Stocks for a US or Canadian Retirement Portfolio - October 7, 2001

Company (Symbol)                 Price    Price                Div.     P/E      Erngs   Div

                                                10/01   11/00               Yield               Grwth  Grwth

BCE (BCE)                             22.70   28.22               4.3       20        26        2

Conagra Foood (CAG)            22.85   18.69               4.0       16        11        14

Enbridge (ENBR)                    27.48   22.69               5.2       10.5     13.6     11.5

Gold Fields Ltd. (GOLD)        4.95     3.63                 4.3       13.0     --         --

GPU Inc. (GPU)                      40.80   31.69               5.9       9.5       --         2.7

Heinz (HNZ)                           42.37   36.81               3.5       31        5          8

Imperial Oil (IMO)                 27.30   26.70               3.1       11        10        18

Kimco Realty (KIM)               48.71   41.50               5.7       16        15        13

Newell Rubbermaid (NWL)   24.11   25.94               3.5       20        --         9.7

Occidental Petr. (OXY)          25.30   23.44               3.7       6          --         --

The Southern Co. (SO)            25.87   19.57               5.9       11.7     4.3       1.4

Sun Communities (SUI)           37.12   31.56               6.4       16.6     9.8       3.3

Telefonos de Mexico (TMX)  32.62   28.22               2.9       8.9       23        18

Trans Canada Pipe (TRP)       12.97   9.56                 4.4       12.7     --         --        

Average Yield                                                            4.5%

Average Dividend Growth (Last 5 Yrs)                                                       7%

Notes

 1. In current market conditions, it is extremely difficult to foresee earnings and dividend growth, and there might not be any. However, HNZ has increased its dividend every year for 34 years, and a higher dividend looks to be almost certain some time soon from TRP, which cut their dividend a few years ago when financial difficulties arose from mismanagement. These problems are now in the past.

2. All of the above companies have charts ranging from excellent (SO and SUI) to acceptable (HNZ), suggesting a reasonable probability of upward price continuation.

3. It can readily be seen that income-bearing stocks have generally performed strongly since the secondary high for the general market in September 2000. This trend is likely to continue, but of course it might not, in the event perhaps of acceleration in inflation. The average gain on this list since 9/11/00 is 15 percent. In this time the S&P 500 index declined by 30 percent.

4. Regardless of the merits of these or any other stocks, keep a substantial cash cushion in these uncertain times.

5. The Rule of 72. Remember that 72 divided by any number tells you how long it takes to double your money. Thus a growth rate of 7 percent doubles your money in 10 years.

6. Note that inflation, currently at about 3 percent, reduces the real rate of return below the nominal or apparent rate of return. At 3 percent, purchasing power is halved in 24 years. Therefore, bonds may well not be a satisfactory long-term investment, and they may not be good for the short term either, given the incredible force-feeding of the money supply in recent weeks. 

Home | About Us | Products & Services | Market Timing | Track Record | News Letters | Order/Subscription | Contact Us

Disclaimer: Buying and selling stocks and commodity futures involve a high degree of financial risk.
Anyone or anything recommended on this website or any recommendation contained in a publication authored by us does not guarantee
success in the financial markets. Furthermore, we at Stockscom and its sister publication Fivestar Futures are not finance industry brokers.

© Copyright Stockscom. All rights reserved 2001. Privacy Policy
Terms & Conditions. Site designed by Leegraphics