Thursday, September 17, 2015

ASK THE READERS - Should I buy TD, EMR, or RDS.B?

We started this series back in November of 2014 as a way to add some fun to our buying process. We plan to continue doing these Ask the Reader post once a month (except when funds are limited) and will be maintaining the stocks purchased in a separate portfolio just to see how they perform. 

For each ASK THE READER post, we will select 3-4 current stocks on our watch list that we feel are worth buying.  But to add some fun into our buying process, we have decided to put our faith in our fellow bloggers and readers once a month. 

The stocks we have chosen this month are stocks that are currently at the top of our watch list and thus stocks we would be comfortable buying regardless of the outcome.  But we thought it would be fun to get our readers input and see if collectively, we can all beat the market with this interactive portfolio. :) 

Below is a chart below of our ASK THE READER purchases to date: 

So far, this account hasn't really done too well.  Mainly due to the fall of energy and oil stocks.  But it's OK, we are long term investors and have confidence that the so-called losers here will eventually see a turn around.  We've been investing long enough to know that there are cycles in everything.  Although it may take longer than we may like, we remain confident that many of these will eventually rebound.  Meanwhile, we'll just sit back and collect the dividends. :) 

Please help us get this account in the green by spending a few minutes to vote for ONE stock from the companies listed below.  Tell us why you like the stock that you picked. 

Thanks in advance for your STOCK PICK!

STOCK #1 - Toronto Donimion Bank (TD)
  • Sector: Financials
  • Market Cap: 74.5 Billion
  • Dividend Yield: 3.81
  • Consecutive years of dividend increase: 4 Years
  • Paying Dividends Since: 1857 (158 years)
  • Payout Ratio: 47.0%
  • P/E Ratio: 12.67

STOCK #2 - Emerson Electric (EMR)
  • Sector: Industrials
  • Market Cap: 30.9 Billion
  • Dividend Yield: 4.01% 
  • Consecutive years of dividend increase: 58 Years
  • Paying Dividends Since: 1947 (68 years)
  • Payout Ratio: 51.2%
  • P/E Ratio: 13.05
STOCK #3 - Royal Dutch Shell (RDS.B)
  • Sector: Energy
  • Market Cap: 62.9 Billion
  • Dividend Yield: 7.24% 
  • Consecutive years of dividend increase: 3 Years
  • Paying Dividends Since: 2005 (10 years)
  • Payout Ratio: 88.59%
  • P/E Ratio: 10.83

For this months ASK THE READERS selection, we selected 3 companies. All of which are already in our family's dividend stock portfolio.  Although we track these purchases separately, the stock we buy will still ultimately lower our cost basis


Thank you in advance!!


  1. EMR for me. I admit I don't know as much about Canadian banks as I should and I get the feeling oil is going to take a while to recover.

    1. Going with what you know best is always a good policy Adam. Your not the only one who has decided to stay away from oil. Based on the response we got here, it appears that oil has certainly lost its luster. It will bounce back but may take some time and there are other sectors that could provide more immediate returns.

      Thanks for voting. AFFJ

  2. Interesting selections:
    Canadian Banks
    TD Annualized Return: 15.07% (Jan 1995 - present) very good
    NA Annualized Return: 15.15% (Jan 1995 - present) best
    EMR Annualized Return: 8.14% (Jan 1995 - present) poor
    EMR has had difficulty since 2008 to recover or increase earnings
    OIL & GAS
    RDS.B has varied returns depending on year one makes purchase due to boom and bust cycles of oil
    SU may be a better one to look at, considerable cash, low production costs
    btw I am long NA, SU and have sold EMR (2014)

    1. I'll be completely honest, I've not heard of either NA or SU until you had mentioned them here. At the very least, your comment has at least made me want to look into them.

      Thank you for your suggestions. AFFJ

  3. Well I'm a fan of TD and EMR but if you want me to pick just one, I'll go with TD. No secret I like all the large Canadian banks with TD, BNS and RY in my ROTH.

    1. TD is a great company to own with its long history of dividends and certainly a great value at current prices. We own a few shares already and wouldn't mind adding to them had the votes come out that way.

      Thank you for stopping by and leaving us with your vote. AFFJ

  4. AFFJ,

    Huge fan of EMR -- an aristocrat that is open for the taking! Just bought 25 more shares myself.


    Maybe I am biased? haha I do own Shell though.

    1. I did notice your recent buy post and had a feeling that had you left a vote it would be for EMR. :)

      Biased or not, it is clear that EMR is a popular choice among the DGI community.

      Thanks for your choice Lanny! AFFJ

  5. I like all three stocks, but if I had to buy one it would be EMR. I am deep in oil stocks now so buying a company out of the energy sector would be nice.

    1. Thanks Investing Hunting. Not a bad idea to make sure the portfolio is well diversified. If you are already heavy on oil, branching out into another sector is a smart choice.

      Thanks for leaving us with your vote. AFFH

  6. Thanks again to everyone who voted...the final tally is: TD - 1; EMR - 3; and RDS.B - 0. Reflecting the reader choice, we made a buy this morning...stay tuned for our upcoming post on the details. AFFJ