle. As much as I love Alimentation Couche-Tard, it has little to no switching costs.</p>
67. <h2 style="text-align: center;"><span style="color: #009430;">Network effect</span></h2>
68. <p>Have you ever looked at a business and thought “Wow, it’s so easy for this company to make money, everybody uses their product!” This is the network effect.</p>
69. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over.jpg" rel="lightbox[11935]"><img decoding="async" class="alignright wp-image-11946 size-medium" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over-300x219.jpg" alt="Child falling over a waist-high snowball; the network effect makes growth snowball" width="300" height="219" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over-300x219.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>As the company offers more value to customers by improving its product, making it feature-rich or easier to use, by adding complementary products, its customer base grows. As the customer base grows, the company adds more and more value, creating a snowball effect.</p>
70. <h3>Network effect examples</h3>
71. <p>For example, Dividend Stocks Rock members benefit from that network effect; as we get more members, we have financial means to improve the platform. As the platform improves, more investors want to become members, and so on.</p>
72. <p>The best example is probably Visa and Mastercard which have built a duopoly. In the beginning, not all merchants accepted credit cards or not all credit cards. As more people used Visa and Mastercard, more merchants accepted them. Fast forward: V and MA are now processing billions of transactions per year. The best part? They earn a fee for each transaction. Try to create your own credit card company today and get merchants to accept it…</p>
73. <p>Other examples include Google and Facebook. The more people use Google to search the internet, the more data Google gets from those searches enabling it to improve search results—debatable at times—and sell more ads. As search results get better, more people use it. Facebook also benefits from the network effect; who would go there to share their stories or reach out to others if most of their friends and family weren’t on the platform?</p>
74. <p><em>Invest with confidence and enjoy your retirement. See how in our recession-proof portfolio workbook. <script async data-uid="1af9c5dfc6" src="https://m72.ck.page/1af9c5dfc6/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
75. <h3>Network effect types</h3>
76. <p>There are three types of network effects:</p>
77. <ul>
78. <li><strong>One-sided network effects</strong>: This relates to a single group of customers. As the customer base increases, the company growth gets stronger; it adds more value to its offerings which brings in more and more new customers. Meta and Google would fall into this category.</li>
79. <li><strong>Two-sided network effects</strong>: This relates to two groups of customers. For example, the more sellers you have on a platform, the more choices you have, and the more buyers come, attracting even more sellers. There’s a close relationship between the number of people looking for a place to rent and the number of people renting on Airbnb. Visa and Mastercard also fall into this category.</li>
80. <li><strong><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB.jpg" rel="lightbox[11935]"><img decoding="async" class="alignright size-medium wp-image-11941" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB-300x206.jpg" alt="Abstract representation of a network of connected lines" width="300" height="206" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB-300x206.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>Complementary network effects</strong>: This relates to separate companies mutually benefitting from each other’s growth. For example, the more Apple grows its iPhone sales, the more Broadcom sells RF filters, and the more Qualcomm sells 4G and 5G wireless chips.</li>
81. </ul>
82. <p>Companies in commodity sectors or those offering undifferentiated products, such as basic materials, some traditional manufacturing, and some energy companies, don’t benefit much from network effects. If everybody wants to buy gold, gold miners will just sell more of it, but they don’t benefit from a moat protecting their business. These businesses compete on price and operational efficiency, not on increasing value from additional users or participants.</p>
83. <p>That, in a nutshell, was switching costs and the network effect. Next week, we’ll cover the other competitive advantages that contribute to companies’ economic moat: intangible assets, cost advantages, and scale efficiency.</p>
84. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/">Economic Moats: Switching Costs and the Network Effect</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
85. ]]></content:encoded>
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88. <slash:comments>0</slash:comments>
91. </item>
92. <item>
93. <title>Moaty Dividend Stocks to Buy [Podcast]</title>
94. <link>https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/</link>
95. <comments>https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/#respond</comments>
97. <dc:creator><![CDATA[DivGuy]]></dc:creator>
98. <pubDate>Wed, 01 May 2024 10:32:26 +0000</pubDate>
99. <category><![CDATA[Blog]]></category>
100. <category><![CDATA[Podcast]]></category>
101. <category><![CDATA[Best Canadian Wide Moat Stocks 2024]]></category>
102. <category><![CDATA[Best Wide Moat Stocks 2024]]></category>
103. <category><![CDATA[Best Wide Moat Stocks To Buy]]></category>
104. <category><![CDATA[How an Economic Moat Provides a Competitive Advantage]]></category>
105. <category><![CDATA[Moat Companies to buy]]></category>
106. <category><![CDATA[Undervalued Wide-Moat Stocks to Buy]]></category>
107. <category><![CDATA[what are economic moats]]></category>
108. <category><![CDATA[what are the 5 economic moats]]></category>
109. <category><![CDATA[wide moat stocks]]></category>
110. <category><![CDATA[wide moat stocks to buy]]></category>
111. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11965</guid>
112.  
113. <description><![CDATA[<p>Initially, a moat is a deep trench around a castle to protect it from invasion and enemies. Nowadays, there are 5 sources of economic moats for companies. They refer to the factors that help a company survive and thrive. Today, we&#8217;ll explain these sources and give examples of stocks to buy for each. Define Your [&#8230;]</p>
114. <p>The post <a href="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/">Moaty Dividend Stocks to Buy [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
115. ]]></description>
116. <content:encoded><![CDATA[<p><iframe loading="lazy" style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/31038853/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/009430/time-start/00:00:00/playlist-height/200/direction/backward/download/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
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118. <p><span style="font-weight: 400;">Initially, a moat is a deep trench around a castle to protect it from invasion and enemies. Nowadays, there are 5 sources of economic moats for companies. They refer to the factors that help a company survive and thrive. Today, we&#8217;ll explain these sources and give examples of stocks to buy for each.</span></p>
119. <p style="text-align: center;"><strong><a href="http://thedividendguyblog.com/workbook" target="_blank" rel="noopener">Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free.</a></strong></p>
120. <h2 style="text-align: center;"><span style="color: #009400;">You&#8217;ll Learn</span></h2>
121. <ul>
122. <li><span style="font-weight: 400;">Moat companies are businesses that show solid competitive advantages or some barriers for competitors to enter their niche. There are narrow and wide-moat companies.</span></li>
123. <li>The first source of moat discussed is switching costs. Switching costs can be financial, procedural, or relational. Automatic Data Processing (ADP), Microsoft (MSFT), Apple (AAPL), and Air Products and Chemicals (APD) are good examples.</li>
124. <li>Intangible assets moat regroup intellectual property, brand equity, customer relationships, and proprietary technology. Starbucks (SBUX), Nike (NKE), and McDonalds (MCD) fit well in this category.</li>
125. <li>The network effect relates to companies with products or services that everybody uses. There are one-sided, two-sided, and complementary network effects that make Visa (V) and Mastercard (MA) good candidates.</li>
126. <li>The cost advantage moat allows businesses to crush competition with low prices or benefit from a more significant profit. Costco (COST), Canadian Natural Resources (CNQ), and Canadian National Railway (CNR) represent great opportunities.</li>
127. <li>Efficient scale <span style="font-weight: 400;">benefits companies operating in a market that only supports one or a few competitors. Canadian banks ((RY), (NA.TO), (TD), (BMO), (BNS), (CMI)), Telus (TU), and Canadian National Railway (CNR) could be worth adding to your portfolio.</span></li>
128. <li><span style="font-weight: 400;">How can investors assess the sustainability of these moats?</span></li>
129. <li><span style="font-weight: 400;">To what extent should investors follow moaty companies? Is it a “nice-to-have,” or should each of our holdings show at least one moat?</span></li>
130. </ul>
131. <h2 id="unique-identifier" style="text-align: center;"><span style="color: #009430;">Related Content</span></h2>
132. <p>Get more details about how to use economic moats in your investment thesis.</p>
133. <blockquote class="wp-embedded-content" data-secret="26sIUi8ZJE"><p><a href="https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/">Add Economic Moats to Your Stock Analysis</a></p></blockquote>
134. <p><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="&#8220;Add Economic Moats to Your Stock Analysis&#8221; &#8212; The Dividend Guy Blog" src="https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/embed/#?secret=hLQbrWiJsO#?secret=26sIUi8ZJE" data-secret="26sIUi8ZJE" width="600" height="338" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe></p>
135. <p><span style="font-weight: 400;">Buying at an all-time high is frightening for many investors, as a mistake can become costly! Considering the current market&#8217;s high prices, should you wait or buy? How do you determine which stocks are worth a spot in your portfolio? Let&#8217;s discuss valuation, the Dividend Discount Model (DDM), yield history, PE ratio trend, value score, payout ratios, and more.</span></p>
136. <blockquote class="wp-embedded-content" data-secret="Nyaj4uIcnQ"><p><a href="https://www.thedividendguyblog.com/all-time-high-should-i-buy/">All-Time High, Should I Buy? [Podcast]</a></p></blockquote>
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153. <hr />
154. <p><em>This podcast episode has been provided by <a href="http://dividendstocksrock.com">Dividend Stocks Rock</a>.</em></p>
155. <p><a href="http://dividendstocksrock.com"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-10548" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png" alt="" width="745" height="93" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png 745w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock-300x37.png 300w" sizes="(max-width: 745px) 100vw, 745px" /></a></p>
156. <p>&nbsp;</p>
157. <p>The post <a href="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/">Moaty Dividend Stocks to Buy [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
158. ]]></content:encoded>
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161. <slash:comments>0</slash:comments>
164. </item>
165. <item>
166. <title>Add Economic Moats to Your Stock Analysis</title>
167. <link>https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/</link>
168. <comments>https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/#respond</comments>
170. <dc:creator><![CDATA[The Dividend Guy]]></dc:creator>
171. <pubDate>Thu, 25 Apr 2024 11:00:32 +0000</pubDate>
172. <category><![CDATA[Blog]]></category>
173. <category><![CDATA[Stock Analysis]]></category>
174. <category><![CDATA[competitive advantages: economic moats]]></category>
175. <category><![CDATA[economic moats]]></category>
176. <category><![CDATA[economic moats: what are]]></category>
177. <category><![CDATA[narrow moat]]></category>
178. <category><![CDATA[stock analysis: review economic moat]]></category>
179. <category><![CDATA[wide moat]]></category>
180. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11931</guid>
181.  
182. <description><![CDATA[<p>Adding economic moats to your stock analysis can help you to develop and be confident in your investment thesis, i.e., why a stock is a good pick for your portfolio. A company’s economic moat can also shed light on loser stocks you have and don’t know what to do with. A moat is a ditch, [&#8230;]</p>
183. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/">Add Economic Moats to Your Stock Analysis</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
184. ]]></description>
185. <content:encoded><![CDATA[<p>Adding economic moats to your stock analysis can help you to develop and be confident in your investment thesis, i.e., why a stock is a good pick for your portfolio. A company’s economic moat can also shed light on loser stocks you have and don’t know what to do with.</p>
186. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/castle-and-moat-seen-from-above.jpg" rel="lightbox[11931]"><img loading="lazy" decoding="async" class="alignright size-medium wp-image-11932" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/castle-and-moat-seen-from-above-300x225.jpg" alt="Castle surrounded by moat seen from above" width="300" height="225" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/castle-and-moat-seen-from-above-300x225.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/castle-and-moat-seen-from-above-1024x768.jpg 1024w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/castle-and-moat-seen-from-above-768x576.jpg 768w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/castle-and-moat-seen-from-above.jpg 1440w" sizes="(max-width: 300px) 100vw, 300px" /></a>A moat is a ditch, either dry or filled with water, surrounding a castle or town, that acts as a primary line of defense. Historically, moats were used to protect our most precious asset: where we live.</p>
187. <p>The term economic moat refers to the factors that help a company survive and thrive, and how long these factors will exist. In other words, what keeps the castle standing and for how long. Is the castle protected by a moat and structures that are wide and built to last, or is it without a moat, still standing only because the lord of the castle is a genius that no one wants to or can take down for now?</p>
188. <p>Let’s dig in.</p>
189. <h2 style="text-align: center;"><span style="color: #009430;">Protection offered by economic moats</span></h2>
190. <p>An economic moat is a lasting competitive advantage that makes a company better than the others. A wide and durable economic moat helps a company ward off competition and makes it easier for it to generate above-average returns for years.</p>
191. <p>What constitutes an economic moat for one company or industry differs from another. <a href="https://www.morningstar.com/stocks/morningstar-economic-moat-rating-3" target="_blank" rel="noopener">Morningstar</a> identifies different types of protection that constitute economic moats:</p>
192. <ul>
193. <li>Switching costs that make it too difficult or costly for customers to switch from one supplier to another. A company enjoying this type of protection is said to have a sticky business model.</li>
194. <li>A network effect that makes a product or service more valuable and appealing as more people use it. It’s a snowball effect; as more people buy the product, the company improves it, making existing customers happier and drawing in new customers. Rinse and repeat.</li>
195. <li>Intangible assets include patents, trademarks, brand recognition, and proprietary technology.</li>
196. <li>Cost advantages refer to the ability to produce goods or services more cheaply than the competition. Just think about Amazon or Walmart.</li>
197. <li>Efficient scale means that the market where a company operates limits the number of competitors, for example, regulated utilities that are granted a monopoly over a region.</li>
198. </ul>
199. <p>A company can have more than one of these types of protection in its armor. Stay tuned. Articles in the next few weeks will explore these types of economic moats in detail.</p>
200. <p><em>Get great stock ideas regularly. Download our Rock Stars list.<script async data-uid="b216981738" src="https://m72.ck.page/b216981738/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
201. <h2 style="text-align: center;"><span style="color: #009430;">How long will the moat last?</span></h2>
202. <p>Another aspect of economic moats is how long they will last. Some advantages could quickly evaporate while others may remain for a long period. Patents expire, someone can develop better proprietary technology, and governments can step in to open up competition in monopoly or oligopoly situations. Morningstar classifies moat life expectancy as follows:</p>
203. <h3>Wide moat (20+ years)</h3>
204. <p>A wide moat is one or more long-lasting competitive advantages, expected to be effective for 20 years or more. For example, railway companies aren’t likely to see competitors build an alternative railroad alongside theirs overnight, if ever.</p>
205. <h3>Narrow moat (10 years)</h3>
206. <p>Narrow moats are competitive advantages that exist today, but that might not continue in the future. Interpretation could come into play; for example, Morningstar gives a “narrow moat” rating to Enbridge, despite its contracts being usually for over 20 years. Morningstar says <em>“We are far more uncertain around long-term demand in the latter stages of our forecast due to the high carbon emissions intensity associated with the full cycle of oil sands production, which is a primary source for Enbridge&#8217;s assets”.</em></p>
207. <h3>No moat</h3>
208. <p>Companies with no clear competitive advantage, or with some that will quickly dissipate, have no moat.</p>
209. <h2 style="text-align: center;"><span style="color: #009430;">Impact of moat duration</span></h2>
210. <p>Why is the moat’s life expectancy important in your analysis? Because it determines how much time you have to generate profit from your investment. When you invest in a company with a wide moat, you have a longer horizon to make money since the business will benefit from competitive advantages for a long time.</p>
211. <p>In contrast, a company that has no moat, such as Peloton, has little time to generate a maximum profit before competitors see the opportunity and enter the market. Since there’s no protection, the castle can easily be taken by force.</p>
212. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Morningstar-Moat-Duration.png" rel="lightbox[11931]"><img loading="lazy" decoding="async" class="aligncenter wp-image-11934 size-full" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Morningstar-Moat-Duration.png" alt="Morningstar graph showing time horizon for return on capital for wide, narrow, and no moat" width="596" height="380" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Morningstar-Moat-Duration.png 596w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Morningstar-Moat-Duration-300x191.png 300w" sizes="(max-width: 596px) 100vw, 596px" /></a></p>
213. <p>Next week, we dive into the types of moats, or competitive advantages, in more detail.</p>
214. <h2 style="text-align: center;"><span style="color: #009430;">Are companies with economic moats good investments?</span></h2>
215. <p>Not necessarily. Some companies don’t have long-lasting moats or none at all, but are still amazing. Some companies show a wide moat yet end up reporting terrible results. Here are a few examples:</p>
216. <ul>
217. <li><strong>AT&amp;T (T)</strong> has a narrow moat according to Morningstar but has shown terrible returns over the past 10 years (32% total return).</li>
218. <li><strong>Equinix (EQIX) </strong>has a narrow moat rating but generated 485% in total return during the same period.</li>
219. <li><strong>Great-West Lifeco</strong> <strong>(GWO.TO)</strong> has no moat and generated a 121% total return.</li>
220. </ul>
221. <p>A company’s moat is just one of the things to consider.</p>
222. <p><em>Get great stock ideas regularly. Download our Rock Stars list.<script async data-uid="b216981738" src="https://m72.ck.page/b216981738/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
223. <h2 style="text-align: center;"><span style="color: #009430;">Finding information about company moats</span></h2>
224. <p>Here are some resources where you can read about companies&#8217; economic moats:</p>
225. <ul>
226. <li>Investment websites and blogs: Sites like this one! Also, the investment thesis on the <a href="https://www.dividendstocksrock.com" target="_blank" rel="noopener">Dividend Stocks Rock</a> stock cards mentions the competitive advantages of companies. Morningstar, Seeking Alpha, and Investopedia publish articles and analyses discussing companies&#8217; economic moats.</li>
227. <li>Financial news outlets: Bloomberg, CNBC, and the Wall Street Journal frequently cover companies&#8217; competitive advantages and economic moats.</li>
228. <li>Company reports and filings: Companies often discuss their competitive advantages and strategies in annual reports, investor presentations, and regulatory filings.</li>
229. <li>Industry reports and analyst notes: Research reports from investment banks, equity research firms, and independent analysts.</li>
230. <li>Business and finance magazines articles including those of Forbes, Fortune, and the Economist</li>
231. </ul>
232. <h2 style="text-align: center;"><span style="color: #009430;">Takeaway</span></h2>
233. <p>After reading several economic moat ratings by Morningstar, I can’t say that I always agree with their analysis. Since the goal is to assess what could happen in the future, your interpretation of a company’s moat might differ from Morningstar&#8217;s or mine. Beauty is in the eye of the beholder.</p>
234. <p>That said, I like the concept of economic moats. It helps define a strong investment thesis and helps investors figure out if the <a href="https://www.thedividendguyblog.com/detect-losers-find-winners-dividend-triangle/" target="_blank" rel="noopener">dividend triangle</a> will continue to grow based on the company’s competitive advantages. If you can’t find those advantages, those moats, the company is probably riding a short-term hype.</p>
235. <p>Thriving businesses have many things in common, including a strong dividend triangle along with a set of moats protecting the business. Next time you review a company’s dividend triangle, ask yourself if the business has a strong economic moat that will enable it to sustain its dividend triangle trend.</p>
236. <p>&nbsp;</p>
237. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/">Add Economic Moats to Your Stock Analysis</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
238. ]]></content:encoded>
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241. <slash:comments>0</slash:comments>
244. </item>
245. <item>
246. <title>Short Selling, Profit Protection, Chowder Rule: What You Need to Know [Podcast]</title>
247. <link>https://www.thedividendguyblog.com/short-selling-profit-protection-chowder-rule-what-you-need-to-know/</link>
248. <comments>https://www.thedividendguyblog.com/short-selling-profit-protection-chowder-rule-what-you-need-to-know/#respond</comments>
250. <dc:creator><![CDATA[DivGuy]]></dc:creator>
251. <pubDate>Wed, 24 Apr 2024 10:32:06 +0000</pubDate>
252. <category><![CDATA[Blog]]></category>
253. <category><![CDATA[Investing Strategy]]></category>
254. <category><![CDATA[Podcast]]></category>
255. <category><![CDATA[chowder rule]]></category>
256. <category><![CDATA[how to use chowder rule]]></category>
257. <category><![CDATA[limit potential losses]]></category>
258. <category><![CDATA[profit preservation risks]]></category>
259. <category><![CDATA[profit protection]]></category>
260. <category><![CDATA[short reports]]></category>
261. <category><![CDATA[short selling]]></category>
262. <category><![CDATA[short selling risks]]></category>
263. <category><![CDATA[short squeeze]]></category>
264. <category><![CDATA[should you short sell]]></category>
265. <category><![CDATA[what is the chowder rule]]></category>
266. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11956</guid>
267.  
268. <description><![CDATA[<p>Easy solutions can involve serious risks. Here&#8217;s what to consider before doing Short Selling, Profit Protection, and the Chowder Rule. Download the Dividend Rock Stars List and Select Stocks Among the Best Assets! Enter your name and email to get the free spreadsheet. You&#8217;ll Learn Short selling occurs when an investor borrows a security, sells [&#8230;]</p>
269. <p>The post <a href="https://www.thedividendguyblog.com/short-selling-profit-protection-chowder-rule-what-you-need-to-know/">Short Selling, Profit Protection, Chowder Rule: What You Need to Know [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
270. ]]></description>
271. <content:encoded><![CDATA[<p><iframe loading="lazy" style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/30958643/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/009430/time-start/00:00:00/playlist-height/200/direction/backward/download/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
272. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
273. <p>Easy solutions can involve serious risks. Here&#8217;s what to consider before doing Short Selling, Profit Protection, and the Chowder Rule.</p>
274. <p style="text-align: center;"><strong><a href="http://thedividendguyblog.com/rockstar" target="_blank" rel="noopener">Download the Dividend Rock Stars List and Select Stocks Among the Best Assets! Enter your name and email to get the free spreadsheet.</a></strong></p>
275. <h2 style="text-align: center;"><span style="color: #009400;">You&#8217;ll Learn</span></h2>
276. <ul>
277. <li><span style="font-weight: 400;">Short selling occurs when an investor borrows a security, sells it on the open market, and expects to repurchase it for less money.</span></li>
278. <li><span style="font-weight: 400;">Why would an investor short-sell its shares? What are the benefits?</span></li>
279. <li>The risks of this strategy are real and investors could lose a lot of money!</li>
280. <li><span style="font-weight: 400;">Sometimes, an expert issues a short report that can create a lot of doubt in investors’ minds. A good example would be the recent one on Brookfield. What was the impact, and should investors follow such reports?</span></li>
281. <li><span style="font-weight: 400;">Profit protection, also known as profit preservation or risk management, refers to investors selling their shares to safeguard existing profits or limit potential losses. Is this a good reason to sell, and why?</span></li>
282. <li>What could investors do instead?</li>
283. <li><span style="font-weight: 400;">It seems like short-selling and profit protection both evolve around the speculation, which you try to avoid. Why is it dangerous to speculate for investors?</span></li>
284. <li><span style="font-weight: 400;">Now, let’s discuss the Chowder Rule, which many members use at <a href="http://dividendstocksrock.com" target="_blank" rel="noopener">Dividend Stocks Rock</a>. What is it?</span></li>
285. <li><span style="font-weight: 400;">Which minimum Chowder Score should investors aim at?</span></li>
286. <li><span style="font-weight: 400;">The Chowder Rule is interesting for finding a balance between dividend yield and growth. But are there any disadvantages to using it?</span></li>
287. <li>Mike ends the episode by adding a warning about easy solutions and the fact that there is no shortcut to be a successful investor.</li>
288. </ul>
289. <h2 id="unique-identifier" style="text-align: center;"><span style="color: #009430;">Related Content</span></h2>
290. <p>Investors&#8217; main goal is to make a profit. So when your holdings go up 25, 50, or 75% and more, you may wonder if you should cash in your profit. Here&#8217;s when to sell your winners!</p>
291. <p><iframe loading="lazy" title="YouTube video player" src="https://www.youtube.com/embed/lON-NsQeMUk?si=ifWZ2D9lOAuWN--s" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
292. <p>Here&#8217;s another podcast episode from the Moose on the Loose to present Mike&#8217;s point of view on sophisticated investment strategies.</p>
293. <p><iframe loading="lazy" style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/30845888/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/bc1b23/time-start/00:00:00/hide-show/yes/playlist-height/200/direction/backward/hide-subscribe/yes/hide-share/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
294. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
295. <hr />
296. <p><strong>The Best Dividends to Your Inbox!</strong></p>
297. <p>Download our Dividend Rock Star List now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails, including our latest podcast episode!</p>
298. <p></p>
299. <hr />
300. <p><strong>Follow Mike, The Dividend Guy, on:</strong></p>
301. <ul>
302. <li><a href="https://twitter.com/TheDividendGuy">Twitter</a></li>
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305. </ul>
306. <hr />
307. <p><strong>Have Ideas? </strong></p>
308. <p>If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an <a href="mailto:dividendustries@gmail.com">email</a>.</p>
309. <hr />
310. <p><em>This podcast episode has been provided by <a href="http://dividendstocksrock.com">Dividend Stocks Rock</a>.</em></p>
311. <p><a href="http://dividendstocksrock.com"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-10548" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png" alt="" width="745" height="93" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png 745w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock-300x37.png 300w" sizes="(max-width: 745px) 100vw, 745px" /></a></p>
312. <p>The post <a href="https://www.thedividendguyblog.com/short-selling-profit-protection-chowder-rule-what-you-need-to-know/">Short Selling, Profit Protection, Chowder Rule: What You Need to Know [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
313. ]]></content:encoded>
315. <wfw:commentRss>https://www.thedividendguyblog.com/short-selling-profit-protection-chowder-rule-what-you-need-to-know/feed/</wfw:commentRss>
316. <slash:comments>0</slash:comments>
319. </item>
320. <item>
321. <title>Doubling Down on Telus in Smith Manoeuvre &#8211; March Dividend Income Report</title>
322. <link>https://www.thedividendguyblog.com/doubling-down-on-telus-in-smith-manoeuvre-march-dividend-income-report/</link>
323. <comments>https://www.thedividendguyblog.com/doubling-down-on-telus-in-smith-manoeuvre-march-dividend-income-report/#comments</comments>
325. <dc:creator><![CDATA[DivGuy]]></dc:creator>
326. <pubDate>Fri, 19 Apr 2024 19:08:37 +0000</pubDate>
327. <category><![CDATA[Blog]]></category>
328. <category><![CDATA[Dividend Income Report]]></category>
329. <category><![CDATA[dividend guy portfolio]]></category>
330. <category><![CDATA[dividend guy portfolio results]]></category>
331. <category><![CDATA[Dividend Guy portfolio returns]]></category>
332. <category><![CDATA[mike heroux portfolio]]></category>
333. <category><![CDATA[mike heroux smith manoeuvre]]></category>
334. <category><![CDATA[monthly dividend income report]]></category>
335. <category><![CDATA[the dividend guy portfolio]]></category>
336. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11940</guid>
337.  
338. <description><![CDATA[<p>In September of 2017, I received slightly over $100K from my former employer, representing the commuted value of my pension plan. I decided to invest 100% of this money in dividend growth stocks. Each month, I publish my results on those investments. I don’t do this to brag. I do this to show my readers [&#8230;]</p>
339. <p>The post <a href="https://www.thedividendguyblog.com/doubling-down-on-telus-in-smith-manoeuvre-march-dividend-income-report/">Doubling Down on Telus in Smith Manoeuvre &#8211; March Dividend Income Report</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
340. ]]></description>
341. <content:encoded><![CDATA[<p><img loading="lazy" decoding="async" class="aligncenter wp-image-8237" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2017/12/dgb-small.png" alt="Dividend Guy Blog Logo Small" width="600" height="163" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2017/12/dgb-small.png 1105w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2017/12/dgb-small-300x82.png 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2017/12/dgb-small-768x209.png 768w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2017/12/dgb-small-1024x279.png 1024w" sizes="(max-width: 600px) 100vw, 600px" /></p>
342. <p>In September of 2017, I received slightly over $100K from my former employer, representing the commuted value of my pension plan. I decided to invest <a href="https://www.thedividendguyblog.com/2017/10/31/how-many-stocks-should-i-hold-for-a-100k-portfolio/">100% of this money in dividend growth stocks</a>.</p>
343. <p>Each month, I publish my results on those investments. I don’t do this to brag. I do this to show my readers that it is possible to build a lasting portfolio during all market conditions. Some months we might appear to underperform, but you must trust the process over the long term to evaluate our performance more accurately.</p>
344. <h2 style="text-align: center;"><span style="color: #009430;">Performance in Review</span></h2>
345. <p>Let’s start with the numbers as of April 5th 2024 (before the bell):</p>
346. <p>Original amount invested in September 2017 (no additional capital added): $108,760.02.</p>
347. <ul>
348. <li><strong>Current portfolio value:</strong> <strong>$245,539.73</strong></li>
349. <li>Dividends paid: $4,490.67 (TTM)</li>
350. <li>Average yield: 1.83%</li>
351. <li>2023 performance: +20.69%</li>
352. <li>SPY= +26.19%, XIU.TO = +11.87%</li>
353. <li><strong>Dividend growth: +1.7%</strong></li>
354. </ul>
355. <p><strong>Total return since inception (Sep 2017 – April 2024): 125.76%</strong></p>
356. <p><strong>Annualized return (since September 2017 – 79 months): 13.17%</strong></p>
357. <p class="DSRbodytext">SPDR® S&amp;P 500 ETF Trust (SPY) annualized return (since Sept 2017): 13.64% (total return 132.10%)</p>
358. <p class="DSRbodytext">iShares S&amp;P/TSX 60 ETF (XIU.TO) annualized return (since Sept 2017): 9.49% (total return 81.67%)</p>
359. <figure id="attachment_11943" aria-describedby="caption-attachment-11943" style="width: 591px" class="wp-caption aligncenter"><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/sector-allocation.png" rel="lightbox[11940]"><img loading="lazy" decoding="async" class="size-full wp-image-11943" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/sector-allocation.png" alt="Dynamic sector allocation calculated by DSR PRO as of March 1st 2024." width="591" height="419" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/sector-allocation.png 591w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/sector-allocation-300x213.png 300w" sizes="(max-width: 591px) 100vw, 591px" /></a><figcaption id="caption-attachment-11943" class="wp-caption-text">Dynamic sector allocation calculated by <a href="http://dividendstocksrock.com" target="_blank" rel="noopener">DSR PRO</a> as of March 1st 2024.</figcaption></figure>
360. <h2 style="text-align: center;"><span style="color: #009430;">Smith Manoeuvre Update</span></h2>
361. <p>Slowly but surely, the portfolio is taking shape with 10 companies spread across 7 sectors. My goal is to build a portfolio generating 4-5% in yield across 15 positions. I will continue to add new stock monthly until I reach that goal. My current yield is 5.13%.</p>
362. <figure id="attachment_11944" aria-describedby="caption-attachment-11944" style="width: 682px" class="wp-caption aligncenter"><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/SM-allocation.png" rel="lightbox[11940]"><img loading="lazy" decoding="async" class="size-full wp-image-11944" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/SM-allocation.png" alt="Smith Manoeuvre Portfolio Allocation." width="682" height="453" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/SM-allocation.png 682w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/SM-allocation-300x199.png 300w" sizes="(max-width: 682px) 100vw, 682px" /></a><figcaption id="caption-attachment-11944" class="wp-caption-text">Smith Manoeuvre Portfolio Allocation.</figcaption></figure>
363. <h3>Doubling down on Telus (T.TO) (adding 23 shares)</h3>
364. <p>The goal of this portfolio is to spice up things a little and make plays on higher yielding stocks.</p>
365. <ol>
366. <li>I can use the interest paid to reduce my dividend income.</li>
367. <li>There are some interesting long-term plays where companies like Telus could get back on track and generate solid returns.</li>
368. </ol>
369. <p>Since Telus is on my buy list, I’m good with eating my own cooking. Watch my recent video about Telus and BCE to get my full analysis.</p>
370. <p><iframe loading="lazy" title="YouTube video player" src="https://www.youtube.com/embed/qzICjtuCPxE?si=__nQONoonGcK322V" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
371. <p>Here’s my SM portfolio as of April 5<sup>th</sup>, 2024 (before the bell):</p>
372. <table width="595">
373. <tbody>
374. <tr>
375. <td width="219"><strong>Company Name</strong></td>
376. <td width="126"><strong>Ticker</strong></td>
377. <td width="121"><strong>Sector</strong></td>
378. <td width="120"><strong>Market Value</strong></td>
379. </tr>
380. <tr>
381. <td width="219"><strong>Brookfield Infrastructure</strong></td>
382. <td width="126">BIPC.TO</td>
383. <td width="121">Utilities</td>
384. <td width="120">$895.00</td>
385. </tr>
386. <tr>
387. <td width="219"><strong>Canadian National Resources</strong></td>
388. <td width="126">CNQ.TO</td>
389. <td width="121">Energy</td>
390. <td width="120">$1,193.83</td>
391. </tr>
392. <tr>
393. <td width="219"><strong>Capital Power</strong></td>
394. <td width="126">CPX.TO</td>
395. <td width="121">Utilities</td>
396. <td width="120">$556.05</td>
397. </tr>
398. <tr>
399. <td width="219"><strong>Canadian Tire</strong></td>
400. <td width="126">CTA.A.TO</td>
401. <td width="121">Consumer Disc.</td>
402. <td width="120">$936.95</td>
403. </tr>
404. <tr>
405. <td width="219"><strong>Exchange Income</strong></td>
406. <td width="126">EIF.TO</td>
407. <td width="121">Industrials</td>
408. <td width="120">$1,542.72</td>
409. </tr>
410. <tr>
411. <td width="219"><strong>Great-West Lifeco</strong></td>
412. <td width="126">GWO.TO</td>
413. <td width="121">Financials</td>
414. <td width="120">$717.23</td>
415. </tr>
416. <tr>
417. <td width="219"><strong>National Bank</strong></td>
418. <td width="126">NA.TO</td>
419. <td width="121">Financials</td>
420. <td width="120">$674.82</td>
421. </tr>
422. <tr>
423. <td width="219"><strong>Nutrien</strong></td>
424. <td width="126">NTR.TO</td>
425. <td width="121">Materials</td>
426. <td width="120">$990.21</td>
427. </tr>
428. <tr>
429. <td width="219"><strong>Telus</strong></td>
430. <td width="126">T.TO</td>
431. <td width="121">Communications</td>
432. <td width="120">$1,319.74</td>
433. </tr>
434. <tr>
435. <td width="219"><strong>TD Bank</strong></td>
436. <td width="126">TD.TO</td>
437. <td width="121">Financials</td>
438. <td width="120">$1,134.70</td>
439. </tr>
440. <tr>
441. <td width="219"><strong>Cash (Margin)</strong></td>
442. <td width="126"></td>
443. <td width="121"></td>
444. <td width="120">$13.22</td>
445. </tr>
446. <tr>
447. <td width="219"><strong>Total</strong></td>
448. <td width="126"></td>
449. <td width="121"></td>
450. <td width="120">$9,974.47</td>
451. </tr>
452. <tr>
453. <td width="219"><strong>Amount borrowed</strong></td>
454. <td width="126"></td>
455. <td width="121"></td>
456. <td width="120">-$9,500.00</td>
457. </tr>
458. </tbody>
459. </table>
460. <p>Let’s look at my CDN portfolio. Numbers are as of April 5<sup>th</sup>, 2024 (before the bell):</p>
461. <h2 style="text-align: center;"><span style="color: #009430;">Canadian Portfolio (CAD)</span></h2>
462. <table width="595">
463. <tbody>
464. <tr>
465. <td width="219"><strong>Company Name</strong></td>
466. <td width="126"><strong>Ticker</strong></td>
467. <td width="121"><strong>Sector</strong></td>
468. <td width="120"><strong>Market Value</strong></td>
469. </tr>
470. <tr>
471. <td width="219"><strong>Alimentation Couche-Tard</strong></td>
472. <td width="126">ATD.B.TO</td>
473. <td width="121">Cons. Staples</td>
474. <td width="120">$22,179.82</td>
475. </tr>
476. <tr>
477. <td width="219"><strong>Brookfield Renewable</strong></td>
478. <td width="126">BEPC.TO</td>
479. <td width="121">Utilities</td>
480. <td width="120">$8,485.62</td>
481. </tr>
482. <tr>
483. <td width="219"><strong>CCL Industries</strong></td>
484. <td width="126">CCL.B.TO</td>
485. <td width="121">Materials</td>
486. <td width="120">$9,452.80</td>
487. </tr>
488. <tr>
489. <td width="219"><strong>Fortis</strong></td>
490. <td width="126">FTS.TO</td>
491. <td width="121">Utilities</td>
492. <td width="120">$9,052.80</td>
493. </tr>
494. <tr>
495. <td width="219"><strong>Granite REIT</strong></td>
496. <td width="126">GRT.UN.TO</td>
497. <td width="121">Real Estate</td>
498. <td width="120">$9,600.00</td>
499. </tr>
500. <tr>
501. <td width="219"><strong>Magna International</strong></td>
502. <td width="126">MG.TO</td>
503. <td width="121">Cons. Discre.</td>
504. <td width="120">$4,961.60</td>
505. </tr>
506. <tr>
507. <td width="219"><strong>National Bank</strong></td>
508. <td width="126">NA.TO</td>
509. <td width="121">Financials</td>
510. <td width="120">$13,608.87</td>
511. </tr>
512. <tr>
513. <td width="219"><strong>Royal Bank</strong></td>
514. <td width="126">RY.TO</td>
515. <td width="121">Financial</td>
516. <td width="120">$8,890.05</td>
517. </tr>
518. <tr>
519. <td width="219"><strong>Stella Jones</strong></td>
520. <td width="126">SJ.TO</td>
521. <td width="121">Materials</td>
522. <td width="120">11,700.44</td>
523. </tr>
524. <tr>
525. <td width="219"><strong> </strong></td>
526. <td width="126"></td>
527. <td width="121"></td>
528. <td width="120"></td>
529. </tr>
530. <tr>
531. <td width="219"><strong>Cash</strong></td>
532. <td width="126"></td>
533. <td width="121"></td>
534. <td width="120">$906.79</td>
535. </tr>
536. <tr>
537. <td width="219"><strong>Total</strong></td>
538. <td width="126"></td>
539. <td width="121"><strong> </strong></td>
540. <td width="120"><strong>$98,838.73</strong></td>
541. </tr>
542. </tbody>
543. </table>
544. <p><strong>My account shows a variation of -$925.73 (-1%) since the last income report on March 1<sup>st</sup>.</strong></p>
545. <p><strong>Couche-Tard created a commotion!</strong></p>
546. <p>It was a rare disappointing quarter for ATD and the stock price dipped by more than 5% on earnings day due to revenue being down 2.2% and EPS was down 12.2%. Total merchandise sales increased slightly by 1.6%, but fuel revenues were down 2.6% mostly driven by weak performances in Canada (-8.3%) and in the U.S. (-7.2%). There is a sign the economy is slowing down. The earnings decrease is primarily driven by lower road transportation fuel gross margins in the U.S. and softness in traffic as a portion of the customers remain impacted by challenging economic conditions. Management&#8217;s focus is on their most recent acquisition to generate synergies ASAP.</p>
547. <p>I&#8217;ve shared my thoughts more in depth in this <a href="https://moosemarkets.com/podcast/" target="_blank" rel="noopener">Moose on The Loose</a> Episode:</p>
548. <p><iframe loading="lazy" style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/30502438/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/bc1b23/time-start/00:00:00/hide-show/yes/playlist-height/200/direction/backward/hide-subscribe/yes/hide-share/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
549. <p>Here’s my US portfolio now. Numbers are as of April 5<sup>th</sup>, 2024 (before the bell):</p>
550. <h2 style="text-align: center;"><span style="color: #009430;">U.S. Portfolio (USD)</span></h2>
551. <table width="565">
552. <tbody>
553. <tr>
554. <td width="222"><strong>Company Name</strong></td>
555. <td width="94"><strong>Ticker</strong></td>
556. <td width="120"><strong>Sector</strong></td>
557. <td width="119"><strong>Market Value</strong></td>
558. </tr>
559. <tr>
560. <td width="222"><strong>Apple</strong></td>
561. <td width="94">AAPL</td>
562. <td width="120">Inf. Technology</td>
563. <td width="119">$6,755.60</td>
564. </tr>
565. <tr>
566. <td width="222"><strong>Automatic Data Processing</strong></td>
567. <td width="94">ADP</td>
568. <td width="120">Industrials</td>
569. <td width="119">$9,176.62</td>
570. </tr>
571. <tr>
572. <td width="222"><strong>BlackRock</strong></td>
573. <td width="94">BLK</td>
574. <td width="120">Financials</td>
575. <td width="119">$11,089.26</td>
576. </tr>
577. <tr>
578. <td width="222"><strong>Brookfield Corp.</strong></td>
579. <td width="94">BN</td>
580. <td width="120">Financials</td>
581. <td width="119">$13,754.30</td>
582. </tr>
583. <tr>
584. <td width="222"><strong>Home Depot</strong></td>
585. <td width="94">HD</td>
586. <td width="120">Cons. Discret.</td>
587. <td width="119">$10,730.40</td>
588. </tr>
589. <tr>
590. <td width="222"><strong>LeMaitre Vascular</strong></td>
591. <td width="94">LMAT</td>
592. <td width="120">Healthcare</td>
593. <td width="119">$6,377.00</td>
594. </tr>
595. <tr>
596. <td width="222"><strong>Microsoft</strong></td>
597. <td width="94">MSFT</td>
598. <td width="120">Inf. Technology</td>
599. <td width="119">$19,640.36</td>
600. </tr>
601. <tr>
602. <td width="222"><strong>Starbucks</strong></td>
603. <td width="94">SBUX</td>
604. <td width="120">Cons. Discret.</td>
605. <td width="119">$7,447.70</td>
606. </tr>
607. <tr>
608. <td width="222"><strong>Texas Instruments</strong></td>
609. <td width="94">TXN</td>
610. <td width="120">Inf. Technology</td>
611. <td width="119">$8,426.50</td>
612. </tr>
613. <tr>
614. <td width="222"><strong>Visa</strong></td>
615. <td width="94">V</td>
616. <td width="120">Financials</td>
617. <td width="119">$13,700.00</td>
618. </tr>
619. <tr>
620. <td width="222"><strong>Cash</strong></td>
621. <td width="94"></td>
622. <td width="120"></td>
623. <td width="119">$667.63</td>
624. </tr>
625. <tr>
626. <td width="222"><strong>Total</strong></td>
627. <td width="94"></td>
628. <td width="120"><strong> </strong></td>
629. <td width="119"><strong>$107,765.37</strong></td>
630. </tr>
631. </tbody>
632. </table>
633. <p><strong>My account shows a variation of -$2,936.13 (-2.65%) since the last income report on March 1<sup>st</sup>.</strong></p>
634. <p>There wasn’t much news about this part of the portfolio this quarter. Last month I was up $3K, but this month I’m down $3K. It’s just the market dance ?. I’m making a mental note about BlackRock though. The company has reported two small dividend increases in the past couple of years. If it continues this way, I will have to sell my position and focus on companies with a stronger dividend triangle. I’m not in a hurry, but I’ll keep that in mind for early 2025 (when BLK usually announces its dividend increase).</p>
635. <h2 style="text-align: center;"><span style="color: #009430;">My Entire Portfolio Updated for Q1 2024</span></h2>
636. <p>Each quarter we run an exclusive report for Dividend Stocks Rock (DSR) members who subscribe to our very special additional service called <a href="https://www.dividendstocksrock.com/dsr-pro-members/">DSR PRO</a>. The PRO report includes a summary of each company’s earnings report for the period. We have been doing this for an entire year now and I wanted to share my own DSR PRO report for this portfolio. You can download the full PDF showing all the information about all my holdings. Results have been updated as of January 10<sup>th</sup>, 2024.</p>
637. <figure id="attachment_11140" aria-describedby="caption-attachment-11140" style="width: 720px" class="wp-caption aligncenter"><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2023/04/portfolio-report.png" rel="lightbox[11940]"><img loading="lazy" decoding="async" class="size-full wp-image-11140" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2023/04/portfolio-report.png" alt="DSR PRO Portfolio Report Example." width="720" height="251" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2023/04/portfolio-report.png 720w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2023/04/portfolio-report-300x105.png 300w" sizes="(max-width: 720px) 100vw, 720px" /></a><figcaption id="caption-attachment-11140" class="wp-caption-text"><a href="http://dividendstocksrock.com">DSR PRO</a> Portfolio Report Example.</figcaption></figure>
638. <p style="text-align: center;"><strong><a href="https://www.dividendstocksrock.com/download/11445/">Download my portfolio Q1 2024 report.</a></strong></p>
639. <h2 style="text-align: center;"><span style="color: #009430;">Dividend Income: $677.05 </span><span style="color: #009430;">CAD (-5.6% vs March 2023)</span></h2>
640. <figure id="attachment_11945" aria-describedby="caption-attachment-11945" style="width: 1118px" class="wp-caption aligncenter"><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-income.png" rel="lightbox[11940]"><img loading="lazy" decoding="async" class="size-full wp-image-11945" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-income.png" alt="Pension Dividend Income chart month over month." width="1118" height="775" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-income.png 1118w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-income-300x208.png 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-income-1024x710.png 1024w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-income-768x532.png 768w" sizes="(max-width: 1118px) 100vw, 1118px" /></a><figcaption id="caption-attachment-11945" class="wp-caption-text">Pension Dividend Income chart month over month.</figcaption></figure>
641. <p>My dividend payout is slightly smaller than last year as I previously held Enbridge, a generous dividend payer. The loss of ENB’s dividend was partially offset by dividend increases along with new dividend payers in my portfolio with stronger dividend triangles, but weaker yields.</p>
642. <p>Brookfield Corporation, CCL Industries (I literally used ENB’s proceeds to buy CCL) and LeMaitre Vascular are the new dividend payers this quarter.</p>
643. <p><strong>Dividend growth (over the past 12 months):</strong></p>
644. <ul>
645. <li>Fortis: +4.4%</li>
646. <li>Magna: +0.7%</li>
647. <li>Granite: +3.1%</li>
648. <li>CCL: new</li>
649. <li>BEPC: +19.74% (added more shares)</li>
650. <li>Visa: +15.56%</li>
651. <li>Microsoft: -5.75% (sold some shares)</li>
652. <li>Home Depot: +7.66%</li>
653. <li>Blackrock: +2%</li>
654. <li>LeMaitre: new</li>
655. <li>Brookfield: new</li>
656. <li>Currency: +0.0179%</li>
657. </ul>
658. <p><strong>Canadian Holding payouts: $345.17 CAD.</strong></p>
659. <ul>
660. <li>Fortis: $100.89</li>
661. <li>Magna: $44.19</li>
662. <li>Granite: $35.20</li>
663. <li>CCL: $40.60</li>
664. <li>BEPC: $124.29</li>
665. </ul>
666. <p><strong>U.S. Holding payouts: $243.80 USD.</strong></p>
667. <ul>
668. <li>Visa: $26.00</li>
669. <li>Microsoft: $35.25</li>
670. <li>Home Depot: $67.50</li>
671. <li>Blackrock: $71.40</li>
672. <li>LeMaitre: $16.00</li>
673. <li>Brookfield: $27.65</li>
674. </ul>
675. <p><strong>Total payouts: $677.05 CAD.</strong></p>
676. <p>*I used a USD/CAD conversion rate of 1.3613</p>
677. <p><strong>Since I started this portfolio in September 2017, I have received a total of $25,263.93 CAD in dividends. </strong> Keep in mind that this is a “pure dividend growth portfolio” <strong>as no capital can be added to this account other than retained and/or reinvested dividends</strong>. Therefore, all dividend growth is coming from the stocks and not from any additional capital being added to the account.</p>
678. <figure id="attachment_11947" aria-describedby="caption-attachment-11947" style="width: 1104px" class="wp-caption aligncenter"><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-paid.png" rel="lightbox[11940]"><img loading="lazy" decoding="async" class="size-full wp-image-11947" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-paid.png" alt="Cumulative Dividends Paid since inception." width="1104" height="635" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-paid.png 1104w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-paid-300x173.png 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-paid-1024x589.png 1024w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/div-paid-768x442.png 768w" sizes="(max-width: 1104px) 100vw, 1104px" /></a><figcaption id="caption-attachment-11947" class="wp-caption-text">Cumulative Dividends Paid since inception.</figcaption></figure>
679. <h2 style="text-align: center;"><span style="color: #009430;">Final Thoughts</span></h2>
680. <p>After doing this monthly update I realize I still have almost $2K in cash to reinvest in my portfolio! While it’s not a big amount, this money must be put to work! I’m getting close to making a decision on Magna International as it’s my smallest position in this portfolio (about 2%). I’ll be considering either selling the position or adding the full $2K to it.</p>
681. <p>While Magna Intl is an interesting play, there are a few Canadian stocks on my “wish list”. You’ll have to read my next update to find out what I’ll do with this dilemma!</p>
682. <p>Cheers,</p>
683. <p>Mike.</p>
684. <p>The post <a href="https://www.thedividendguyblog.com/doubling-down-on-telus-in-smith-manoeuvre-march-dividend-income-report/">Doubling Down on Telus in Smith Manoeuvre &#8211; March Dividend Income Report</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
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